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414924
GENERAL INDEX
TO THE
NINTH VOLUME (OR FOURTH VOLUME— NEW SERIES)
or THE
Batikers’Jflagajine anil StatistttallUgishr,
JULY, 1854, TO JUNE, 1855, BOT£ INCLUSIVE.
“T ”P7 * Pr,,,nl «“ *» “PP'W by U>« publisher ; priw, m number^ *J, or mb.Untl.ll,
*7“ ’ * i t ,?***“ °Dmb"* 'rl11 h* *"PWW for the completion of .ubmribor.’ yoKuum. Bound rolume. will
.iclunsed for the number.. All order, to be .ddrcued by mail, to J. Smith llommu, 161 Pe»,| .treet, New. York
Alabama, finances and debt of, 817.
interest and usury laws of, 644.
banks and bankers in, ID, 651, 1006.
Alexander J. II., remarks on interna-
tional coinage.
Alphabetical list of cashiers in the United
States, 133.
Altered bank-notes, remarks, 356, 685.
American colonieS| circulation and early
mints in, *i 81.
Anthracite coal trade of Penn., 473.
Annual report of the N. Y. Bank Depart-
ment, 712.
— on counterfeiting, 705.
of the U. S. Mint, 900, 917.
of the U. S. Treasury, 793.
Annuities, origin of British government,
568.
1“ long, dead weight, and life, 669.
April, 1864, financial events ofj 502,
680.
Architecture of banking-houses in New-
York, 582.
Arkansas, interest and usury laws, 645.
repudiation of State bonds in, 488.
Assay office in New- York, 288, 507,
in Sau Francisco, 220. [917,
law to establish, 291.
Assay Office, official notice of opening ofj
* . . . 379.
Association of banks for suppression of
counterfeiting, 705.
officers of; 711.
August, 1864, financial events 605, 682.
Astor, John Jacob, notice of, 787.
Australia, banks and banking in, 65.
coinage and mines of, 225.
proposed railroads in, 735.
remarks on the geography o$ 484.
results of shipments to, 73.
Austria, coinage of six years, 63.
finances and funds, 601, 673, 809.
Bakes, H. F ., notes on banking in U. S., 1.
Baltimore, banks and bankers in, 19,
. , „ 133, 656, 1002.
“ — " board of trade on usury laws, 488.
Bank, architecture in Now-York, 582.
capital of towns and cities, 660.
checks, fraudulent alteration o t,
. 169, 170.
department of N. Y., 712, 915.
deposits, how affected by death of
, depositor, 272.
dividends in Boston, 395, 861.
dividends in New-York, 157, 741.
Original from
UNIVERSITY OF CHICAGO
iy
General Index.
Digitized by
Bank dividends in Phila., 236, 974.
failures, iu 1864-*5, 400, 506,
frauds, suggestions to prevent, 732,
896.
history, sketches of, 697, 871, 921.
V items, 74, 155, 234, 316, 400, 490,
/ 673, 657, 740, 819, 913, 989.
note-engraving, remarks on, 356,
— improvements in, 368. [635.
note paper, manufacture of 384,
658, 693.
notes, fraudulent circulation, 856,
888.
notes, forged, when cannot be re-
covered, 170.
notes, genuine, with forged sig-
natures, 171.
notes, insolvency, 273.
Mr. Benton’s proposal to tax, 816.
note, redemption by Suffolk Bank,
864.
notes, photography applied to, 738,
812.
notes, stolen, the law, 402, 806, 888.
notes, under ten dollars prohibited,
339, 487.
of Albany, history of the, 697.
of Charleston, annual report of 214.
of exchange, remarks on, 113.
of Mutual Redemption in Boston,
969.
Bank of England, banking department
bullion department of 48. [of 41.
charter, examination of, 695.
checks receivable for customs.
dividends of 1697-1854, 613.
election of directors, 231.
history and statistics of 610, 670.
non-liability of; for stolen notes,
806, 888.
note system, change in, 346, 382,
forgery of; 694. [686.
issue department of, 40.
operations of the, 1845—54, 39, 258,
346, 382, 670.
quarterly averages of circulation,
deposits, and bullion, 1840-1853,
612.
rate of discount, 232, 311, 980, 992.
Bank of France, advance in rate of dis-
count, 502.
statistics of, 143, 809, 885, 979.
Bank of Frankfort, 0. M., 309.
officers, deaths of 160, 240, 320,
408, 496, 576, 744, 832, 920.
provision for retired, 153.
supposed losses by, 660.
of the Commonwealth, ( engraving ,)
592.
Bank of the Republic, {engraving,) 593.
tax on, decisions, 87.
Banks, failures of 35, 493, 508, 716.
frauds and forgeries on, 155, 176,
313, 406, 490, 573, 657-660, 820.
in London, annual reports of 310.
in the U. S., 646, 792, 1000.
Treasuiy report on, 793.
cashiers of 133.
liability of for stolen notes, 806,
savings, 25, 58, 864. [888.
Bankers, death of noted, 233.
• failures of 154, 160, 231, 504, 505,
507, 608, 661, 742.
frauds on, 177, 507, 732, 896.
— in Europe, Asia, etc., 17.
private in U. S., 19!
Banking and banking statistics of
Maine, 75, 401, 646, 863, 967, 993.
New-Hampshire, 646, 969, 994.
Vermont, 74, 674, 648, 737, 998.
Massachusetts, 1, 35, 77, 89, 160,
234, 395, 401, 405, 649, 862, 864,
969, 995.
Rhode -Island, 153, 649, 821, 871.
973, 9971
Connecticut, 51, 58, 156, 337, 650,
997.
New-York State, 235, 646, 712, 868*
961, 1000.
City, 160, 393, 496, 501, 653,
664, 1002.
New-Jersey, 133, 652, 722, 724, 798,
970, 1004.
Pennsylvania, 133. 487, 651, 720, 724,
Delaware, 649. [814, 821, 974, 1003.
Maryland, 646, 656, 1003.
District of Columbia, 651, 1002.
Virginia, 217, 236, 650, 1005.
North-Carolina, 650, 822, 1004.
South-Carol ina, 214, 651, 1005.
Georgia, 338, 648, 1009.
Alabama, 651, 1006.
Illinois, 11, 102, 111, 449, 462, 466,
* 651, 1008.
Indiana, 8, 96, 154, 304, 652, 1008.
Kentucky, 15, 651, 795, 974, 1006.
Louisiana, 381, 648, 1004.
Michigan, 651, 1006.
Missouri, 133, 652, 720, 822, 1007.
Mississippi, 651, 1007.
Ohio, 3, 339, 648, 1007.
Tennessee, 650, 1006.
Texas, 946, 1001.
Wisconsin, 286, 317, 575, 646, 799,
Australia, 65. [1008.
Canada, 652.
France, 143.
Great Britain, 310.
A
Gck igle
Original from
UNIVERSITY OF CHICAGO
General Index .
Banking laws of Connecticut, 337.
m> of Illinois, 102.
of Indiana, 96, 937.
of Georgia, 338.
of Maine, 968.
of New-Hainpshire, 969.
of Ohio, 339.
of Wisconsin, 833.
Banking history, (sketches of)
Bank of Albany, 697.
Bank of Chenango, 868.
Mechanics’ Bank, N. Y., 701.
Ontario Bank, N. Y., 921.
Pawtucket Bank, Mass., 704.
Providence Bank, 871.
Baring Brothers, loan to Russia, 605.
Bills of exchange and promissoiy notes,
accommodation, 163, 169.
as collaterals for advances, 165.
altered, 171.
at sight, the law 0$ 529, 980.
damages on, 172, 529.
drawn on consigned goods, insolvency,
discount of; by a broker, 167. [167.
failure of notice, 163, 345.
failure of consideration, 163, 164, 166,
174, 175.
forged acceptance, 166, 986.
forged and paid, when cannot be re-
covered, 168.
forged indorsement, 174.
fraudulent, 162, 166, 167, 168, 910.
forged, paid supra-protest, recovery, 171.
liability of brokers in negotiation, 188.
lost, fraud, 169.
proof of acceptance, 166.
paid by mistake, entitled to recovery,
protest, usage, 175, 271, 813. [167.
stolen, 162, 163, 168, 172.
— when recoverable, 169.
on the origin of; 781.
the American law o( 170, 529.
the English law ofj 163, 253, 293, 398,
736.
Body corporate, eulogy on a, 921.
Bonds and mortgages as a basis of circu-
lation, 713.
Boston, bank shares, quotations of, 149,
229, 307, 396, 483, 572, 730, 829.
bank statistics, 240, 405, 655, 664,
862, 994.
board of trade on the usury laws,
811.
bank dividends ofj 895, 861.
early banking customs in, 737.
export of specie from, each month
1854, 663.
Bowery Savings Bank, New-York, (en-
graving,) 697.
Brazil, production of gold and sn .
quotation of public funds of, 673.*
British Numismatic Society, proceedings
of the, 926.
Broadway Bank, New-York, ( engraved
view,) 587.
Brokers, liability in negotiating fraudu-
lent bills, 188.
Brown, W.f (of Liverpool,) remarks on
decimal coinage, 189.
Brougham, (Lord,) remarks on currency
and bills of exchange, 264-
Bulls and bears of the stock market.
What are they? 618.
Burglar-proof iron safe, manufacture, 23$.
Calcutta, coinage of; 64.
California, coinage of, 220, 379? 563.
gold product ofj 563, 928.
financial revulsion in, 826, 9&J..
public debt and finances of, 206,
257, 760.
payment of State interest, by Dun-
can, Sherman & Co., 206.
Campbell, (Lord,) remarks on bills of ex-
change as a currency, 265.
Canada, banks of, 652.
commercial prospects of; 370, 489.
Capital and labor, (Ed. Review,) 279.
and savings, (Ed. Review,) 281.
jealousy of, 279.
waste of, 283.
bank of cities, towns, and States,
Cashysrs, alphabetical list of; 133. [646.
Certificates of deposit, fraudulent, 173.
Certified checks, the law of; 489.
Chabral, M., on gold and silver, 667.
Chemical Bank, fraud on, 313.
Chevalier, (Michel,) remarks on gold and
silver, 477.
Chicago A Rock-Island Railroad, remarks
on, 126.
Chili, production of gold and silver in,
China, specie currency of, 378. [478.
the opium trade of, 787.
Cincinnati, public debt of, 70.
Cities, banks and bank capital ofj 646.
public debt ofj 70, 257.
City stocks, quotations of, 149, 229, 307,
397, 573, 731, 829, 909, 990.
Cleveland & Toledo R.R., remarks, 121.
Coal, miners and shippers of, 474.
— trade of United States, 1820-60,
467, 473, 818.
prices of for fifteen years, 472.
Cochituate Bank, failure of, 35, 403, 857.
Coinage, from sunken treasure, 375.
standard of the, in Europe, 299.
suggestions for improvement in, 900.
Digitized by
Gck -gle
Original from
UNIVERSITY OF CHICAGO
General Index.
Digitized by
*au coinage of United States, 63,
146, 220, 374, 376, 562, 668, 900,
916, 927.
Annual report on, 900, 927.
of Austria, 63.
of Bombay, 64.
of Calcutta, 64.
of Canton, 225.
of France. 63, 476, 604.
of Great Britain, 63, 299, 475.
of Madras, 64.
of Prussia, 63.
— of Spain, 63.
of the world, 63.
Coins, ancient, discovered, 926.
counterfeit, extraordinary, 147,
historical survey of changes in, 772.
foreign, value of, 376, 901.
old, sale of, 147.
relative value of, 297.
Commercial distress, on the causes of,
367.
Community of property, (Ed. Rev .,) 279.
Connecticut, banks and banking in, 19,
finances of, 490. [51, 650, 997.
interest and usury laws of, 534.
new banking law of, 337.
Consols, fluctuations of, 495, 561, 617,
history of, 567, 783. [673.
Cornwall and Devon, mineral wealth of,
733.
County bonds, quotations ofj 66, 148,
227, 807, 397, 573, 731, 829,
validity of, 813. [90,9, 990.
Cotton, imports, exports, values of, 1850-
’54, 678, 917.
statistics of, 62, 509, 577.
stocks of, on hand, 581.
trade of the U. S., 62, 579.
Counterfeit bank-plates, suggestions to
prevent, 732.
bank bills, singular case of, 740.
— photography applied to, 738, 812.
coins, remarks on, 565.
Counterfeiting, on the prevention of) 356,
685, 705.
Damages on bills of exchange in each
State, 629-558.
December, financial events 0$ 508, 679,
684.
Decimal coinage, in France, 191.
in Great Britain, 151, 297.
in Russia, 191.
remarks, by W. Brown, 189, 297.
Delaware, interest and usury laws of
list of banks in, 649, 1001. [538.
Diamonds, discovery of, in Virginia, 44.
Directors, loans to. What are they? 801.
District of Columbia, banks in, 651, 1002.
Drygoods, importation of, at New- York,
300.
' East India Co. bonds, origin of 570.
| stocks, origin of, 570.
Economist, (London,) extracts from, 59,
63, 143, 230, 8S5.
Edinburgh Review on Jealousy of Capital,
279; Poverty r.i. Wealth, 280; Capital
and Savings, 281 ; Annual savings of
the laboring classes, 281 ; Utility of
savings banks, 282; Community of
property, 282 ; Redress for the evils of
property, 283; Waste of capital, 283;
the working classes, 284 ; The future,
285 ; The future of the U. S., 485.
Ellis «fc Morton vs. Ohio Life A. Trust Co.,
case of. 177
Eulogy on a body corporate, 921.
Europe, coinage of 63.
early rates of interest in, 251.
finances of, 150, 335, 448, 601, 729.
exports of cotton to, 678,
money market of, 500, 559, 669, 981 .
— private bankers in, 17.
gold and silver in, 479, 667.
recent failures in, 251.
standard of the coinage in, 299.
European governments. Finances of
Austria, 601; France, 150, 602, 726;
Great Britain; Russia, 232, 262, 605;
Spain, 150, 448; Portugal, 735; Tur-
key, 335, 6o6, 981.
Exchange on London, rates of 149, 229,
306,
Exchequer bonds in London, new, 309,
311.
Failures of banks, 35, 400, 403.
of private bankers, 154, 160, 231
504, 505, 507, 661, 742.
February, 1855, financial events in. 502,
Finances of cities, 70, 257, 305. [G79.
Cincinnati, 70; Sacramento, 257 ; Phil-
adelphia, 305.
Financial effect of tlio war, 312.
review" of the year 1854, 500, 669.
Finances of States. Arkansas, 488 ; Cali-
fornia, 206.
of European States. Austria, 601 ;
France, 150; Portugal, 735; Russia,
232, 262; Spain, 150, 448; Turkey,
335.
Florida, interest and usury laws of, 546.
Foreign bills of Exchange, tax on, 293,
39S, 486.
coins, value of} 376, 901.
loans in Great Britain, fluctuations
of, 685, 733.
Gck igle
Original from
UNIVERSITY OF CHICA J
General Index.
vii
Foreign miscellaneous items, 150, 230,
309, 396, 484* 809, 979.
Forms of notice of protest, 34.
France, bank of 143, 809, 885.
bill-brokers in, 202.
billetts de banquo, 200.
coinage of, G3, 604.
debt and credit in, 197.
early bankers in, 251.
failures in, 231.
exports of cotton to, 1860-*54, 579.
imprisonment for debt in, 203.
— new loan of! 1855, 726.
proposed reduction of tariff in, 312.
revenue and expenditure ofj 1840-
’50, 603.
standard of gold and silver in, 47 6.
statistics of suicide in, 805.
the vintage of, 810.
Frauds on bankers, 161, 169, 170, 177,
732, 896.
on N. T. <fc New-Haven B.R, Co.,
385, 414.
on railroad companies, suggestions
for the prevention of, 81, 315, 343.
Free banking in Connecticut, 748.
in Mississippi, 441.
in New-Jersey, 723, 749, 970.
in Tennessee, 750.
in Vermont, 748.
^ law of Illinois, 449, 462, 750.
law of Indiana, 66, 751, 825.
law of Wisconsin, 753, 833, 985.
remarks on, 745.
Gardiner claim, for Mexican indemnity,
813.
Georgia, new banking law of 338.
banks and bankers in, 19, 133, 648,
1009.
interest and usury Iawb ofj 543.
Germany, standard of gold and silver in,
476.
Gibson, financial services of, 921.
Gold and silver coins, relative value o£
297.
consumption of, in the arts, 667.
in France, 63, 476, 604.
coinage of! 63, 374, 900, 927.
— the relative values of, (miehelsm,)
475.
the relative cost of production, 481.
Gold, process of conversion into coin, 361.
remarks on, by M. Chambral, 667.
robbery of, on shipboard, 815.
shipments of; to Europe, 319, 405,
564.
Gouge, W. M., report on Sub-Treasury,
625.
Grain trade of Great Britain, 1854, 674.
Great Britain, coinage of; 63, 299, 475.
decimal coinage in, 151, 189.
decline of speculation in, 309.
early bankers in, 251. a
early rates of interest in, 251.
exports of cotton to, 579.
financial retrospect of 1854, 669.
fluctuations in consols o£ 495, 561,
617, 673.
foreign bills of exchange in, 293, 485.
gold and silver consumed in, 666.
gold exports of, 376, 378.
grain trade of, 1854, 674.
imports, consumption and prices of
wheat, sugar, tea, coffee, tobacco,
wine, malt, spirits, 1801-50, 514,
516, 735.
imports and consumption of cotton,
silks, and woollens, 518.
iron trade of; 256, 270, 471, 494.
imperial parliaments of; 519.
law of bills of exchange in, 162, 253.
manufactures ofj 69, 675, 980.
ministers of the crown 0$ 1801-50,
620.
marriages, births, deaths in, 1801-50,
513.
national debt of; 1860-54, 525, 784.
manufacturing districts of; 675.
new stamp duties of, 295, 398.
new loans of, 604, 950.
production of silver in, 565.
public funds of, described, 667.
railroads in, 310, 673.
reciprocity treaty with, 370.
repeal of the usury laws in, 152. 334,
shipping trade of, 1854, 677. [807.
standard of the coinage in, 800-1789,
299, 475.
stock and money market of; 69, 69,
textile manufactures of, 518. [232.
treaties of, with foreign powers,
1801-54, 622.
vital statistics of; 513.
Hamburgh, standard of gold and silver
in, 476.
Hemp, advanced prices of, 72.
Historical survey of the origin and
changes in money, coins, values,
etc., by J. Eadio, 772.
Holland, standard of gold and silver in,
476, 784.
Illinois, banks and bankers in, 11, 19,
133, 651, 1008.
— bank commissioners’ report, 102.
— — free banking law of, 449, 462.
Digitized by
Gck igle
Original from
UNIVERSITY OF CHICAGO
Vlll
General Index 4
Illinois, interest and usury laws of) 547. :
India, rate of interest in, 324 b.c., 250.
Indiana, banks and banking in, 8, 19,
96, 133, 154, 304, 343, 652, 659,
825, 1008.
Interest and usury law of) 548.
— remarks on free banking in, 96.
report on public debt of, 98, 758,
Insolvent banks, losses by, 746. [765.
Interest and usury laws, law of damages
on bills in each State of the Union,
529-558.
fluctuations in, fifty years, 613.
on the prevailing rate of, 671.
Iowa, bankers in, 19.
finances of, 754.
interest and usury laws of) 549.
Iron, importations of) into the United
States, 471, 494.
proposed reduction of duty on, 743.
supply of, 315, 471.
trade of, important, 256, 270.
trade of Great Britain, 256, 270,
471, 494.
value of) in bank architecture, 584.
Jacob W., estimate of gold and silver in
the world, 667.
January, 1854, financial events of, 501,
679.
Johnson, A. B., eulogy on a body cor-
porate, 921.
remarks on New-York banking
system, 961.
Joint stock banks in London, 310.
admitted to clearing-house, 486.
increasing business of, 671.
July, 1854, financial events of, 503, 682.
June, 1854, financial events of) 503, 681.
Kentucky, banks and banking in, 15, 19,
133, 651, 961, 1006.
interest and usury laws of) 550.
reduced circulation of) 664.
Labor advanced rates for wages, 676.
Legal miscellany.
accommodation bills of exchange, 163.
agency, liability of banks, 272, 344.
bank-notes, redemption, 277.
bank-notes, insolvency, 273.
bank-notes, stolen, 162, 806, 888.
bank checks, fraudulent alteration,
169, 170.
bank checks, forged, 176.
bank checks, lost — want of caution,
bank bills, forged, 170, 174. [168.
bank bills, genuine, signatures forged.
170.
Legal Miscellany,
bank deposits, set off) 275, 346.
Bank tax in Maryland, 489.
Bills of exchange, altered, 171.
as collaterals, 165.
— defective notice, 345, 347.
forged and paid— non-recovery,
damages on, 172, 629. [171.
forged indorsement, 174.
lost, 168, 169.
— forged acceptance, 166.
failure of consideration, 164, 166,
fraudulent, 161. [174, 176.
stolen, 1G2, 163, 168, 172.
proof of acceptance, 166.
signature of firm, 166.
paid by mistake, 161.
Certificate of deposit — fraud, 173.
Checks on bankers — fraud,
Certified checks — recovery, 489.
Checks in blank, 162.
Circulation of small bills, 487.
— of foreign bank bills, 346.
Consigned goods — insolvency, 167.
County subscriptions — validity, 813.
Competency of stockholders’ evidence,
345.
Liability of banks for stolen bills, 162,
800, 808.
Mortgage — insolvency, 346.
Notice of protest — defective, 345, 347.
Notice of protest — usage, 175, 344,
Ohio bank-tax law, 489. [345.
Promissory notes — agency, 348.
Statute of limitations, 274.
Sub-Treasury deposit at Columbus,
Time contracts for stock, 985. [487.
Trust funds, 348.
Legal opinions, by C. P. Kirkland, W.
W. Boardman, W. Curtis Noyes,
Judge Bronson, Charles O’Conor, and
Daniel Lord, on the N. Y. & New-
Haven Railroad frauds, 385, 414.
Liability of banks for stolen notes, 806,
888.
for fraudulent checks paid, 176,
— for forged bills, 170. [177.
Life insurance, accumulative policies of)
annual returns of, 970. [621.
cases in, 898, 978.
inquiry into, 91.
principles of) 619.
London and Westminster Bank, 670, 725.
clearing-house, change in, 486.
— Economist, 59, 63, 230.
— custom-house, change in payment
to, 484.
fire companies, taxes paid by, 68.
— joint-stock banks, 310, 671, 726.
Digitized by Google
Original from
UNIVERSITY OF CHICAGO
General Index .
London, money market of; 59, 68, 232,
685.
new stock exchange of; 380, 614.
negotiation of foreign hinds in, 671,
685.
rate of exchange on, 79, 158, 238,
318, 404, 493, 576, 660, 742, 830,
917, 990.
— ■ Society of Arts, on bank-note paper,
685.
ITmes, extracts from, 312, 726.
Lost and stolen bills, the law of; 402,
806, 888, 162, 163, 168, 169, 172.
Louisiana, banks and bankers in, 19,
648, 1004.
interest and usury laws of; 551,
912.
— public debt and finances of; 759.
Maine, banks and banking in, 646, 863,
993.
interest and usury laws of; 529.
March, 1854. financial events of, 502, 680.
Maryland, banks and banking in, 20,
133, 646, 656, 1003.
coal trade of, 470.
— interest and usury laws of; 539, 890.
repeal of the usury laws in, 488.
Massachusetts, banks and banking in, 1,
89, 133, 649, 743, 995.
— bank commissioners* report, 848.
interest and usury laws of, 532.
new banks established in, 849.
— country banks of, 862.
May, 1854, financial events in, 502, 680.
Mechanics ’ Bank, New- York, history of;
701.
Medals, (national,) of the United States,
933.
proj4t of a new law for, 936.
McCulloch, J. R., remarks on coinage,
30°.
Mercantile Bank, New-York, (engraving
of;) 586.
Merchants1 Exchange, New-York, (en-
graving of,) 600.
Metropolitan Bank, New-York, sketch
of, 594.
Mexico, production of gold and silver in,
478.
— — treaty with the United States, 503.
Michelsen, Dr., historical survey of the
relative values of gold and silver,
and their influence upon prices, 475.
Michigan, banks and banking in, 19, 133,
651, 660, 1006.
interest and usury laws of; 552.
public debt and finances of; 768.
* Southern Railroad, remarks on, 724.
Mineral resources of Cornwall and De-
\ von, 733.
of Southern States, 72.
Mint, United States, 63, 146. 158, 220,
227, 374, 900, 927.
account of medals in, 933. L
annual report of; 900, 927.
coining department, described, 363.
deposits of gold and silver in, 374,
377, 936.
operations of branches of, 220, 930.
premium paid by, on silver, 158.
— Professor Wilson’s report on, 359.
— — proj4t of a new law for, 936.
robbery of, 227.
Canton, 225.
Prance, 63, 476, 604.
Great Britain, 63, 299, 475.
Miscellaneous items, 70, 153, 232, 313,
486, 737, 811, 910, 1000.
foreign, 150, 230, 309, 396, 484,
733, 809, 983.
Mississippi, banks and banking in, 20,
133, 651, 1007.
interest and usury laws of, 553.
Missouri, banks and banking in, 19, 133,
652, 721, 1007.
finances and debt of, 739, 919.
interest and usury laws of, 554,
816, 822.
Money, depreciation of continental, 782.
historical survey of changes in, 772.
market, notes on, 79, 158, 238, 318,
404, 493, 676, 660, 742, 830, 917,
of Great Britain, 59, 68, 232. [992.
of Europe, 639, 312, 500, 669.
how affected by railroad frauds,
343, 504.
Mutual Life Insurance Company, of New-
York, plan of; 619.
Nassau Bank, N. Y., described, 588.
New-Granada, gold and silver in, 478,
566.
New-Hampshire, banks and banking in,
646, 994.
interest and usury laws of; 631.
new banking laws of; 205.
New-Jersey, banks and banking in, 19,
133, 652, 658, 722, 1004.
interest and usury laws of, 636, 986.
operation of free banking in, 749.
New Ixmns of the years 1854-1855.
Baltimore k 0. R.R. loan, 602,
British government loans, 504, 950.
French government loan, 726.
New-York k Erie R.R. loan, 502, 607.
New-York k Harlem R.R. loan, 503,
920.
Digitized by
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Original from
UNIVERSITY OF CHICAGO
X
Qmeral Index .
Digitized by
New Loans of the years 1854-1855.
New-York State six per cent loans,
319, 503, 505, 812.
North-Carolina State loans, 502, 508,
Panama R.R. loan, 501. [919.
Now- York & Erie Railroad loan, 502.
and Ilarlem R.R. loan, 503.
and New-Haven R.R. frauds, 385,
414, 504, 987.
bank department, report of, 712,
915.
bank statistics of, 237, 510, 573,
646, 719, 868, 1002.
bank charters expiring, 573, 719,
868.
banking system, 349, 510, 712, 801,
990.
banks closing business, 308, 714,
820.
bank capital in towns and cities,
646, 999.
clearing-house, statistics of, 413,
496-501.
Custom-House, (engraving,) 599.
Chamber of Commerce, report, 244,
326.
export of gold, 319, 564, 739.
free banks, legal powers of, 355.
free banking system, remarks on,
961.
fluctuations in cotton market of, 580.
industrial exhibition, report on, 359.
importations of dry goods, 301.
interest and usury laws of, 635,
244, 326, 873.
Life Insurance & Trust Co., 322.
life insurance companies, 619, 980,
State loan, bids for, 319, 503, 505,
812.
State Senate report on usury law,
873.
savings banks, 25, 863, 868.
trust companies of, 321.
New-York City, banks and brokers in,
23, 133, 1002.
bank dividends of, 157, 741.
bank statistics of; 160, 393, 496,
501, 653, 664, 743, 800.
— — bank architecture of, 682.
bank shares in, 823, 916.
assay office in, 288.
savings banks in, 25, 864
stock market of, 66, 148, 159, 229,
307, 397, 573, 731, 829, 909, 99L.
North- American Trust & Banking Co.,
349.
North-Carolina, banks and banking in,
650, 822, 1004.
interest and usury laws o£ 541.
North-Carolina, public loans and finances,
602, 508, 762, 817.
new railroads in, 817.
Notes on the money market, 79, 158,
238, 318, 404* 493, 576, 660, 742,
S30, 917, 991.
Notice of protest, the law' of, 163, 175,
271, 813, 345, 347.
form of, 34.
November, financial events of, 60S, 678,
083.
October, 1854, financial events of, 507,
683.
Ohio, banks and banking in, 3, 19, 133,
339, 648, 1007.
bank tax law of, 489.
— and Mississippi R.R. Co., 118, 447.
finances of, 316, 660.
interest and usury laws of 555.
Life & Trust Co. vs. Ellis k Morton,
177.
Life k Trust Co., case of the, 87.
new bank law of, 339.
hypothecated bonds of, 6C0.
small note law of, 341.
Ontario Bank, N. Y., history of, 921.
Panama Railroad Co., loam of, 501^
-Peabody k Co., Goo., house of, 734.
Pennsylvania, banks and banking in, 19, '
133, 651, 655, 720, 724, 821, 912,
— — coal mines of; 818. [990, 1003.
finances and debt of, 720, 755.
interest and usury law's of, 637, 808.
historical society of, 931.
usury lawr decisions, 808.
Perfumery, annual expenditure in, 132.
Perkins, B., (engraver,) notice of, 382.
Peru, production of gold and silver in,
478.
^Persia, gold, silver, and coinage of, 475.
^Philadelphia, banks and bankers, 19,
133, 655, 974, 1003.
H^ftotography applied to bank-notes, 738,
Pittsburgh, city debt of, 815. [812.
Portugal, finances of, 735.
standard of gold and silver in, 476.
Poverty, redress for the evils of, (Ed.
Review,) 283.
— versus w'ealth, (Ed. Review,) 280,
Prices, fluctuations in, 786, 790.
Prussia, coinage of, 63.
standard of gold and silver, 476.
Public debt of cities, 70, 130, 815.
— funds of Great Britain, origin of.
annuities, 667, 669 ; consols, 567 ;
East-India stock, 570; exchequer
bonds, 671; new’ five per cents,
668 ; unfunded debt, ^7 05.
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UNIVERSITY OF CHICAGO
General Index.
xi
Railboad, Boston k Worcester, 83.
bonds, quotations of; 149, 229, 307,
320, 396, 407, 482, 511, 663.
• companies, frauds on, 81, 315, 343,
385, 414.
iron, proposed repeal of duty on, 70.
- — shares, are they good investments?
12 L
county bonds, validity of; 843.
Railroads in Great Britain, 673.
— in South Australia, 735.
in the west, 118, 447, 606, 815.
Reciprocity treaty with British Provinces,
Repudiation in Arkansas, 488. [370.
Retired bank officers, provision for, 163.
Rhode-Island, banks and banking in, 19,
133, 649, 973, 997.
interest and usury laws ofj 533.
legal decisions and statutes ofJ 533.
Rome, popes of; eager to suppress usury,
251.
rate of interest in early times, 250.
Rothscliild and Ricardo, notices of; 789.
proposal for new English loan, 953,
958.
Russia, financial and commercial statis-
tics of, 232, 262, 605, 810.
production of gold and silver, 476.
— quotations of public funds of; 673.
standard of gold and silver, 476.
trade of; affected by war, 232, 312.
Sacramento, public debt of, 257.
Savings banks, compared with life insur-
ance companies, 621.
— of Boston, 25. 158, 966.
— of Connecticut, 58.
— ofNew-York, 25, 866.
of Scotland, 152.
— - of the laboring classes, 279.
— — their utility, (Ed, Review,) 282.
Schuyler, R, frauds bv, 385, 414, 504.
Scotland, early rate of interest in, 252.
September, financial events, 506, 683.
Shoe k Leather Bank, N. Y., described,
Shipping of the world, 980. [595.
Sight bills, the law of; 271, 529.
Silver, counterfeit coins of, 566.
premium paid on, 158.
production in U. S., ten years, 936.
— production in England, 665.
Small note law of Ohio, remarks on. 340.
South- America, production of gold, 478.
Southern States, mineral resources, 72.
South-Carolina, banks and banking in,
651, 1005.
— interest and usury laws of; 542.
South-Sea stock and annuities, origin, 667.
Spain, coinage of; 63.
Spain, finances of; 150, 448, 780.
standard of gold and silver, 476.
Spanish dollars, value of, 374.
Stamp duties on bills of ex., 293, 736.
State finances, 99, 316, 488.
loans, quotations of, (see stocks, )
St Lawrence River, new bridge of, 771
St. Louis, public debt of, 488.
Stimulants in Great Britain, 50 years, 5 16.
Stock Exchange, London, 614.
Stock Exchange, technical terms oC 618.
Stocks, fluctuations in, 66, 86, 148, 159,
228, 239, 306, 320, 396, 407, 511, „
730, 802, 908, 976.
in Great Britain, 69.
Stockholders, (bank) liabilities of; 737.
Stolen bank-bills, are banks liable ? 806, .
888.
Suffolk Bank, redemption by, 864.
Sub-Treasury, expenses of the, 313, 811.
operations of the, 625.
Suicide, statistics of, 805.
Sunken treasure recovered, 374.
Taxation of Bank Capital, 87, 489.
of foreign bills in England, 293, 485.
in Great Britain, 50 years, 526.
Tennessee, banks in, 19, 133, 650, 1006.
interest and usury laws ofj 556.
Texas, bankers in, 19, 646, 1001.
interest and usury laws of; 557.
public debt of, 763, 911.
Tobacco, arrivals, exports, stocks of, 917.
— duty on, in G. Britain, fifty years,
517.
Tontines, Irish, proposed in 3855, 485.
Trade marks, decision respecting, 71.
Treasury United States, annual report
on banks, 793.
— redemption of U. S. debt, 127, 313.
reports of; 128, 497, 793. *
Trust companies of New- York, 321.
Turkey, revenue and expenditure, 335,
public loans of; 673. [606, 609.
United States, Assay Office, 220, 288,
379, 291.
bank capital of; 646, 792, 993.
coal trade o£ 467.
coinage 0$ 63, 146, 220, 376, 380,
900, 916, 927.
cotton trade of; 62, 609, 677, 917.
bankers in, 19.
■ cashiers in, 133.
— finances of the, 497.
— foreign trade of the, 301.
— gold product of, 479, 936.
— imports, exports of, 601, 512.
iron trade of; 469, 471.
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xii
Banking Decision*.
Digitized by
United States mint, report of; 374, 900,
927.
new bounty land law of; 818.
— new postage law of, 816.
— national medals o? 933.
on tho future of; (Ed. Bev.,) 485.
— — public debt ofj 126, 313, 803, 738.
public lands of, 490.
— — tariff, proposal to reduce, 498.
tonnage, debt, revenue, expendi-
ture, population of; 1789-1854,
494, 512.
Sub-Treasury operations, 813, 625.
Trust Co. of N. Y., 323.
Usury laws, Amer. Quar. Bev. on, 249.
chronological sketch of; 250.
Boston board of trade on, 811.
in Maryland, 488, 890.
in each State, 529-550.
J. R. McCulloch on, 243l
Professor McYickar on, 248.
N. Y. Chamber of Commerce on,
244, 826.
of the old times, 93, 250.
on the repeal of; 152, 241, 442, 807,
882.
State Senate report on, 873.
Venice, rate of interest A.D. 1171, 251.
Vermont, banks of; 133, 648, 998.
Vermont, interest and usury laws of; 531.
Virginia, banks of, 19, 133, 640, 1005.
discovery of diamonds in, 44.
— — interest and usury laws of; 640.
public debt of; 7 69.
Vital statistics of Great Britain, 60 years,
513.
Wall Street, New- York, (views of) 598,
699, 600.
War, effects of, on trade, 232, 412.
Western railroads, remarks on, 118, 447.
drain of capital for, 506.
— quotations of stocks ofj 662.
Wilson, (James,) remarks on life-insur-
ance, 91.
(Professor,) report on the U. S.
Mint, 359.
Wisconsin, banks in, 19, 646, 799, 1008.
— interest and usury laws of, 558.
— — free banking law of, 833, 985.
— public debt and finances of, 766.
Working classes, instruction of the, (Ed.
Bev .,) 284.
World, shipping of the whole, 982.
coinage of the, 63.
Year 1854, financial events of, 500, 681.
— — stock fluctuations of, 511.
Zinc, exhibition of; 231.
BANKING DECISIONS
CONTAINED IN THE CURRENT VOLUME.
Adams vs. Otterback, 175.
*Arbouin vs. Anderson, 163.
♦Backhouse vs. Harrison, 169.
♦Bank of England, Spielmann vs., 806,
888.
Bank of Commerce vs. Union Bank N.Y.,
171.
Bank of St Albans vs. Farmers k Mer-
chants', 170.
Bank of St. Mary’s, St John, Powers k
Co. vs., 273.
Bank pf Rochester, Talbot vsv 173.
Bank of Utica, Cahoon vs., 346.
Bank of U. S., Levy vs., 170.
vs. Bank State of Georgia, 170.
♦Bass vs. Clive, 166.
♦Beckwith vs. Corrall, 163.
♦Bramah vs. Roberts, 166.
Butchers k Drovers’ Bank vs. Farmers
k Mechanics’, 489.
♦Bruce vs. Bruce, 167.
Canal Bank vs. Bank of Albany, 174.
City Bank Columbus, U. S. vs., 487.
N. O. vs. Girard Bank, 172.
Cochituate Bank, State vs., 35, 403.
Commercial Bank, Pa., State vs., 814.
Cone vs. Baldwin, 174.
Cook vs. Litchfield, 347.
♦ vs. Masterman, 168.
♦Crook vs. Jadis, 169.
♦ Those with a * are English cases.
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UNIVERSITY OF CHICAGO
List of Engravings .
xiii
Cruger vs. Jones, 848.
Dewitt vs. Walton, 348.
♦Down vs. Hailing, 168.
Little vs. Draper, 987.
Easton vs. Ellis k Morton, 272.
Ellis k Morton vs. Ohio L. k T. Co., 177.
♦Foster vs. Pearson, 166.
Franklin Bank, 0., vs. Treasurer, 489.
♦Gill vs. Cubitt, 168.
Gloucester Bank vs. Salem Bank, 187.
♦Goodman vs. Harvey, 164.
♦Gurney vs. Womeraley, 188.
♦Hall vs. Fuller, 169.
Herf vs. Shultz, 173.
♦Jenys vs. Fowler, 166.
♦Jones vs. Ryde, 167.
Kobbz vs. E. W. Clark k Co., 345.
Lacxt vs. Cones k Co., 276.
♦Lawson vs. Weston, 169.
♦Lickbarrow vs. Mason, 167.
Marsh vs. Small, 172.
Merchants' Bank, N. Y., vs. Spaulding,
Goddard vs., 171. [346.
Montgomery County Bank vs. Albany
City Bank, 344.
vs. Marsh, 345.
Morrison [vs. BaOey[& Burgess, 271.
North-Aherican Trust k B. Co., Tracy
vs., 349.
North River Bank, N.Y., Weisser vs., 176.
Powell vs. Jones, 173.
♦Price vs. Neal, 166.
Rockwood vs. Brown, 274.
♦Slater vs. West, 163.
♦Smith vs. Mercer, 166.
♦ vs. Chester, 167.
♦Snow vs. Peacock, 182.
Touslet vs. Van Duser, 277.
Union Bane, N. Y, Beckwith vs., 346.
♦Uther vs. Rich,* 164.
Wheeler vs. Gould, 176.
♦Wilkinson vs. Lutwidge, 166.
♦ vs. Johnson, 166.
♦Young vs. Grote, 162.
Law Decisions in the Courts of
Massachusetts, 170, 174, 175, 187, 274.
New-York, 171, 178, 174, 176, 277,
344, 349, 489.
Ohio, 173, 177, 271, 272, 276, 486, 489.
Alabama, 273.
Maryland, 489.
Pennsylvania, 170.
Vermont, 170.
Louisiana, 172.
Supreme Court U. S., 170, 175.
Great Britain, 162.
LIS'! OF ENGRAVINGS
IN THE PRESENT VOLUME OP THE BANKERS’ MAGAZINE,
July, 1854 — June, 1855.
1 Bake of tee Befubuo, Nkw-Yoee, 60S.
IL Bake or tea Commokwkalu, “ 692.
HL Bow cat Satxkoo Bake, “ 597.
IT. Broadway Bake, m 687.
T. Custom House, Wall Stm New- Yoke, 699.
VL Mxeoaktilk Bake, tt 586.
TIL Matbofoutak Bake, “ 694.
TIIL IX. Wall Stbsey, Nkw-Yoee, 698, 600.
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UNIVERSITY OF CHICAGO
Digitized by
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UNIVERSITY OF CHICAGO
%
* v •
/
< i
/
BANKERS’ MAGAZINE,
AND
Statistical Kcgister.
Vou IV. Nkw Series. JULY, 1854. No. I.
BANKING IN THE UNITED STATES.
BY H. F. BAKER, OF CINCINNATI.
In a former No. of this Magazine we made copious extracts from a pamphlet by
Mr. II. F. Baker, of Cincinnati, in reforcnco to the progress of Banking in the several
States. Mr. B. has recently issued the second part of his essay or history of this
subject from which wo propose to make liberal extracts. Those who wish to
pursue the inquiry still further, and to loam the viows generally of Mr. Baker on
this subject, can readily obtain the two pamphlets from the bookseller.
Banking in Massachusetts, Ohio, Indiana, Illinois, and Kentucky.
L Massachusetts.
The early banks established in Massachusetts and New-York were
founded upon the sound principles of the mother country, and for nearly
fifty years no innovations were introduced to impair the public confidence
in their security ; although some modifications in their arrangement
were adopted, corresponding with the progressive liberality of the age,
and the expansive spirit which foreign commerce naturally engenders and
promotes. These banks were few in number, limited in the amounts of
their capitals, and managed by wealthy and discreet stockholders, who
were contented with the legal rate of interest for the use of their money.
Their capitals were not borrowed; but were the contributions of the
1
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Banking in the United States.
[July,
surplus funds of themselves and of their associates, and which were
_4oaned on paper, known to represent the value of solid property, or staple
\V merchandise, required for consumption or export. Every transaction
; W iV itsJis^Lict'limit as well as character, and the entire capitals <>f these
* oabks wereVonVerted into cash five or six times annually. By this
system tlio Uncounted paper of the banks passed through a constant
mutation, and was consequently subject to frequent scrutiny and realiza-
tion. As the wealth of the country increased, the banks were extended
in numbers, localities, and capitals; sometimes commensurate with, but
more frequently in advance of, the exigencies of the community.
While the banks of the Eastern States were of slow growth, and were
founded on the surplus means which commerce and the mechanic arts
had accumulated, and aided by the frugality and thrift of the people, in
the Western States it appears to have been the unfortunate and ill-
judged policy to establish banks on paper security, without exacting the
indispensable requisition of bona-jide cash capital paid up in coin. The
consequence was, that after a brief existence, most of them failed ; and
the dreary catalogue of these defunct institutions furnishes the most
complete illustration of the folly of establishing banks without a specie
capital. The great principle, that bank-note paper must be convertible
into specie, or it is nearly worthless, was wholly lost sight of; and
although the corporators were possessed of broad lands, fields of corn and
grain, cattle, swine and live stock of every description, yet all these were
insufficient for banking purposes so long as gold and silver were want-
ing. Their live stock, and crops of corn and grain, were marketable
articles ; but they were remote from the points where they could be
converted into money, since the modern facilities of railroads were then
only in the dim perspective of the hope of the most sanguine. In the
earlier period of the history of the Western States, individuals had no
claims to a financial credit which a business man in the Eastern cities
would regard as available. Possessed of fertile lands, which a distant
period would render valuable, under judicious cultivation, yet without
avenues to these remote treasures, they were not available as funds
within six or twelve months to the parties east of the Alleghanies, with
whom they wished to make contracts. True as this was in relation to
individuals, in just the same degree, was it true in regard to States.
Nothing was permanently established ; the population had neither
become fixed in locality nor intention ; it had established no permanent
credit by even a few years of punctual payments of their obligations, nor
had the States any settled policy of legislation by which their future
course could be determined. Their only income was derived from taxa-
tion upon the lands which were within their limits, and the collection of
even this scanty revenue was deferred from year to year, so that no
certain reliance could be placed upon its immediate receipt And yet
upon such uncertain foundation, some of these new States issued bonds
for furnishing bank capital, and borrowed money on disadvantageous
terms to furnish facilities for speculations in wild lands.
i
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1854.]
Ohio ,
3
II. Ohio.
The history of banking in this prosperous State furnishes an apt illus*
tration of our preceding remark, that in the new States there wa3 no
settled policy of legislation by which their future course could be deter-
mined. Shortly after the adoption of the Constitution of Ohio, and its
admission as a sovereign State into the Union, a bank was chartered
under the name of the Miami Exporting Company, the Bill for which
was passed in April, 1803. Banking operations were a secondary object
with the company, “ its main purpose being to facilitate trade, then
suffering under great depression,” and five years elapsed before the first
regular oank was established by the charter of the Bank of Marietta in
1808. During the same session, the proposition of founding a State
Bank was considered and reported upon, and the final result was the
establishment of the Bank of Chillicothe. From that period charters
were granted to similar institutions, until the year 1816, when the great
banking law was passed, incorporating twelve new banks, extending the
charters of the old ones, and making the State a partner in the profits
and capital of the institutions thus created and renewed ; without any
advance, on its part, of any funds for this purpose. The new law
required, that each bank was to set apart one share in twenty-five for
the State, without payment therefor, and each bank whose charter was
renewed was to create for the State stock in the same proportion.
Each bank, new and old, was required annually to set apart, out of its
profits, a sum, which, at the expiration of the charter, would amount to
one twenty-fifth of the whole stock, which was to belong to the State :
and the dividends coming to the State were to be invested, and reinvested,
until another twenty-fifth of the stock was State property : this last pro-
vision was subject to change by future legislators. The interest of the
State was continued in her banks until 1825, when the law was amended,
to commute her stock into a tax of two per cent upon all dividends made
up to that time, and four per cent upon all made thereafter.
The system of taxing banks commenced in Ohio, in the legislature of
1815, by a levy of four per cent upon their dividends, but the law was
virtually nullified the next year, by exempting all banks from its opera-
tion which accepted the conditions of the act of 1816.
The establishment of the second Bank of the United States in 1816,
and the location of one of its branches in Cincinnati, in January, 1817.
and another at Chillicothe, in October, occasioned the well-known con-
troversy between the State of Ohio and the Bank of the United States, in
regard to the arbitrary right of taxation ; and, although the State was
signally defeated in her attempt to collect an unjust and illegal tax, yet
after an interval of thirty years she is again waging another war of
extermination against banks of her own creation, and which are the
sinews of the prosperity of her own citizens. The imposition of her
modern tax is more insidious in its form of expression, but none the less
oppressive in its practical operation. With the branches of the United
States Bank the State declared open war, and passed a law imposing a
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4 Banking in the United States. {July,
tax of fifty thousand dollars on each of the two branches at Cincinnati
and Chillicothe, if they continued to transact business after the 15th
September, 1819, and authorized the State Auditor to issue his warrant
to collect the tax. As the narrative of this controversy may be new ta
some of those who are now agitating a similar question in the legislative
halls at Columbus, we briefly sketch it
The law imposing this tax of 8100,000 was passed with great delibera-
tion, and by a full vote. But the branches of the United States Bank
did not suspend their operations, and the auditor prepared to collect the
money. To prevent this, the bank filed a Bill in Chancery in the United
States Circuit Court, asking for an injunction upon the Auditor of State
to restrain his proceeding in the matter of collection. The auditor, by
legal advice, refused to appear on the day named in the writ, and of
course the court allowed the injunction, but required bonds of the bank
to the extent of $100,000, which were given. As the day for collection
approached, the bank sent an agent to Columbus, who served upon the
auditor a copy of the petition for injunction, and a subpoena to appear
before the court at a subsequent date ; but he had no copy of the writ of
injunction which had been allowed. This petition and subpoena the
auditor inclosed to the Secretary of State, who was then at Chillicothe,
together with the warrant for levying the tax, requesting the secretary to
take legal advice ; and if the papers did not amount to an injunction, to
have the warrant executed ; but if they did, to return it. The counsel
advised that the papers did not amount to an injunction, and therefore
the State writ was given to the sheriff, with instructions to enter the
banking-house and demand payment of the tax, and upon refusal thereof,
to enter the vault and levy the amount required. The officer was
directed to use no violence, but if he was opposed by force, to go at once
before a proper magistrate, and depose to the fact. Accordingly the
officer, taking with him competent assistants, went to the banking-house,
and first securing access to the vaults, demanded the tax ; payment was
of course refused, and notice given of the injunction which had been
granted : but the officer, disregarding this notice, entered the vault of
the bank, and seized in gold and silver and bank-notes, ninety-eight thou-
sand dollars, which he paid over to the Treasurer of State. The officers
concerned in this transaction were very properly arrested and imprisoned
by the United States Circuit Court, for a contempt of the injunction
granted by them, and the money taken was restored to the bank. The
decision of the Circuit Court finally came before the Supreme Court at
Washington in 1824, and was there affirmed; whereupon the State of
Ohio submitted. During the pendency of this suit, however, the State
Legislature passed four resolutions ; in consequence of which, the bank
was for a time deprived of the aid of the State laws fn the collection of
its debts and the usual protection of its legal rights. An effort was also
made to effect a change in the Federal Constitution with reference to
taking this particular case out of the jurisdiction of the United States
tribunals, but fortunately the State of Ohio failed to accomplish its object
in this instance.
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After 1825, no change was made in the banking laws of the State,
until 1831, when the bank tax was increased from four to five per cent
Subsequently two important acts were passed by the legislature ; one in
1839, appointing bank commissioners to examine the various institu-
tions, and report upon their condition. This inquisition was resisted by
some of the banks, and much controversy ensued, both in and out of the
General Assembly. The other measure was the adoption, in 1845, of a
new system of banking, establishing a State Bank, with branches, on the
safety-fund system, (the State, however, owning no part thereof,) and an
independent bank system, requiring State stocks to be deposited with
the State Treasurer for the full amount of bank issues.
In March, 1851, the General Assembly passed an act authorizing free
banking, limiting the amounts to a minimum of $25,000, and a maxi-
mum of $500,000, and requiring the amount of notes issued to be secured
for the full sum, by the deposit of the stock of the United States, or the
State of Ohio, as in Ncw-York and other free banking States; but in
June, 1851, the new Constitution of Ohio was submitted to the people,
and its adoption effectually crushed any further bank associations by the
following article :
“No act of the General Assembly, authorizing associations with bank-
ing powers, shall take effect until it shall be submitted to the people
at the general election next succeeding the passage thereof, and be
approved by a majority of all the electors voting at such election.”
In 1852, the General Assembly passed the celebrated tax law, and
thus gave the finishing stroke to fifty years of the most vascillating
measures on the subject, which can be found on the statute-books of any
State in the Union. Commencing in 1815 to levy an equitable tax
upon banking institutions, the legislative appetite grew more voracious
with the taste of blood; and after the prey of the United States Bank
was wrested from the fancied grasp of the General Assembly in 1824,
they increased the bank tax in 1831, and finally satiated their relentless
rapacity in 1852. Now, we suppose that there are three propositions
which every business man will admit :
First, that bank capital is a great desideratum in a newly-settled
country, whether town or State.
Secondly, that every encouragement should be given by legislative
enactments for its introduction and protection ; and,
Thirdly, that the older States had ascertained by a long experience, to
what extent this capital could be legitimately and safely taxed.
Admitting these premises, will any one contend that the State of Ohio
has acted wisely in her late measures of legislation ? Has not the parti-
san spirit of these measures been adverse to the introduction of foreign
capital ? and while at one period the State fostered a banking capital of
more than ten millions of dollars, is she not now striving to extinguish it
altogether, by the most oppressive exactions, at a moment when her vital
interests require banking facilities to the extent of at least twenty-five
millions? We need but to cast a single glance at the statistical facts,
which the railroad record so clearly presents to us in its columns, to per-
ceive tiie real wants of Ohio. Here is a State possessing a territory and
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property valued at eight hundred millions of dollars, with the means of
feeding double the number of her own population, and the capacity by
increased cultivation, with improved meaus, to furnish ample support for
five millions more.
Contrast the policy of Massachusetts and Ohio. The former imposes a
tax of one per cent oil her banking capital, and the amount invested in
it steadily advances with, the increasing prosperity of the State. But
< >hio pursues an opposite course, and levies an exorbitant and unconstitu-
tional tax, and cripples the trade of her own citizens, but enables the
residents of other States to protit by her mischievous measures. Ohio
takes a retrograde step in the financial movements of the present day, and
allows the States of Kentucky, Indiana, Illinois, Virginia, and Tennessee,
and finally the New-England States, to supply her with currency, who
derive a large income therefrom.
How an enterprising, energetic and intelligent community, like the
agriculturists, traders, and bankers of Ohio, can submit to such ini<juitou>
laws as those imposed by the crude, misguided, and willful legislators, who
have of late years composed the majority at Columbus, and represent the
collective wisdom of the people, surpasses our comprehension. The
people of the State have recently adopted a constitution which expressly
stipulates that no one interest shall bear any higher rate of taxation than
another, but that the burden shall fall equally on all descriptions of
property in the State. If, then, a law has been passed which will allow’,
even by a forced construction, the levy of a tax on any one interest,
double or treble that upon any other property in this State, is not the
Constitution plainly violated, and the fell purpose of the malicious origi*
ginators of such a law disclosed, when they find it necessary to resort to
‘•crowbars,” to enforce it \ Even in the warfare against the United
States bank, previously narrated, when the State assumed that her rights
had been invaded, and levied a tax of *100,000 on the two branches of
Cincinnati and Chillicothe, she directed her officer to use no violence in
the collection of the tax; “but if lie was opposed by force, to go before a
magistrate, and depose to the fact.” But under the present tax law, the
officer is empowered to use “crowbars,” to break open any lock, vault, or
chest, and to seize upon any amount which he can find, for the full
satisfaction of his demand ; and this outrage is authorized to be perpe-
trated upon the property of her own citizens, transacting business under
her own laws, and in direct opposition to the Constitution of the United
States, as well as that of the State of Ohio. Fortunately, however, for
the people there is now, as there w*as in 1824, a restraining power in the
Supreme Court of the United States, which can overrule the decisions of
partisan judges, and sustain the rights of the oppressed.
The difficulties attending the present system of banking in Ohio arise
fiorn various causes, but chiefly from the great want of bank capital.
For so large, populous, and productive a State the amount is utterly
insignificant, and considering the large sums necessary to convert the
annual crops into money, we may well be surprised, not that it is done
with difficulty but that it can be done at all. But what improvident
legislation has discouraged, individual sagacity and cupidity have par
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1854.] Ohio . 7
tially supplied. Hence the large business of the commercial metropolis
of Ohio is transacted by means of the facilities which private bankers
afford whose rates of accommodation vary from ten to twenty per cent
per annum while the incorporated banks are limited to six per cent. As
a class the private banking establishments are conducted by men of high
integrity and character ; but when a lucrative business can be legally '
transacted by individuals, which cannot be done in a corporate capacity,
it is not a matter of surprise that the capital should flow into its most
productive channel and partially escape the restrictions of fickle and
arbitrary legislation.
In the next place there is no uniform system of banking in the State.
There are in Ohio at the present period four distinct classes of banks,
namely, the old banks incorporated prior to 1845, having a capital of
about $1,550,000 ; the branches of the State Bank created in 1845, and
having a capital of -$4,100,000 ; the Independent Banks under the same
act, having a capital of $720,000; and the Free Banks authorized by
the act of 1851, and having a capital of about $095,000; all under
different rules and regulations and having no concert of action with each
other nor unity of interests. They are all amenable, it is true, to the
authorities at Columbus so far as to be required to furnish a quarterly
report of their condition, and are subject to an annual examination ; but
of what value are these? One of the first-named class with a capital of
$200,000, and a circulation according to the August report of $377,682,
against which it held $71,000 in specie, and $350,000 in the hands of
its principal proprietor in New-York (now bankrupt) has recently failed.
“This bank (the Bank of Massilloh) was chartered in 1835, with twenty
years to run, simultaneously with the Wooster, Clinton, and Circleville
banks. It belonged neither to the State banks, the independents, nor
the free banks, but was a sort of freebooter, with license to sink or swim
as it found most advantageous.” The Cleveland and Pittsburgh Railroad
borrowed $200,000 of its notes of circulation, and the Chicago and Mis-
sissippi Railroad $200,000 more, and these sums were probably scatt^jed
broad-cast among the Western farmers and traders, who had a large
proportion of it in their possession. How far the principal proprietor in
New-York may be able to refund the $350,000 in his possession will
determine the ultimate value of these notes of circulation. During the
hist summer another class of these banks has disturbed the financial state
of affairs by the stolen and counterfeited notes of five of their number,
and consequently the hills of thirteen free banks, amounting to a million
of dollars, were rejected by a suspecting community, and were conse-
quently withdrawn from circulation, thereby encouraging the banks of
Tennessee to make an effort to supply the vacuum. These Tennessee
bills had for a long time been at a discount of one per cent, but an
arrangement was temporarily made to raise them to a par value, and
when a sufficient amount was intermixed with our eurrcncy the arrange-
ment ceased, and the community were compelled to sustain the loss.
Every one cognizant of the currency of Cincinnati is familiar with the
fact that a large proportion of it consists of the bank-note* of Kentucky,
Indiana, Illinois, and Virginia, and that in the winter season large
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amounts of Eastern bills enter into the circulation. Other States supply
our currency, and reap the profit. They contract and expand the circu-
lation to suit their own interests, not ours. This is the natural result of
Ohio legislation in relation to banks. * * *
By the quarterly returns of November last, the whole amount of the
, circulation of the banks in Ohio was $11,000,000, of which the five banks
in Cincinnati had only $353,000, and one third of even this paltry
amount is now withdrawn by the closing of the Lafayette Bank. The
other cities and towns in the State, Cleveland, Columbus, Sandusky, etc.,
require a large proportion of their issues for their own use, and there is
left for the commercial metropolis a totally inadequate supply of currency
to meet the engagements of a single day’s active business. Why then
should the trading community submit to these useless restrictions in rela-
tion to the currency which this law of 1848 imposes? Necessity, how-
ever, fortunately compels them to treat it with perfect derision.
In Ncw-England, the bank-notes of six States, whose aggregate of cir-
culation exceeds forty millions of dollars, are convertible into specie, at
the Suffolk Bank in Boston, at par. This system w as established there
in 1824, and has consequently been in operation there nearly thirty years,
and the practical results are, that the currency of the New-England
States commands the specie even in the City of New-York, at the trifling
discount of one-quarter per cent.*
IIL Indiana.
This State was admitted into the Union in 1816, but notwithstanding
its system of internal improvements, which was commenced in 1832,
with the construction of the Wabash and Erie Canal, 375 miles in length
in Indiana, there were few incorporated banks until 1834, when the
“ State Bank of Indiana” was established, with a capital of $1, COO, 000,
divided among ten branches.
The State Bank . — This charter allotted to each branch $100,000, and
provided that all should be mutually liable for the debts of each other,
but should divide their own profits. Each share was subject to a tax of
12^ cents per share, payable out of the dividends, for educational pur-
poses, in lieu of all other taxes: but in case of an ad valorem system of
taxation in the State, then the stock was liable, the same as other capital,
not exceeding, however, one per cent altogether. No note under $5 was
allowed to be issued, and the Legislature reserved the right to restrict it
to $10 within ten years. The capital of any branch might be increased
by and with the assent and concurrence of the Legislature and the Direct-
ors of the State Bank. The directors of the parent bank were to have
charge of the plates and bank paper of the branches, and were empowered
to deliver to them an amount of such paper not exceeding twice the
amount of the stock subscribed for. One half of the capital was sub-
scribed for and owned by the State, for which they authorized bonds to
be issued to the amount of $1,300,000, at five per cent, to realize the
* Now reduced to one tenth of one i>cr cent— [Ed. B. M.]
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9
funds to pay for their half of the stock ; the remaining half, was to be
subscribed for and owned by individuals and corporations. The debts
of each branch were limited to double the amount of capital paid in,
exclusive of deposits. \
In January, 1830, an amendment was passed by the Legislature, and
the discounts were allowed to be extended to twice and a half the amount
of the capital paid in ; and the branches were allowed to increase their
capitals to $250,000 each, but none of them have availed themselves of
this privilege, and there are now but three which have over $200,000.
Notes under Five Dollars . — In February, 1841, the branches were
authorized to issue notes of a less denomination than $5, not exceeding
in the aggregate one million of dollars, on the payment of one per cent
for the privilege; and of its circulation of $3,680,000, about one sixth
part is in small notes, liberally scattered throughout the State of Ohio.
After the resumption of specie payments by the banks, in May, 1838,
out of the 959 banks then in existence, 343 again wholly suspended in
October, 1839, and 62 partially so, of which latter number were those of
the State Bank of Indiana, and which did not again rfeume the payment
of specie until October, 1841, when the branches held $1,127,518 to
meet a circulation of $2,960,414 and deposits amounting to $317,890
onlv. Since that period, the bank has maihtained its credit inviolate,
ana under able management, has successfully effected a regular reduction
of its suspended debt, which had rapidly accumulated during the infla-
tion of business in former years, without ruinous sacrifices to the debtors
of the bank. In looking over its regular returns for the last ten years,
its present high credit, and the names of the efficient officers who have
charge of its branches, it is a matter of deep regret that so popular and
valuable an institution is so soon Ip be closed by the expiration of its
charter, and that the new constitution precludes its renewal on its present
basis.
But although the experiment has resulted so favorably in Indiana, it
wa* nevertheless a hazardous one to undertake ; and had it not been for
the general suspension of the banks in 1837, and the continuance of the
paper system, south and west of Philadelphia, until 1842, the result
might have been widely different. In May, 1837, the capital of the bank
was but $1,846,921, but its loans and discounts amounted to $4,208,956.
Its specie was but $1,190,187 to meet $2,516,790 of circulation and
$1,80$, 061 of deposits. If, therefore, it had been then pressed for the
payment of its notes, the bank would have been compelled to suspend
payment, or gone into liquidation. Of course it would have made many
bankrupt, and reduced others from affluence to poverty. As it was, the
efforts to avert the general calamity only protracted the struggle, and the
catastrophe was the more fatal to individuals. If specie-payments had
been persisted in by all the banks, prices would have fallen at once to
their specie value, instead of struggling on from bad to worse, for three
years, in the vain hope of relief, and finally sinking under the accumu-
lated pressure. Then, the crisis would have been over at once, and trade,
having reached its lowest point, would speedily have been reorganized
on a new basis. With the elastic spirit of our countrymen, new fortunes
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would li^ve been amassed upon the ruins of those which had fallen, and
the vain efforts to sustain a tottering fabric would have been more wisely
directed to a new structure, upon a more enduring foundation. If we
recur to the origin of this bank, we see at once that it was founded upon
false principles, and that one half of its capital was fictitious, for such we
must term the State bonds for $1,300,000, to provide for its $800,000
of stock, and upon which the bank was authorized to issue $1,600,000
of its notes.
Besides, the act itself was unconstitutional. In the first Article of the
Constitution of the United States, there is an explicit prohibition of the
authority of any single State to “ emit bills of credit,” and the great ex-
pounder of that instrument, in his speech on the renewal of the charter
of the United States Bank, in the Senate, on the 25th May, 1832, made
use of these words : “ Congress can alone coin money ; Congress can
alone fix the value of foreign coins. No State can coin money ; no State
(nor even Congress itself) can make any thing a tender, but gold and
silver. Aro Slate can emit bills of credit . But, notwithstanding this
apparent purpose in the Constitution, tho truth is, that the currency of
the country is now to a very great extent, practically and effectually,
under the control of the several State governments : if it be not more
correct to say, that it is under tho control of the banking institutions
created by the States; for the States seem first to have taken possession
of the power, aud then to have delegated it.” And again, on the 28th
May, in the same place, he said : “ it is further to be observed, that the
States cannot issue bills of credit; not that they cannot make them a
legal tender, but that they can not issue them at all. Is not this a clear
indication of the intent of the Constitution, to restrain the States, as well
from establishing a paper circulation, as from interfering with the metallic
circulation ? Banks have been grafted by States with no capital what-
ever, their notes being put into circulation simply on the credit of the
State, or the State law. What are the issues of such banks but bills of credit
issued by the State? I confess, Mr. President, tho more I reflect on this
subject, the more clearly does my mind approach the conclusion, that the
creation of State banks, for the purpose, and with the power, of circulat-
ing paper, is not consistent with the grants and prohibitions of the Con-
stitution.”
General Banking Law of Indiana. — On the 1st November, 1851, tho
new Constitution of Indiana went into operation, and on the 2Sth May
succeeding, a General Banking Law was passed, in conformity thereto.
This Constitution prohibits the incorporation of any monied institution,
for the purpose of issuing bills of credit, or bills payable to order, or
bearer, except under a general banking law, and details the privileges and
restrictions which are to bo embodied in the law. Accordingly, “ the
act to authorize and regulate the business of banking” provides, that
whenever any person, or association, shall deposit in the hands of the
Auditor, in trust, any of the stocks of the United States, or of any of the
individual States, which pay interest semi-annually, and an amount which
produces six per cent per annum, or Indiana 5 per cent stock, or double
the amount of the 2 per cent stock, (the Indiana State stocks chargeable
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. 11
upon the Canal being excluded,) such person, or association, may receive
from the Auditor an equal amount in bank-notes, to be used for banking
purposes, of the usual denominations, of which one fourth part may be
under five dollars. The parties then possess the usual free banking
powers, limited to twenty years’ duration of existence; required to pay
specie for their bills, on presentation; liable in their individual capacity for
an equal amount of their stock, in payment of all debts incurred ; the
capital to be at least $50,000, which may, however, be enlarged inde-
finitely; but “no bank shall at any time, for the space of twenty days,
have on hand, at their place of business, less than twelve and a half per
cent in specie, of the bills or notes in circulation, as money.” No direct-
ors are required for the management of these banks, nor are the stock-
holders required to be citizens of the State.
It will be perceived that the general banking lAv may be regarded
as an excellent financial measure on the part of the State to enhance the
value of her 5 per cent stocks, since the legislature have made them, for
banking purposes, nearly equivalent to the stocks of the United States,
or those of the individual States which pay interest semi-annually;
although the market value of the latter is from ten to fifteen per cent
higher than those of Indiana ; and, consequently, Indiana bonds will be
the only securities deposited with the Auditor, as the basis of the bank-
ing capital, until the entire amount is exhausted for this purpose. And
this period will not be a remote one, unless an immediate change is
made in the banking laws of Ohio. * * *
IV. Illinois.
We pass now to the State of Illinois, where bank legislation has been
more remarkable than in any other State in the Union, and where the
modern system of free banking has been finally adopted as the last
experiment. JThe first bank established in the Territory of Illinois was
at Shawneetown, in 1813, the whole territory then containing but 1500
inhabitants: this bank was regularly incorporated in 1816, as the Bank
of Illinois, with a capital of $300,000 for the term of twenty years, and
one third of this amount was reserved for the subscription of the State,
when it should be admitted into the Union. It commenced business in
1817, and, aided by the government deposits, it acquired an extensive
credit, paying specie for its bills until August, 1821, after the Kentucky
banks had suspended specie payments: but was at length compelled to
stop, and remained dormant until February, 1835, when, by an act of the
legislature, its charter was extended twenty years from 1st January, 1837.
On the 4th March following, its capital stock was increased to $1,400,000,
to Jbe subscribed for by the State, and State bonds to provide for the
funds were issued, and the faith of the State pledged for their payment,
with interest, in I860.
The constitution adopted in 1818, declared that no new bank, or
monied institution, should be permitted in Illinois, except a State Bank,
and its branches, and those then existing. On the 22d March, 1819, a
bank was incorporated by the name of the State Bank of Illinois, for the
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term of twenty-five years, with a capital of $4,000,000, one half to be
subscribed by individuals, and the other half by the State, whenever the
legislature should deem it proper. This charter was repealed in 1821,
as no effort was made to carry it into practical operation ; and another
bank was chartered, in lieu of it, for ten years, with a capital of $500,000,
to be owned by the State, and managed and superintended by the legis-
lature. This act was an anomaly in legislation, and assumed the
wild theory that paper money was a panacea for financial distress. The
capital consisted of its bank plates only, and $300,000 were directed to
be issued and loaned on notes for one year, with mortgages as securities,
in sums not exceeding $1,000 to each individual. The notes issued by
the bank bore interest at two per cent per annum, and the borrowers
paid six per cent on their discounted notes, and these notes were to be
renewed on the parent of ten per cent of the principal annually, until
the expiration of the bank charter, when the balance was to be paid.
These bank-notes were receivable in the payment of taxes, and for all
debts due to the State, counties, or the bank. It had hardly commenced
operations before its bills fell to 75 per cent, shortly after to 50 per cent,
and at length to 25 cents on the dollar, when they ceased to circulate at
all. “At one of the branches, of which there were four, two dollars in
specie were received, which were preserved as curiosities,” and in the
other three, none of any consequence was received. The country was
thus flooded with irredeemable currency ; a destruction of public and
private credit ensued ; disgraceful legislation, degradation of morals, and
a succession of calamities followed. The authors of the mischief escaped
unharmed, but the innocent and unsuspecting were plundered without
mercy. The members of the legislature received their pay in the depre-
ciated currency, at the market value, and on one occasion received $9 per
day for their services, which the State was compelled to redeem at par,
and a loan of $100,000, which was received in bank-notes at par, was
paid out by the State at 50 cents on the dollar.
The State Bank of Illinois. — In February, 1835, a new State Bank
was incorporated, with a capital of $1,500,000, with the liberty to in-
crease it to $2,500,000, the State to become a partner and to hold
$100,000 of the stock. In March, 1837, an addition of $2,000,000 was
made to its stock, to be subscribed for by the State. Its charter was to
continue until February, 18G0, and a tax was levied of half per cent
per annum : it had fifty days allowed for the redemption of its bills, and
as a consideration therefor, the bank was required to redeem the loan of
$100,000 above referred to. To provide for the funds for this bank
capital, commissioners were authorized to issue $2,000,000 in State bonds.
The career of this bank was brief. Its loans were soon ascertained to
have been made to irresponsible and insolvent parties, and the bank was
shortly compelled to suspend payment, and finally, on the 24th January
1843, it went into liquidation, as will be seen. In 1841, an act was
passed to preserve the charter of the Bank of Illinois at Shawneetown,
which had been forfeited, provided it would pay $200,000 of the State
debt; but in 1843 two other acts were passed, one “ to diminish the
State debt, and put the State Bank into liquidation,” and the other “ to
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13
reduce the public debt $1,000,000, and to put the Bank of Illinois at
Shawneetown into liquidation.”
Accordingly, without a judicial investigation of the affairs of the
bank, commissioners were appointed to take possession of the bank-
ing house and its contents, and every thing belonging to it, and in
case the directors, stockholders, or officers interfered to protect their pro-
perty, they were declared by this law felons , and liable to imprisonment
in the penitentiary for a term not exceeding ten years. It was a fortu-
nate thing for the honor and credit of the State that this law was sus-
pended in its operation, and another act substituted, which went into
quiet effect. This case has been recently followed by the acts of the
State of Ohio, and both are violations of the fourth Article of the Consti-
tution of the United States, which secures to all citizens the inviolability
of persons, houses, papers and effects, against unreasonable searches and
seizures, or the deprivation of property, but by the judgment of one’s
own peers, or the law of the land. Of the $500,000 of circulation and
certificates of deposit held by the community against the bank, when
their assignment was made in 1845, about $410,000 have been redeemed
and destroyed, leaving about $90,000 unpaid, and all the stock paid in
by individuals is a dead loss to them ; while the State laid violent hands
on its own bonds for their share of stock, and annulled their liability. It
must be borne in mind that when the State become a partner in these two
State banks, she issued bonds for her share of the stocks for $3,100,000,
instead of paying cash therefor, and these bonds were offered for sale in
New- York and London, and “ were the sport of brokers, bankers, and
bankrupts.” Subsequently the legislature cancelled and burnt $3,060,000
of these bonds in the Capitol Square at Springfield, and a corresponding
amount of stock was surrendered therefor, thus cheating the community
of their just claims, as innocent bill-holders, and eluding their liability to
the other stockholders, who had paid in cash their share of the stock.
If these bonds had been the notes of stockholders, given for stock, and
held as such by the bank until it become insolvent, and the bank had
surrendered these notes for the same amount of stock, would not the bill-
holders have cried out against such a flagrant injustice, and avenged it ?
But the act was a legislative one, and men do that in an official capacity
which \yould disgrace them as individuals. Public opinion, however, has
long since stamped these proceedings with the opprobrium they so richly
merited.
General Banking Law of 1851-2. — Alter the general crash in 1837,*
the State was without banking associations until 1851, when a general
banking law was passed, which authorized any person or persons, on
depositing with the Auditor of State any of the stocks of the United
States, or of any other individual States, on which the full interest of six
per cent was annually paid, to receive an equal amount of bank notes, to
be used for banking purposes, and on the stocks of Illinois eighty per
cent of the market value of said stocks in New-York, in like manner in
* The Illinois banks resumed specie payments at the same time with other western banks, in
1&9, and maintained cash payments until 1841.— [Ed. B, ftf«3
Digitized by
Gck igle
Original fro-m
UNIVERSITY OF CHICAGO
Banking in the United States .
Digitized by
14
[July,
bank-notes, and such person or persons were duly authorized to loan and
circulate as money the bank-notes thus issued by the Auditor.
Capital . — Restrictions were imposed, requiring that the aggregate
amount of the capital stock should not be less than £.50,000, and that the
applicants should name the style of the bank, the place where it was to
be located, the amount of the capital, the number of shares, the names
and places of residence of the stockholders, and the period when the asso-
ciation should commence and terminate their business, and upon filing a
certificate of these facts, the party became a body politic and corporate,
by the name assumed, for the term fixed in the certificate.
Circulation. — The amount of bank-notes is limited to the amount of
bonds deposited with the Auditor, but the denominations are optional, so
that the whole amount of circulation may be claimed in one dollar notes,
if the parties think proper; but the bills must be made payable in specie
at the place of business, on demand, and on failure thereof for ten days,
the bank is liable to 12.} per cent damages per annum, in lieu of inter-
est, and forfeits its corporate powers and privileges. The stockholders
are individually liable to the amount of their stock, for all the indebted-
ness and liabilities of the bank, and full provision is made for the collec-
tion of the same should occasion require. The act, it will be seen, con-
fers a corporate banking privilege for an unlimited amount of capital, and
vfor any length of time which the applicants may designate, even if it be
perpetual .
It will thus be seen, that the three great States of Ohio, Indiana, and
Illinois, have all adopted the M free banking system” in their constitu-
tions, and that this is to be the future policy of these States. All future
banks are to become the creditors of the States, by purchasing their
bonds and by depositing these bonds with the government, they return
to the parties bank-note paper, which they authorize them to issue as
money. Neither individuals nor banks can lend that which they have
not — and if they lend credit, in the shape of bank-notes, without the
means to redeem them in gold and silver, they commit a fraud on the
community, as they lend and put into circulation that which is not
money, nor the representative of money. This system of converting
State stocks into banking capital will surely prove a delusion whenever
a great revulsion occurs, for it is a departure from the true principles of
safe and sound banking, which are based on money, in gold and silver
deposited, and kept partly in possession for immediate exigencies.
But there is another hazard in the free banking system of these States
which deserves some consideration, and which arises from the extreme
latitude which is granted in regard to the management of these banks.
If, in the commerical metropolis of the Union, large institutions have
been in peril from the indiscretion of bank directors, what may be reason-
ably expected from the inexperienced managers of these small banks
which are now supplying our Western States with currency? The free
banking system invites the inexperienced, as well as others, to enter upon
a business which requires skill, experience, and talents, to manage it ad-
vantageously, but which many who are now embarking in it do not
seem to possess. With a comparatively small sum to commence with,
Gck igle
Origsinal from
UNIVERSITY OF CHICAGO
1854.]
Kentucky.
15
the operations of these currency makers may be widely extended ; but
when difficult financiering becomes necessary, originating with imprudent
discounting, or deferred payments, then there will be a great hazard of
a catastrophe, in which even the bill-holders may be the sufferers.
About twenty-five years since, the foreign trade of our country passed
through a remarkable change in its operations, by the substitution of
letters of credit on European houses, for merchandise and coin for their
outward cargoes. Instead of gathering together all the available means
which a merchant possessed, or could command, on the strength of his
own credit, and periling the whole in a single cargo, or in numerous
adventures to widely distant countries, he had merely to satisfy the agent
of some foreign banker that he possessed the means to meet any con-
tingent loss which might attend the adventure, and his capital in the
shape of a letter of credit was furnished to him, and the most hazardous
enterprises were undertaken, merely on the strength of the previous suc-
cess of others. Individuals who, during an illustrious lifetime, had
limited their operations to shipments of fish and lumber to the West-
Indies for sugar and molasses, suddenly became interested in numerous
adventures to Calcutta for indigo, to Canton for silks and teai, to Cuba
for sugar for the St. Petersburg market, to Rio Janeiro for coffee for
Hamburgh or Trieste ; and without any experience of the trade, and some-
times without even a knowledge of the proper seasons to purchase, of
course the most disastrous losses occorred, year after year, until the final
crash of the three great banking houses in London disclosed the fearful
amount which inexperience had engulfed, by the use of these tempting
allurements to foreign adventures. * * *
V. Kentucky.
The first banking institution in Kentucky was chartered in 1807, under
the name of the Bank of Kentucky, with a capital of one million of
dollars. Previously, however, to this the legislature, in 1801-2, chartered
an Insurance Company in Lexington, whose notes, payable to bearer, were
transferable by deliver}', and this feature made the institution a bank of
circulation, and such it became; but the clause which granted this bank-
ing power was not thoroughly understood by the members who voted for
it. The political party which then controlled Kentucky held banks in
horror, and never would have passed the bill had they understood its
provisions. In 1804 it was proposed to repeal its banking powers, but it
was negatived by the governor; meanwhile it had divided eight per cent
semi-annual dividends, and was consequently denounced as a “ monied
aristocracy.” Its chattered rights extended to January, 1818, but they
were mutilated and finally superseded by the incorporation of the Bank
of Kentucky in 1807, as before stated. This bank also having made
liberal dividends, incurred a similar anathema, and in 1817 forty inde-
pendent banks, with capitals amounting to ten millions of dollars, were
chartered, which were by law permitted to redeem their notes with the
paper of the Bank of Kentucky instead of specie. This bank had again
resumed specie payments after the peace of 1815, and was io good credit.
Digitized by
Gck igle
Original from
UNIVERSITY OF CHICAGO
16
Banking in the United States.
[July,
In the summer of 1818, the State was inundated with the paper of these
banks ; their directors were generally men destitute of experience or
knowledge of financial affairs, and in some instances 44 devoid of common
honesty ” Large loans were made and rashly expended ; speculation
was rife, and most of the bubbles which were set alloat collapsed within
one brief year. The pressure of debt became universal, and to relieve
44 the public outcry for relief,” the legislature of 1820-21 chartered the
“Bank of the Commonwealth,” the People’s Bank, with a capital of three
millions of dollars, to be printed on slips of paper purporting to pledge
the public faith for its redemption ; in other words, its paper was made
payable and receivable for the public debts and taxes ; and certain lands
owned by the State south of Tennessee river were pledged for the
redemption of these notes. If any creditor declined to receive it in pay-
ment of his debt, the debtor was authorized 44 to replevy the debt for
the space of two years.” But this was not all; by the terms of the
charter of the Bank of Kentucky, the legislature had reserved the right to
elect such a number of directors as would secure to them the control of
the board. Accordingly an experienced conservative president and board
of directors were superseded by pledged parties who had promised to
receive the notes of the Bank of the Commonwealth in payment of debts
due to the Bank of Kentucky, and thus the latter, whose notes were
redeemed in specie and whose stock was at par, was struck down by a
blow which depreciated its value fifty per cent and entailed upon it a
permanent suspension of specie payments.
The paper of the new bank rapidly sunk to one half of its nominal
value, and creditors had the choice of two evils, either the payment of
one half of their debts or nothing whatever for two years, and then to do
the best in their power, with the hazard of new delays and the possible
bankruptcy of their securities.
The conflict of the two parties known as the 44 relief” and 44 anti*relief,”
or the 44 old court” and 44 new court/’ was the fiercest which ever agitated
the State; but after a continued struggle, which was characterized by
great bitterness of feeling on both sides, the conservative party triumphed
in 182G-27, after a contest of five years’ duration; the “old court” was
restored, the replevin act repealed, and the paper of the Commonwealth
Bank suppressed instead of being reissued, and finally destroyed by suc-
cessive acts of the legislature ; its plates being supplied by the notes of
the branches of the Bank of the United States at Lexington and Louisville.
After the fate of the United States Bank was sealed, the dominant
party in Kentucky, in 1833, determined to establish State banks to supply
its place, and in the sessions of 1833 and ’34, three banks were char*
tered, namely, the Bank of Kentucky, with a capital of five millions, the
Northern Bank of Kentucky, with three millions, and the Bank of Louis-
ville, with five millions of dollars ; all of which are now in existence, but
whose aggregate capitals are but little more than seven millions instead
of thirteen as originally established, and of which the State owns
$1 ,500,000. In May, 1837, all these banks suspended specie payments,
and the legislature legalized their doings, and refused to exact the forfeit*
ure of their charters to which they were liable.
Digitized by
Gck igle
Original from
UNIVERSITY OF CHICAGO
List of Foreign Bankers ,
17
LIST OF FOREIGN BANKERS.
MARCH, 1884.
Aixla CKapeBe,
C. WlntgenaOeder.
do.
Oeder A Co.
Aleppo,
Wn. A Rt Black A Co.
Alexandria,
Briggs A Co
Amsterdam,
Hope A Co.
do.
FrAres Oppeaheim A Co
do.
Go 11 A Co.
do.
Vre. T. d'Aripe A Co
do.
J. Kontgswarter.
Antwerp,
Frdree Nottebohm.
do.
P. Terwangne.
do.
a J. M. Be Wolt
Athene,
P. Schotadi*
do.
John Green A Co
Baden-Baden,
Auguste KKwe.
do.
F. 8. Meyer.
$Bagnide Lucca,
Maquay A Pakenkam.
Barcelona,
Gerona, Brothers.
JfatlGT
Elringer A Co
do.
P&ssavant A Co.
BataVia,
Paine, Strieker A Co
Beirout,
Wm. ARk Black ACo
Berlin,
MJcUerFrtres.
do.
Breest A Gelpcke.
do
Mendelssohn A Co
do
Anhalt A Wagoner.
do.
Wolff A Co.
Berne,
Macuard A Co
Bombay,
Oriental Bank Corporal's.
Bonti,
Jonas Cahn.
Bordeaux,
Barton A Questier.
do
W. A D. Johnston.
do.
Nartrigues,Rigourdan A Co.
Bomlogno-eur*mer,
Aehille Adam.
Bremen,
St. Lhrman A Sons.
do.
J. Langs, Sons, Widow A Oo
do.
C. F. Plump A Co
Breslaw,
Etch born A Co
do
Buffer A Co.
Bruges,
Felix dn Jardtn.
Brussel*,
F. Brugmann A Go.
do.
Simon Salter.
Brunswick,
Brothers Ldbbeoke A Co.
Cadis,
John D. Shaw.
Cairo,
Briggs A Go.
Calais,
Ph. Derot A Co.
Calcutta,
Oriental Bank Corporal'll.
Canton,
. do. do.
do.
Wetmore A Co
Carieruhs,
Auguste Kloee.
Cosset,
L. Pfeifer.
Coble**,
Dcinhard A Jordan.
Coburg,
Schmidt A Co
Cologne,
Frederick Geisler.
do.
A.AL Camphansen.
do •
J. Herstatt
do.
Sal Oppenheim, Fr. A Co
do. A. 8 chaff hausen, Bank Yerein.
Colombo , Osghm ,
Oriental Bank Corporal's.
Constantinople,
Charles 8. Hanson A Co
Copenhagen,
Frolich A Co
Corfu,
J. Courage.
1 Christiana, (Abrwoy, >J»eob Dybwmd.
Damascus,
G. H. Gibb A Co
Dantsic,
Gibsone A Co
Dieppe
Ormont Defeise A Co
Dresden,
H. W. Bassenge A Oo
Dunkirk,
Charles Cartier.
Dusseldorf,
Guillaume ClelL
Smden,
Y. AB. Brons.
Florence,
Em. Fenzi A Co
do.
Plowden A French.
do.
Maquay A Pakenhaou
Franqfort, 0. M.,
Cogel, Koch A Co
do.
Gebhard A Hanck.
do.
M.A.de RothschiW A FUs.
do
L. Speyer EUisen.
do.
Brothers Bethmann.
do.
J. Goll A Sons,
Geneva,
Lombard, Odier A Oo
Genoa,
Gibbs A Co
Ghent,
The Bank of Flanders.
Gibraltar,
ArchboULJ ohnston A Powers.
Gottenburg,
A. Barclay A Oo
Gottingen,
H. F. Klettwlg.
Bogus,
Scheurteer A FUa.
Hamburg,
J. Berenberg, Gossler A Co
do.
PtMendelseohiiJUitholdy.
do.
L. Kftnigswarter.
do.
Solomon Heine.
do.
Lntteroth A Co
Honooer,
L. A A. H. Cohen.
do.
Ad. Meyer A Co
Havana,
Drake, Brothers A Oo
Havre,
Dubois A Oo
do.
J. B. Greene A Co
do.
D’AUens A Oo
Heidelberg,
Fibres Zlmmera.
do.
O A. Fries.
Digitized by
Gck igle
Original from
UNIVERSITY OF CHICAGO
Digitized by
18 List of Foreign Bankers.
Kong Kong ,
' Oriental Bank Oorporafn.
Jerusalem,
W. T. Young.
Kandy , Ceylon, Oitontal Bank Corporafn.
Leghorn ,
William McBean A Co.
do.
Maqoay, Pakcnham it Co.
LHptie,
Becker St Co.
do.
Frege Sc Co.
do.
M. KaskeL
do.
Bieland St Co.
LUqo,
M. J. Yercoor St Co.
do.
Nagelm ackers St Cerlbntalne
Lisbon,
J. E. Martin.
do.
H. G. Seholtx.
Liverpool, Eng., Galon A Co.
Lyons,
Yeuve Guerin St Ffls.
Madeira,
John Bland y St Son.
do.
Murdoch, Shortvfdg* St 0 d
Madras,
Bank of Madraa,
do.
Blnny St Co.
do.
Oriental Bank Oorporafn.
Madrid,
Henry O'Shea St Co.
Maknb,
Oweuius St Co,
Malta,
James Bell St Co.
do.
B. Duckworth St Co.
Manila,
Peek, Hubbell St Cov
Marseilles,
Ffflsch St Co., 8.
do.
Salary, Son St Co.
Mayeneo,
Frederick Korn.
Messina,
CaiUer St Go.
Milan,
Thomas St Co
do.
Carli diTommaso St Go.
Mosoow,
J. L. Borckhardt
do.
A. Mare St Go.
Mulhose,
Ferdinand Koechlin St Go.
Munich,
A. E. d’Eichthal.
Mantee,
Gouin, Son St Go.
Maples,
James Hartley St Go.
do.
Iggnlden St Co.
do.
0. M. de Bothschilt St Bom
do.
W. J. Turner, St Co.
Xeufohatel,
F. Henri Nicolas.
Mice ,
Arigdor L’Atn6 St Fils.
Muremberg,
Leonard Kalb.
Odessa,
E. Mahfl St Co.
Oleron,
Doran tis Fibres.
Oporto,
Bormester St Go.
do.
Sandcman St Co.
Ostend,
F. A. Belleroche,
Palermo,
Brown, Franck St Go.
do.
Prior, Turners St Thomas.
Paris,
Callaghan St Co.
do.
AHlez St Grand.
do.
Green St Go.
do.
Hottiguer St Go.
Paris,
B. L. Foald St Foald Ojv
penheim.
do.
U. Zellweger St Co.
do.
A . Msrcuard St Co.
do.
John Munroe St Co.
do.
De Rothschild, Fibres.
Pan,
Dav antes, Fibres.
Pisa,
Vaqnay, Pakcnham St Smith,
do.
Ferdinand Pererada.
Prague,
*■ C. A. Fiedler, Soda.
Rhekns,
Bninart St Son.
Biode Janeiro.
Freeland, Ker, Ceilings St Co.
Rome,
MoBean St Ca
do. *
C. Kalb.
dot
Bakenham, Hooker St Co.
do.
Plow den, Cbolmdy St Co.
do.
Torionia St Co.
Rotterdam,
D. Sc C. Blankenheym.
do.
Fibres Notts bohm.
Rouen,
J. Faacon A Ca
Seville,
Cahill, White St Beck.
Shanghai,
Oriental Bank Corporafn.
do.
Wetmore St Co.
Sienna,
Haqnay St Pakenhmm.
Singapore,
Oriental Bank Corporafn.
Smyrna ,
Couturier, Salannt, KUs St Co.
SUtUn,
8. Abel, Jr.
Stockholm,
Tome Sc Arfwedaon.
do.
Schon St Co.
do.
C. D. Arfwedaon.
St. Petersburgh,
Cayley, Mobeiiy St Co.
do.
Blessig Sc Co.
* do.
Wilson St Co.
Straeburg
B. De Boussierre.
Toulon,
Franchtere, P6re St Co.
Toulouse,
COurtoi* St Co.
Trieste,
J. Collioud.
do.
D. P. Dutilh, Yon Hemerf
AGo.
do.
J. 0. Bitter A Co.
Turin,
F. 8. Long A Fils.
do.
Nigra, Brothers.
Utrecht,
Ylaer AKoI.
Venice,
8. A A. Blumenthal.
do.
Mudie A Co.
do.
Schielin, Brothers.
Vevey,
Genton A Ca
Vienna,
Amstein A Eskles.
do.
S. M. de Rothschild.
do.
J. H. Stametz A Co.
Warsaw,
S. A. FraenkaL
Wiesbaden,
Marcus Berie.
Zurich,
Qnspard, Schnltresa A Ca
Gck igle
Original from
UNIVERSITY OF CHICAGO
List of Private Bankers.
19
LIST OF
Private Bankers in the Principal Cities and Towns
OF THE UNITED STATES,
JUNE, 1854.
Albany, X. T.
Bruce & Young,
Watson Jb Co., W.
Alexandria, Ya.
Burke A Herbert,
Snowden A Cone.
Ashland, Ohio. ,
Lather, Crall A Co.
Atlanta, 6a.
Wright, V. Lb
Holland, Edmund Mf.
Baltimore, M<L
OUtings A Co., John S.
Harris A Sons, Samuel
Johnston, Brothers A Go.
Lee A Co., Josiah
McKim, Greenway A Co.
Nicholson A Bra, J. 0.
Burris, Gorer A Co.
Winchester, Samuel,
Battle Creek, Ueh.
Kellogg, L. CL
lsaidgtown, DL
Krelgh A Co, D.
Betkt,Wls.
Carpenter, A, B.
BeQwiUe, Hlinoia
Hinckley, BnaeM.
BlMdere, HL
Neely A Co, Alexander
Fuller A Oa, E. 1*
Attwood A Fay, 9 Webster Bank Building;
Blake, Ward A Co., 4 State-street,
Brewster, Sweet A Ckx, 40 State-street.
Clark A Co., J. W., 94 State-street.
Curds, Thos. B., 68 State-street.
Cutter, Brodhcad A Clapp, 29 State-street,
Gilbert A Son, 86 State-street,
Lee A Higglnson, 10 Union Building,
Thayer A Bra, J. E., 28 State-street,
Wilua A Co., 25 State-street.
Buffington, Iowa.
Green, Thomas A Oa
Peasly A Co, J. F. CL
anwnovmo, Fa.
Hogg, John T.
Buflhto,N.Y.
Ganyl A Oa, B. 0.
Johnson, Hiram
Lee A Co, John B.
Bobinson A Oa
Canton, HL
Maple, Bttpp A Vtttxun.
Cincinnati, Ohia
Almy A Wilcox,
Cones A Co., W. W.
Dunlevy, Atwood A Ca
Ellis A 8 torses,
GUmore A Broth erton,
Goodman A Ca, T. S.
Gregory, Ingasbe A Ca
Groesbeck A Ca
Hatch A Langdon,
Manchester, P. B.
Matthews A Ca, Howard.
McMicken A Co.
McNicoU A Bussing,
Morton A Co., John JEL
Milne A Co., Gea
Outcalt A Ca, P.
Ramsay, J. B.
Bowe A Co., 8. 8.
Sanford A Oa, B. F.
Sinead, OoUord A Hughes,
Torrey A Oa, 8. W.
Wheeler, A. J.
Wood A Dunlap.
Chicago, HL
Adams, F. Granger
Adsit, J. M.
Bradley, Curtiss A Oa
Burch A Co., L H.
Davison, McCalls A Oa
Forrest, Brothers A Oa
Preston A Ca
Smith A Oa, Gea
Swift. B. K/
Tinkhsm, E. J.
Tucker A Oa, H. A.
Charleeton, & a
Adger A Co., James
Lloyd, William
Martin, N.M.
W. M. A J.O. Martin.
Cleveland, Ohia
Brockway .Wason, Bvsrett A Oa
Hartnees, HUlAHaj*
Lewis, G.F. .
Morrison, Justia
Pierce A Co- B. P.
Shaw A Co, B. B.
Sturgea A Hale.
Wicks, Otis A BrowneO,
Williams A Co, Gea
WflUsms, H. Dwight.
Digitized by
Gck igle
Original from
UNIVERSITY OF CHICAGO
Digitized by
20 List
GUrkavOle, Tran.
Kennedy A Glenn.
Ooidwater, Mich.
Crippen A Flak.
Columbus, Ohio.
Clinton Bank, [without charter,]
Bartllt A Smith,
Hiller, Donaldaon 4 Co.
Oxmellrville, Penn.
Hogg, John T.
Dayton, Ohio.
Beck el, Daniel
Harehman 4 Whiten,
Shoup, 1. O.
Davenport, Iowa,
Cook 4 Sargent
Deflanoe, Ohio.
Boyd, Moore 4 Co.
Delav&n, Wisoonain.
Harrington, N. M.
Detroit, Michigan.
Butler 4 Co.. W. A.
Dey, Alex. II.
Howard, Smith 4 Co,
Ires, C. 4 A.
Lyell, James L.
Preston 4 Co., Darid
Warner 4 Co., H. W.
Dixon, Illinois
Robertson, Eastman 4 Co.
Wood, Lorenzo.
Dubuque, Iowa.
Barney* A Ca, W. J.
Mobley, M.
Jesup 4 Ca, F. 8.
Hrie, Penn,
Curry, W. O.
Sanford 4 Ca, M.
Wright 4 Ca, C. B.
Fort Dm Moines, Iowa.
Stevens 4 Ca, Andrew J.
Fort Wayne, Indiana.
Hamilton 4 Co., Allen.
Fond Da Lae, Wisoonain
Darling, Wright 4 Oa
Bell 4 Ca, W. J.
Freeport, I1L
Taylor 4 Bronson.
Mitchell 4 Co., J.
Fremont, Ohio.
Burchard, Otis 4 Ca
Galena, HL
Carter 4 Ca, James
Cor with 4 Ca, N.
Galesburg, I1L
Dunn 4 Co., J. F.
Gallipolii, Ohio.
Hanking, Charles.
Private Bankers,
Milto, R- <k D. G.
6md Bapida, Utah.
Ball & Co., Daniel
Well*, William J.
Geneva, Wisoonain.
Richardson, £. D.
Georgetown, D. C.
Sweeny 4 Rlttenhoose.
Glasgow, Mo.
Birch 4 Son, Weston F.
Hannibal, Mo.
Blatchfbrd 4 Whitney.
Helena, Arkansas.
Jackson 4 Ca, John J.
HorneUsville. H. T.
Hallett, Samuel.
HoUidaysburg, Pa.
Bell, Johnston, Jack 4 Co.
Bryan, Gleim 4 Co.
TwdlwwapnHa) -
Woolley 4 Co., John.
Iowa City, Iowa.
Cook, Sargent 4 Downey,
Green 4 Stone.
Jacksonville, 111.
Ayers 4 Catlin.
Janesville, Wisoonrin.
Bell 4 Co., W. J.
Brewster, H. B.
Doe, J. B.
Jaokson, Miss.
Adams, Wirt
Green, J. 4 T.
Joliet, Illinois.
Osgood, Uri,
Smith 4 GoodelL
gilmmoo, mrii.
Ransom 4 Dodge.
gmosha, Wisconsin.
Wright, Thomas.
Kenton, Hardin Co., Ohio.
Copeland, G.
Keokuk, Iowa.
Anderson, George 0.
Parsons, Charles.
Lalkyette, Indiana.
Reynolds JohnL.
Spears, Peirce 4 Oa
Lancaster, Penn.
Shroder 4 Co., John F.
LaSalle, I1L
Baldwin, Heman
Cruickahank, A.
Gck 'gle
Original from
UNIVERSITY OF CHICAGO
21
Private Bankers, .
List of
Penn.
Bnwell, W.
Lexington, Mo.
Ault, Robert
Limrlck, William.
Lexington, Kentucky.
Taylor, Turner St Go.
Lynchburg, Virginia.
Peters, Spence St Llgga L
Lyons, V. T.
Sisson St Chapman.
Loekport, 9. T.
Brown, J. K.
Louisville, Xy.
Culver W. E.
Gray, George E. H.
Hunt A Co.. A. D.
Hutchings St Co., 457 Main-street,
Monsarrat, O. H.
Tucker, Brannln St Co.
Warren A Co.,0. N.
Madison, Win
Van Slyke, N. B. *
Marshall, Mich,
Gorham, Charles T.
Marysville, California.
Plume St Co., George W.
Minch Chunk, Penn.
Bockwood, Hazards 4c Co.
Memphis, Xenn.
Cherry, CaldweQ St Co.
Folwell, William
Kirtland, J. B.
Walker, J. Knox.
MUwaukie, Wisconsin.
Kneeland A HnU,
Bell A Co., William L
Marshall St Ilsley,
Papendiek St Co., G.
Mobile, Alabama.
Brewer 4c Co., ft. 0.
Cochran St Co.
Morrill St Dickey,
St John, Powers A Co.
Weeks St Co., John L.
ITCcsinclsville, Ohio.
Goodlive, McLain St BeQ.
Montgomery, Alabama.
Henley St Ca, John
Cullara St Co., 8.
Knox, William
Morris, Josiah.
Monroe, Mich.
Haskell, N. B.
Mt Pleasant, Westmoreland Co., Pa.
Hogg, John T.
Muscatine, Iowa.
Green A Stone.
MaahviUe, Term,
Alioway A Co., N. E.
Pearl A Co, Dyer
Hobson A Wheless,
Lusk, Robert
Shepard A Co., W. B.
Hatches, Bis,
Britton A Co., W. A.
Hewark, Ohio.
Pinny A Co., G. W.
Storges A Go, Wa.
Hariblk, Va.
Gordan, John D.
Hurley W.
Hew Orleans.
Barker, Jacob, 74 Gravier-strect,
Barker, Thomas H., 44 Camp-etrecS,
Bean A Co., Horace, 28 Camp-street,
Benoist, Shaw A Co., 81 Camp-street
Brown, Johnston A Co., 89 Camp-street,
Cochran A Co., 88 Camp-street,
Fisher A Armor, 92 Camp-street,
Judson A Ca,M., Camp A Canal-streets,
Moise, Columbus, 5 Commercial Place,
Matthews, Finley ACa, Camp-street,
Merrill A Ca, H. B., Camp A Common-eta
Pickett, Macmurdo A Ca, St. Charlee-etreet,
Powall A Hopkins,
Robb A Ca, James, 50 Camp-street,
Smith A Ca, Samuel, Camp-street,
Thom A Co., 82 Magazine-street
Hilos, Michigan.
Paine, B. C.
Qghkoth, Wisconsin.
Darling, Wright, Kellogg A Co.
Ottawa, Ulinoia.
Fisher, George 8.
Eames, H. 7.
Swift, M. H.
Philadelphia.
Bamttz A Co., D. G-, Ha 8 South Thlrd-ct
Benson A Ca, A.
Biddle A Ca, Tha
Bayard, C. P.
Barker, Brothers A Ca
Browns A Bowen,
Cambios A Brother, 85 South Third-street,
Clark A Ca, E. 25 South Third-street,
Drexel A Ca. 22 South Third-street
Hogg, John T.,22 Sooth Third-street
Emory A Co., Charles
Hutchinson A Jacobs, 12 South Third-street,
Keen A Taylor,
Gaw, MacaJiater A Ca
Hopkins A Ca, J.
Johnston A Co., R., South Fourth-street
Miller A Co., Matthew T.( 88 South Thlrd-flt
Whelen A Co., E. 8., 48 South Thlrd-sL
Kramer, Work A Young, 24 South Thlrd-sL
Boss, Cambios A Co, 24 South Thlrd-sL
Pekin, Illinois.
Rupert A Ca, G. H.
Peru, Illinois.
Cruikshank, Alex.
Petersburg, Va.
Lemoine A Sons, J. E.
Paul A Hinton.
Digitized by Gougle
Original from
UNIVERSITY OF CHICAGO
22
Lift of Private BanJcert,
Digitized by
Peoria, raiwaif,
Curtiss A Co, N. B.
Hotchkiss A Co., J. P.
Phelps, Bouriand A Co.
Providence, B. L
Vaughan & Co., D. W.
Pittsburgh, Pc.
Arnold, Geo.E.
Bell A Co. Thompson,
Harris A Co.
Hill A Co., Wm. A*,C4 Wsod+trcet,
Holmes A Son, N.
Boon A Sargent,
Jones A Co., 8.
King, H D.
Kramer A Rahm,
Larimer, Jr., W.
Palmer, Hanna A Ox
Patricks A Friend,
Tieraan A Co.
Wilkins A Co., A,, 71 Foorth -street,
Williams A Co,, W. H.
Pottrrille, Pa.
StraUb A Co., A. B.
Portsmouth, Ohio.
Hagan A Mackay,
1 Kinney A Oa, P.
Portland, Main#.
Brown, J. J.
Wood, W.H.
Quincy, ILL
Flagg A Savage,
Moore, Hollow bosh A Co,
Badno, Wipeomtn,
Bell A Oa, W. J.
Richmond, Ltd.
Morrison, Blanchard A Co.
Richmond, Va.
Allen, J. R.
Maury A Morton,
Patro A Cow, H. T.
Purcell A Co., 0. W.
Tinsley, W. W.
Rochester, H. T.
Bissell A Amsden,
Brewster A G reenough,
Karnes, Abram
Powers, Daniel W.
Smith A Fairchild.
Bock&rd, Illinois.
Tompkins A Son,
Horsman A Co., 0. J.
Robertson, Coleman A Co.
Bock Island, Illinois.
Cook, Sargent A Parker.
Sacramento City, CaL
Grim A Rumler,
Hastings A Co., B. F.
Mills, Townsend A Co.
Page, Bacon A Co.
Bead A Co.
Rhodes, Purdy A McNulty;
Swift, E. A R. K.
Wells, Fargo A Co.
Sandusky City, Ohio.
Moas Brothers.
San Francisco.
Adams A Co.
Argent! A Ca, F.
Burgovne A Co.
Drexel, Sather A Church,
Davidson. B.
King, of Wm. James,
Lucas, Turner A Co.
Page, Bacon A Co.
Palmer, Cook A Co.
Perry, Jr., John
Rising, Cassell! A Ca
Robinson A Co.
Sanders A Brenham,
Tallant A Wilde,
Timmerman A Co., J. B.
Wooisey A Co., J. 1*
St Panl, Mlnecota.
Borup A Oakes,
Brewster A Ca, Wia
Parker, Charles H.
St Josephs, Mo.
Beattie, A.
Corby, John.
Itlsm, Kia
Pierce, Nathaza
Savannah, Geo.
Bancroft A Bryan,
Cummings, Montgomery
W ithington, £.
Sheboygan, Wia.
McCreaA Oa., A. L.
Bhweport, La.
JohMon, B. U.
St Louit, Ko.
Anderson A Co., John J.
Bcnoist A Co., L. A.
Bogy, MUtenberger A Ca
I Chouteau A Benoist,
| Clark A Bra. K. W.
Darby A Barksdale,
i Durkee A Bullock,
Haskell A Ca
I Loker, Renick A Ca, 182 Main-street,
1 Lucas A Simon da,
Nlsbet A Co., W.
Page A Bacon,
Presbury A Co.
Teason A Darden,
Wolf, Marcus A.
Tamaqua, Schuylkill Ox, Pa.
WagenseUer A Ca, J. N.
Towanda, Pa.
Laporte, Mason A Co.
Toledo, 0.
Poag A Ketcbam,
Bliss A Hubbard.
Troy, H.Y.
Smith, Calder A Ca
Uniantown, Pa.
Hogg, John T.
Gck 'gle
Original from
UNIVERSITY OF CHICAGO
List of Private Bankers.
23
'nataOHugli.llte.
Brown A Johnston.
Washington City, D, C,
Chubb, Brothers,
Keller A Me Kenney,
Pairo A Nourse,
Biggs A Co.
Seldon, Withers A Oo.
Buler, Lea A Co.
Sweeny, Bestor A Ca
Williams, Brooke B.
Wankagan, Blinoia.
Dowst, 8. M.
Steele, Blokford A Cow
Wetompka, Alabama.
Hatchett, W. T.
Xenia, Ohio.
Nnnnemaker A Allen.
Yaaoo City, Xa
Mlchie A Ca, J. J.
Zanesville, Ohia
Buckingham A Ca, E.
Sturges* Wm.
Wheeler, M. D.
Montreal, Canada Bait.
Dorwin, C.
Chapman A Oo., Henry.
fork Cit|.
BANKERS, BROKERS AND FOREIGN EXCHANGE DEALERS.
Adams. Thomas a Co., 71 WaD-etreeL
Alftn, ft. C. 15 Wall-street
Allen, Moses. 49 William-street
Arnold, Brothers A Co.,82 Wall-street
Armstrong, Robert, 87 Wall-street
•Atwood. Donlevy A Co., 18 Wall-street
Arerell A Brown, 99 Wall-street
Aymar A Go., 84 South-street
Babcock A Biddle, IS William-street
Bache, Andrew J., 181 Ful ton-street
Ballla A Sander, 34 Exchange Place.
Barker, Henry R., 1 Hanover-street
Bay 11a, A. B., 56 Merchants* Exchange.
Bee bee A Ca, Specie Broker s, 47 Wall-street
Belden, C. A G., 60 Wall-street
Berend A Co., Specie Broker s, 28 Wall-street
Bernard A Crommelin, 64 Wall-street,
Belknap, Edward, 63 Wall-street
Betts, P. T.,56 WaU-strcet
Bell, Richard, Henry E. Ransom A F.H. Grain,
48 Wall-street
Bingham, M. H.t 67 Wall-street
Bird A Gitlinan, 47 Exchange Place.
Blatefaford A Ralnsford, 58 Wal^street
^Belmont, August 76 Bearer-street
Borrowe, Wm. A Son, 83 Merchants’ Exchange,
Bocrne, C. 8. A Brothers, 13 Wall-street
Brandon, Joseph, A Son, 66 Beaver-street
tBrown, Brothers A Ca, 59 Wall-street
Brown, George A Samuel, 11 Wall A 2 New its.
Bruce, Langley, 10 Merchants’ Exchange.
Buckler, John, Jr., 49 William-street
Burr. Horace, 62 Wall-street.
Bare hard A Buck, 33 South William-street
Batter, Edward, 45 Wall -street
tCaramann A Co , 56 Wall-street,
Caldwell, Wallace E., 40 Wall-street
Campbell, a W. A Andrews. 174 Groenwich-st
Carpeader A Ca, 69 Wall-street
•Carpenter A Vcrmilyo, 44 Wall-street
Center A Ca, 30 Old Slip.
Christmas, Charles, 60 wall-street
•Clark, Dodge A Co., E. W., 51 Wall-street
Clark, 8. A Ca, 27 Wall-street
Clerk e, Wm. B. A Co.,49 William-street
Cobb, N. R. A Ca, 29 Wall-street
Cole, C. L., 85 Wall-street
Coleman, T. J., 68 Wall-street
Colgate, Charles A Co., 29 Wall-street
Cooiidgc, F. W., 24 William-street
Cel Till, Alfred, 3 Hanover-street
Condlt A Jenkins, 45 Wall-street
Comstock, D. A., 41 Wall-street
♦Coming A Co., 68 Wall-street
Currie A Ca, 45 Wall-street
Cutting, R. L., 55 Merchants’ Exchange.
Darby, G. Frederick, 52 Wall-street
Dennistonn, Wood A CoM 53 Wall-street
Do Coppet A Co., 16 Exchange Place.
tDelaunay, Iselin A Clarke, 63 Wall-street
De Rham A Moore, 24 Exchange Place.
Dickinson. Charles, 66 Beaver-street
tDixon, Thomas, 68 Beaver-street
Dore A Robinson. 68 Wall-street
Drake A Bradford, 29 Wall-street
Draper, Theodore 8., 54 Wall-street
Draper, Simeon, 46 Pine-street
Draz A Martens, 88 Wall-street
Duncan, John F., 68 Wall-street
•Duncan, Sherman A Co., 48 W ilttam-street
Dyker, Alstyne A Co., 63 Wall-street
Dye, John S., 2 Maiden Lana
Ebbetts, J. J. A., U Hanover-street
Fendi, J. G., 12 Merchants’ Exchange.
Ferris A Brothers, A. Morton, 4 Hanover-street
Finley, Xissam A Co., 49 Wall-street
Fisher, Denny A Ca, 8 Jsuncey Court
Foster, A. 8., 284 Pearl-street*
Fronk, E. C..54 Wall-street
Fumiss, T. H. A H., 56 Wall-street
Genln A Lockwood, .20 William-street
Gelpecke A Co.. 74 Beaver-street
Ginord, Arthur N., 62 Wall-street
•Gilbert, Coe A Johnson, comer William A Ex-
change Plaoa
Gooding A Brother, 6 Wall-street
GoodlLn, James T., 25 Wall-street
Goodhue A Ca, 64 South-street
Gourlle, John H., 1 Hanover-street
Grade A Dash wood, 27 Wall-street
Graeffe, A Ca, 66 Beaver-street
Graham, Charles, 45 Wllllam-strcet
Greenough, William H., 43 Wall-street
Greig, Alexander M„ 1 Hanover-street
Grosbeck, Brothers, 87 Wall-street
Hablcht A Ca, C. E., 94 Wall-street
Hallgartcn A Herzfleld, 4 Hanover-street
Hamilton, James K. A Sons, 24 William-street
Hart Emanuel R., 42 William-street
Hawes A Dubois, 178 Canal-street
Digitized by
Gck igle
Original from
UNIVERSITY OF CHICAGO
Digitized by
24
Lift of Private Banker, *.
Hays, D. C., 66 Wall-street
Baja, Jacob, 65 Wall-street
Hays, W. 8., 65 Wall-street.
Hennings, Muller A Gosling, 89 Pearl-street.
Uoguet A Dias, 62 Wall-street.
tHoge, William A Co., 40 Wall-street
Hopkins A Co., 52 A 54 Merchants’ Exchange.
Hough. Joseph, 220 Broadway.
Houghton A Co., 11 Wall-street
Hoyt, William 8., 4 Hanovcr-sUreeL
Hunt, James 8^ 65 Wall-street
Jaggar, Walter, 66 Wall-street
James, A. 8., 62 Wall-street
James, Frederick P.. 88 Wall-street
Jaudon, Samuel, 54 Wall-street
Jerome, A. G., 29 Wall-street
Kelley, Townsend A Co., 48 Wall-street
Kellogg, Edward, 46 Wall-street
•Ketcbum, Kogers A Bement 45 WlUlam-st
Ketch am, T. A Co., 1 Hanover-etreet
•King’s Sons, James G., 58 William-street
Kimball, £. W., 60 Wall-street
Kip, Isaac, 64 Wall-street
K ivtland A Co., 48 Wall-street
Klemn, Adolph, 50 Wall-street
Lane, Anthony, 68 Wall-street
Lahens A Co., 62 Wall-street
Leroy, Daniel, 66 William-street
Leroy, William H.,60 William-street
Little A Co., Jacob, 27 Wall-street
Livingston, Carroll, 61 Wall-street
Livingston. Myers, A Fonda, 89 WilUam-street
Ludlow, Thomas, 52 Wall-street
McJimaey, J. M., 67 Wall-street
Magagnoa, T. C. A Co., 2 Wall-street
McJlmsey, Robert, 85 Wall-street.
•Maitland, Phelps A Co., 14 Stone-street
McMillan A Seymour, 66 Wall-street
McVIckar, W. H., 59 Merchants’ Exchange,
Manesea, Louis, 148 Ful ton-street
Manierre, Benjamin F., 220 Broadway.
Marvin. C. R., 54 Wall-street
Maxwell A Co., 69 Wall-street
Meyer A Stuck eti, 76 Beaver-street
Merwin A Gould,89 William-street
Miller, Augustus F., 1 Exchange-Plae*
Miller, E. H., 66 Wall-street
Morford, C. A., Greenwich and Dye streets.
Morton, W. R., 14 Wall-street
Morgan, Henry, 84 Wall-street.
Morgan A Son, Matthew, 54 Wall-street
Morgan, Henry T., 66 Wall-street
Moran, Brothers, 1 Hanover Square.
•Morrison A Co., E. 51 William-street
Hellion, Wm.H., 68 Wall-street
Nicholson, Meadows T.t 1 Hanover Square,
Norwood, Andrew G., 49 William-street
O’Brien, Wm, A John, 88 Wall-street
Oelrichs A Co., 86 Broad-street
Ogden, T. W., 1 Hanover-street
0*KeU, Wm.,9Park Place.
Paine, Wm. H., 47 Wall-street
Parker, James C., 54 Wall-street
Parsons, James H., 51 William-street
Paunstedt A Schumacher, E., 88 New-street
Plllot A. P., 61 Wall-street
Payson, Stephen, 86 Fulton-etreet
tPickengill, Wm. C. A Co., 47 Wall-street
Pepoon, Hoffinan A Tenbrook, 54 Wall-street
Phelps, J. N. A J. J.t 45 Wall-street
Poppe A Co., 66 New-street
Post, Edwin F., 9 Wall-street
Prime A Co., 64 Wall-street
Pmdy, Elijah. 88 Merchants’ Exchange.
Purdy, John F., 66 Beaver-street
Bead A Lathron. 40 W all-street.
tRiggs A Co., 56 Wall-street
•Robbins, G.S. A Son, 52 Wall-street
Robinson, Nelson, 87 WT all-street
Rogers, J. Warren, 22 Merchants’ Exchange.
Rollins, Brothers, 41 Wall-street
Rowland A'Grecnleaf. 78 Merchants’ Exchange.
Rudd A Wheeler, 27 Wall-street
Sarory, Charles A Co., 69 Bcavcr-strsst
gather, P., 166 Nassau street
Scback, O. W. C., 67 Wall-street
Schall, W. A Co., 84 New-street
Schermerborn, John, 60 Wall-street
Schell, R.. 61 and <8 Merchants’ Exchange.
Schuchara A Gebhard, 21 Nasaau-elreet
Schultz, M. A Co., 87 Wall-street
Searis A Co , William, 47 Wall-street
Shipman, William II., 54 Wall-street
Smith, W. A., 62 Wail-street
Smith A D arrow, Specie Broken, 29 Wall-strcst
Snelling, Andrew 8., 49 Wall-street
Sparks, A J., 4 Hanover-street
Stansbary, E. A., 40 Wall-street
Stanton A Wilcox, 49 W'all-street.
Stebbins, W. Augustus, 41 William-street.
Scott, W. B., A Co., IS Wall-street
Stokes, James, 146 Pearl-street.
•Strachan A Scott 51 William-street
•Sturges A Ellis, 14 Wall -street
Taller, Edward N., 49 William-street
Tallmadge. Benjamin H., 61 Wall-street.
Tapacott, W. A J., 86 South-street
Tatem, John R., 5 Nassau-street
Taylor Brothers, 76 Wall-street
Tempest A Dixon, 54 Wall-street
Terhune, Garret T., 7 Broad-street
Thome, T. W., Jr., 64 Wall-street
Thorne, Wm. 8., 58 Wall-street
Thwing, C. A E. W., 61 Wall-street
♦Thompson, John. 2 Wall-street.
Titus, Samuel, 46 Merchants’ Exchange.
Totand, Henry, Jr., 69 Wall-street
Tolaud, Henry A Son . 60 Wall-street
Trevor A Colgate, 62 Wall-street
Underwood, J. A. A Sons, 22 Merchants’ Ex
Very A Gwynne, 12 Wall-street
•V anvleck, J. T. A Read, 27 Wall-street
Vom Baur A Co., G., 6 Broad-street
Vonhofflnan A Co., L., 6 Hanover-street
' Wainvrright, J. H., 41 William -street
'Wadsworth A Sheldon. 29 Wall-street
i Warren, John A Son, 65 Wall-street
-Ward A Co., 54 W all-street
'Washburn A Co., 87 Wall-street
Weeks A Co., 58 Wall-street
Wesaley A Kowalski, 49 William-street
Weston, George S., 85 Merchants’ Exchange.
W etmore, Robert A Co., 70 Beaver-street
Wheelock, Moses A., 8 Hanover-street
White, Robert H., 65 Wall-street
Williams A Qufcrn, 40 Fulton-streot
•Winslow, Lanier A Co., 52 Wall-street
Winslow, W. W., 74X Wall-street
•Wiggin, T. A Co., 6 Wall-street
Wood, David M., 181 Fulton-street
Worth, F. W., 62 Wall-street.
Wright, A. W., 43 Wall, Jauneey Court
♦Bankers.
1 Foselgn Ex things Draws*.
Gck -gle
Original from
UNIVERSITY OF CHICAGO
1854.]
The Saving t Banks of New York City.
25
THE SAVINGS BANKS OF NEW YORK CITY.
Over twenty-six millions of dollars are deposited in our savings banks,
tbe hard earnings of our industrious classes. These institutions serve a
moat important purpose in our community, in facilitating investments
and promoting thrift, and have an interest for the philanthropist as well
as the financier. They have of late years been multiplying in a rapid
ratio, but as yet no connected exposition - of their bases and operations
has ever appeared. It is only after much, labor that we have been able
to supply this deficiency, by making out the following succinct yet com-
prehensive account of every such institution in our city.
The first attempts to establish savings banks in the City of New York
were made in the year 1818. Previous to that period, several of these
institutions had been in operation in Massachusetts. On the. 30th Decem-
ber, 1818, a letter was addressed by John White Treadwell, Esq., Secre-
tary of the Institution for Savings in the town of Salem, (Mass.,) to John
E. Hyde, Esq., of New York City, detailing the operations of the
bank in Salem. The correspondence on this subject may be found in
the August number of this work, 1852, (pp. 143-4.) This and similar fa-
vorable reports led to the establishment of the “ Bank for Savings” in the
year 1819, in this city.
The progress of tbe important principles of Savings Banks is fully
shown in the fact that the deposits in this city alone have increased to
nearly $2 7,000,000, as will appear by details now given.
In the establishment of such institutions by a State, care should be
taken to insist upon investments of their funds in securities of the highest
order. It seems to us that loans on personal security should be avoided,
and that certain portions of the funds should be invested in real estate,
(bonds and mortgages on,) as permanent loans ; other portions in State
stocks of the most reliable character, which, in case of any sudden emer-
gency, coaid be converted into cash.
In Boston there are three chartered Savings Banks, whose deposits,
Ac., were as follows in 1853 :
DtpotUon. DtpotU*. An. Hcptn.
Provident Savings Institution, . .
Suffolk Sa vines Institution, . . . .
East Boston Savioga Institution,
27,910 $5,165,948 $17,772
7,467 1,866.460 7,582
880 68,600 800
The total for Massachusetts was as follows in the last three years :
1861. 1869. I860.
No. of Depositors, 86,587 97,868 117,404
Amowt of Deposits, $16,554,088 $18,401,807 $28,870,102
In Great Britain the progress has been likewise remarkable.
In the year 1830 the number of individual depositors in the Savings
Banks of Great Britain, was 412,217, and the amount of their deposits
Digitized by
Gck igle
Original from
UNIVERSITY OF CHICAGO
26
Digitized by
The Savings Banks of New York City . [July,
£13,507,565 sterling. Their condition at three several periods maybe
stated as follows :
Xo. qf Depositor*. Amt qfDejxxit*.
November, 1830,. .. . * 412,217 £18,507,565
November, 1840, 1,065,031 26,671,903
November, 1850, 1,092,581 27,198,503
According to a report made by Mr. Scratchley, there were in 1849,
no less than 10,433 enrolled Friendly Societies, numbering 1,600,000
members, who subscribe an annual revenue of £2,800,000, and have ac-
cumulated a fund of £6,400,000. There are also a vast number of unen-
rolled societies. Of the Manchester Unity, there are 4,000 societies, with
264,000 members, who subscribe £400,000 a year. In addition to these
there are the unenrolled Foresters, Druids, <fec. The total is taken at
32,233 societies, with 3,052,000 members, who subscribe £4,980,000 a
year, and have a capital fund of £11,360,000. The whole adult male
population of the United Kingdom may be estimated at about 7,000,000;
nearly one half of tthese, therefore, without distinction of rich and poor,
are actually members of some of these societies.
Of the Savings Banks established in New York city, we enumerate the
following:
1. The Bank foe Savings, 107 Chambers-street, commenced business
in July, 1819. Since when, they have received from 635,274 depositors
the sum of $40,464,425, and accrued interest on investments $4,777,002,
with a balance on hand, in January last, of $7,901,808 29. The in-
creased popularity of the “ Savings Bank” principle is shown in the fact
that their depositor for the first five years w^ere 29,437 in number, and
for the next five and a half years, 60,820 ; whereas for the last four years
they have been 33,594; 35,134; 35,851 ; and (in 1853) 43,335. That
is, the depositors last year were 50 per cent, more numerous than in the
whole of the first five years. The number of depositors 1st January,
1854, was 46,997, with an average balance of $168 13 each. The
solidity of the investments may be seen in the annexed summary :
1st Funded Debt of the XT. S., at par, $1,572,350
2d. Stocks of the State and City of New York, and of other States,
at par 3,827,656
3d. Bonds and Mortgages, 2,553,433
4th. Real Estate, (Bank building,) 30,000
5th. Cash on han<£ 880,422
$8,368,861
Of the depositors of the year 1853, 11,199 were new accounts. The
Trustees of tne Bank, in their last report, classify these persons : of whom
1,875 were domestics; 1,333 laborers; 484 seamstresses; 510 tailors;
383 clerks; 280 shoemakers; 218 blacksmiths ; 297 carpenters; of no
other trade or business were there over two hundred.
In the year 1853 there were 43,345 deposits made in this bank: of
these, the largest number were in sums of $10 to $20, 8,192. There
were 6,073 deposits of $20 to $30, and 4,108 of $5 to $10, and only
1,695 less than $5.
Gck igle
Original from
UNIVERSITY OF CHICAGO
27
1854.] The Saving s Banks of New York City.
In order to show the progress of this institution from its beginning, we
copy from the last annual report the annexed summary of its receipts
and payments to this time :
Rzcuptb.
From July, 1819, to July, 1824, 6 yean, from 29, 487 depositors,. ... $1,880,666 46
* “ 1824, to Jaa, 1830, 5* “ « 60,820 “ .... 8,461,916 62
“ Jan, 1880, “ 1886, 5 “ « 82,686 “ .... 4,644,604 70
“ « 1886, “ 1840,6 “ « 92,382 « .... 6,961,646 80
“ ** 1840, “ 1846, 6 « “ 94,088 “ 6,040,867 26
“ “ 1846, “ 1860, 6 « “ 128,148 « .... 8,608,937 81
“ * 1860, “ 1861, 1 “ “ 83,694 “ .... 2,224,604 40
“ " 1861, “ 1862,1 ■ " 86,184 « .... 2,414,789 98
“ “ 1862, “ 1868, 1 “ “ 86,861 “ .... 2,464,667 68
* “ 1868, « 1864,, 1 « « 43,846. « 2,882,046 07
Total, 84$ “ “ 686,274 “ .... $40,464,426 06
Deduct amount paid to 480,086 drafts, 87,389,619 00
$3,124,806 06
Add interest up to and including January dividend 4,777,002 23
Total amount due depositors, 1st January, 1864, $7,901,808 29
Rxpaid,
From July, 1819, to July, 1824, 6 years, paid 9,684 drafts, $ 800.946 61
" “ 1824, to Jan, 1880, 6$ “ “ 39,699 u 2,994,468 49
“ Jan., 1880, • 1836, 6 « « 67,807 “ 4,166,684 17
" • 1886, « 1840,6 “ « 79,841 “ 6,634,306 67
“ “ 1840, “ 1846,6 “ “ 78,611 “ 6,276,979 83
“ “ 1846, « 1860, 6 “ “ 108,797 “ 8,442,326 99
“ “ 1860, “ 1861, 1 “ “ 24,162 " 1,894,284 06
“ “ 1861, “ 1862, 1 “ " 28,040 “ 2,277,699 77
“ “ 1862, « 1868, 1 « “ 29,711 “ 2,494,057 64
* “ 1868, “ 1864, 1 “ “ 28,794 “ 2,458,180 27
Total, 84$ “ “ 480,086 “ $87,839,619 00
IL Thx Sxamxn’s Bank nor Savings, at No. 78 Wall-street, is the
second in importance in this city — having deposits to the amount of
$6,478,677. Of this sum, $3,067,050 is invested in bond and mortgage
on improved property in the cities of New-York and Brooklyn, worth
double the amount loaned ; $2,863,500 in stocks, viz. : Of the city of
New-York, $1,132,374 ; State of New-York, $14,522; Ohio, $839,819;
Pennsylvania, $97,000; United States, $210,800; Virginia, $250,000;
Georgia, $213,750 ; Tennessee, $109,000. The real estate owned by the
bank, is $131,157, and cash on hand, $352,826.
Open daily, from 10, A. M., to 2, P. M. Deposits received of $1, and
upwards. Dividends payable in January and July.
The Seamen’s Bank for Savings was originally established under a
charter from the legislature of the State, in order to provide a safe and
advantageous Seposit for the surplus earnings of the seafaring commu-
nity. It originated in a desire to serve this useful class of men, whose
occupation, necessarily calling them so much from home, leaves them but
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The Saving* Bank* of New York City. [July,
an imperfect opportunity of finding who are trustworthy, and whose
generous and confiding disposition often leads them to place confidence
where it is not merited.
A seaman made a deposit in this bank on the 23d December, 1829,
of $50 ; interest began from the first day of January, 1830 ; it remained
undisturbed until the death of the depositor, and wa9 paid to his execu-
tor on the 19th of July, 1844 — having then accumulated to $106 72.
The period for which it drew interest was 14 J years.
The savings banks of this city are generally under similar rules and
regulations, as to deposits and depositors. We publish the following
series of by-laws of the Seamen's Savings Bank, as an index to those
adopted by the other institutions :
EXTRACTS FROM THE BT-LAWS OF THE 8EA)fEN’s BAKE FOR SAYINGS.
No president, vice-president or trustee shall receive, directly or indirectly, any pay
or emolument for his services.
It shall be the duty of the accountants to attend at the bank during bank hours,
and shall enter all deposits made in the books of the bank ; and a duplicate of such
entry shall be made in the book of the depositor, which shall be his voucher, and the
evidence of his property in this institution.
Mouey received from, and paid to, depositors, daily, from 10 o'clock, A. 1L, to two
o’clock, P. M. (Sundays and Holidays excepted.)
Deposits of one dollar, or any number of dollars, may be received, provided the
tame be in specie, or in bills taken in deposit by the incorporated bonks in this city.
On the third Monday of January and July in every year, there shall be declared
and paid such interest as the profits of the institution will allow, on all sums of
five dollars and upwards, which shall have been deposited for three months next pre-
vious to the first day of January and July ; but no interest shall be paid on the no-
tional parts of a dollar.
The frauds practised ou seamen are notorious, and the losses on the
part of masters, officers and men, who leave their money with merchants
or landlords, or trust it with their friends, are of every day occurrence.
The legislature has taken great care, in the charter of this bank, to
make it safe. The trustees, respectable and well known gentlemen, are
neither allowed to borrow the money themselves, nor to lend it on indi-
vidual security; but are required to invest it only in the best public
stocks, and in mortgages on real estate in the cities of New-York and
Brooklyn, worth double the amount loaned. The history of other banks
for savings in this State, has proved that such guards are effectual ; for
no instance of serious loss or failure has ever occurred among them.
Confidence in the Seamen’s Bank for Savings has been shown, by the
large amount of deposits, by officers and seamen, in the naval and mer-
chant service, and others, which, since its incorporation, has reached
$21,000,000, and of which the bank now has in hand over $6,000,000.
Should any seaman ask what benefit he would derive from depositing
his money ? the following, among the many advantages, may be named :
1st. It will always be a recommendation to a man that he has some
money in the bank, and would often secure him a good birth, where
trustworthy and responsible men are wanted.
2d. A fund in this bank would be a good reliance in sickness or old
age. The alms-house and hospital are, at best, bat poor retreats, and a
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1854.]
The Savings Banks of New York dig.
man's money is a better friend, in time of need, than the good will of
even his friends. A small deposit at the termination of every voyage,
would, in a few years, be a sum of some magnitude. .
IEL The Bowkrt Sayings Bank, No. 128 Bowery^-hhey com-
menced business in the year 1834. The following items are takenfrom
their twentieth annual report to the legislature : •
The trustees have erected a spacious and beautiful building, with a
stone front — the cost of which, with the lot, was $125,707. The new
accounts opened last year, were 1 1,440, and total number of deposits,
41,451 — averaging about $75 each ; but the large number of 7,097 were
in sums between $10 and $20. From the classification of the depositors,
it seems that the largest number were domestics,' 670 ; tailors, 614 ;
seamstresses, 442; shoemakers, 375 ; cabinet makers, 345.
The large amount of assets, $5,270,519, was, in January last, invested
as follows : .
Bonds and mortgages in New-York and Brooklyn, $2,378,414
Stocks of New-York City, $1,164,708 ; New-York State, $269,863 ; Ohio,
$863,200 ; United States, $271,900 ; City of Williamsburgh, $20,000 ;
Troy, $50,000 2,1 19,281
Loans on stock,. ; 6,000
Banking house and lot, 1 26,707
Cash on deposit in city banks and on hand, 642,166
Total deposits, $6,270,619
IV. Greenwich Savings Bank, corner Sixth Avenue and Waverly
Place. — The bank commenced'business in the year 1 833. A new and spa-
cious building has been erected recently, which was first occupied by the
bank on the 1 1th of May, 1854. It is one of the most solid and sub-
stantial public buildings in this city. It has a front of 47 feet, and depth
of 80 feet ; the banking room being 43x66 feet. The whole structure,
with lot, cost about sixty thousand dollars. The Greenwich Savings
Bank was the third institution of the kind chartered for this city. Its
by-laws authorize loans on real estate worth double the amount loaned.
The bank is open daily, for the reception of deposits, from 10 to 2, and
from 5 to 7, P. M. Total deposits, $2,823,071.
Under the by-laws of this institution, no one depositor can deposit
over $3,000, nor allow his funds to accumulate beyond this sum.
V. Manhattan Savings Bank, No. 648 Broadway. — Open daily from
8, A M. till 7, P. M. Total assets, $1,007,828, invested as follows :
Bonds and Mortgages, City and State of New York, $674,640
Loans on stocks, 814,868
Cash on hand and in bank^ 118,980
$1,007,828
In the year 1853, 2,098 new accounts were opened. Total deposits,
$682,683, during the year, of which the largest number (971 out of
7,085) were, as in the other institutions, from $10 to $20 each.
Deposits of one dollar, or any amount not exceeding five thousand
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30 The Savinge Bankt of New York City. [July,
dollars, will be received, made in such bills as are received on deposit
by the banks of the city. Among the by-laws are the following :
The accountant will endeavor to prevent frauds. But all payments made to per-
sons producing the deposit books, or duplicates thereof, shall be deemed good and
valid payments to the depositors respectively.
All notices in relation to the deposits or depositors, published by direction of the
Trustees, in one or more daily newspapers of this city, shall be deemed and taken as
personal notice to each depositor.
The Trustees invest the attending committee with power to dose the account, or
refuse to receive the deposits, of any individual, whenever they may deem it ex-
pedient
VI. Savings Bank for Merchants’ Clerks and others, 516 Broad-
way, open from 10, A. M. to 2, P. M., and on Tuesday, Thursday and
Saturday evenings, from 5 till 7. The assets, in January last, were,
New York City stocks, (139,854
Ohio State stock, $98,163; Pennsylvania, $61,400; Virginia, $21,000 ;
Tennessee, $82,637, 218,201
Bonds and Mortgages, (New York City, Brooklyn and Willkmsburgh,). 396,919
Beal Estate, Ac, 91,923
Total, January, 1854,. $840,898
Dividends in January and July. This institution was established July
1, 1848, for the benefit of clerks and others, and its success has been in
the highest degree satisfactory. Deposits of not less than one dollar may
be received ; but no deposits shall be received from a minor under the
age of twelve years, unless through his or her guardian or trustee.
The Trustees have recently erected for this institution a spacious and
commodious building, with a marble front, at 516 Broadway, near
Spring-street
VII. The Emigrant Industrial Savings Bank, No. 51 Chambers-
street — Their Third Annual Report was made on the 3d of January,
1854, from which it appears that, 2,738 new accounts were opened
during the year 1853. Of these the principal are laborers, 366 ;
domestics, 253 ; clerks, 148 ; tailors, 105 ; and no other class exceeding
100. The total amount of funds on hand in January last was $841,712,
invested as follows :
Bonds and Mortgages on Real Estate in the cities of New York and
Brooklyn, $384,100
Bonds of the city of New York, $100,000 ; Rochester, $51,176 ; Troy,
$49,712 ; State of Missouri, $18,045, 218,982
Loans on Collateral Stocks, 108,420
Real Estate, (Banking House,) 51 Chambers-street, 8 1,560'
Cash on hand, in bam:, Ac, 98,700
Total deposits, $841,712
The whole number of accounts open was 3,661, at the time of making
the last report.
The title of this institution will show that it was mainly intended for
the benefit of the industrious classes among the emigrants who arrive at
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1854.] The Savings Banks of New York City* 31
and make a home in this State. The following statement will show the
nativity of the new depositors :
Natitoof
177 S witserland, . 0
113 Norway, . 1
2,094 , Sweden, . .......... 4
54 Canada, . . . . . , 11
4 Cuba, 2
248
28 Total new depositors in 1858,. . . . 2,788
2
The total amount of deposits for the year 1853 was $730,300, and the
total number of deposits 9,202, mostly small sums, as is the case with
other institutions of this kind, viz: 1,292 deposits of $5 to $10 eachf
1,042 of $10 to $20, 1,082 of $20 to $30.
. The fact, that from such persons alone deposits were received to the
amount of nearly $2,500 per day, (on an average) during the last year,
at this institution solely, is full evidence not only of its utility, but of the
confidence felt in the management by our foreign merchants, and by the
thousands of emigrants who transact business with it.
VIII. Thb Broadway Sayings Bank, (at the Broadway Bank,) 237
Broadway. — Total assets, $442,296, invested as follows :
Bonds and mortgages on real estate,. .$186,700
Loans on stocks, 112,675
Troy and Rochester dty bonds,. • 69,266
Cash on hand, 6a, 78,755
Total, January, 1864, .$442,296
Open, Mondays, Wednesdays and Saturdays', from 5 to 7, P. M.
IX. East River Savings Bank, Chambers-street, near Chatham. —
Commenced business in 1851. Number of depositors in 1853, was 4,296.
Amount of deposits on hand, $419,080. Invested in
Bonds and mortgages,
Loans on call, (stock collaterals,)
Cash, Ac,
Total, January, 1864, $419,080
X. Irving Savings Institution, Greenwich-street. — Total assets,
$291,903 ; invested in bonds and mortgages,
On real estate in New York city,. •••••• .$158,565
Loans on stocks,. • •• 87,690
Banking house and lot, 28,907
Cash in bulk, 71,741
Total deposits, $291,903
The number of new accounts opened in 1853, was 649 ; total deposits,
$203,268 — the largest number of which was from $100 to $20p. In
$250,440
. 148,990
24,640
United States
England, ....
Ireland, ....
Scotland, . . .
Wales,
Germany, . . .
Prance,
Italy,. ......
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The Savings Banks of New York City. [July,
this institution, the larger number of depositors was — clerks, 45 ; farmers,
35 ; grocers, 22. Open from 11 till 1 o’clock, and from>4 till 7 P. M.
XL Thu Nbw-York Drt Dock Savings Bank, No. 619 Fourth-
street, near Avenue C. — The number of deposits last year, was 5,875.
Amount of deposits, January, 1858, $380,888
Amount of deposits made in the year 1858 483,485
$848,800
Amount of depoeita repaid in 1863 268,778
Total deposits on hand, January, 1864 $501,024
The investment of these funds are —
In bonds and mortgages on real estate, $510,850
Loans on call, 10,000
Gash in bank, Ac, 70,174
Total, $691,024
This bank is open for the reception of deposits every Monday, Wednes-
day and Saturday, from 5 to 7 o’clock, P. M. The information in refer-
ence to this institution could not be procured from the officers ; we have
therefore availed ourselves of the copy of their report, on file at the City
Hall.
XII. Knickerbocker Savings Bank, corner of Eighth Avenue and
Twenty-third-street. — Organized in the year 1851. Deposits on hand,
January, 1853, $199,552 ; received in 1853, 454,053. Paid out in
1853, $225,942, leaving aggregate deposits, in January last, $427,663,
invested as follows r Bonds and mortgages, $222,782 ; loans on stocks,
$154,357 ; cash in bank, &<%, $50,524. Open daily, from 10, A. M., to
7, P. M.
XIIL The Mariners’ Savings Bank, corner of Third Avenue and
Ninth-street. — Commenced business, April, 1853. Deposits for the year
ending 31st December, $36,649. Funds invested in New-York and
Erie Rail-Road income bonds, $13,650. Loans on call, $18,965. Cash
and expenses, $4,034.
XIV. The Sixpenny Savings Bank, No. 336 Broadway. — Of this
institution we have given copious details, in our number for March,
1854.
These returns embrace, it is believed, all the savings institutions in
the city.
From these data, it may be seen how important to a commercial com-
munity is the Savings Bank system — its salutary effects upon the masses.
Here were more than twenty-six millions of dollars on deposit, in January
last, in behalf of an immense number of operatives, wjdows, minors and
others, distributed throughout every class of people. Every department
of mechanical labor is represented among them; every profession, and
some who belong to “ no class.” Of this large variety, we find in one
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1854.] The Savings Banks of NeuyYork City.
bank alone, 4 “speculators;” 2 “soldiers;” 37 “nurses;” 2 “chiffon-
iers;” 15 “ hostlers;” 1 “ house-mover ;” 20 “sawyers;” 89 “ teachers ;”
but only one “ editor.”
Many of the accounts in these institutions have been accumulating (or
active) for fifteen or twenty years. The people are thoroughly impressed
with the idea that their savings are safe in these banks. In the absence
of such depositories, how much money would have been squandered !
and the powerful influences of such institutions upon the masses, who
can describe 1 We consider them among the most valuable institutions
of the country, and that they are destined to maintain a still stronger
influence upon the rising and future generations of our city.
It is fortunate that the late measure before the legislature, in reference
to savings banks, failed to pass. That bill contemplated the abstraction
.£>( savings deposits, of long standing, to the use of the State. We hope
this proposition will not again be considered.
The fact that such a law was contemplated at Albany, induced cpiite
a large number of persons to withdraw their deposits from the savings
banks. In one case, orders were sent for the withdrawal of the deposits
at any sacrifice, although standing for some years ; the owner fearing
that the moment the State obtained possession, there would be no
recovery.
From the preceding data we furnish the following recapitulation of the
several savings banks in this city, the date of commencement of business
of each, and the amount of deposits of each in January, 1854 :
Bscapitulation of Deposits, January , 1854.
yarns o Bank .
Ban k for Savings,
Seamen's Bank for Savings,
Bowery Savings Bank,
Greenwich Savings Bank,
Manhattan Savings Bank,
Merchants’ Clerks’ Savings Bank, . .
Emigrant Industrial Savings Bank,
Broadway Savings Bank,
East- River Savings Bank,
Irving Savings Institution,
New- York Dry- Dock Savings Bank,
Knickerbocker Savings Bank,
Mariners’ Savings Bank,
Sixpenny Savings Bank,
Total,
Commenced.
Deposits.
...1819
$7,901,808
...1829
6,478,677
. . .1834
5,270,519
. . .1833
2,323,071
...1851
1,007,828
...1848
840,898
...1851
841,712
...1851
438,509
...1851
419,080
...1851
291,903
...1849
591,024
...1862
427,663
...1853
37,649
...1853
41,061
.$26,910,402
At a future day we propose to resume the subject, and furnish facts in
regard to the Savings institutions of Philadelphia, Baltimore, and other
cities. Those of Boston and other parts of Massachusetts are fully
detailed in our preceding volume.
3
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Notice of Protest.
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[July.
NOTICE OF TROTEST.
The phraseology of notices of protest of bills of exchange and pro-
missory notes has been carefully considered l>y the notaries public of
New- York and other cities. The following, it is believed, combine all
the information that is essential to be furnished to parties to commercial
paper :
Notice of Protest for Non -pi y men t of a Promissory Note.
New- York, , 1S54.
Phase to take notice , that a Promissory Xvte ]>>r $ dat'd
made by , indorsed by you , t ras THIS EVENING PROTESTED FOR
NON-PAYMENT, of Or demand and rtfnstd of payment, and that the holders lx>k to you
for pa y ment th e n of.
Your obedient servant ,
John Brown, Notary Priiuc.
To # # ( afire ^ Xo. 1 John street , Xew- York*
Non-payment of a Bill of Exchange .
New- York, 1S54.
Please to take notice, that a Bill of Exchange for $ dated
draim by indorsed by you, was this evening protested FOR
non-payment, after demand and refusal of payment , and that the holders bx>k to you
for payment thereof
Your obedient servant ,
To Notary Public.
Non-acceptance of a Bill of Exchange .
New- York, , 1354.
Please to take notice, that a Bill of Exchange for $ dated ,
drawn Uj indorsed hy you, was this evening PROTESTED FOR
NON-ACCEPTANCE, after demand and refusal of acceptance, and that the holders lo<>k to
you for pay merd th ereof
Your obedient servant,
To Notary Public.
Effect of Non-acceptance of a Bill of Exchange .
It is not generally known that in case of the protest for non-acceptance
of a foreign bill of exchange, the holder has a right, and before maturity,
to insist upon an immediate payment of the bill, together with inteiest,
damages, and costs, as well from the prior indorsers as from the drawer.
Upon this point Chief-Justice Story says :
“ And in default of acceptance, he may immediately commence sepa-
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35
Failure of the Cochituate Bank.
rate actions against each of them, and pursue such actions to judgment
and execution, until he has received full satisfaction from some one or
more parties.
4i What the damages are, and should be, will more properly come
under review, when we have occasion to consider cases of dishonor for
non-payment of bills. But it may be here stated, that the like damages
are ordinarily allowed in cases of non-acceptance, as in cases of non-
payment of bills ; and that they are governed by the lex loci contractus ,
that is to say, the drawer is responsible for damages, according to the
law of the place where the bill is drawn ; and the indorsers are severally
liable, according to the law of the place where they made their respective
indorsements.” (See Story on Bills, p. 395.)
44 Heineccius lays down the general rule in unequivocal terms. Speak-
ing upon the subject of the liability of the drawer and the indorsers of
the bill, he says, that it attaches, whether there be a dishonor by a non-
acceptance, or by nonpayment of the bill ; but in each case there is a
necessity of protesting the bill for the dishonor, and if it be neglected,
the frhole obligation is extinguished.” ( Ibid ., p. 321.)
FAILURE OF THE COCHITUATE BANK.
BOSTON, 1854.
Tiif. proceedings in the case of the Cochituate Bank, Boston, were
resumed on the 5th of June, before the Supreme Court, at Boston ; pre-
sent, Chief-Justice Shaw. For the Commonwealth, Attorney-General
Clifford; for the defense, William Whiting and A. A. Ranney, Esqs.
William Dehon, for the Receivers, (A. T. Hall, E. R. Colt, and Solo-
mon Lincoln,) read a report of the proceedings, of which the following
is the substance :
Capital $250,000 00
Circulation, 250,514 00
DejMi-its, 44,067 15
Deposit Cct til i cates, 3,578 21
Dividends, 3,256 00
Reserve, 20,700 00
Gain 1,572 55
Specie balances, 44,000 00
$617,687 91
April 17, 1854.
Over-Drafts, $20,708 56
Loan 488,253 13
Suffolk Bank, 5,000 00
Bank of Republic, 30,038 41
Nassau Bank, 145 92
Bills,..-* 6,272 00
Checks, 67,038 76
Specie, 231 13
$617,687 91
W. C. Starbuck, Cashier.
Sworn before me
Samuel Phillips,
Bank Commissioner.
To the liabilities mentioned in the foregoing should be added the
amount of liabilities of the bank as indorser on paper re-discounted by
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Failure of the Cochituate Bank. [July,
the Bank of the Republic, New-York, or proved to be discounted else-
where for the use of this bank, and which does not appear on the books.
The amount of liabilities of this description outstanding at the date of
this report was 167,023.96, all of which has become due, and has been
protested for non-payment
The aggregate liabilities of the bank on account of circulation, deposits,
dividends, and specie balances due other banks as appears bv the state-
ment, (corrected,) was - $346,302 76
To which add liabilities of the bank, as indorser, - 67,023 96
1403,326 72
Expenses incurred and others accruing will constitute an additional
liability for future settlement
Assets of the Bank. — Upon these we remark in their order :
1st. Over-drafts. — They amount to $20,708.56, of which $20,367 is
against parties who have suspended payment
2d. Ijoans. — The amount of the loan payable in Boston $348,944.67 ;
out of Boston $139,308.16. The amount of over-due paper of all kinds
considered doubtful, - - - - - - $77,21670
The amount of loan payable in Boston and not due, by par-
ties who have suspended payment, considered doubtful, 60,803 31
Amount of loans payable elsewhere (chiefly in New-York)
not yet due, from parties who have suspended or are con-
sidered doubtful, ------- 60,641 92
Amount of demand loans considered doubtful, - - - 21,000 00
$219,661 93
3d. Suffolk Bank. — The special deposit will be available to balance
the claim of that bank to a similar amount
4th. Bank of Republic. — The state of the account with this bank has
been adverted to. We do not suppose that on a final adjustment any
balance will be conceded as due to the Cochituate Bank, but on the' con-
trary a balance of several thousand dollars will be claimed against this
bank. (The amount claimed of the Bank of Republic is $30,000.)
5th. Nassau Bank. — This claim is regarded as perfectly good.
6th. Bills. — This item of $6272 was found to be correct, less $20 of
counterfeit bills, to which should be added $52 current bills found among
Cochituate bills.
7 th. Checks. — Of the amount stated, a balance remains due of $50, 144,
a large part of which is due from parties who have suspended or are
insolvent, and which we apprehend to be of doubtful value. The amount
was overstated by the cashier $2186.
8th. Specie. — The item of specie ($231.13) embraces expenses and
other items to the amount of $43.07, being the actual amount of specie,
$189.19, making the amount $1.13 over the statement of the cashier.
The liabilities of the bank, as before stated, were :
Absolute, .
Contingent,
403,326 72
.$846,302 76
, 67,023 96
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With expenses to be added :
The assets, as before stated, are. . . .$617,687 91
Of which there are over-drafts from failed parties, * . $20,144 19
Loans due and not due from suspended parties or considered
doubtful, 219,662 93
Bank of the Republic, 30,038 41
Checks doubtfhl, 46,146 00
$315,988 53
There are collateral securities for some of the suspended and doubtful
paper from parties so remote, or of such a description, that we are not
able at present to give an intelligent opinion of its value.
The receivers have made such collections of securities as became due,
as was practicable, and have taken such measures to enforce the payment
of others not paid at maturity as circumstances seemed to require.
The receivers have kept a detailed account of the receipts and expenses,
of which the following is a summary statement :
; There has been paid, since their appointment up to June 1, 1854 :
On notes included in the loans, $90,180 30
Memorandum checks, . . 16,972 90
Over-drafts, 186 95
Overpaid by A. W. Smith 14
Interest received, 64 38
$107,394 67
Add cash on hand April 18, 1854, 6,493 19
For the above sum they account as follows :
Added to the deposit in Bank of Republic, $48,469 00
Paid to depositors in liquidation of debts due to them, . 4,830 04
Incidental expenses, 130 86
Cash on hand, including $6846, notes of Cochituate Bank, 108,442 20
The Attorney-General said that it was manifest from the report
that the interest of the public and the stockholders requires that
the temporary injunction wnich has been put upon the proceedings of
this bank should be made perpetual. The single item of doubtful paper
is more than sufficient to absorb the capital of the stockholders, and
though the bill-holders and depositors may ultimately be paid, vet it is
apparent, from present appearances, that the stockholders will receive
little or nothing.
On motion of the Attorney-General, the injunction was made perpetual,
and the receivers were ordered to wind up its affairs.
Mr. Whiting, in behalf of the president, directors, and stockholders,
would simply say in behalf of the president and directors, that from their
knowledge of the assets of part of the parties who have suspended, and
of their collateral securities, that they feel justified in believing that by
October next, money enough may have been reoeived to pay all bill-
holders and depositors, and the president authorizes him to say that some
of the stockholders intend to contribute a sum sufficient to bring about
that result, if the assets are not sufficient.
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[July,
Failure of the Cockituate Bank .
They were aware (Mr. W. continued) that the present look of the
affaire of the bank is not so favorable as was supposed at the last meeting.
Parties then in good condition have become insolvent, one reason for
which was that they were suddenly deprived of facilities by the stoppage
of the bank ; but they desire that the present temporary injunction be
continued until October next, and at that time, if the expectations of the
stockholders are not realized, that the injunction be made perpetual and
the affairs of the bank wound up.
The Chief-Justice inquired if there had been any formal meeting of the
stockholders.
Mr. Whiting said that a considerable number of the leading stockhold-
ers had consulted him on the subject, but were averse to doing any thing
formally while affairs stood as at present
The Attorney-General thought that the action of the authorities should
be such that the public would bo satisfied that all had been done that
could bo to protect the creditors of the bank.
Mr. Whiting said that the course pursued might make a difference of
from $25,000 to $75,000 to some of the large stockholders, one of whom
had purchased since the stoppage of the bank, on the faith of the publica-
tion of its condition.
The bank had been in operation some four years, and he would state
on the authority of the president that during that period they did not
meet with hardly a single loss until the sudden flood of disaster which
led to their stoppage.
The Chief- Justice remarked that it was of the greatest importance that
the interests of the public in this matter should be fully protected, and it
was also important that a bank should maintain the highest credit.
After some general remarks on the nature and duties of banks, he said
in regard to the point urged by some of the stockholders for time to
collect debts and ascertain if they could not go on, that whilst it was his
duty to consider the interests of the stockholders, he could not grant this
request. While the $250,000 of doubtful paper might go towards
paying them, it would be dangerous to make it a basis for further bank-
ing operations. The proper course, it seemed to him, was to make the
injunction perpetual.
In regard to paying off the demand of bill-holders and depositors, he
thought that early action should be taken; that it was desirable to pay
the money into the hands of those to whom it belonged as soon as
possible, and it was agreed that the receivers should give notice for
persons to present their claims against the bank previous to August 1st,
when a dividend could be made up. The order of the court, therefore,
was that the injunction should be made perpetual and the affairs of the
bank wound up.
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The Bank of England .
39
THE BANK OF ENGLAND.
From the Bankers' Circular , London, May 27, 1854.
In our pages of to-day we proceed to lay before our subscribers our
annual analysis of the Bank of England returns for the year 1853. The
acknowledged importance of these tables to the statesman, the banker,
and the merchant, as well as to the political economist, has induced us
to compile them with great care, that our regular subscribers may have
in their possession a complete record of the annual movements of this
powerful corporation, so far as they are apparent from the public returns ;
and at the present moment they possess more than an ordinary degree
of interest to the political and commercial classes of society. - In our
previous analysis of the bank operations, we had to deal with one of the
most remarkable changes that have occurred in the history of the present
age, or indeed, we may say, of any age, through the discoveries of gold
in the eastern and western hemispheres. We will venture to repeat a
few of the remarks made upon this subject when we gave our last
analysis of the movements of the Bank of England. We then wrote as
follows :
“ Although no determinate results have been arrived at respecting the
final consequences of this great increase of the precious metal, the surest
guide to* sound conclusions is in the record of facts that are inseparable
from this remarkable, and we rnay add, most providential discovery. We
know full well that since these discoveries have been made, that the
whole commercial industry of the world has been put in motion. It has
not been confined simply to the commerce of these islands, although we
have received a very large share of the gains ; but whether we look to
the east or to the west, this discovery has created a pulsation amongst
every people to whom it has become known throughout the civilized
world ; it has attracted thousands to quit the land of their birth in search
of happier homes ; it has filled the harbors of the world with ships and
merchandise ; it has stimulated our own manufacturing industry to such
an extent that it has become difficult to find an industrious man without
employment; it has increased the demand for labor in our agricultural
districts, so that our union-workhouses are discharging their inmates, and
the poor are rapidly diminishing in almost every county in England.
These are some of the many advantages which the discovery of gold has
conferred upon the world at large.”
Such were our remarks on the commerce of 1,852, in connection with
the bank returns. And we are persuaded that the discovery of gold, in
connection with the means of rapid communicatioLn by steam and elec-
tricity, has done more to extend the commerce of the world than any
acts of legislation during the last ten years. These are the giants that
have struck from the hands of political opponents the weapons with
which they combatted each other, and have driven from before them the
prejudices and customs of a former age.
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40 The Bank of England . [July,
We are now called upon to record the events of a year in the mone-
tary circles of a much less favorable character than that of the previous
one, but we trust with equal accuracy and truth. At the former peiiod
we had to deal with the greatest increase of gold at the Bank that was
ever known during its history. It was in the month of August, 1851,
that its metallic assets began to show an increase, which lasted for
thirty-five consecutive weeks, with but two intermissions, namely, Sept.
6th and December 27th ; and after a decrease for two weeks, continued
for thirteen weeks more, namely to July 10th, when the gold and silver
in the issue department amounted to £21,878,765, and in both depart-
ments to £22,232,138. From this period to the close of the year, the
metallic assets of the Bank did not fall below £20,000,000, and the
amount of notes issued was kept above £34,000,000. The changes
which took place in the following year we shall now describe.
I. The Issue Department.
This department of the Bank is given under four different heads : the
notes issued, notes in circulation, gold coin and bullion, and silver bul-
lion. The highest amount of notes issued in 1853 was £34,014,005,
on the 1st January, against £35,878,765 on the 10th July in the previous
year; and the lowest amount was £28,358,055, on the 22d Oct., 1853,
against £30,992,450 on the 3d January in the previous year. The fluc-
tuation between the highest and the lowest amount in 1852 was 15.7
per cent, and in the year 1853, 19.9 per cent.
The amount of notes in circulation reached their highest point on the
16th of July, when the amount was £23,880,060 against £23,379,755
in 1852 ; the lowest amount in circulation in 1853 was £20,077,860, on
the 31st December. The fluctuation in the former year was 20 7 per
cent, and in the latter year 19.9 per cent
The metallic assets in the issue department of the Bank are regarded
with peculiar interest by all parties engaged in banking and commerce ;
and under this head the returns exhibit a marked decline between the
highest and lowest points in the year. The largest amount of bullion
and specie in the issue department in 1853, was on the 1st January,
when it stood at £20,014,005, against £21,878,765 on the 10th July,
1852; the lowest amount of bullion and specie was £14,960,206, on
the 22d October, against £16,992,450 on the 3d January in the previous
year. It will be found, on reference to the tabular statement given in
another place, that the metallic assets of the Bank experienced a serious
decrease during the year 1852; the total decrease in the issue depart-
ment being £5,655,050. The highest and lowest amounts of bullion
and coin held by the Bank in both departments, for the four years ending
31st Dec., 1853, were as follows:
II iff /vest. Dale . Love eat Date,
1850 £16,209.493 16th March £14,300,053 28th December
1851, 10,784,875 20th December 12,608,81)5 3d Mav
1852, 21,845,390 10th July 10,959.075 3d January
1853, 20,527,602 1st January 14,960,206 2 2d October
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41
The Bank of England.
Under the head of silver bullion, it will be seen that only £19,145
was held by the Bank in January, and after the 20th of August this
wholly disappeared from the returns, since which, silver has formed no
portion of the metallic assets of the establishment
II. The Banking Department.
Whenever the issue department of the Bank exhibits any material
changes in the amount of its metallic assets, those changes must neces-
sarily produce a considerable influence npon the banking department,
though they do not always correspond in the same degree with each
other, inasmuch, as the bullion held by the Bank in the issue department,
and the notes in active circulation, can only be operated upon by the
bank department in an indirect manner ; therefore, the Bank experienced
no such fluctuations, since the year 1847, in this department as in 1853.
It is true, that the fluctuations in the latter year have been of a more
gradual character, owing to the constant supplies of gold to support the
credit of the Bank, but still they have preserved almost one uniform
tendency for the last sixteen months, during which time, the amount of
gold in the bank coffers has diminished to the extent of £8,000,000.
We must, however, here remark that the amount of gold at the command
of the Bank has much less to do with the fluctuations in its movements,
than the constitution of the Bank itself ; and so long as the present prin-
ciples govern the operations of the corporation they are inseparable from
those consequences that periodically paralyze our industry and commerce.
The highest amount of public deposits was on the 31st of December,
when it stood at £11,409,933, and the lowest on the 23d of July, when
it was £1,849,658. The highest amount in the previous year was
£9,447,516, and the lowest £2,802,361. The highest and lowest
amounts for the three years, ending 1853, were as follows:
Highest Amount. Lowest Amount.
1851, £10,796,655 £3,957,006
1832, 9,447,516 2,802,361
1853, 11,409,933 1,849,658
Under the head of other, or private deposits, the highest amount did
not reach that of 1852 ; nor did the lowest fall to that of the same year ;
and in both years this department of the Bank indicates a striking
increase in commercial transactions. The highest amount was
£14,933,897 on the 9th of April; and the lowest £10,607,922 on the
24th of December. The highest and lowest amounts for the three yeare,
ending 1853, were as follows:
Highest Amount. Lowest Amount.
1851, £10,975,856 £8,121,431
1852, 15,464,288 9,371,117
1803 14,933,897 10,607,922
These figures represent in a remarkable degree the stability of the
public resources during the years 1852 and 1853.
Seven-day and other bills stood at the highest point on the 6th of
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The Bank of England.
[July,
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42
August, and at the lowest on the 31st of December. When compared
with tbe previous year, the maximum shows an increase of £G9,200, and
the minimum an increase of £111,1G4.
The highest amount of liabilities in the bank department was
£41,395,492, on the 31st of December, and the lowest £34,165,799, on
the 6th of August, being an increase on the maximum of the previous
year of £773,167; and a decrease on the minimum of £1,178,577.
The highest amount of government securities held in the banking
department was £15,044,330 on the 31st of December, and the lowest
£11,319,072 on the 22d of October ; being an increase on the maximum
pf the previous year of £743,235, and a decrease on the minimum of
£l,924,G9l. It is not improbable that the increase in these securities at
the close of the year was to provide for the payment of South-Sea Stock
in January following.
Under the head of other securities, which comprisas commercial bills
discounted, advances on bills, bonds, and other descriptions of securities,
the highest amount ranged far above that of the preceding year, having
increased between August 6th and October the 1st, £G, 808, 092 ; the
total amount that day being £19,124,799; or £4,988,847 above the
maximum of 1852, the highest point reached since the 11th October,
1847, wheu it stood at £21,437,443. The minimum amount of other
securities in 1853 shows an increase of £2,114,5G7 above that of the
previous year. The actual amount of commercial discounts is not given
in the returns, but it may be fairly taken at about one half the amount
under this head, and the rest as advances.
The notes in reserve present a remarkable contrast with the returns for
1852, caused by the fluctuation in the supplies of gold in the coffers of
the Bank. The fluctuations in 1853 ranged between £ll,9G0,495 on
the 1st of January, and £5,012,490 on the 15th October, while the
highest amount held in 1852 was £14,244,G24 on the 2Gth June, and
the lowest was £10,112,840 on the 17th January.
The last column, but certainly not the least in importance, which
affords an unerring test of national prosperity, is the rate of discount
charged by the Bank. We believe that at no former period has the
interest been advanced on discounts to such an excessive rate in one year,
namely, 150 per cent, if we exclude the rate fixed by the government in
1847, which can scarcely be regarded as an act of the bank directors.
Seven different rates in one year , all of an upward tendency, we believe,
cannot be found in the previous history of the Bank, although we are
aware that the Bank advanced money on loan in 1847 at twenty-six
different rates, from 3 to 9iJ- per cent; but these were exceptional cases.
The precise dates and the minimum rates in 1853 were as below :
Januaiy 1st, 2 per cent.
“ 6th, 2&
“ 20th,
Juno 2d, “
September 1st, 4 “
“ 15th, 4* •
" 20th, 5 ••
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The Bank of England.
43
Those who contend that our commercial prosperity has not received
its main support from the discoveries of gold, will perhaps be convinced
by contrasting it with a period when it disappears from the Bank.
III. The Bullion Department.
The following statement shows the quantities of gold and silver
received and delivered by the Bank in the bullion department up to the
close of 1853, in continuation of that we published last year, in weight
and in value :
Gold Received.
1851. 185J. 1S5S.
Ounce*. Ounce*. Ounce*.
1st Quarter, 332,759.10 1,081,959.75 1,084,467.14
2d “ 513,607.20 1,319,538.60 1,157,195.14 ,
3d “ 692,717.70 1,095,514.60 981,453.17
4th “ 2,002,633.65 1,318,611.20 720,801.12
Totals, 3,441,717.65 4,815,657.15 3,943,916.57
Gold Delivered.
1851. 1852. 1853.
Ounces. Ounces. Ounces.
1st Quarter, 282,822.00 234,895.60 625,796.91
2d “ 209,245.55 222,850.55 558,287.35
3d “ 163,472.15 197.452.10 1,059,715.35
4th “ 251,309.45 559,509.55 1,372,240.00
Totals, 896,849.15 1,214,707.80 3,016,039.67
Silver Received .
1851, 1852. 185?.
Ounces. Ounces. Ounces.
1st Quarter. 4,024,614.40 5,070.962.25 4,944,888.44
2d “ 3,909,671.40 5,683,720.20 6,670,586.55
3d “ 6,252,508.36 C, 858, 005.95 4,719,640.31
4th “ 5,052,716.65 4,033,347.80 5,361,358.61
Totals, 18,239,510.S0 21,G4G,03G.20 20,696,473.91
Silver Delivered.
1851. 1852. 1853.
Ounces. Ounces Ounces.
1-t Quarter, 4,047,725.85 6,079,838.25 4,938,533.91
2d “ 3,957,962.75 5,671,377.60 5, G89, 945.99
3d “ 6.252,085.60 6,884,606.10 4,777,271.69
4th “ 4,958,207.45 4,009,242.57 5,381,941.87
Totals, 18,215,981.65 21,705,064.52 20,787,693.39
The above statements show that the receipts of gold into the Bank
during the year 1853 were 871, 741 ounces less than in 1852, or equiva-
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44 Discovery of Diamonds in Virginia. [July,
lent to £3,888,843, sterling at 77s. 9d. per ounce. The total receipts and
deliveries for the four years ending the 31st December, 1853, reduced
to their equivalent money value at the same rate, give the following
results :
Gold received. Gold delivered.
1850, £0.080,056 £3.735.203
1851, 13,370,674 3.186.500
1852 18,720.866 4.722.173
1853, 15,332,098 14,057,352
£53,372,594 £26.001,228
These figures indicate some very remarkable changes in this depart-
ment of the Bank, and in some degree explain the efflux of gold repre-
sented in the Gazette returns, during the 3d and 4th quarters of the
year; the deliveries from the Bank being 2,431,955 ounces, against the
Teceipt of 1,702,254 ounces ; or reduced to their equivalent value, the
deliveries were £9,454,183 against the receipts of £0,017,512.
The receipts of silver during the year 1853 show a decrease upon
those of the previous year of 049,503 ounces, or £245,304 ; and the
deliveries a decrease of 917,371 ounces, or £236,987. The total receipts
and deliveries for the four years ending the 81st December, 1853,
reduced to their equivalent value at 02d. per ounce, were as follows :
Silver recoined. Silver delivered.
1850 £4,880,211 £5.019.127
1S51, 4,711,873 4.6S9.128
1852, 5,591,892 6.607, Ml
1853, 6,346,588 6,370,159
£20,530,5G4 £20,715,555
It is necessary to Understand that the above statement does not repre-
sent the actual purchases and sales of specie by the Bank, but the amount
of specie deposited and withdrawn on merchants’ account
DISCOVERY OF DIAMONDS IN VIRGINIA.
From the Richmond Inquirer, May , 1854.
Description of some of the largest diamonds in the world. , including a ndde of a genuine
eigldrtoi-aiid-three-guartcr-canit diamond lately found opposite this dig , and sup -
posed to have been washed from the bituminous coal-basin , iuUrsrrtul, twdve miles
west of this po inf by James River.
It is with cordial pleasure that we publish, from the pen of a scientific
friend, the following lucid, full, and most interesting description of the
extraordinary diamond recently dug up in the streets of Manchester,
opposite this city. We have seen and examined the jewel ourselves, and
we bear testimony to our friend’s description, so far as we are acquainted
with this novel subject It struck us as being of the size of a robin’s
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Discovery of Diamonds in Virginia .
45
egg, and we saw several of the peculiar diamond properties exhibited by
experiments.
We are particularly pleased that our intelligent correspondent has
taken occasion to pay a just tribute to the talents and science of Professor
W. B. Rogers, whose name is so intimately connected with the present
and future history of Virginia, and the development of her vast mineral
resources. While on this deeply interesting and suggestive subject of
geology and mineralogy, so full of novelty and intrinsic value, we would
fail of our duty were we not to express our warm and cordial apprecia-
tion of the valuable services now being rendered to the great cause by Capt
Samuel W. Dewey, an account of whose mineral explorations and won-
derful discoveries in the region of Danville, we some weeks since laid
before our readers. Captain D. comes cordially commended by some of
the best and ablest men in the State. He is a private gentleman,
unconnected with any public institution, and wholly unaided by any kind
of patronage; who has, nevertheless, at his own expense, devoted the
last five years, with unflagging zeal in the genuine spirit of science and
philanthropy, to the exploration of the mineral treasures of the Dan and
Yadkin, mountains and rallies, west of Danville. We have been de-
lighted with his rich and beautiful specimens of gold, iron, copper, lime,
coal, and precious stones of several kinds, and with his lucid and really
eloquent exemplification of the mineral wealth abounding in the moun-
tains and along the streams west of Danville, both in Virginia and North-
Carolina. In his valuable and persevering ‘‘labors of love,” Captain
Dewey has brought to light the treasures which a beneficent Providence
has imbedded in the bosoms of our mountains and vallies; and has
shown, beyond all rational doubt, that they exist in such quantities as to
furnish the most magnificent rewards for the capital and labor required
for their development The people in a country embracing more than
40,000 square miles, of which Danville is the natural upland market;
the friends of the commerce of Richmond, and all who desire the pros-
perity of the railroad connecting the two places, should be awakened at
the exhibition of facts which speak, trumpet-tongued, to the business and
besoms of the whole country. A friend in Pittsylvania, well known for
his intelligence and lofty character, and for his devotion to the interests
of Virginia, writes us that the whole people of the Dan and Yadkin country
owe a debt of gratitude to Capt. Dewey, which they will never be able to
pay. With Captain Dewey we have been especially pleased, on personal
acquaintance. No one can witness his intense devotion to the cause of
science, his glowing enthusiasm, his thorough “action,” (although be
talks most clearly and well,) without a feeling of regard and admiration,
and of gratitude for his valuable services to Virginia. We do not know
what may be the destination of his magnificent collection of mineral
specimens, (now at Captain Dimmock s, in the Armory,) but we unhesi-
tatingly say that it should belong to the University of Virginia, being in
every way most worthy of that noble institution.
A short time since, Mr. Benjamin Moore, a worthy, industrious, hard-
working resident of Manchester, opposite this city, while digging and
removing from one of the recently hud-out public streets, a few cart-loads
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[July,
Discovery of Diamo?ids in Virginia.
of hitherto undisturbed alluvium, for James Fisher, Esq., of that town,
was so fortunate as to discover in the ferruginous clay or earth, about
two feet below the surface, near several water-worn round pieces of
secondary sand-stone, what at the time he supposed to be simply a very
pretty fragment of sparkling, transparent glass ; but which in reality is
a truly beautiful and valuable diamond, weighing 18J carats, or 75
grains; measuring from extreme point to point rather above seven lines,
and worthy of being styled a Nonpareil, if not a Om-i-Noor, ( Sun of
Light,) not only because it is by far the largest ever found on the con-
tinent of North-America, but more especially on account of its superior
limpidness, which is nearly perfect, with the exception of a slight greenish
tinge and a partial chatoyancy, arising from the salient edg**s of its
apparently infinite number of laminae, and in part, perhaps, attributable
to the multiplicity of minute stride, curvilinear and straight lines, and the
miniature graven equilateral triangles that embellish its surface, and most
emphatically “show exertions of a power divine.”
In form, it might be termed a rhombic dodecahedron, similar to the
'supposed original form of the celebrated Koh-i-Noor, or Mountain-of-
Light diamond, presented by the East-India Company to Queen Victoria,
althought it probably approaches nearer to the figure of a regular octa-
hedron, consisting of two four-sided pyramids, obliquely united at their
bases ; the planes or faces being convex, and each triangular face of the
primitive octahedron being replaced by or divided into six secondary
triangles, bounded by curvilinear lines, producing in the aggregate forty-
eight faces, and presenting in outline a rounded or spheroidal appearance.
And as regards invincibility, and other unmistakable characteristics of
the genuine adamas or diamond, it readily scratches or rather cuts glass
and the hardest agates, without becoming in the least abraded or defaced ;
and by having successfully withstood, for two hours, the most intense
heat possible to be generated with charcoal in a common smith’s forge,
it may with propriety be considered as indestructible by ordinary fire.
It refracts singly, and if rubbed on dry cloth or leather, acquires
positive electricity ; and, on being suddenly removed from the sun’s rays
into the dark, it sends forth sparks of light resembling fairy like blazing
stars, bordering upon, if not fully coming up to Hauy’s description of the
diamond’s remarkable and peculiar phosphorescent powers, where he
says : “The diamond, though in most cases colorless itself, is still capable
of dazzling the eye by its brilliant and playful colors, constantly fugitive
but perpetually returning.”
To form an idea of the value of the foregoing described Old-Dominion
or Om-i-Noor diamond, it is necessary to bear in mind that its weight is
18} carats, and that in Brazil, when a slave diamond-washer finds one
weighing 17} carats, he forthwith receives his freedom; and further-
more, it should be recollected that among dealers in these gems, there is
no general rule for estimating their actual worth when they exceed ten
carats, the largest size commonly used for setting in brooches, rings, etc.,
notwithstanding a rule to the contrary is given by the astute Doctor
Andrew Ure, in his valuable and most generally correct “Dictionary of
Arts, Manufactures, and Mines,” wherein he states: “The weight and
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Discovery of Diamonds in Virginia.
47
value of diamonds is reckoned by carats of four grains each ; and the
comparative value of two diamonds of equal quality, but different
weights, is as the squares of these weights respectively. The average
price of rough diamonds that are worth working, is about two pounds
sterling for one of a single carat ; but as a polished diamond of one carat
must have taken one of two carats, (he estimates a lose of one half in
splitting, cutting, and polishing, whereas in diamonds of good water and
respectable size, the loss does not exceed one third,) its price in the rough
state is double the square of £2, or £8. .Therefore, to estimate the value
of a wrought diamond, ascertain its weight in carats, double that weight,
and multiply the square of this product by £2. Hence a wrought dia-
mond
Of 1
carat is worth
£8
Of 1 carats is worth
£392
11 2
u
u
32
44 8
it
it
612
41 3
u
it
*72
14 9
(4
t<
612
44 4
it
l<
128
44 10
it
it
800
“ 5
u
a
200
44 20
ii
it
3200
44 6
It
(4
288
beyond which weight the prices can no longer rise in this geometrical
progression, from the small number of purchasers of such expensive
top.”
In a preceding part of his article on this species of costly playthings ,
as he terms them, he expresses himself as follows : “ Since the diamond
is merely a condensed form of carbon, it cannot, in a chemical classifica-
tion, be ranked among stones, but as it forms in commerce the most
precious of gems, it claims our first attention in a treatise on the arts.
Diamonds are distinguishable by a great many properties, very remark-
able and easily recognized, both in their rough state and when cut and
Eolished. Their most absolute and constant character is a degree of
ardness superior to that of every mineral, whence diamonds scratch all
other bodies and are scratched by none. Their peculiar adamantine
lustre, not easy to define, but readily distinguished by the eye from that
of every other gem, is their most obvious feature. Their specific gravity is
3.55. Whether rough or polished, diamonds acquire, by friction, positive
electricity, (and so do common quartz crystals, and many other crystalline
minerals,) but do not retain it for more than half an hour. The natural
form of diamonds is derivable from an octahedron, and they never
present crystals having one axis longer than the other. Their structure
is very perceptibly lamellar, and, therefore, notwithstanding their great
hardness, they are brittle and give way in the line of their clearage,
offering a direct means of arriving at their primitive form, the regular
octahedron. Its various forms in nature present a circumstance peculiar
to this body ; its faces are rarely terminated by planes, like moBt other
native crystals, but they are often rounded off, and the edges between
them are curved. When these secondary faces are attentively examined
with a lens, we remark that they are marked with striae, sometimes very
fine and almost imperceptible, but at others well defined ; and that these
striae are parallel to the edges of the octahedron, and consequently to
those of the plates that are applied on the primitive faces of this figure.
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Discovery of Diamonds in Virginia. [July,
“ Diamonds are usually colorless and transparent When colored,
their ordinary tint verges upon yellow, or smoke-yellow, approaching
sometimes to blackish-brown. The limpid are the most highly prized.
The geological locality of diamonds seems to be in diluvial gravel, and
among conglomerate rocks, consisting principally of fragments of quartz,
or rolled pebbles of quartz, mixed with ferruginous sand, which composes
sometimes hard, aggregated masses. Its accompanying minerals are
few in number, being merely black oxide of iron, micaceous iron ore,
pisiform (or pea-shaped) iron ore, fragments of slaty jasper, and several
varieties of quartz, principally amethyst. The loose earth containing
diamonds lies always a little way beneath the surface of the soil, toward
the lower outlet of broad valleys, rather than upon the ridges of the
adjoining hills. * * * Diamonds take precedence of every gem for
the purpose of dress and decoration, and hence the price attached to
those of pure water increases in so rapid a proportion, that beyond a
certain sura (or size) there is no rule of commercial valuation.”
Professor Dana, in bis 44 System of Mineralogy,” published in New-
York three years since, says : “The diamond appears generally to occur
in regions that afford a laminated granular quartz rock called itacolumite,
which pertains to the talcose series, and owes its lamination to a little
talc or mica. This rock is found at the (diamond) mines of Brazil and
the Urals, and also in Georgia and North-Carolina, where a few dia-
monds have been found. In the United States a few crystals have been
met with, in Rutherford county, N. C., and Hall county, Ga.”
Professor Silliman, in the American Journal of Science , remarks, in a
brief paragraph: “We have seen a beautiful diamond, of fine water,
weighing about four grains, taken from a gold-washing in Rutherford
county, North-Carolina, and understand that others have been found in
the same State, (also about five years since.) A crystal of a straw-yellow
color, having the usual convex faces, and about the size of a small pea,
was found in California, and supposed to be a diamond.” Doctor Ure
further observes : “ Only two places on the earth can be adduced with
certainty as diamond districts ; a portion of the Indian peninsula, and of
Brazil.” It is likewise stated by other able writers on these “ expensive
toys,” that the diamonds of India are generally free from any coating or
opaque covering ; while tfrose of Brazil, surrounded, as they frequently
are, 44 with a greenish crust, become of the first water, and most limpid
when cut and polished.”
On the composition, formation, and origin of the diamond, Sir David
Brewster (the highest trans-Atlantic authority) says: “From certain
cavities (several of which, discoverable only with a magnifier, are to be
seen on the surface of the Om-i-Noor) observed in diamonds, and from
their effects in polarizing light, it may be conjectured, they originate like
amber, from the consolidation of vegetable matter, which gradually
acquires a crystalline form, from the influence of time and the slow
corpuscular action.”
Faraday, and other eminent chemists of Europe, have recently sue*
ceeded in converting the diamond into coke, having extinguished its
blaze before it was wholly consumed by the voltaic arc of flame*
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As early as 1694, at Florence, diamonds were volatilized within the
focus of a mirror, and thereby proven to be of a combustible nature.
Arid, as if determined to be foremost in the race for accomplishing a
still greater miracle in the dawning science of chemistry, which seems
destined ere long to achieve far greater and more truly useful, if not
mysterious results than were ever dreamed or thought of by the most
enthusiastic of ancient alchy mists — our own not half sufficiently appre-
ciated, W. B. Rogers, late Professor in the University of Virginia, has
“oxydized, in a liquid way/’ this gem of gems — in the course of which
process he found carbonic acid was evolved by the decomposing diamond
— thus adding another well-earned laurel to his previously crowded brow,
and, at the same time, furnishing another all-important and conclusive
fact to be placed, like the crown-stone of a pyramid, upon the existing
host already on record, that prove beyond question their vegetable origin,
and mark coal measures as the birth-place of diamonds.
Whence cometh this, what to some persons, (Dr. Ure, for instance,
with his universal lead-colored taste,) might appear to be blind and sense-
less adoration, or unaccountably high appreciation of diamonds weighing
more than ten carats , so prevalent among man and womankind, almost
without exception, at a day like the present, when ilcui bono ” or instan-
taneous utilitarianism seems to be*the sole motive actuating and controll-
ing all classes enlightened and unenlightened? Does it not arise from
an innate principle implanted in the human mind, alike natural in its
irresistible operations and universal as physical gravitation, compelling
us to admire, venerate, and even adore whatever is sublimely beautiful in
nature? Pliny, eighteen hundred years ago, in recording the super-
stitious awe and veneration entertained by the ancients for the diamond,
wrote in substance, as follows : “The most ancient writers describe the
diamond as found only in Ethiopia, between the Island of Mcroc and the
temple of Mercury, and as resembling a cucumber seed botli in shape,
size, and color. It was said to be so hard as to break and splinter the
hammer with which it was struck and the anvil on which it was laid ;
and, on account of its resisting not only abrasion, but the most powerful
heat, it was called by the G reeks, Adamas , which signifies the invincible or
unconquerable.” Also, it was sometimes given the name of Anachitis ,
which means, a deliverer from anxiety , as it was thought to be a cure
for depression of spirits or insanity, to be an antidote for all poisons and
many otherwise incurable diseases, an infallible test of conjugal fidelity,
a reconciler of domestic strife, and an amulet of the highest power
against witchcraft, incantations, nocturnal goblins and every species of
evil spirits.
It was also supposed the magnet lost ite attractive and repelling power
over particles of iron, when in contact with the Adamas or Anachitis.
Pliny, in speaking of the diamond of his time, says : “ It has of late been
brought from India, where it is not fouud in gold mines, and appears to
have some relation to rock crystal, since it resembles that substance in its
colorless transparency, and the form, which is that of a smooth six-sided
prism terminated in a point oa one extremity, or of two pyramids united
at their bases.”
4
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Discovery of* Diamonds in Virginia.
[July.
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Pliny assuredly intended to, if lie did not correctly describe the
genuine Adamas, notwithstanding Professor Dana expresses doubts of
his ever having seen a real diamond.
Pliny further described it, as laid down by writers styled by him the
most ancient, as being found near the temple of Mercury like g«>ld dis-
seminated throughout metallic veins ; that it was of very rare occurrence,
and invariably accompanied by gold, and that it was esteemed as the
most costly of human possessions.
By the present value placed upon the principal diamonds in the pos-
session of various crowned heads and other individuals throughout the
world, it would appear as if those gems were valued far higher at this
remote period of advanced civilization than they were in the benighted
days of the above-quoted ancient writers. Nicholas, Autocrat of all the
liussias, is reputed to have in his imperial sceptre a polished diamond
weighing 195 carats, valued £4,800,000 sterling. It was formerly one
of the eyes of a Brahmin Idol, stolen therefrom by a French grenadier,
who sold it to a shipmaster for a mere trifle, and after being resold many
times it was purchased from a Greek merchant by Catherine of Russia,
for $416,000, and an annuity of $10,000. Of late it has been valued at
$23,232,000. It is represented to be a flattened oval about the size of a
pigeon’s egg, and cut in a pyramidal form, a remarkable peculiarity of
shape, well calculated to lead a judge of brilliants to suspect it has in fact
never been submitted to the cutting and polishing wheels of a lapidary,
but is one of the extremely limpid India-diamonds, in the same uncut and
unpolished condition as when it emerged from nature’s laboratory.
Among the crown jewels of France, is the Pitt or Regent diamond, said
to be cut in the form of a brilliant, weighing 13Gf carats, measuring 14
lines long, 13^ lines broad, and 9| lines thick, and cost the French
treasury $G00,000, its latest valuation being $700,000. The Koli-i Xoor,
and Durria-i-Noor, it is believed, have no estimated value, although they
could not be purchased short of several millions of dollars.
The famous in-history diamond of the by-gone Grand Mogul, whose
daughter, while on shipboard, was captured and plundered by Captain
Kidd, of buccaneer fame and memory, is said to have weighed 297 3-10
carats, and resembled in form and size half a hen’s egg.
The Rajah of Mattau in Borneo, is reported to have in his possession
a diamond that was found on that island, and that weighs 307 carats, is
of an egg form, has a cavity near the thinner end, and is of the first
water. The largest of all known diamonds is claimed to be among the
crown jewels of little Portugal. It was found in Brazil, in the diamond
district of that empire — is still in a rough state — is equal in size to a
hen’s egg, weighs 1080 carats, and has by way of jest, been valued at
$276,450,000. Its genuineness is questioned by diamond connoisseurs,
who agree in pronouncing it to be nothing more than a magnificent
white topaz.
A complete list and description, with the estimated value of all the
large diamonds held by eastern and other potentates, rajahs and other
personages, including, of course , the Old Dominion Om-i-Xoor, besides
filling quite a volume, would represent an imaginary sum, which, if in
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Banking in Connecticut.
51
silver dollars, would be ample to form several united strings of those
much-loved articles entirely round our globe.
Persons desirous to obtain further and more definite information rela-
tive to the Om-i-Noor, which is kept safely deposited in the Farmers’
Bank in this city, may rely upon having their inquiries promptly
answered by addressing, post paid, or visiting either the proorietor of the
diamond, or James Fisher, Ksq., of Manchester, Chesterfield county;
and all those who wish to become fully and correctly informed on the
subject of diamonds, pearls, and precious stones, are respectfully advised
to furnish themselves with “ A Treatise on Gems in reference to their
practical and scientific value, by Dr. Lewis Feuchtwanger, of New- York,”
the most valuable American work of the kind extant, and presumed to
be on sale in the bookstores generally throughout the United Slates.
D.
BANKING IN CONNECTICUT.
From tlh
R
i nk Com in
1 iss
toners' Reports for the
last
Eighteen
Years,
Year.
Cap
it at.
Circulation.
Total
liabilities.
Specie.
Loans and
discounts.
Total
resources.
1837,..
..$S,74t
.097
50
$3,998,325
30
$15,715,904 59
$415,386
10 1
113,246,945
08
$15,091,285
59
.. 8,751,
,407
50
1,920,552
45
12,802,631 11
535,447
SG
9,769 .2 SO
80
12A 93,372
41
lew, . .
.. 8,s32
22M
00
3,987,815
45
14,942,779 81
502,180
15
12,280,946
97
14,942,779
81
1840,..
.. 8.H7S,
,215
00
2,325,599
95
12,950,572 40
490,032
52
10,428.630
87
12,950.512
40
1841,..
.. 8,S73,
927
50
2,784,721
45
18,866,373 15
454,298
61
10,944,673
35
13,866,273
15
1842, .
. . 8,87*1
,317
57
2,555,038
33
13,465,052 32
471,238
08
10,683,413
37
1 3,405, C 52
32
1843,..
. . 8.580,
,393
50
2.379,947
02
12,914,124 66
438,752
92
9,798,31*2
27
12,914,124
66
1844,..
.. 8,292,
,238
00
8,490,903
06
14.472,631 32
455,430
30
10,342,955
35
14,472,681
32
1815, .
.. 8,3.7.*,
,748
00
4, 102,444
00
15,243,235 79
453,658
79
12,447,196
06
15,243,236
79
1846,..
.. S.47.V
fwW
00
4,505,1447
no
15,892,685 25
481,367
09
13,032.600
70
15. *'92,685
25
1847,. .
, *,f»<»5
.742
00
4,137.631
06
15,784.772 04
462,105
53
12,731.857
43
15.78-1,772
02
1 848, .
.. 8,726,
3S1
00
4,891 *205
06
10,808,829 52
517,700
00
13,424,658
99
16,808,829
52
1849,..
..
.910
70
4,611,571
0G
16.947,002 08
575,676
07
13,740,591
07
16,947,002
03
1850,..
.. 9,!* >7,
,503
00
5,253, s84
06
19,122,209 83
640,622
24
15,607,814
86
19,122,209
38
Its51,..
..10,575
,057
50
6,639.834
06
21,999,949 09
774,861
77
18,190,512
72
21,999,9-19
09
1852,..
. . 12,500
,807
99
7,118.025
( 6
25,220,502 02
825,879
20
20,552,493
70
25,226,502
04
1353,.
..13,950.
,944
50
11,217.030
06
32,098,899 41
1,259,672
31
25,833,850
09
8
j ^
?»
00
41
1854, .
..15,011.
,337
00
11,207,990
CC
84,716,809 58
1,206,940
01
27,397,796
27
34,716,899
53
Extracts from the Annual Report of the Bank Commissioners to the
Legislature of Connecticut , May, 1854.
The condition of the several banks on the first day of October, 1853,
and on the first day of January and April, 1854, is exhibited in the
annexed statements, made by the cashiers from the books of those insti-
tutions.
By examining those statements, and comparing them with tables em-
braced in the last annual report of the Bank Commissioners, it will be
seen that since the year 1846, the banking capital of the State has been
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Banking in Connecticut.
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increased the sum of $7,165,767. Of this amount, $130,112 was paid
in in 1840,6120,039 in 1847,6*259,535 in 1843,8921,5*6 in 1849,
8668,154 in 1850, 81,934,150 in 1851, 81,441,137 in 1852, and
$1,690,452.50 in 1853. The circulation of the banks has been increased
during the same period, from $4,505,947 to 811,207,990. That these
extraordinary additions to the banking capital and currency of the State
have not been requi red to supply the legitimate wants of our own business
men, is rendered perfectly apparent by the fact that, during the entire
period in which they have been made, a very large amount has been
loaned by the banks to individuals and corporations of other States.
Whether under these circumstances any further increase of banks or
banking capital is desirable, is a question for the General Assembly to
decide.
That no new grants of banking privileges should be made in the form
of special acts of incorporation, we entertain the strongest convictions.
And we are equally clear that, except possibly in a few localities where
business is rapidly increasing, and where banks with sufficient capitals
are not already established, the formation of new associations under the
general law will not he productive of beneficial results.
The increase of banking capital beyond the legitimate requirements of
trade and commerce ought never to have been allowed. Its tendency
has always been to produce fluctuations in the currency, create fictitious
values to property, and engender a spirit of speculation and rash ad-
venture among all classes, and in every department of business, highly
injurious to the welfare of the whole community.
No bank ought, in our opinion, to be organized hereafter, until it has
been shown, to the satisfaction of the legislature, or a competent board
appointed by the legislature, that the public interests require it. An
amendment of the law embracing such a provision would, in our judg-
ment, fix a proper limit to the increase of banks and banking capital in
the State, and save us from some of the evils which are to be appre-
hended from a redundant paper currency.
If the business of the banks were carried on with their own means
alone these suggestions would not at present be so much called for. But
for the purpose of extending their facilities as widely as possible, and
with the view of enhancing their dividends, they resort to the practice of
borrowing money in the form of deposits, at rates of interest varying
from four to six per cent, and then loaning it at advanced rates to
citizens of this State, or purchasing paper with it in the city of New-York
or Boston. This practice is, to say the least of it, very questionable. It
has a tendency to concentrate the most of the surplus capital of our
citizens at those points where banks are located ; and thus to compel
those who are under the necessity of borrowing money to carry on their
business, to resort to those points for that purpose. But if, as is fre-
quently the case, in seasons of financial pressure and embarrassment, the
money so deposited is loaned abroad for the purpose of obtaining higher
rates of interest than our own citizens are able to pay, the practice
becomes seriously detrimental to business, and highly injurious to the
best interests of the State. It is, unquestionably, a part of the legitimate
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business of banks to receive deposits from their customers, and to pay
them out on the order of the depositors. But it is, in our judgment, a
wide departure from the true principle of banking, to invite and encourage
large deposits by paying full rates of interest for their use, and thus
divert capital from its accustomed and appropriate channels. If the
legislature would provide that no bank should pay interest upon its
deposits at a higher rate than three per cent, they would, in our opinion,
confer great benefits upon the State and upon its monied institutions.
By the provisions of the second section of the general banking law,
the privilege of establishing associations under it is limited tq residents
of this State. That provision was obviously intended to prevent the
inhabitants of other States from acquiring the control of our monied
institutions, or exercising an improper influence in their management.
The experience of the past shows most abundantly the necessity for
such a provision. But the object of the legislature in enacting it is
entirely defeated by the fifteenth section of the same law, which makes
the shares of stock in associations organized under it, transferable. Some
further legislation on the subject is, therefore, necessary.
A law prohibiting non-resident stockholders from voting in the election
of directors of any bank would, we believe, accomplish the object in-
tended. We therefore recommend the passage of such a law.
Some of the associated banks complain that much injustice is done
them by that provision of the law which subjects them, at all times, to
keep an amount of gold and silver coin or bullion equal to one tenth of
the amount of their bills in circulation. In support of this complaint,
they urge that their stockholders are individually responsible, to the
extent of thoir stock, for all the bills they issue, and for all debts they
contract for banking purposes; and that they furnish the bill-holder
adequate security from loss by the pledge of public stocks deposited with
the Treasurer of the State. They also urge in support of their complaint,
that the provision of the statute which authorizes the Treasurer to sell the
stocks deposited with him for the benefit of the bill-holders, in case of
failure on their part to pay their notes, or any part of them, when
demanded, will compel them to keep on hand a sufficient amount of
specie for the payment of their bills whenever they are presented, and
that nothing further should be required of them. They also complain
that an unnecessary burden is imposed upon them by that provision of
the law which requires them to make returns or statements of their
affairs, not only to the Bank Commissioners, but to the Treasurer, and
directs the publication of those statements to the last-named officer
to be made in one or more newspapers, at their expense. Whether
these complaints, and the reasons urged in support of them, are well
founded, the General Assembly will determine.
In this connection we feel it to be our duty to call your attention to a
claim winch has been set up by some of the associated banks, of the
right to take a greater rate of interest upon loans than six per cent per
annum, without subjecting them, to a forfeiture of their privileges. That
this claim is well founded, cannot be denied. There is nothing in the
act under which those institutions are organized, which forbids them.
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54 Banking in Connecticut . [July,
from taking usurious interest. They are, therefore, placed on the same
footing in this respect as private individuals; and are subjected only to
such liabilities and forfeitures for making usurious loans, as are provided
by the statute of 1840, entitled, “An Act in addition to an Act to restrain
the taking of Usury.” Whether any further legislation upon this sub-
ject is demanded by the public interest, we leave to the wisdom of your
honorable body to determine.
By the twenty-ninth section of the general banking law, it is provided
that all associations organized under its provisions shall be banks of
circulation as well as of discount and deposit. But there is nothing in
any part of the law which prescribes the amount of stock to be deposited
with the Treasurer by those associations, as the basis of such circulation.
The least amount, therefore, which could be obtained would be sufficient
to answer the requirements of the law. That this is a defect in legisla-
tion, cannot be doubted. If a bank can go into operation by depositing
with the Treasurer £500, or £5000, in public stocks, it might, and
doubtless would, borrow the notes of incorporated banks of this State, or
perhaps of other States, to carry on its business, and give to them a
circulation which the legislature never intended to allow. It would offer
a strong temptation to persons, residents in this State, but interested in
the banks of other States, to organize associations here for the express
purpose of increasing the circulation of those banks; and would thus
enable foreign institutions to establish in our muUt, their offices of dis-
count, deposit, and circulation, and carry on the business of banking in
the same mauner as they might do under express grants from the General
Assembly.
In the prosecution of our official labors, we have noticed with regret
that some of the banks with small capital, although frequently admo-
nished by past events of the danger of the practice, have continued during
the past year to make extravagant loans to single individuals or
companies. The loans so made by one bank having a capital of 880,000,
amounted to nearly £50,000 in one case, and 84*2,000 in another.
The parties to whom these loans were made were believed to be of
undoubted responsibility, but it is perfectly obvious that their failure or
suspension of payment would involve the bank making the loans in
irretrievable ruin. The attention of the legislature has been called to
this subject in several of the annual reports of our predecessors, but it
has resulted in no legislation to prevent a continuance of the practice
complained of. We now bring the matter before your honorable body,
in order that you may take such action in the premises as seems to be
demanded.* f
* A statute similar to that now in force in Massachusetts would obviate this
objectionable practice, so far as directors are concerned. whi**h has recently caused
the suspension of a bank in Buffalo and another in Ohio. — [Ki>. B. M.]
No bank may have due to it, directly or indirectly, from any on<* of its directors
or officers, or from any partnerships of which any director or officer is a member,
as principal, surety, or indorser upon notes, cheeks, drnlhs, or other security, a sum
greater th.-.a eight per cent of its capital, or more than lbrtv thousand dollars, or
from its win <le board of directors a sum greater than thirty per cent of it* whole
capital; unh .xs the stockholders, at a legal meeting, by express vote authorize a
greater sum.
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Banking in Connecticut.
55
Another error into which some of the banks have fallen, and which we
regard as a serious one, has come under our observation, and deserves to
be brought to your notice. It consists in placing and keeping in the
hands of brokers, deeply engaged in railroad enterprises and stock specu-
lations, a large amount of money ; and making heavy loans to the same
brokers, on the pledge of bonds or stocks issued by railroad companies
whose roads are in an unfinished slate. During the past year, seven
hanks, having an aggregate capital of $3, 11 7, 2 7 5, "loaned to a*New-York
broker engaged in the construction of a Western railroad, the sum of
8507,858.
Soon afterward, the party to whom the loans were made suspended
payment, and was unable to meet his liabilities as they matured. The
consequence was, the railroad bonds, which these banks "held as collateral,
became seriously depreciated, and were entirely inadequate to secure the
payment of the loans. Other securities have since been given, and the
banks will ultimately receive the whole amount that is due to them.
But to make the security complete, four of the seven banks were obliged
to advance the further sum of 8153,000. It is due to the officers of the
banks making these loans, to say that they had every reason to believe
that the party referred to was abundantly responsible for a much larger
sum than that loaned, and that the securities which he gave them were
undoubted.
The anxiety to make large dividends, which seems to be felt by all of
the banks, has led some of them, during the late pressure in the money
market, to use a large amount of their funds in the purchase of negotiable
paper in the city of New-York, at rates of discount exceeding that which
our own law allows ; in consequence of which it is believed that they
have been compelled to curtail, to a considerable extent, the accommo*
dation usually afforded to their customers at home. Such practices can-
not be justified upon any principle whatever ; but on the contrary, deserve
severe censure. The most of the banks, however, have met the wants
of their customers with a generous liberality, and have furnished them
all the accommodations which they could reasonably require. * * *
When we entered upon the discharge of our official duties in July last,
the injunction issued by the Superior Court on the 21st of March previous,
against theWoodbury Bank, restraining it from the exercise of its franchises,
was in force, and the property and effects of the bank were in the hands of
receivers, for the benefit of its creditors. A very full statement of the
condition of this bank, and of the circumstances which brought about its
failure, wTas submitted lo the General Assembly on the 21st day of June
last by a committee appointed for the purpose, and on the 30th day of
September following the receivers made their report to the court from
which they derived their appointment, showing the condition of the
bank at that time. By the report of the receivers it appeared, that the
stock in the bank owned by William E. Chittenden at the time of its
failure, amounting to 850,500, was conveyed to and held by them ; that
the assets in their hands amounted to about 8290,000, of which the sum
of 8*20,391.33 was in cash, and applicable to the payment of claims
allowed by them against the bauk; that the amount of claims so allowed
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50 Banking in Connecticut . [July,
within the time limited for the purpose was 5^ 4 0,03 7.08 ; and that there
was, consequently, a deficiency of cash in the hands of the receivers, for
the payment of those claims, amounting to $13,04(3.03.
About the time that the receivers made their report, a number of
responsible individuals living in the vicinity of the bank, with the view
of procuring a dissolution of the injunction then in force against it,
entered into an agreement in writing, by which they became obligated
to make the bank a loan, in case it should be permitted to resume the
exercise of its franchises, to the amount of $.V>, 500, for such length of
tune as the bank should continue to do business, upon pledge of an equal
amount of the stock of the bank then in the hands of the receivers ; and to
convert the loan so made into stock as soon as the losses of the bank
should bo ascertained, and the deficiency in the stock held by the stock-
holders should be disclosed, and paid by such stockholders, or by others
in their behalf. And for the purpose of carrying into elleet this agree-
ment so entered into, the subscribers to it advanced and paid to the
ollicers of the bank the sum of $50,500. The stockholders of the bank,
or the principal part of them, also entered into an agreement at the same
time, by which they agreed that if the bank should f>e permitted to
r< Mime its business, they would pay to the otlieers of the bank the
d« ficiency in their stock arising from losses, as soon as it could be ascer-
tained ; and make such stock up to its par value, so that dividends
might be made upon it according to law. Daniel Curtis and others
then brought their petition to the Superior Court, at a special term held
at Litchfield on the 3()th day of September last, praying that the injunc-
li ui aforesaid might be dissolved, and that the bank might be permitted
t<* resume its banking operations in as full and unrestrained manner as
if an injunction had never been granted. The commissioners being made
respondents to this petition, one of our number appeared at the hearing.
The court found tlie facts alleged by the petitioners to be true, and
thereupon granted their prayer; and authorized the bank, on performing
certain conditions, to resume its banking operations on the 12th of Octo-
ber following. These conditions having been complied with, the bank
resumed business on the day specified. Since that time, we believe, from
the examinations we have made of its affairs, that it is well conducted,
and is entitled to the confidence of the public.
Extract from the Annual Message of Governor Dutton to the Legislature
of Connecticut, May , 1854.
Morn of the time of the Legislature has for many years been occupied
in forming private corporations. These combinations of wealth and
influence have, doubtless, contributed largely to the wealth and pros-
perity of the State. But every thing which is powerful to do good, will,
if perverted, be a dangerous instrument to do evil. Every charter of
incorporation ought to be strictly scrutinized, and effectually restricted to
its appro] e late object.
h>f sikh corporations, the most prominent are kinks. These associa
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1854.]
Banking in Connecticut .
57
tions in this State have, with few exceptions, furnished a safe currency,
and have materially contributed to the general prosperity. The report
of the commissioners will present a particular account of their present
condition. The idea which has prevailed to some extent, that these
corporations are particularly beneficial to the rich, is a mere delusion.
So far is this from the truth, that where they confine their operations to
their appropriate business, they prevent the monopoly of wealth ; they
enable industry, energy, and integrity, without pecuniary ability, to
compete successfully with riches and influence. Many of our most
wealthy citizens were enabled to enter upon a course of business which
carried them on to affluence, by the facilities afforded them, when with-
out a dollar, by banking institutions. But a resort to disreputable
practices in procuring charters, favoritism in distributing stock, partiality
in granting accommodations, and the withdrawal of capital, for the sake
of increasing dividends, from its legitimate use, all of which are generally
believed to have to some extent prevailed, have brought a degree of
odium on these institutions which does not properly belong to them.
It is much to be regretted that there should have been any just ground
of complaint against institutions of such general benefit. As no specific
law has heretofore existed on the subject, it would be unjust to impose
penalties for what is passed ; but it is important that the legislature
should provide for the future, for the necessities of business. There is
the strongest temptation to make improper investments, and to make
unjust distinctions in granting facilities, when the need of accommoda-
tions is the greatest. Financial embarrassments are of continual recur-
rence, and may be ascribed perhaps as much to a want of caution in
banking institutions, in seasons of general prosperity, as to any other
cause.
The general banking law, it was supposed by many persons, would
furnish an adequate remedy for all deficiencies of our banking system.
It ought in candor to be admitted that it does, to a great extent, secure
§ a sound currency. But in one important requisite, that of supplying
funds for the transaction of business, it is radically defective. Suppose
two banks, with a capital of one hundred thousand dollars each, should
be formed, one with the usual charter, and the other under the general
banking law. If tie capital stock should all be paid in, one would have
one hundred thousand dollars in specie, or its equivalent, and the other
would have one hundred thousand dollars in securities, in the hands of
the Treasurer of the State. The former could then issue bills of its own
to the amount of one hundred and fifty thousand dollars, and could
therefore loan on discounted paper this amount, together with ninety
thousand dollars of the funds already on hand, leaving still ten thousand
dollars in specie in the vaults of the bank. The other would have
nothing to loan hut its own bills to the amount of one hundred thousand
dollars, and if the whole of this should be loaned, it would have no
specie on hand to meet any bills which might be presented. It is obvious
that the former would be in a much better condition to discount paper
than the latter, although the bills of the latter might under certain cir-
cumstances be the most secure; still the bills of the former, if the bank
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58
Banking: in Connecticut.
[July,
Digitized by
should be properly managed, would be perfectly safe. The capacity of
the latter to make loans would indeed he increased to some extent by
such deposits as might be made, hut as these would be liable at any
time to he withdrawn, the advantage would he but small. In addition
to this, the whole capital is usually sent out of the State to purchase the
necessary securities.
Banks organized under this act may be, and in States where a similar
statute has been in operation for some time, often have been used
for merely private purposes. It is obvious that a capitalist, or a mercan-
tile or manufacturing firm, having fifty thousand dollars in the requisite
securities, can deposit them with the treasurer, and, with several nominal
stockholders, form a new bank, and use the bills in brokerage, or any
other lawful business. The securities are drawing at least six per cent
interest; the use of the bills is worth at least as much more; and the
independent banker in this way obtains twelve per cent at least, and as
much more as the pressure on the money-market will afford, for his
money. In this way men of large means not only can secure exorbitant
interest, but ruin those in moderate circumstances, who cannot compete
with them. Such is often the result of legislative guardianship of the
poor. The whole subject is worthy of the careful consideration of the
General Assembly. It may be well to inquire whether, if the policy
had been adopted and consistently followed, of granting charters freely,
limiting circulation narrowly, restraining operations to banking business
merely, and watching closely, it would not have been wiser than the
harassing, ever-changing course that lias been pursued.
Savings Banks of Connecticut .
The condition of the several savings banks on the 1st day of January
last is exhibited by the annexed statements, compiled from returns made
to us by the officers of those institutions respectively. These institutions %
are of great importance to a numerous and highly meritorious class of
citizens, and should receive at all times the fostering care and watchful
attention of the government. They originated in a spirit of true bene-
volence, and have generally fulfilled the purposes for which they were
created. In many instances, doubtless, they are employed by men of
wealth as depositories of capital, with the design of evading the operation
of the assessment laws, which is an evil of no small magnitude ; but the
principal benefits arising from them are conferred upon females and
minors, and upon poor and laboring men, for whose advantage and
welfare they were originally established. They are under the direction
and control of men who feel the responsibility of the trust committed to
them ; and are generally managed with prudence and ability, as well as
with a due regard to economy. Their investments in most cases are
judiciously made, and the securities they hold for loans are, with a few
exceptions, safe and sufficient. Their deposits, however, are increasing
so rapidly, and have in fact already accumulated, in some of them, to
such an extent that they have found it impossible to loan the amount
which the law requires upon mortgage of real estate in this State. They
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1854.]
Money Market of Great Britain.
59
have, therefore, been led to make large investments in the bonds and
stocks of railroad companies, and to loan money upon personal security,
for a greater amount than the law allows. And we regret to say that
one of them fell into the same error as some of the banks of discount, of
loaning money, to the amount of $60,000, to a broker in New-York who
was largely engaged in railroad enterprises at the West, and taking
security chiefly in railroad bonds. Additional security has since been
given, and we have no doubt the bank will, at an early day, receive the
full amount of said loan.
Under the provisions of existing laws, no savings bank or savings
society, is allowed to reserve as a contingent fund, a greater sum than
$15,000. These provisions were enacted in 1847, when the amount of
deposits in the principal institutions was less than one half the present
amount, and when the extraordinary increase and accumulation which
has since been going on, could not have been anticipated. On the first
of April of that year, the amount of deposits in the Society for Savings
at Hartford, was $1,060,881.01 — in the Norwich Savings Society,
$448,714.24 — and in the nine savings institutions in the State,1 then
incorporated, $3,215,292.23. On the 1st of January of the present year,
the amount in the Hartford Savings Society, was $2,435,19G.21 — in the
Norwich Savings Society, $1,637,420.52 — and in the nine savings
institutions which were in operation in 1847, $8,143,357.47. Savings
banks, like individuals, and banks of discount and circulation, are
exposed to losses from unfortunate loans and inadequate securities, and
should therefore have on hand a fund sufficient to meet them whenever
they occur, without encroaching upon their deposits. In our opinion, a
fund of fifteen thousand dollars, although amply sufficient for the smaller
institutions, is altogether too small for the larger ones like those at Hart-
ford and Norwich, especially as their banking houses and other fixtures
constitute a portion of the fund. We would therefore respectfully
recommend such a change in the law as will meet these suggestions.
TIIE MONEY MARKET OF GREAT BRITAIN.
From the London Economist , May 27, 1854.
The money market of Europe is in a strange and anomalous condi-
tion, both in respect to the relative position of different countries, and in
respect to the value of different classes of securities and investments in
each country. At Hamburg the rate of discount for best bills is about
two per cent : at Amsterdam it is three per cent : at Paris it is four per
cent : and in London the minimum rate of the Bank of England is five-
and-a-half per cent. These are strange anomalies. But the relative *
price of securities and the value of money in our markets at home are not
less anomalous and unusual. In the early part of last year consols were
at par, giving an interest of three per cent: at that time exchequer bills
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Money Market of Great Britain.
[July,
Digitized by
bore an interest of only 1 a day, or at the rate of £l 18s per annum,
and were at per cent premium; and, with but little alteration in the
price of consols, they were reduced in March to Id per day, or £1 10s.
Gd. per annum. At the time referred to, the minimum rate of the bank
discount was at first two per cent, and subsequently three per cent. The
relative rates at that time, then, may be thus stated :
(\ iiisnU, £3 jvr cent
K \ < ‘hri 1 1 it*r bills, 1 1 ss. per cent.
Minimum bank-rates, 2 10s. to £3 percent.
Let us see how these relative rates now stand. Consuls are at 80,
giving a rate of interest of £3 7s. Gd. per cent; exchequer bills bear an
interest of 2} d per day, or at the rate of £3 8s. Gd. per cent per annum,
and are nearly at par; exchequer bonds, issued so as to yield nearly £4
per cent, are also nearly at par; while the minimum rate of the bank
discount is 5 A per cent. The several rates at present may therefore be
thus stated :
Consul- £3 os. Gd. per cent.
Kvdicipier bills, 3 8 6 “
K\<*lic<|uer bonds 4 0 0 u
I5.mk minimum discounts, 5 10 0 “
It is, therefore, plain that there is not only a singular anomaly in the
relative rates of the value of money in the different chief marts in Europe,
but also in the relative rates as applicable to different securities and
descriptions of investments in this country. While the interest borne by
consols has advanced only from £3 to £3 7s. Gd. per cent, that borne on
exchequer bills has advanced from £l 18s. to £3 Ms. Gd. per cent, and the
bank minimum rate of discount lias advanced from £2 to £3 10s. per
cent. From this comparison, it is obvious that if we accept consols as
the most correct test of the value of money from time to time, that
exchequer bills are placed at much too high a rate of interest, and that
the bank rate of discount is also very disproportionably high. It is true
that the character of the capital applicable to the various purposes referred
to is somewhat different: that which socks consols is of a character
requiring a more permanent investment, while exchequer bills are used
as a more temporary security to absorb floating balances, and while the
ordinary rate of discount must be determined very much by the amount
constituting the balances in the hands of bankers and bill-brokers, seeking
a temporary investment.
But to whatever extent we may recognize that distinction, it is not
sufficient to account for the great discrepancy which now exists. With
consols at 89 giving an interest of only £3 7s. Gd. per cent, and with a
strong tendency to a rise, it is certain that exchequer bills giving £3 8s.
Gd. per cent, and exchequer bonds, giving £4 per cent, both possess-
ing advantages so superior in many important respects as compared
with consols , can not long continue at par; anj| that the rate of
discount for the best bills cannot long continue so high as 54 per
cent. And the discrepancy which exi>ts between the rate of inter-
est here and in many of the most important neighboring continental
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Money Market of Cheat Britain .
61
towns, would lead to the same inference. With the rate of interest at
Hamburg at 2 per cent, in Holland at 3 per cent, and at Paris at 4 per
cent, it is in the highest degree improbable that the rate of per cent
can be maintained by the Bank of England for any timS. Not only is
there a large class of securities which will find their way from London to
the cheaper markets, but there are large classes of bills which may be
sent there for discount at the lower rates, so as materially to lessen the
demand upon this market, and to increase the demand upon those
markets until something like a nearer equality is established.
Already, indeed, are there decided symptoms that the existing high
rates of money cannot long be continued. In the first place, the public
funds exhibit, now that the financial policy of the government is firmly
established, day after day a firmer attitude, and, as it appears, mainly in
consequence of purchases on the part of the public. In the next place,
the exchanges show a more favorable tendency, and the drain of bullion
appears to be arrested. Again, the bank returns, though not much
changed, yet indicate a tendency to a stronger position : the circulation
shows a decrease of £507,000 ; the securities a decrease of £938,000 ;
and the reserve of notes has increased by £386,760 ; and it is understood
that the progress which the accounts have made during the present week
are even more encouraging. But the circumstance which has favorably
affected the prospect of the money market more than any thing else, is
the determination exhibited by the government, under no circumstances,
to enter upon an extravagant career of loans. If the war is to be con-
ducted by taxes, they will be paid from the annual income of the country,
and no strain will be placed upon the capital. And if this policy be
firmly adhered to, as no doubt it will,, it is by no means incompatible with
a state of war that we should find consols again approaching to par.
But there is another and a very important consideration which has
more than any other affected the money market for some time past, and
which prospectively is likely soon to exert a powerful influence in the
opposite direction. No one who has watched the money market closely
for some months past, can have failed to arrive at the conclusion that the
defective grain crops of last year, the consequent high prices, and the
extensive imports of corn, have been the main causes of the adverse
exchanges and the rapid increase in the value of money. Up to this
moment the war lias had little or no effect in that direction. But now,
looking to the future, there is every prospect of a most remarkable change
in these respects. So far as regards the coming harvest, the prospects
were probably never more flattering. The breadth of wheat planted in
each of the three kingdoms, and in every part thereof, is larger than in
any former year whatever, and generally the crops present a most favor-
able aspect. Already the knowledge of these facts is affecting the corn
markets both here and abroad. And if to these favorable prospects we
add a consideration of the fact that our exports in the last year exceeded
£98,000,000, and that for the early portion of this year they have pro-
ceeded at even a greater rate, the payments for which extraordinary
amounts will be chiefly payable during the remainder of the year, a con-
siderable portion of which will be made in gold from Australia, there
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G2 Cotton in 1651. [July,
appears reasonable ground to expect that the indications of greater ease
which have already made their appearance in the money market will be
maintained, and will increase in the future. We are not disposed in any
way to complain of the policy which the Bank of England has pursued
in raising the rate of discount. On the contrary, the reaction which may
now be expected ere long to take place, by the timely check to an
adverse exchange, has been very much promoted by the course taken by
the Bank— -in raising the rate of interest before it was too late.
COTTON IN 18 5 4.
Tiie comparative ease of the money market at the South and West
during the past eight months is seen in the fact that cotton factors and
planters are enabled to hold their stocks without forcing them upon the
foreign or domestic market. Tho present stock on hand at New-Orleans
is about three hundred thousand bales, the value of which, in round
numbers, is from twelve to fifteen millions of dollars, while the average
quantity on hand for the past nine years was less than 200, 000 bales.
The ri>ks to the insurance companies of New-Orleans are now so great
from the crowded condition of the cotton-presses, that at a recent meeting
of the board of underwriters, it was
“ Resolved , That on and after the 2Gth of April the rates of fire pre-
miums on cotton in presses be increased to double the present tarilf
rates.”
And further
“ Resolved , That the war clause be inserted on all marine risks, except-
ing coastwise passages from and to Atlantic and luilf ports in the United
States ”
We annex a table showing the comparative arrivals, exports, and stocks
of cotton and tobacco at New-Orleans, for ten years, from 1st September
each year to date :
COTTON — BALES. TOBACCO — IIII1M*.
YEARS.
/
A
r
JL
— \
Arrival*.
Export 9.
Stocks.
Arrivals .
Exports.
Slocks.
1353-54,
... 1,261,239
960,716
311,045
25.080
29,754
33,492
1852-53,
... 1,532,310
1,345,918
226,460
43,799
23,303
39.327
1851-52,
... 1,311,652
1,171,807
155,145
33.832
3 0,9 02
25,801
1350-51,.
. . . 930.926
735,963
211,575
33.692
22,756
25,778
1810-50,.
767,080
630,217
146,343
34,610
27,315
20,558
1848-49, .
... 1,049,574
897,569
189,407
19,081
18,582
15,353
1847-43,.
... 1,084,453
875,734
212,212
36,616
33,806
22,146
1346-47,.
... 684,970
482,702
208,595
23,011
22,294
15,641
134546,.
... 971,725
749,981
229,309
38,203
22,068
23,808
1844-45,.
... 912,369
786,400
138,903
39,013
29,311
14,591
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1654.] Coinage of the World in the Last Six Years.
63
THE COINAGE OF THE WORLD IN THE LAST SIX YEARS.
From the London Economist , May 27, 1854.
The following important table, showing the amount of coinage of the
precious metals in the under-mentioned countries during the last six years,
has a peculiar interest at the present moment. It has been chiefly com-
piled from official sources, and such others as may be fully relied upon.
The result is, that after making a due allowance for the amount of the
coin of one country which has been recoined in another, or for double
coinage, it appears that no less an amount than £94,850,000 of gold coin
has been added to the circulation of the under-mentioned countries, and
of those in direct connection with them, during the last six years, and by
far the largest proportion during the last three years :
The Coinage, in Pounds Sterling , of Great Britain , France, Spain ,
Prussia , Austria, the United States , and India respectively, for the
Years 1848 to 1853 inclusive.
1843. 1349. 1350. 1351. 1852. 1S53.
Great Britain—
Gold, £2,451,909 £2,177,955 £1,491,836 £4,400,411 £8,742,270 £11,952,891
Silver, 35,442 119,592 129,096 87,308 189,596 701,544
Copper, 2,683 ' 1,792 448 8,684 8,796 9,073
2,490,129 2,299,339 1,621,880 4,491,363 8,935,602 12,663,00S
France —
Gold, £1,602,000 £1,092,000 £4,608,000. £9,636,600 £1,056,400 £13,218,536
Silver, 4,040,000 7,372,000 3,124,000 2,372,000 2,832 000 803,588
Copper,.... 2,3o9 78,996
5,642,000 8,464,000 7,732,000 12,003,600 3,890,709 14,101,120
Spain—
Gold, £683,131 £117,042 £4,CG5
Silver, 292,424 258,350 339,599 350,724
973,555 875,392 344,264 350,724
Pri'Ssi a —
Gold, £625,741 £30,023 £1,334 £1,504 £35,292
Silver, 603,840 227,102 166,817 254,848 96,014
1,229,561 807,730 168,151 256,352 131,306
Acntria —
Gold, £499,493 £499,961 £366,968 £787,376 £1,167,809 £1,023,700
Silver, 1,506,977 1,699,223 785,846 439,143 463,813 1,557,485
2,006,475 2,199,189 1,352309 1,227,024 1,636,157 2,586,185
United State3—
Cold £755,102 £1,801,552 £6,396,347 £12,522,898 £11,369,237 £10,377,776
Bitrer, 408,010 422,990 6,773,460 154,870 261,911 1,570,514
CVpptrr, 12,831 8,397 12s, 893 19,926 10 126 13,412
1,175,943 2,232,939 13,3‘3,700 12,697,704 11,641,274 11,961,702
Digitized by
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64
Coinage of the World in the Last Six Years. [July,
1-47-^. 1^49-50. 1-50-1. 1 >-M
Calcutta— Gold, £10,293 £70,170 0 £32,432 £131.783 £02. MO
Silver 1,011.993 1,630,827 0 I,;i53,711 1, 213,109 1,7^.019
Copper, “ 4*\30d ,61.467 0 80,047 82,599 03, 5*6
1,070.052 1.402.204 0 1,433," 10 1.807.490 1,914.10.%
Madras — Gold, £80,900
Silver, 349,527 129.604 0 $0,440 195,410 302,f."2
Copper, 19,694 ",*240 0 10,590 11,6"$ 9,138
89-,02l 187.9 1 0 () 97,<i:>0 2u7,ll>4 371.' "1.*
Bombay— Gold, €110 £1,530 €1 ,9:15 £-1
Silver, 420.735 1,11 ","75 0 965.0,55 1,207, "90 2,0$9,794
Copper, 2".92S
449,003 1,11 -,"70 10 900,5-5 1.209, "25 2,0-9,797
'summary.
Gold.
Si'rrr.
Copper.
Totil.
Great Britain,.
.... £31 .21 6, $62
£1 .263. 1 38
£21, .>1
£32>1 3-1
Franck,
.... 81,21:1.536
2o.543,.5"8
bl,3o5
51, *3", 129
SpVJN,
S04.KW
1,241,097
2 045 035
Purs-iA,
744,499
1.344,621
*> oh ; 120
Austria,
4,5.56,307
6.457,532
11,oii7,k;9
Unitid States,
.... 43, 222. 912
9, 696,704
193, 5S6
53,0] 3,262
India,
337,016
18 ,629,237
82 4,800
13,290,013
[11 2,0 "9,979
F* 1,079,977
6209532
106,790,579
If to the .€112,080,070 of gold coin in the above table we add a fair
proportion for the three blank years in the return from Spain and i'm the
one year for Prussia and India, the amount of the gold coinage in those
countries and during that period will be —
£113.000.000
Deduct, however, that wliieh may have Km re-coined
in France from
Dutch coins,
Russian,
English,
American,
Sundry other coinages.
about £5,000.000
1,700.000
1.400,000
3.000.000
Ml. 000
11,150,000
Deduct that which may have been coined in England
from foreign coins, American and Dutch, say 7,000.000= 18,150,000
£04.850,000
Thus leaving no less an amount than £94,850,000 of gold coin, which
has been added to the circulation of the above countries during the
period embraced in these tables.
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1854.]
'Australian Banks.
65
AUSTRALIAN BANKS.
tfUtui Abstract of the sworn returns, rendered pursuant to the Act of Council, 4th Victoria,
No. 18, of the average assets and liabilities, and of the capital and profits of the undermentioned
banka in the colony of New -South Wales, for the quarter ended 80th September, 1853.
Liabilities .
liM,, Xofes "»
■auks. Circulation.
£ s. d.
B’kofN. S. Wales, *..412.847 0 0
Commercial Bank, 202,428 18 1
Australasia Bank, .... 191,195 3 1
Union of Australia. . . . 209,798 0 10
§ Austral’ n Joint St’k,. 53,797 1 6
i London Chartered, . 3.995 4 7
Bill s in Balances due
Circulation . to other b'ks.
£ n. d. £ s. d.
8,005 12 9 +228,791 19 0
82 2 3
95,576 11 4
22,502 fill .
861 8 5
486 13 1
Deposits.
£ a. d.
1,868,45011 8
898,567 211
806,948 19 6
847,156 4 6
168.501 0 T
27,294 1 10
Total
Liabilities.
£ 8. cl.
2,513,104 8 0
1401,027 18 3
1,024,819 18 11
1,079,45611 8
218,149 10 6
81,776 19 6
Total,
1,074,0*31 8 1
58,521 11 6 2*4,834 1 3 4,611,927 0 7
5,968,333 16 5
Assets .
Sates and bills
Cun amt Landed Sates A- hills Balances due disc'ted^ir all
bank*. bullion. property. of other bk's. f'/n other b'ks. other debts
due the banks.
£ s. d. € a. d. £ s. d. .£ s. d. £ s. d.
B*k of X. S. Wale-*,* . .1.435,032 17 2 19.930 7 9 13,982 13 3 42,646 3 3 +1,478 161 8 9
Commercial Bank, .... 662.435 0 2 12,830 15 3 5,127 0 0 333,27$ 7 1 471,443 2 1
Australasia Bank, 711.769 1 G 8.750 0 0 1.489 0 0 803,545 19 4
Union of Australia, ... 512,5*3 IS S 14.662 ft 0 7,2:51 3 4 568,857 0 2
SAustral’n Joint st’k. . 91.073 5 2 2,28113 4 431 10 9 74,037 17 3 178,999 0 7
^London Chartered, .. 82,195 5 3 13,485 11 1 19,142 16 11
Total,
3.395,089 7 11 71,960 12 6 29/261 7 10 449.962 7
3.105,119 7 10
Capital and Profits .
H \>KS.
i 'a pit a l
paid ujt.
Rate per
annum of
last divid'd.
A m*t of
du id ( nd.
£ S. d.
B’k of N. 8. Wales,* ■ H'0,000 0 0
Commercial Bank, ... .200, Of >0 0 0
Australasia Bank, ....900,000 0 0
Union of Australia, . . .820,000 0 0
fAuatral'n Joint St’k, 125,000 0 0
^ London Chartered,.. 375,000 0 0
10 per cent,
10 “ “
**i] •»
26 u 44
£ s. d.
20,000 0 0
20,000 0 0
27,000 0 0
106,600 0 0
A in t rcserre.d
profits , after Total
paying din- assets,
dind.
£ s. d. £ s. d.
44,960 11 8 2,999,773 10 2
16,578 13 2 l,3e3,I 14 5 1
167,109 15 1 1,115,554 0 10
213,839 16 6 1,098,834 7 2
346,823 7 1
114,82813 3
Total, 2,820,000 0 0
173,600 0 0 442,488 16 0 7,050,423 8 7
♦ And Victoria Branch.
t In this amount is included £0677 6s. 2d., liabilities of old Bank of New-South Wales,
guaranteed. ♦ In this amount Is included £548*374 7s. 10d.t London Branch remittance account.
I And bonus of £1 5s. per share. +* And bonus of £1 Ids. per share, being equal to 15 per et,
i Established tfth January, 1858. 5 Commenced business 1st July, 1658.
£. Dias Thomson,
Colonial Sbcrntany’s Owes, Colonial Secretary .
Synnit, 0th Norember, 1853.
5
Digitized by Lsoosie
Original from
UNIVERSITY OF CHICAGO
66
Government, State, ami City Bowls.
[July,
GOVERNMENT, STATE, C1TV, COUNTY, ANI) RAILROAD STOCKS,
BONDS, etc.
New- York, J r x e' 2 7. 1S54.
NAMKS of coupaniks.
AMIiI NT. N ATl’RK OF imXl*. I S WIIKX PA V ABLK AT [ Dt*K. UPP’D. -AJ® ’ D
Alabama & Tenn. Itiver # K33,tmn
Baltimore A Ohio . I.hmijhni
do. do 1,12* non
do. d .
Buffalo A State Liue
do. do. ...
Buffalo A New- York City
Bellefontaine A Indiana .
Cin., Wilmington, A Zanesville
Cincinnati, Hamilton, & Dayton
do,
Cincinnati A Marietta .
Cleveland, Paine*ville, A Ash tabula
Cleveland A Pittsburgh
do. do.
Cleveland A Toledo
do. do. (Ohio June.)
Chicago A Rock Island, (Illinois)
Chicago A Mississippi
do. do.
do. do.
Covington A Lexington
do. do. .
Dayton A Western
Fort Wayne A Chicago
Galena A Chicago ....
Indianapolis A Bellefontaine .
Indianapolis A Lafayette
Indiana Central ....
Illinois Central ....
Illinois Great Western
Jeffersonville (lud. to Louisville)
do. do.
Lake Erie. Wabash, A St. Louis
Lawrenceburgh A Indianapolis
Little Miami
Maysville A Lexington
Madison A Indianapolis
Michigan Central
do. do
do. do. . . . ,
Michigan Southern
Milwaukee A Mississippi .
do. do. . . .
New-York Central
do. do. (Subscription)
New-York A New-Haven
New-York A Harlem .
New-Haven A New-London .
New-Haven A Hartford .
New-Albany and Salem
do. do. .
Northern Indiana ....
do. do. Goshen Branch
Northern Cross
Ohio Central
do
Ohio A Pennsylvania
do. do. .
Ohio A Indiana ....
Ogdensburgh, (Northern,)
_ do. do. .
Panama
INUHN
f>( HMUMl
;kn.iNin
1,2'Xi.ihio
uhhhmj
, 1,:i»hhuhi
], i mu. ihn i
MHl.MH)
525,0 Hi’
| <*«i.ouo
, 2,(01, IHM)
I 1,000,000
1.000,000
1,500,000
I 400,000
1.000. 0(H)
I :100,(HH)
i 1.2J0.WHI.
1,‘Joo.Ooo
450.0tHl'
35o.<hh)
tHHl.lHki
17,(HHI.*»H)
1.000. 000
;too,ooo
| iioo.ihki
r,,400.IHH)
I
I. 500.IHH)
500,000
thHMNKi
l.(HH),(HP0
i ii;to5.'*Hi
I IJ.VJ.OOO
J. lHHI.UOO
(jdOJNjlI.
H.VMHN)
8,2*7.(Hhi
750,000,
75o.(HH)
I LbOO.lHH)
I 450,000'
' 1,(HH.),000
* 500,000'
j 2,325,000
) l.oon.ooo
• 1,500,(HHI
j 1,200,000
f 450jHH>
! *<H>,(M)
1,75o,(hh)
I t’HHMJOO
| l.OOO.OUO
; 1,500,000
I 1.450.000
j 2.37*,iM>u
6,*HM),000
4(H), 000
I 6,014.000
3.o:iv,<h>o
j J(HI (HH)
Springf., Mt. Vernon, A^Utsburgh, 50<J.ooO
Steubenville A Indiana 1,500,000
Tennessee R. R.’s guar, by 8tate i
Terre-Haute A Indianapolis . i 600.000
Ten*©- Haute A Alton . . I 1,0mo.ou0
Wilmington A Manchester (N. Cu .) I tiOo.ouO
Pennsylvania
Philadelphia A Westchester
Reading ....
do.. . . . .
Scioto A Hocking Valley .
1st mort. con. till 1*?2
T ransferabh — ta \ed
Coupons, free of tax
do. do.
1st mort., not c«nv.
No mort., d«>.
1st mort.
Nt do. convertible
1st do. do. I
2d mort., not conv.
-id do. do.
1st do., conv. till 1862
1st mort., not conv.
do. convert :ble
do. 2d sec., conv. ,
do. not conv. I
do. con\ertih!e i
do. conv. till l»>
do. do. 1*55
do. not conv.
‘2d mort. con. till 1*5*
1st inort., not conv. .
2d mort., convertible
1st mort., do.
do. conv. till iMs*
do. not conv.
do. convertible
do. do.
do. do.
Mort.. not conv.
1st. mort., do.
do. 1st sec. do.
do. 2d do. do.
do. conv. till 1*59
do. do. 1*57
do. not conv.
do. conv. till 1*60
do. convertible
No mort., do.
do. do. i
do. not conv.
1st mort.. do.
do. 1st sec. coil. 1*57
do. 2d do. 185*
No mort., not conv.
do. do. 1
do. do.
1st mort., do.
<1 o. do.
do. do.
do. on 1st sec.
do.other do. con.’o*
do. not conv.
do. do.
do. convertible i
do. conv. west see.
do. do. east do.
do. convertible
Income, no mor. con.
1st inert., conv,
do. . . ,
2d mort., conv. .
No inort. con. 1*56-6*
1st mort. con. till l*oo
do. do. lMtt
do.
2d mort.
1st mort. 1st di v. con.
do. convertible
do. do.
do. do. '
do. do.
do. conv. till 1*55
do. convertible
Y.
7 1 Jan. 1 July N. Y.
»; Quarterly. Bait,
i; January. July
t; Half yearly
7 April, Oct. N
7 January, July
7 Divers
7 January. July
7 May, Nov.
7 May. Nov.
7 January. July
7 Feb., August
7 Feb.. August
7 March, S pt.
7 Feb.. August
7 Divers 1
7 1m Jan., 10 July
7 April. Oct.
7 April, Oct.
7 January, July
6 April, Oct.
7 March, Sept.
7 March, Sent.
7 January. July
7 Kcb., August
7 January. July
7 15 Feb.. 15 Aug.
7 May, Nov.
7 1 Oct., 1 April
10 April. Oct.
7 March, Sept.
7 April. Oct.
7 Feb., August
7 March, Sept,
f, April, Oct.
6 January, July
7 May. Nov. „ .
* April, Oct. Host
h April. Oct.
* Semi annually v.
7 May, Nov. ^
* January. July
* April, Oct.
6 May, Nov.
i; May. Nov.
7 June, Dec.
7 May. Nov.
in M’ch, 10 Sep.;
6 January, July
10 April, Oct. l
* May, Nov.
7 Feb., August 1
7 Feb., August I
8 January. July1
7 Feb., August
7 May, Nov. !
7 January, July,
7 April, Oct. |
7 Feh., August
7 I
7 April, Oct.
7 January. July v
6 1 Jan., 1 July
7 January, July Phn
ti January. July ».
0 April, Oct. :
7 May, Nov. 'v
7 January. July *
7 January, July,
6 I
7 March, Sept. ,
7 Feb., August ■
7 June, Dec. f
**5
Y.
Rost.
Y.
Y.
1*m> !
*66 1 x
,.x
*mmj6 Y
i*»a
!*Si*
*>0
,*0*»
.Mill
*73
*03
96
*31 2 *4
I 864
*6 1 *7
971/2 100
"^1-72 \
*70
1*74
*63
*(i2
*63
* jo-61 x
x
X
I
X
(X
X
X
X
X
X
X
*55-56 v
‘-68
931/2
91
87lV
941 2
921 2
W 1
lt> I
I
Ki)l .j
95 |
7*14
88
89
87
U)
941*
95
*7k*
m '
93
90
*71/*
*8
!<5
93 M*
921*
92*
78
86
87Lfc
96
90
901 A
97V *
96
;7}*
7*1 *
90
87
91
95
90
1*63 x
*63 y
!**i 'A,
l**:l |
long 1
I Sol-73 \
l *»id V
1*73 x
1 8.58-63 x
l *64-75 X
1*61
l**;8 x
1*73 'x
|m;i x
1*64 x
I m 15-06 X
1*72 \
1*67
1*59
IW1
!*»>;
1*80
1*73
i mi
1*70
1861
1*68
1805
103
:iui
96 i 98
100
95
101
<#;
ix
X
x
i5’
*5 I 85V '*
92H j
93 94
93 Va 95
89 I 90
96 I 97
b* 1 89
196
95 ! 96
1021/2 ltflV*
90 93
1(H)
77V* 80
i
I860
L*w>
15HW
105
97 j 98
90
8812 90
77k 2 78
85 86
100 1101
10lMa 103
88 93
93k1lj 96
‘ Xn stands for Ex-InteresL
Digitized by
Gck igle
Original from
UNIVERSITY OF CHICAGO
1854.]
Government, State, and City Bonds.
67
l J* S. Gov. Securing. i-VT- payable, off'djask’d
18odiJan. July.
I8r52
do.
1W7!
do.
1868
do.
18(>i
do.
1865j
do.
pit’bl. off’d. ask’d
do. do. . . .
do. do.
do. do
do. do Coup,
do. 6perct do,
Stale Securities, j
N. Y. 6 per ct. . . .l$60-'61->>2
do. do ]*m-H>y
do. do 1866-Y>7
do. 51/2 per ct 1860-Yl.
do. do 1865
do. 5 per ct 1858- Yu,
do. do is*}!
do. 41/2 Per ct. 185 8-’59-V4 ,
Canal Certified, 6 p. ct...1861,Jan. July.
Ohio, do. lK.Vi) do.
do. do. lw*k> do.
do. do. 1870, do.
do. do. 1*7.V do.
do. 5 percent 1*3' do.
Pennsylvania, 5 per ct Feb. August
do. 5 per ct. coup.. 1877,
Jan. April.
July, Oct.
an. July.
, Jan. April.
July, Oct.
r i ( B» R« Co/s«
]}?*? * iJOgV-^ \ ®a,t,Il1.ore & Ohio... .100, lAprih OctT
!}JSJ * OJn., Ham., A Dayton 1 00 [ 10 ,Feb. Aug.
:JgZ « *^} Kl C eveland.Col. ACin.lOOj 13 Jan. July.
! }232 8 *241 h Cleve. & Pittsburgh. .50 10 do.
iSi 8 itii1 A Cleveland & Toledo. ..60 10 M’ch, Sept.
IWbliai.li 1 Erie... loot 7 lApril, Oct.
i Galena k Chicago... .100 20 I Feb. Aug. I
Harlem 50 4 J do. 1
I do. preferred fiol 8 Jan. July. 101
I Hudson River 10) May, Nov. I 60
Illinois Central loo! 7 Jan. July. ,112
Little Miami 5010 June, Dec. |98
108
114
H5
105
|108 ■
\MX i
104H
100 I
jlOlH 105
101 102
106
1 100 111
100 111
>104
j 561/*
I 94
105
70
871^,
, 62
124
W2I
Macon A Western 10 9 ! Feb. Aug. 106
" ' Jan. July.
Mad. A Indianapolis. .501 9
| Michigan Central 1(X)I 8
| do. Southern ..100 15
do. do. con. st. loo! 8
I New-Jersey.. 50 10
Dec.
Jan. July,
do.
Feb. Aug.
do.
"Massachusetts, 5 per ct... .
Kentucky, dp. ct.bUl869- ?2 Jan. July
Illinois, Int. Imp. 6 p. ct .1847t do.
do. 6 per cent. Interest do.
Indiana State. 5 per ct do
do. 21 2 per ct do.
do. Canal Loan, 6 per ct. do.
do. Canal Pref. 5 do. f
Maryland, 6 do.? IJan. April,
.do. A do. $ iJuly, Oct.
Alabama, f> do. May, Nov.
Tennessee, 5 per ct. bonds. . Jan. July.
,
i i 94
145
Northern Indiana ...100; 16 Jan. July. 102
120
9834
841/2
90
104
„ do. con. st. 100; w
N. Haven A Hartford.100 10
aa. - - New-York Centrul 100 5
H N . Y . * New- Haven 100|
»*0l/2. 91V2|i Ohio A Pennsylvania. 50 7M
■ | 1 Panama 100 10
;10/M 1108 I Pennsylvania 60 1 6
! Reading 50 6
Rome A Watertown. .100 10
89
I 00
100
I 6U
95
I 22
90
02
101
62
M
24
do.
Apr. Oct.
Feb. Aug.
15 Fe 15 Au
Jan. July,
do.
May 15No.i
Jan. July.
Feb. Aug.
1001 2 102
do. 6
Virginia, 6
Missouri, 6
N. Carolina 6
Georgia, 6
California, 7
do.
do.
do.
do..
do..
do..
do. long;
do.. 1**1
do.. 18721
187:1,
1872;
1870;
do.
do.
do.
do.
do.
do.
100
105
103
105
106
84
98
99
88
[10*2
loo
106
m
108
85
City Securities.
New*York 5 per ct.. .1858-’60 » peb v
_.do. do. . . . 1*70-75 C Aug Nov*
1«W-'9»J».Ap.Ju.Oc. JBl/inO.
Rm,. do. 5 do lApriKOif.'
•cMnddo.Vw7P:c:i^J‘m;iJ„uly-
•Cincinati do. 6p. c Dlvern
"Chicago do. do. l*73-’77jan July
•Detroit W.W. 7 p.c. 73-78. pS.’ Aug7'
•Jersey C. do. b do 1**7 Jan Julv
•Louisvilledo. 6 do.. .lNsi-Xi niv^ra J
*JJilw*kie do. 7 do 18";5, March Scot
*N. Orlnsdo. 6do...l«»2-,‘t{ jan juivP '
Philadelp. 6 do. . jH7r>-*«»JAn:»;!uly*
•Pittsb’ghdo.Odo, W’78-'«2. Divers
•Rochest’rdo. 6 <io 1*7* ■ a0
•St. Louis do. 6 do 1 JL*
•Sacra men to 10 do.. . .1802-73! <j0'
•S.Francisco 10 do 1*71 May, Nov.
County Bonds* (
Loui*,_Mo. 6 p. c — 1860 Jan. July.
6do.con.lfcd
•Fayette, Kjr.
•Bourbon. Ky. 6do.do.81-’81
do.
•Mason, lCy7 6do!do!»i >2 do!
•AReghany,Pa.6 do 1878 do.
Rmllrond Bonds* I
j miscellaneous.
*1 N. Y. Life A Trust Co. 100 10
1 1 Ohio do. |00> 8
• N. Y. Gas-Light Co.... 60 10
, Manhattan do 50 10
j, Dela. A Hud. Can. Colon 9
Pennsylvania Coal Co. Aft 10
U. S. Rank 100,
Boston Banks.
. par
Atlantic 100
Atlas lOD
Blackstone .100
Boston 50
Boylston 100
. Broadway, (S. Boston). ..100
City 100
Icochituate 100
' .Columbian 100
mi 2 , -Commerce 100
101*4,1021 .1 Kliot, (new) lUOi
Exchange 10o‘
.£{ Fancuil Hall loo!
‘X;. ,1 Freeman’s Ido
» Globe idol
*2, J 1 Granite. 1CKI
f'1 \ Grocers’ 100I
Hamilton ]U0;
Feb. Aug.
[Jan. July.
May Nov.
[Jan. July.
June Dec.
|Feb. Aug.
Injiqdati’n
100
100
1011,2,1031/2
82 I
83 ! 84
, 761/2: 81
79 81
j 781 2 8l
N. Y. Central
KTie 1st mort. do.
do. 9d do.conv.do.
do. 8d do. do.
do. Income do.
do. Convertiblesdo.
-do. _ do. do,
7 p. ct... Ifc3 May. Nov.
..lfc? do.
. .1650 March, Sept.
..16X1 dO.
..18W Feb. Aug.
..1871i do.
..1962 Jan. July.
Hud’n U. 1st mor.do. 186S- 70 Feb. Aug.
. .1*J0 16 Ju. lftlDec
do. 2d do. do.
do. conv. do.
Michigan South, do.
Morth. Indiana do.
. .1W7 May, Nov.
..i860, do.
. .1861 Feb. Aug,
Ajr. Stocks not spedfkd as Bonds are transferable by Inscription. AU Bonds (except OmliMi iii ^
Mortgage and Erie Convertibles) are payable to bearer. ** • w denotes Ex Interest Sttv^Sd. ^
I
96
92
ltf)
100 ,
821. 2
\ 86
91
! lioward, (new) 100|
I S-J finni ' Market 70
& U,I2S 2;'Ma“ 280
2? I Mechanics’, 0i. Boston). .100
, . i./'*..' Merchants’ 100i
lull 2 10214| National, (new) 10O
New England 100
North 1(10
North America U»0
! Shawmut 100
, Shoe and Leather 100
I State 60
69 Suffolk 100
Traders’ 10ft
I Tradesman’s, (Chel.) 100
85 Tremont 100
109 110 Union 100
99 1 Washington 100
88i 2 89 Webster, (uew) 100
7»' 4 Eicha,**fc
87 88 1 London
104^105 | Paris,
06 97 i Amsterdam
82 84 {Frankfort,
9b 97 Bremen,
97 .Hamburg,
‘‘Antwerp,.
140
: 88
132
128
107 Vi
1033/4
1V2
108
l{«?4
I
110
102
103
103
r*
108
71 v
88;
, 62f4
126
4434
103
603/4
115
lgVi
fit*
\m
98
122
99
85
, »1V2
|1WV2
150
90
140
132
108
104V4
3
109
1031
60
119
104
10814
104
1001/^10034
loo >
HOVillll
104 jl05
]1J # 116
113V2114
1011/2109
98
119
86
82
95
111
95
.85
353
108
108
103
110
103 ,
BT1
T
1^9
108 Vi
1021/4
104
103H
112
112
64
SSK
108 IH8H
Digitized by
Gck igle
Origsinal fro-m
UNIVERSITY OF CHICAGO
68
Foreign Items.
[July,
Digitized by
FOREIGN ITEMS.
English Monky Maiiklt. — Tin* stamp duty exacted of the insurance companies
in London operates severely upon them and upon their customers. A statement
has just been published of the amount of stamp duties paid during the past year by
each of the tire insurance companies of the United Kingdom. From a condensa-
tion of this document, it appears that the proportions paid by the London o dices
stand in the order subjoined :
Duty Paid by the London Fire Intntrance Offn en during the )V«/r InV'P
Sun £185.474
Phoenix, 12*2,061
Royal Exchange, 75,502
County, 57,006
Imperial 47,285
Alliance, 44,141
Atlas 30,751
Globe 35,233
Guardian 3 1.5! >4
Union 25,850
W estuiinstcr, 25.487
Law. 2 5. 010
London 21.085
Monarch 12.673
Roy a 1 Far n a * rs ' 12,516
General ; 1 1 ,(>."><)
Legal and Commercial 10.782
Hand-iu-Ilaiid 10.020
A return is aU-> giv.-n of tin- scums hism
from duty. Under ti .s hiad the H-n.
follows :
ttiriidng S*< (emnjd /n-ut <
Sun £7.430.658
County 6.621.751
Roval Fanners’ 4.611.137
RoVal Exchange ■ 4.225.030
Phoenix, 4, 101,478
Alliance, 2. 546,23 c,
Atlas 3.127.020
Globe 1.012.131
Imperial. 808.350
Guardia n, 347,255
London, 279,033
Union, 245.071
Unity 186.368
Law,. 144.030
Legal and Commercial, . . . 122,768
Defender. £7.543
Unity 5,097
Anchor, 4.333
Church of England 4.013
British Empire 3,350
E< put able 2,093
Times 1,099
I National Provincial 745
National Guardian, . 424
London and County 2 so
Cambrian and Universal 225
' iJeaeon 155
| Athena um 150
i Protestant 148
Era 138
British Provident 27
Preamp 22
s i:..-u;vd at I..M I. '*:.u a »•
;'ty) Iu*vt <• / I>t L.Oltinv r,ff< V..,
n . : < xa.n
4’ « V T
1 )('!«. l.d« r
. 67.620
E'juit.ihlc,
. 60.210
Monm.L
. 5* 061
V\’«>tmin-trr
. 41.275
1 < 'huivh of England
. 25,156
' Times
. 31.715
, Anchor.
. 30,708
A 1 1 ii ' T r i • u i ■ I
27,430
i lLuid-in-Hmid
. 1 0*885
j National < iuanlian
. 14,034
1 National Provincial
. 13,780
| Era
3,920
j Beacon
150
Stocks. — Subjoined is a table of the fluctuations in the stock and share market in
the month just ended. The range of consols lias been 4$ per cent, while in April
it was 3|, and in March 6$- per cent. Considering the absence of any very import-
ant events during these periods, the extent of fluctuation on each occasion lias been
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1854.]
Foreign Items.
69
extremely great. The result of the various movements during the past mouth has
been to establish a rise of 3^ per cent while the aggregate improvement since the
end of March has been more than 0 per cent. In railway shares the changes have
been comparatively less violent, but a general and satisfactory advance is ex-
hibited:
Fluctuations in the Stock ant> Share Markets during the
Month of May, 1854.
Stock* k. Shark*.
A m't of
Share*.
Amt paid.
Price. 2 d
May.
Highest Lowest
during the during the
month. month.
Present
price.
Consols,
87* to 88
91 *
87*
91* to*
Exchequer-Mils,
Railways.
....
Is. dis. to 2 a.
pm.
4s. pm.
2s. dis. Is. dir. to 8s,
pm.
Brighton,
Stock.
100
98
103
97 Vh
103
Caledonian,
M
100
58*
67*4
52*
57
Eastern Counties,. . .
It
20
12*
12*
UK
12*
Great Northern,. ....
ii
100
87
891/2
85
88V*
Great Western,
London & North-
M
100
73
76
75Vh
Western,
«t
100
96 Mj
903/fc
94*
96Vh
Midland,
Lancashire and York-
14
100
581 2
01*
6671
60*
shire,
K
100
61
62*4
68*
69
North-S taffordahlre, .
20
171/2
10*
13,ai
10V2
13*
South-Eastern
Stock.
100
59*
63
66
68VS
Sooth- Western.
York, Newcastle, and
41
100
in
79
761/2
Berwick, .....
York and North-Mld-
II
100
65
671/2
64
«7
Mnd,
14
100
46
49
44*
■*8 Vi
Northern of France,.
20
10
30
33*4
29*
33*
BasUndian,
20
20
22
22
21*
English Manufactures. — The steamer Hermann at this port from Bremen and
Southampton, brings a large cargo of German and English goods. Of the English
manufacturing districts the money article of tho Times says :
The reports of the state of trade in the manufacturing towns during tho past
week furnish from their general steadiness evidence of an inherent soundness in all
the commercial relations of tho country which neither war nor a rate of discount of
5J per cent are able to disturb. At Manchester the markets arc quiet, but they
have been supported in some degree, by tho demand for India, and, although tho
tendency of prices is towards a decline, there is no disposition to submit to any
important sacrifices. At Birmingham the inadequacy of the supply of iron and coal
to meet the wants of tho manufacturers is still the solo object of remark, and fresh
orders are accepted with the greatest reluctance. Arrangements for opening up
new coal mines in tho district continue in active progress. As regards the general
trade of tho town, there are prospects of a large demand from Camidn and tho
West-Indies, while for Australia, although the shipments of many articles have
been overdone, the requirements are far from inconsiderable. From Nottingham
the report shows no material alteration, but there has been rather an increase
in the purchases for the United States; and, although dullness yet prevails, there
are no signs of real unhealthiness. In the woolen districts, undiminished confidence
is observable, and prices exhibit firmness. The Irish linen markets have been
inactive.
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70
Miscellaneous.
[July,
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MISCELLANEOUS.
Girls as Bank Clerks. — The American Exchange Bank, of this city, employs
upwards of thirty boys and young men, to count country bank bills, at an average
salary of about $500 per annum. Now, then, why cannot girls do this work as
well as bovs? Their nimble fingers can slide off the bill as expeditiously, and
more so, than the clumsy thumbs of boys.
Then as to the reckoning or counting, they certainly have the capacity to do
that. It requires the smallest amount of hard work, next to opening oysters, of
any business that men ever engage in. We go tor introducing girls into banks.
Who objects ? — New- York Day Book.
Cincinnati Finances. — The total expenditures of the city of Cincinnati, for the
fiscal year ending March 1, 1854, were $475,000. The public debt amounts to
$2,929.000 ; of which $1,900,000 consists of bonds loaned to various companies,
principal and interest guaranteed to be repaid by them. The debts due the city
amount to $1,107,978.
DEBT OF CINCINNATI.
Interest ]>cr et.
Rtdremabl'.
Amount.
Loan,
.5
]HS5
$40,000
Loan,
.5
1871
100,000
Loan,
.5
ISSf,
80.000
Little Miami Railroad Com pan v,
.6
1SGO-1805
80,000
U 44 U 4.
.o
IS SO
100,000
Cincinnati k Whitewater Canal,
.0
1805
400.000
i( 44
.0
1807
30,000
Cincinnati Water- Works,
.0
18G5
( 300.000
44 44 44
.0
1 8!tr>
500,000
44 44 44
.0
1000
75,000
Floating Debt,
1807
150.000
“ “ (consolidated,)
.6
1000
38,000
Lafayette Bank,
.G
1 S05
5,000
School Purposes,
.G
1*85
25,000
Purchase of Lot,
.G
1870
GO, 000
Hillsborough Railroad Company,
.G
1880
100,000
Hamilton k Eaton Railroad Company, . . .
.G
1881
150,000
Covington k Lexington Railroad Company,
.6
1881
100,000
Ohio k Mississippi Railroad Company, . * .
.G
1882
600,000
At 5 per cent, .... .$220,000. At 6 per cent, . . . ,
. .$2,709,000.
$2,929,000
Railroad Iron. — Mr. Rusk, of the United States Senate, agreeably to notice,
introduced a bill providing for the transpiration of the mails of the United States
on railroads ; which was read twice, and referred to the Committee on Post-Offices
and Post- Roads. The bill provides that all railroad companies who shall contract to
carry the United States mails and troops, and munitions of war, free of charge,
shall be allowed to import, free of duty, all iron necessary for the construction, use,
and repair of such roads; the Postmaster-General to have power to regulate tho
manner and times of the transportation of such mails. To all such companies who
shall contract as aforesaid, and who shall construct a good, substantial, double-track
road, there shall be granted six sections of the public land for each mile of said
road so constructed.
The proposition to reduce the duty on railroad iron has been deferred, for the
present, in Congress. The measure has been advocated for the benefit of railroad
companies whose work is now in progress; but the iron interests of Pennsylvania,
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Miscellaneous.
71
'Virginia* and Tennessee, as well as other States, are now so important that Congress
considers these interests as claiming protection. Large contracts have been recently
made with manufacturers at Wheeling and other places, for the delivery of iron for
several western roads. The American iron is considered by competent judges far
superior to the best that is manufactured in England, for rails ; and it is known
that the is not generally sent to this country.
Public Lands. — In the minority report oY the Committee on Public Lands, made
a few days ago to Congress, it is set forth that an official statement from the Com-
missioner of Public Lands shows that there has been granted to the States and
territories named, up to Juno 30, 1853, for railroads, internal improvements, schools,
and deaf and dumb asylums ; and to States for seats of government, public buildings,
corporations, etc., as follows :
Railroads, etc.
Pub. build? gs.
Railroads , etc.
Pub. build’ gs.
Ohio,
.1,970,880 acres.
8,868,617 acres.
Alabama, . . 1,867,239
acres.
240,648
acres.
Indiana, —
.2,283,219 M
1,792*26 “
Florida,.... 1,475,507
66
5,806,394
41
Illinois,
4,098,848 “
9,140,444 “
California,. . 7,266,404
4(
Michigan, . .
.2,368,477 “
8,974,116 “
Mlnnwota, . 6,429,944
66
Wisconsin, .
1,984,464 “
1,350,630 “
Oregon, ...12,186,987
64
Iowa,
2,836,302 “
121,878 “
N. Mexico,. . 7,493,130
46
Miaaouri, . . .
.8,472,391 “
3,589,751 41
Utah, 6,661,707
44
....
Arkansas, . .
3,623,827 “
8,885,154 «
Louisiana, .
1,332,124 «
11,864,180 44
13 State* 4
Mississippi,.
.2,097,754 “
2,514,175 M
Ter’ries, . .68,918,987
a
54,148,514
(4
For railroads, Internal improvements, etc.,
. 68,913.937
66
118,002,461
44
Amount told up to same date
»
. 103,197,356
44
Amount of grants over the sales,
. 19,865,096
a
Add grants for military services,
. *4,841,980
<4
Amount,
. 44,707,075
44
Amount of grants and sales,
• ...
.252,001 787
(4
Had the lands, says the report, granted to the'StAtes and territories — 123,062,451
acres — been sold at government price, it would Lave amounted to $153,848,054.
Of this sum Virginia was entitled to millions of dollars.
In one case only of grants to railroads, that of the Illinois Central Railroad, the
report shows that this company has received 3,751,711 acres, wliich, at government
price, would amount to $4,689,630. So the public lands go.
Trade-Marks — A decision of some importance to manufacturers was rendered
a few days since in the Superior Court of Connecticut, whereby manuthcturers are
shown to be liable for damages for imitating, or approaching the imitation oi,
Irade-marks or labels of other parties. This point has, in numerous other instances
in tliis country, been maintained by the courts. It is only another phase of the
copyright or patent law, and its adoption is nothing more than justice toward the
manufacturer. The present suit was brought at the instance of Messrs. J. k P.
Coats, manufacturers and sellers of spool-cotton, of Paisley, Scotland, against the
Wellington Thread Company, of Connecticut, for an infringement of the labels used
on the spools. Messrs. Coats aver that :
14 They linve succeeded in making their thread a first-rate article in the American
market, and acquired great fame and reputation with the public, ns well on aooount
of its excellent quality and goodness, as of the fairness of the alleged quantity, or
length, at which it is advertised to be sold ; and that the said thread is manu-
factured of the best material, and of divers sizes and numbers, from eight to two
hundred, denoting different degrees of fineness ; that their said thread as numbered
from eight to forty are threads of six cords, while those from forty to seventy are
threads of three cords. And tliat the petitioners ever liave been, and still are used
.and accustomed to put up and sell said tlireed on wooden spools, containing two
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Miscellaneous.
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hundred yards each ; cadi spool having on the end a circular label in black and
gilt, with the following, amongst other words and figures, printed thereon, that is
to say, ‘J. A P. Coats' best six cords, 200 yards.1 ’’
They show that the Wellington Thread Company, at Wellington, Tolland county,
Connecticut, manufacture spool-cotton also, but imitate the mark of Messrs. Coats
A Co., so as to make it appear as ‘‘Coats’ best six cord, 200 yards;” and that tho
article is really interior, and contains only 150 yards. #
A referee was, in the year 1853, appointed by the court to examine into the
facta, wdio has reported to the court “ that he finds the facts alleged in the petition
in said case to be true.’’
An injunction has been granted by the Superior Court against the Wellington
Thread Company, to prevent the further use ot the “false and simulated labels and
wrappers on their thread, ’ under the penalty of ten thousand dollars. The company
was also taxed for the costs of suit.
Hemp. — A large advance has occurred in the price of hemp in the English and
United States markets. In the year 1851 the current price in St. Louis was $85
a $88; in 1852, $100 a $105 ; and in 1853, $120 a $128. Western dew-rotted
hemp is now quoted in Ncw-Orleans at $170 a $190, and prices still tending
upward.
The St. Louis Jfrpvhlican observes of this important staple, that prices have
already reached an unprecedented height in that market, say $160a$170 per ton
for prime and extra undressed ; and the opinion seems to be that the advance will
not halt even at this point. The cause of this rise is partly owing to the failure of
the American yield, but mainly to a foreign demand created by the existing dis-
turbances in Europe. Should the Russian government prohibit exportation, or
Prussia become involved in the struggle now waged l>etwecn the Czar and the
Western powers, England must draw her supply from this country; otherwise she
may avail herself of an over-land communication through Prussia, and obtain
Russian hemp at an extra expense of about $100 per ton. In the latter case, the
article here will hardly l>enr a greater advance ; in the former, it may go up to
$200, unless some other article be substituted. Cotton, wire, and hide ropes have
been already mentioned as substitutes tor hempen. As the strength of England is
mainly in her maritime prowess, as now directed, it is scarcely probable that the
Russian government will suffer the exportation of an article that might well be
considered, under the circumstances, a contraband of war.
Mineral Resources of tiie South. — The Ktiosn'lk Roister lias an interest-
ing article on some late discoveries, which show that there is one continuous vein
of rich copper ore between the I'olk-eounty mine in Kast-Tennessee and the mine
recently discovered in farroll county, Virginia. These Virginia and Tennessee
veins have the same direct ion north-east and south-west, the same dip, tho same
surface indications, and are in the same chain of mountains. In the Tennessee vein
the miners have recently reached the yellow sulphuret of copper, which is regarded
as an infallible indication of the inexhaustible extent of the mines, and also their
incomparable richness. A new impetus has consequently been given to mining
operations — and, two weeks since there were sales of three-quarter sections of land
at about $1,250,000. About five thousand tons of rich copper ore are taken from
the mines monthly, netting, in all, at least half a million of dollars. This amount
will doubtless be much increased, when the shafts that arc being sunk shall pene-
trate the rich sulphuret.
But these copper developments, the lleyitter says, are not the tenth part of the
indications of the very great value which is at some early day to he attached to
lumen'll lands in East-Ten nessee and south-west Virginia, and which is to furnish
new sources of profit for the great artery of the Virginia and Tennessee Railroad,
and for tho diffusion of increasing wealth along its whole line. In addition to the
zinc, lead, marble, gypsum, etc., of that fine section of country, there are rich moun-
tains of iron and coal, to be opened up and brought into the great laboratory of
human enterprise. With the abundance of coal and iron, and the great improve-
ment in its manufacture, it is estimated that pig iron may be made at a cost of little
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Miscellaneous.
73
more than five dollars per ton — bo that, on the completion of the railroad in con-
struction, the actual cost of the iron will be in New-York less than $20 per ton, in
Charleston less than $15, and in Cincinnati less than $10 — and yet thousands of
acres ofland in Kast-Tennessee, where this coal and iron abound, may now be pur-
chased for 1«bs than fifty cents per acre. In time, capital will find out these oppor-
tunities for investment in Virginia and Tennessee — and mighty will be the results
of a development of their teeming resources. Come what may, the destiny of the
South must be onward, and, however lowering the horizon with the black storm of
fanaticism and aggression, the South is blessed with natural resources, fully abun-
dant to give her prosperity and strength, and complete security against the machina-
tions of her deadliest enemies. The spirit of enterprise and energy is waking up
the South, and we already see a brighter day in her history. Let her be true to
herself and to her admirable ^natural position, and a magnificent destiny will be
accomplished for her.
Shipments to Australia. — Recent returns for shipments of Flour, eta, to Aus-
tralia and to France, as well as other parts of the world, show a heavy loss in
many cases. The following is an account sales of 300 barrels Flour shipped from
Boston to Melbourne :
Account Sales 300 barrels Flour, per bark Falcon, from Boston, consigned
for side on account of , of Boston, U. S. A.
1854.
Jan. 18: 300 bbls. Flour, 20s., 3 mos., £300 0 0
Less 14 per cent for cash, 4*10 0
CHARGES.
£295 10 0
May 30: Freight as per B. £., £319 18 5
June 5: Light £37 10 0; Drayage, £12 05 0, ... . 49 15 0
Storage, 174 6 0
Insurance, 00s. ; Advertising, 20s., 4 0. 0
Porterage, 60s.; Postage, 2s., 2 12 0
Brokerage, £4 10 0; C. H. Entry, 2s. 6d., 4 12 6
Interest on charges, 23 14 2
Commission, 7-fc, 22 3 3 601 11 4
1854.
Jan. 18: Amount to debit of your account, £305 11 4
E. E., Melbourne, Jan. 1 8th, 1854.
(Signed,) .
$1482.00. Melbourne, January 24, 1854.
Ten days after sight of this First of Exchange, (socoud and third unpaid,) pay to
the order of , Fourteen Hundred and Eighty-two dollars, and charge the
same to account of Your obedient servants,
To , ) (signed,) .
Boston, U. S. A. \
This was for account of a Boston firm, who make the annexed statement:
“ For the benefit of those who have not ‘seen the elephant,’ I annex for publicar
tion an exact copy (saving names) of account sales of 300 barrels Flour, shipped to
Australia, on board clipper bark Falcon , February, 1853, and consigned to an Amer-
ican house. The Hour was of the very best quality, and cost $2075, cash.
“By sales you will perceive that the result is a total loss of three thousand five
hundred and fifty-seven dollars, ($3557,) namely, First cost, $2075 ; draft to balance
account, $1482. Total, $3557.”
This is only one out of many simitar cases. We fear that the bulk of shipments
to California will lie equally disastrous for the post nine months.
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UNIVERSITY OF CHICAGO
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74
Bank Items.
[July,
BANK ITEMS.
-.New* York. — The Mechanics’ Bunk, Now- York city. Las issued a circular notify-
ing tho Stockholders that the charter of the hank expires on the first of January
next, and that the directors and other stockholders have determined to organize a
new bank under the general laws of the State, with a capital of two millions of
dollars; the stock to be divided into eighty thousand shares of twenty -live dollars
each, and that the institution will go into operation on the tirst of January. 1855.
It is behoved that a sufficient amount of surplus will have accumulated by the first
of January next on the present capital, to provide tor tho greater part, if not the
whole, of tho proposed increase.
Weekly Statements. — Some difference of opinion has existed among the banks as
to the requisitions of the law in reference to the item of “ <h-jK>sits’’ in the weekly
statement. Some have included “bank balances’’ as dcjiosits. and others (perhaps
three fourths) have considered tho latter item as intended to include “individual
deposits’1 only. The following circular was issued on the 30th May by the Bank
Department to the several banks of this city :
“In the weekly average statements hereafter published, in compliance with the
act entitled “an act relating to incorporated banks, bauking associations, and indi-
vidual bankers, doing business in the city of New York," passed April 15, 1853.
you will include the amount duo to banks and bankers, as well as the amount dm*
to individual depositors. The obvious intention of the law was to show tho total
amount due from the banks which were required to publish a weekly statement.
*4 A uniform maimer of making such statement is not only desirable but absolutely
necessary for any practical purpose. D. B. St. John, Superintendent.''
The addition of the bank balances to the item of deposits will nmke a difference
of several millious of dollars, as will be seen by the weekly statements now issued.
R&nk CavUaLsr- An extra dividend of ton per cent on the capital stock of the
American, Exchange Bank will be paid on the first day of July, 1854. The capital
stock will T>e Increased fifty jier cent, or one million of dollars, payable one half, or
fifty dollars per share, on the first day of July 1854, and the other half on the sixth
day of November noxt. Tho new stock will be distributed to the old stockholders
in the ratio of ono share of new stock to every two shares of old stock, according to
the stock-ledger on the morning of the 25th inst. The rights to fractional parts of
shares may be transferred and combined so as to obtain full shares. Any stock-
holder may at any time after the 30th inst., pay in his new shares in full, and bo
entitled to rebate at the rate of seven per cent per annum, on the moiety, to the 6th
November.
Sentfdh Ward Bonk. — At a meeting of tho board of directors of the Seventh
Ward Bank, June~137"William Halsey, Esq., was unanimously elected president for
the ensuing year, in place of John W. Lawrence, Esq., who declined a reelection.
Whereupon it was unanimously resolved, that the thanks of the board of directors
of the Seventh Ward Bank be and are hereby tendered to the Hon. John W.
Lawrence, for his faithful and efficient services as president of the institution, and
that they regret his retirement from a position which he has so long occupied, with
credit to himself and satisfaction to them.
Vermont. — The following new banks are established in this State:
Name,
President.
Cashier.
Bradford Bank,
Bank of Royalton,
Bank of Waterbury,
Exchange Bank, Springfield,
Northfield Bank,
West River Bank, Jamaica, .
G. W. Prichard.
W. Skinner.
L. Hutchins.
C. Ainsworth.
B. T. Blodget.
W. Kellogg.
S. H. Stowell.
H. M. Bates.
Capital.
$100,000
100,000
100,000
50,000
100,000
100,000
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1854.]
Bank Items.
75
Connecticut. — In the Connecticut legislature several propositions are pending
for new bank charters. On Friday last in the House of Representatives, a resolu-
tion was introduced to incorporate the Home Bank at West-Meriden with a capital
of $300,000. The committee state that the business of the town had doubled in
four years. They were unanimous in their report, and had designed not to be
liberal in granting banking privileges, and reporting in favor of increase where it
did not appear to be absolutely necessary.
Mr. Pierce, of Norwich, asked whether a special bank charter is not more
valuable than those under the free banking law.
Mr. Robinson thought not, as now construed. Injustice would be done to the
free banks, and will bring down upon us the anathemas of the people. He would
make banks safe to the people rather than profitable to the stockholders. Banks
should be limited to legitimate business, and not become mere shaving shops.
A resolution was also introduced to incorporate the Cheney Silk Manufiicturing
Co., of Manchester, with a capital of $7. "10,000. Committee stated that the com-
pany now employ a capital of $350,000, and desire largely to increase their
business.
The llnrlburt Bank. — This institution, with a capital of $130,000, with the liberty
to increase to $1,000,000. goes into operation at West-Winsted about the 1st of
June. Wm. H. Phelps, Esq., is elected president.
Maine. — Charters were granted for the following new banks by tho Legislature
of 1854:
1. Bank of Commerce, Belfast. 7. The Mousam River Bank, Sanford.
2. The Market Bank, Bangor. 8. Tho Ocean Bank, Kennebunk.
3. The North Bank, Rockland. 9. The State Bank, Augusta.
4. The Grocers’ Bank, Bungor. 10. The Newcastle Bank.
5. The Bucksport Bank. 11. The American Bank, Hallowcll.
0. The Mechanics1 Bank, Portland. 12. Tho Bank of Somerset, Skowhegan.
And the following were authorized to increase their capital stock :
1. The Casco Bank. Portland. 8. The Ellsworth Bank.
2. The Merchants’ Bank, Bangor. 9. Lewiston Falls Bank.
3. Manufacturers’ and Traders’ Bank, 10. Traders’ Bank, Bangor.
Portland. 11. York Bank, Saco.
4. The Fanners’ Bank. 12. Maritime Bank, Bangor.
5. The Canal Bank, Portland. 13. The Calais Bank.
6. Cobossce Contee Bauk, Gardiner. 14. The Northern Bank, Hallowed.
7. Belfast Bank. 15. Tho Exchange Bank, Bangor.
Halhicdl . — The stockholders of the American Bank, chartered by the Legislature,
to be located at Hallowed, met April 22d, and organized the Bank by an election
of directors. E. E. Rice, Esq., President; A. H. Howard, Esq., Cashier.
The Market Bank, Bangor, will commence operations about tho 1st of August
next. Samuel F. Henry, Esq., president, James H. Butler, Esq., cashier.
Bangor. — The Grocers’ Bank at Bangor will commence operations in a few
weeks. George R. Smith, Esq., has been elected cashier of the Maritime Bank
in place of Charles H. Thaxter, Esq., resigned.
Portland . — At a meeting of the stockholders of the Canal Bank it was voted
to accept the act passed at the present session of tho legislature to increase the
capital stock of said bank $100,000, which will make its capital stock $600,000.
The Casco Bank has also voted to accept the act increasing its capital $100,000,
making it $500,000.
Rhode-Island. — Among the banks chartered at the late session of the General
Assembly, was one in Tiverton, under the name of the “ Pocasset Bank,’’ with an
authorized capital of $200,000. The whole amount has been subscribed, and an
examination of the books will satisfy any one that the subscribers are persons of
most abundant means. Tho largest individual stockholder is an affluent gentleman
of Massachusetts. The capital is the largest in tho State of any bank out of the
city of Providence.
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76
Bank Items.
[July,
Providt/ur . — Jabcz C. Knight, Esq.. was, on 12th Juno. elected president of the
Roger Williams Bank, in place of Nohemiah R. Knight, Ksq., deceased.
The following new hanks have been chartered lor locution in Providence: 1.
The Mercantile Bank, (to be organized <»n Saturday next.) 2. The Elmwood Bank.
3. The Liberty Bank. 4. The Jackson Bank. 5. The Westminster Bank. 6.
The Atlas Bank. There are at present thirty-one banks in operation in that city,
with an aggregate capital of §12,000,000.
* Providence. — The Westminster Bank at Providence has been organized by the
election of Gilbert Spaulding. Ksq., as president, and Asa B. Clark. Ksq., as
cashier.
Neirport. — The Aquidneck Bank is the name of a new bank at Newport, Rhode-
Island, of which Mr. T. Goirceshall is cashier, and R. B. Tinsley president. The
bills are already in circulation in this vicinity. The viirnette is a large figure of the
steamboat Perry, with a distant vi *w of the town of Newport. Between the signa-
tures is a view of the Old Mill , which is rendered famous by one of Cooper's nautical
romances. There were already seven banks in this ancient town and the new
institution makes the eighth, making a combined capital of about §800,000.
East- Greeny; i eh. — On the 13th June, George James Adams, Ksq.. was elected
president of the Rhode-Islnnd Central Bank, in place of William Reynolds, Esq.
Maryland — The projectors of the Bank of Commerce of Baltimore, chartered
KyTlieTegislature at its last session, with a capital of §300,000, design that the insti-
tution shall commence business al>out the middle of July. They have secured a
convenient location at No. 26 South street, opposite Second street. The amount of
capital stock to be paid in before the bank can go into Gyration is §125.000 in gold
and silver, and we are informed that a considerable amouut beyond this has been
already taken, and it is confidently expected that the whole amount of its capital
stock will be subscribed before its commencement. The stock has been subscribed
for generally by substantial and careful citizens, and the design is to have it pass to
as large an extent as possible (if not wholly) into the hands of those connected with
the mechanical and trading interests of the community rattier than merely specu-
lating or investing capitalists.
Distiict of Columbia . — Attempts have again l>cen made recently to induce the
belief that the “Bank of America” and the “ Metropolitan Bank” are regularly
organized banks in the District of Columbia. There are in lact no such hanks
there.
The Washington Star of Tuesday has the following:
11 Bogus Banks. — We observe in one of the publications for the detection of
counterfeit bills, which promises to give all reliable information iq>on matters con-
nected with the banks of the United States, that the District of Columbia is headed
with the Bank of America, Washington, £ discount ; further down in the list comes
the Farmers’ and Merchants1 Bank, Washington, 2 discount, and, following it, the
Metropolitan Bank, £ discount — none of which hanks have ever existed here ; the
two former are completely fictitious: and of the third, all that is known is, that its
notes are redeemed somewhere in Xew-York city. It is to bo inferred from this list,
that notes purporting to be from the two tirst-nnmed banks are in circulation ; and
we know that thoso of the third are in circulation. People should, then tore, be
cautious with respect to the bank-lulls purporting to be of the District, which they
take.”
Virginia. — The general annual meeting of the stockholders in the Exchange
Bank of Virginia, was held at the Banking House, in Norfolk, on Wednesday. May
3d. The president made a report of the condition of the bank and branches, to the
1st of March.
We learn that the report of the president showed that the stock of the bank was
worth $112 per share. Application was made for a branch at Port Royal, Caroline
county, with a capital of §200,000. The resolution was, after some debate, laid on
tho table.
A resolution proposing an increase of the capitals of the brandies at Richmond,
Weston, and Salem, was also laid on the table.
Gck igle
Original from
UNIVERSITY OF CHICAGO
1854.]
Bank Items .
77
Massac husetts. — Mr. Thurston, of Lancaster, from the Legislative Committee
on Banks and Ban Eli ig, reported that the bill to incorporate the Bank of Mutual
Redemption ought not to pass. The rei>ort was accepted and the Bill rejected.
He also reported adversely on the petition of William P. Lunt and others, for a Five-
Cents Savings Bank in Quincy. He also reported that it is inexpedient to legislate
on the subject of investments in stocks by Savings Banks.
Uopki/tb'u . — Rufus F. Brewer, Esq., has been appointed assistant-cashier of the
Hopkinton Bank, and is authorized to sign the circulating bills of the bauk.
Improvement iii State Street. — We understand that the Globe Bank Corporation
intend making extensive alterations and improvements in their building at the cor-
ner of State street and Wilson's lane. Their premises extend from No. 18 to No.
24, inclusive. The block is to be raised in height, and entirely remodelled in its
interior arrangements. On the second story the bank will provide for itself much
more convenient quarters than it now occupies. Messrs. J. W. Clark & Co., the
widely-known brokers, will have an office on the first floor fitted up especially for
the accommodation of their large and constantly-increasing business. The building
Nos. 1 s and ‘Jo has been taken far a term of years by the well-known house of
Train A* ('<>., and will he used as an ollire for the transaction of their extensive
Liverpool packet business. The work of remodelling the building will be com-
menced about the first of July. — JwrnoL
Cuuhter h i*<. — The executive committee of the Association of Ba>.ks for the
Suppresd'»n of ( ‘ounterf iiing o!lcr a reward of one hundred dollars for the best
specimen, in the opinion of the committee, of bank-note paper, of not less than five
hundred she- ’is, which may lie submitted to them on or before the 1st day of
Janua-v next. All paper submitted, except that selected by the committee, to be
returned to the pmu ms submitting the same, l’be Association is established at
B«»<mn. but meets the 'general assent of the count it banks of this .State as wc*l 1 as
New- Ida gland.
. — T be sT<k*a! adders of the Shawmiit Bank are imthmd that the act of the
k-N-Ta’ iTF TTumtiug liberty to increase the capital stock two hundred and lifty
tumm.-md i lo. v. as aee.-]»teil at a meeting lwld on the Jhtii day of April last.
Ka< ii <i '■■kn,,ld,T is entitled to the privilege of suliMTi’nimr ibr one share of new
st'H-k ;b,- : «,v. * of old. and the same will he payabl-- on tin* Jsth inst.
An t dividend of eight p«T cent has > k- ii declared, and will be paid at the
same t ; i » i* *. to persons holding -dock at the close <d l»ii~ine>s oil the Joth inst.
J)<\ ■ (' t. • /c t'-rs. — We learn from the y,,, i ■ jt:* /eye !>i.'cr ,t that Ezekiel R.
Bolt, of Bin-f.rld. has resigned his oilier* as one of tin* hank eonuiiissioners of this
Smv. dd.e l;, t. say>: “ His bri* f services in liait p»»st proved him peculiarly
Well titled ;«»r its iv-pon.dble duties, and his resignation of it is a public loss.'*
/;.»•./; — An act was]obtniiwd of tbe last Legislature, increasing the capital
sTomTot t 1 is HoTk sloupino. The act was accepted by the stockholders on the 1 7 tl i*
of April, and tie* whole increase was required to be paid in on the Jd of May. The
right of the old stockholders to take tills new stock at par, was in the proportion of
one new ''bare to cadi three shares of the old stock. The new stock was all taken
by the old shareholders, and all paid in on the :;d inst., in accordance with the
requirements of the directors. The capital of this hank is now £400.000, and it is
all required by the rapid increase of business at the South End. Tlu^Te is very little
of the stock in the market, and 110 has been freely offered for it.
Mon'nw'rit IlnJ:. — At a meeting of the petitioners for the above Bank, at Charles-
ton, early in Mav, it was voted to accept the charter granted by the General
Court, and the following gentlemen were chosen directors: James Dana, P. Hub-
bel, James Lee, Jr., O. W. White, J. 11. Conant, Jas. 0. Curtis, Alex. Beal. At a
subsequent meeting of the directors, James Dana, Esq., was chosen President. This
bank will speedily commence business, with a capital of $150,000.
Mare.r ickJBank at East- Boston. — This bank was organized yesterday, by the choice
ofthefoUo^TTTg gentlemen as directors, namely, .Samuel Hall, Noali Sturtevant,
Wm. C. Bnrstow, Henry N. Hooper, and F. A* Sumner. At a subsequent meeting
Digitized by
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UNIVERSITY OF CHICAGO
78
Bank Items .
[July,
Digitized by
of the directors, Samuel Hall was elected President, and Calvin S. Lane, Cashier.
The bank will probably commence operations about the first of August. — Journal,
June 1 LA.
Lowell. — The new Merchants Bank in Lowell has boon organized by the choice of
tho following directors: 11. Pillsbury, Thomas Nesmith, Jonathan Tyler, I. W.
Beard, W. W. Wyman, K. Tuck, C. G. Weaver, Asa Hildreth, Royal South wick,
Albert Wheeler, J. F. Kimball.
Laurence. — The Pemberton Bank, a new bank at Lawrence, has been organized
by the choice of tho following directors: Levi Sprague, Dana Surgeant, Oliver
Bryant, G. D. Cabot, D. S. Swan, J. Norris, A. Rennet, of Lawrence ; William
North, of Lowell; George Hedges, of Andover.
Boston. — Joseph II. Curtis, Esq., has been chosen president of the Faneuil Hal)
Bank, in place of W. Baldwin, Esq., resigned.
Brighton* — The Brighton Market Bank was organized early in May.
Worcester. — The City Bank of Worcester was organized on Saturday, May LUh.
by the choice of the following directors: George W. Richardson, Henry Chapin,
Calvin Foster, William B. Fox, Jr., Lewis Barnard, George Bowen, of Worcester;
and II. M. Bigelow, of Clinton. Geo. W. Richardson was chosen president.
Townsend. — The Townsend Bank, to he located in Townsend, has also been organ-
ized by the choice of tho following directors: J. M. Hollingsworth. ofWest-Cam-
bridge, (President;) Walter Fessenden, Daniel Adams. Samuel Adams, and C. B.
Barrett, of Townsend ; Nelson Howe and F. C. Bailey, of Boston ; Stephen Wyman, of
Ashby; and Luther Tar bell, of Poppercll. The capital of this bank is $100,000.
The directors have taken immediate measures for the erection of a hank building
at Townsend, and it is expected that the bank will go into operation about the first
of September.
Beverly. — The Bass River Bank, to he located in Beverly, has been organized by
the choice of the following directors: Win. JL Allen, John A. Greene, Samuel
Adams, David Crowell, Wm. Iiiirabee, of Beverlv; Henry Kitlield, of Manchester;
Daniel Emerson of North-Dan vers ; John A. Putnam, of Wenham ; and Win. B.
Fessenden, of Boston.
New- Jersey. — The receivers of the Commercial Bank at Perth Amboy have
made a further dividend of forty per cent of the assets of the bank, making altogether
sixty per cent since its failure.
A Manual for the use of Xotaries Public. By Bernard Roolkor, A.M., of the Boston.
Bar. — Mr. Roolker has written an able, interesting, and valuable book under the
above title. We have examined it with much care, and are surprised at the
amount of information it contains in a small compass. The chapters on the “ pre-
sentment of bills for acceptance,’’ and on the 4‘ presentment of bills of exchange,
and promissory notes for payment’’ are clear and explicit, and the “ proceedings on
non-acceptance of bills and non-payment of bills and notes,” are fully detailed in
such a manner as to serve ms a safe guide to those whose business it is to be
acquainted with such transactions. The forms of notice of non-payment and non-
acceptance to various parties are numerous and full, and can be safely followed, and
they constitute a great desideratum, as mistakes have of late years been frequently
made in attempting to give legal notice in such cases. Other important chapters
are on notes and bills lost or destroyed, on forged instruments and checks on banks.
Forms of protest are given suitable to every conceivable emergency, and the
damages to be recovered in case of the dishonor of a bill are specified according to
the laws of all the Suites in the Union. There is also a compendium of the statute
laws of the different States regarding bills and notes, and the fees which notaries
are entitled to charge. The work shows signs of great care and labor, and we think
is an indispensable vade n tecum for every notary public in the United States. —
Boston Daily Advertiser.
The Washington Monument . — Mr. Smead, of the firm of Sraead, Collord k
Hughes, bankers, Cincinnati, lias contributed one thousand dollars towards the
Washington Monument Fund.
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UNIVERSITY OF CHICAGO
1854.] Notes on the Money Market. 79
Notes on tije J*l one$ Jttatftet.
New-York, June 30, 1854.
Exchange on London , sixty days' sight, 9^@9f premium,
Th* money market exhibits less favorable features at present than for some months past.
Owing to heavy outlays for new railroad lines, or (br such as were contracted for one nr two
years since, and which are still unfinished, a continued drain upon the Eastern cities for oapital
has been felt. Up to October last this drain had been compensated through the medium of the
London market, by the moderate and uninterrupted demand for and sale of American securities
in Europe. In fact, for years past, there has been an outlet in London for any of our State,
city, or railroad loans in whose stability confidence was felt at home and abroad. By thia means,
extensive negotiations have been effected for the Illinois Central Railroad, the New- York and
Erie Railroad Company, and in behalf of the States of Virginia, North-Carolina, and for nume-
rous parties engaged io extensive lines of internal' improvement.
This resource has been cut off, in consequence of the demand throughout western Europe for
capital for their own governments. England and France, instead of being lenders as heretofore,
are now large borrowers, and they exhaust that surplus capital which would in a state of peace
he largely appropriated to our uses. Capital In Lombard street, two years ago, was seeking
investment at 2>$ per cent. Private bankers declined deposits at even IX per cent. EngHsh
three per cent consols had reached par, and the current rate of Interest among English banking
Institutions was even as low as two per cent.
ft has been found that this low rote of interest which prevailed during the years 1853-68,
timulated manufacturing and commercial affairs abroad and at home. English capital sought
employment in Australia and other foreign quarters, while In the United States there has been
an unprecedented number of new undertakings, all requiring aid from capitalists. Railroads,
which have been the principal drain upon the market for two years, have been engaged in too
extensively in Ohio, I udianu, Wisconsin, Illinois, Pennsylvania, Kentucky, and even in New-
York. Some of these enterprises have stopped for the present: some few have been completed
at great sacrifices, and are now in successful operation : others have been found unproductive,
and It is now found that various roads competed with each other. Last fell, the failure of
several parties took place in consequence. Now, we have to record the suspension of Messrs.
Schuyler of New- York city, who have been long known as heavy capitalists and railroad con- 1
tractors. Tbelr liabilities are estimated at three millions of dollars.
Confidence is for the present lessened in railroad securities, which have depreciated to a ruin-
ous extent ; but for State and government loans, a large premium can still be obtained. United
States government six per cents of 1667-68 are worth 123. The principal negotiations of the past
month have been
1. Loan of $1,500,000 for account of the New- York and Harlem Railroad Company. This is
a six psr cent loan, and taken at an aversge offHX per cent.
2. New-York 8tate loan of $1 000,000, at six per cent, negotiated on the 29th instant, at
11&50® 120.06, with an average of 117.53. This loan was authorized for the extension of the
and small portions have since been sold at 119.
The principal financial feature of the month has been the conclusion of a treaty with Mexico,
by which this government has undertaken to pay ten millions of dollars to that country for a
emeion of lands, etc. It is understood that a check for seven millions of dollars has already
passed from the United States Treasury on account of this negotiation. The general government
tends at the latest published report amounted to about 828,888,000. The payment to Mexioo will
reduce this to at least $21,000,000.
The tetal shipments of coin from this port to foreign ports since first of January last have been
about $17,173,000, while the total exports of coin from the United States during the past fiscal
year have been $32,186,058. Unofficial but reliable tobies of the foreign trade of the United
States for the fiscal year ending thia day, show the Import# and exports to have been as follows :
Digitized by
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Original from
UNIVERSITY OF CHICAGO
80
Notes on the Money Market. [July, 1854.
Recapitulation af Import*.
1*52-58. 1853-54.
Entered for consumption, $185 438,6(58 $147,929,245
do warehousing, 15,144,528 27.9*4,209
Free merchandise, 13,357,178 12,781,055
Specie, 1,430,106 2,837,048
$165,870,455 $191,631,557
Total, 1851-59, $195,514,096
Ezports — Recapitulation.
1852-53.
Domestic produce, $43,998,250
Dutiable foreign merchandise, 4,450.027
free do., 1,058 209
Specie, 21,127,238
1858-54.
$66,488,750
M 08. I 62
1,346,473
82,130,058
$70,628,724
$105,069,443
The following table exhibit* the quantities of the principal articles of exportation for the fiscal
year ending June 80, 1854 :
Cotton, bales, . . . .
. 291,900
Flour, bbl*., . • . .
Corn, bush.,
. 2,183.637
. 8 366,808
Wheat, da,. . . .
. 8,329,652
Oats, do., ....
. 62,779
Whale oil, gala, .
. 192,128
Sperm oil, do., .
. 902 188
Beef, teg
. 82,892
do., bbls.,
. 30,452
Naval stores, bbls., . 565,151
Rye, bush., 827,436
Pork, bbls., ...... 85,6.53
Butter, lbs., 238.242
Cheese, lbs., 224, *72
Hams niid bacon, lbs., 251^947
hard. bbl*. 951,239
Ii ice, tierces, 32. *'62
Tea, chests, 30,005
Sugar, hhds. 11,107
do. bxs., 14,423
do. bugs, 105,564
do. bbl*., 14 535
Tobacco, hhds., . . . . 7.614
do. bbls., 23.744
do. bxs., .... 40.4V)
do. lbs., 97.867
The following table exhibits the amount of the principal articles of importation for ti e year
ending June 30, 1854 :
Dry goods, $93. 199, *9*
Sugur, 8,548,443
Tea, 5.692 850
Coffee 4,296,479
Molasses, 770.370
Railroad Iron, . . 4,204,970
Tin $3,8‘?6,445 ]
Ilid.*, 5.7'»l,8?4
Hardware 3,572,67*5
Wines 1.924 .626
Watches, 8,715,975
S»cel nnj Iron, . . . 7,990.144
Liquors, $1,755, 65:'
Lead J,9;>,044
I Tobacco, 603,320
| Cigars, 1 ,998,277
e
Cash duties received at the Custom-House, New*York, during the fiscal year ending June 30,
1854, compared with previous years:
1853-54.— July, . . . $4,640,107
do. August, . 4,746,658
do. September, 4,220,341
do. October, . 2.795,695
do. November, 2,642,985
do. December, 2,959,1 12
1953-54. — January, $4,879,2*6
do. February, 2,867,295
do. March, . . 3,627,12*)
do. April,. . . JU6M91
do. May, . . . 3,248,165
1858-54. — June, . . $2,452,605
41,658,865
1852-53, $38,249,832
The following table exhibits the value of merchandise exported to the principal foreign ports
during the year ending June 80, 1854, exclusive of specie :
Liverpool* $27,315,844 I Marseilles,
Loudon, 9,111,976 I Hamburg,
Glasgow, 1.857,880 I Bremen,
Havre, 7,141,083 | Bristol
$655,615 I Antwerp, ..... $2,824,794
2,002.002 | Rotterdam, 890,222
1,428,247
225,053 | Total, .... $52,947,710
Digitized by CjOOQie
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UNIVERSITY OF CHICAGO
#
THE
BANKERS’ MAGAZINE,
AND
Statistical Register.
Vol. IV. Nkw Sbbiss. AUGUST, 1854. No. II.
FRAUDS ON RAILROAD COMPANIES.
Thi important event of the present month, and in fact of the year,
has been the development of extraordinary frauds on the New-York A
New-Haven Railroad Company and the New-York & Harlem Railroad
Company. The frauds have been to such an extent, and by parties
hitherto in such credit, that the discovery has had a very severe effect
upon the money market and upon commercial credit and confidence.
The suspension of Messrs. R. A G. L. Schuyler/of this city, was known
on the first day of July, and created much surprise in the community,
although the firm had not enjoyed good credit for twelve or eighteen
months past
( Since the first of January last, Messre. Schuyler A Co. have undertaken
a number of railroad contracts — among others, the Lake-Shore Road,
Chicago to Milwaukee, Mineral-Point Road, connecting with the Illinois
Central A Beliot Road. Their advances have been very great; and
it occasioned great surprise that they should have entered bo recently
into new undertakings during the prevalence of so stringent a money
market as we have had.
The contracts entered into by Messrs. Schuyler provided for the recep-
tion by them of large amounts of railroad bonds and shares in payment
for work done under their contracts. The money market for a year past
has been very unfavorable for the negotiation or hypothecation of such
extensive issues. The firm had borrowed largely at severe rates of inter-
6
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UNIVERSITY OF CHICAGO
Digitized by
82 Frauds on Railroad Companies. [August,
est, on such securities, until the latter part of June, when their resources
failed entirely. It now turns out that Mr. R. Schuyler, the senior mem-
ber of the firm, has during the last twelve months, as President of the
New-York A New-Haven Railroad Company, and by virtue of his
powers as transfer agent for the company, issued fraudulent shares of the
company to the number of nineteen thousand, the par value of which at
$100 per share is nineteen hundred thousand dollars.
Large portions of these illegal shares were hypothecated with friends
of the firm, and the money probably used for payments to sub-contractors
and others employed by Messrs. Schuyler in completing their railroad
engagements.
The immediate effect was to throw suspicion upon all railroad securi-
ties held in the market Certificates of shares and bonds, which are
generally transferred by delivery, and with power of attorney to transfer,
have been bought and sold in this market, for many years past, without
any question as to their genuineness or validity. The fact that such shares
could be and have been fraudulently thrown upon the market, is now
demonstrated, and, for the present at least, there is nearly a stop pot to
any negotiation or hypothecation of railroad securities generally.
Another immediate effect was to cause a careful and critical examina-
tion by most companies of their transfer-books, stock-ledgers, and books
of accounts. This step was considered necessary, not only for their own
security and the satisfaction of their stockholders, but for the sake of
those having made advances on the hypothecation or sale of shares and
bonds.
These inquiries on behalf of various companies have resulted in the
discovery of a fraud on the New-York A Harlem Railroad Company, to
the extent of five thousand shares, by their Secretary, Mr. Alexander
Kyle. The committee of directors have finished their examination of the
stock-books, etc., of the company, and have adopted the following resolu-
tions:
“ Resolved, That in the opinion of the Board, it is Just and right that the company
assume the whole of the over-issue, as reported to this Board by their committee,
by purchasing preferred stock equal to the over-issue in said stock, and retiring the
same, and by an increase of the old capital stock, equal to the over-issue in the old
stock ; and for that purpose the Board
44 Resolved, That there be a meeting of the stockholders called on the first day of
August next, to be held at the office of the company, No. 1 Centre street, comer of
Tryon row, at 1 o’clock, P.M., of that day, to consider and pass upon the subject
14 It will be seen that the whole amount of stock (old and preferred) over-issued,
can be replaced for less than $150,000, if purchased now at the market value of
said stock at the time the transfer-books were closed, which was Old Stock 40, and
Preferred Stock 95. W. C. Wbtmore,
44 July 21, 1854. President pro tank"
The Committee of the New-York A New-Haven Railroad Company
have not yet reported upon the subject of the over-issue : and some doubt
has been expressed as to whether the company will acknowledge the
fraudulent stock as a legal or equitable obligation of the company. To
repudiate such shares would have a permanently bad effect upon the
market for railroad securities, and would lessen the facilities hitherto
Gck igle
Original from
UNIVERSITY OF CHICAGO
1854.) Frauds on Railroad Companies. 83
existing for the prompt sale and delivery of shares. We think the New-
York ds New-Haven Railroad Company committed an error in placing
at its head a man whose business engagements were of the most formida-
ble character, requiring large means to fulfill his contracts, and with credit
impaired .for more than a year past The very fact that Mr. Schuyler was
himself a large borrower, and his credit questionable in the community,
utterly disqualified him for the post of President of the New-Haven Rail-
road Company or any other railroad company. Such corporations can-
not, it seems to ns, be too careful in placing at the head of affairs a man
of sterling integrity, and whose individual resources place him above
temptation.
The present lesson that is taught to railroad stockholders and directors
is this : Employ for your executive department men of tried ability and
integrity, and especially, men whose own contracts or engagements nei-
ther absorb their time nor require money facilities. A railroad president
should be upon die same footing as a bank officer — not a borrower, but
easy in his business engagements. His time and energies should be
devoted to the interests of the company, not to the prosecution of outside
contracts.
It has been suggested that each railroad company employ an anditor of
accounts and of transfers, whose duty it shall be to supervise all accounts
presented, and approve them before payment; and further, to countersign
all certificates of stock hereafter issued.
The Boston tfe Worcester Railroad Company, some months since,
with praiseworthy motives, selected, as their auditor of accounts, a gentle-
man who, for some years past, had been Auditor of the Commonwealth
of Massachusetts. Mr. Wilder, in leaving the latter position, to which he
has been annually reflected by the legislature ever since he first accepted
the office, would not of course take another position less desirable in the
shape of emolument. Here we see a railroad corporation competing with
the State in the selection of its' executive officers, and better prepared or
disposed to pay for such offices.
The example will be followed here. If railroad companies and other
companies want competent and faithful men, they must Belect judiciously
and pay liberally ; then place such checks and counterchecks around
them as will show that they cannot go wrong.
A third fraud made known during the month was the over-issne of
shares of the Vermont Central Railroad Company, by Mr. Crane, the
President of the company.
It will be remembered that there was an over-issue of 11,000 shares,
by Mr. Crane, a few weeks ago ; and that he confessed the fraud, and
redeemed all but about 2000 of the spurious certificates. That matter
was carried before the Grand Jury; but for some reason neglected by
them, the thing was looked upon by the community as one of those unde-
signed ‘ honorable'’ breaches of trust which are apt to occur in commer-
cial, and especially stock-jobbing transactions; ana Mr. Crane was unmo-
lested, even in the possession of bis office, and of the trust which he bad
so grossly abased. Emboldened, perhaps, by this impnnity and apparent
indifference on the part of the public, and wholly unintimidated by the
Digitized by
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UNIVERSITY OF CHICAGO
84
Frauds on Railroad Companies.
[August,
Digitized by
rather more glaring exposure in New-York, Mr. Crane ventured upon
still further operations, to meet the exigencies of these trying times.
We transfer from a report of a Committee of Stockholders of the
Western Railroad of Massachusetts, such portion as refers to the appoint-
ment and utility of an Auditor of Account $, This otlice was created in
consequence of the discovery of long-practised frauds by one of the ticket
agents. The report from which these remarks are taken, was made by
Messrs. A. II. Bullock, Win. Jackson, John Gardner, David Wilder, Jr.,
and William Raymond Lee :
‘•The system of accountability in practice up to the period of the defalcation at
Springfield, as described in the foregoing report, had, in the judgment of the com-
mittee, two serious defects; and they related to the collections, disbursements, con-
trol, and custody of the funds. It will be perceived, by references to their remarks
under the heads of Treasurers Office and SprinyfiM Office, that the funds required
for the disbursements of the road were taken in large sums from the custody of tho
treasurer, and placed in that of an agent in Springfield — at a remote distance, and
beyond that supervision which should be directly and constantly exercised by the
chief financial otliccr of every well-regulated institution. This power to withdraw
funds from the custody of tho treasurer was discretionary and unlimited. Nor were
the vouchers of this agent, in support of his disbursements, required to be rendered
with promptness and regularity. As a consequence of these practices, a large fund
constantly remained unaccounted for in his hands. As evidence of looseness in tho
collecting department, it is sufficient to state that, when the income-accouut of tho
fiscal year ending November 30, 1849, was made up, a balance uncollected or
unaccounted for, amounting to the sum of $2G4,000, appeared upon the books of
the treasurer. Without entering into further particulars in relation to these mat-
ters, tho stockholders will perceive what opportuni tit's and temptations for delin-
quency were offered to the disbursing and collecting agent at Springtield ; and that
he yielded to them is already too well known.
“ Notwithstanding all this temptation and exposure, it is believed tho delinquency
referred to might have been to somo extent arrested, and possibly prevented, had
the auditing department exorcised its functions with greater diligence and more
critical care: but, after all, it must bo regarded as a consequence of the funda-
mental error in tho system itself.
“ The question will have naturally occurred to the stockholders, whether any such
change has been made in the system as will prevent tho recurrence of a similar
delinquency? In answering this question, the committee discard all reference to
individuals now in tho service of tho corporation, and simply treat the subject as a
system.
“ The committee are aware that useful changes have been introduced. A new and
distinct officer, called Auditor, appointed by tho directors, is now immediately
charged with the duty of supervising tho collecting department and auditing the
accounts. In addition to this, they are happy to say that, under the faithful ser-
vices of tho new cashier at Springfield, there has been manifested an increased effi-
ciency in tho department which passes beneath his supervision.
Nevertheless, the disbursing funds required in tho operations of tho road arc still
drawn from tho treasurer in large sums and placed in the custody of the Springfield
office, where they aro disbursed by the superintendent, through tho cashier, in the
manner before stated. In this connection, the committee are happy in being enabled
to say that, under tho control of the superintendent, tho vouchers to support his dis-
bursements have been rendered with commendable promptness and regularity.
“ The committee, however, cannot close their eyes to the great fact, that the system
still involves a secondary a/jenry in the custody and control of the funds of the corpo-
ration, which they regard as alike inconsistent with approved theory and safe prac-
tice.
It must be conceded that the treasurer of any corporation, whose duties relate
solely to the custody and disbursement of its funds, should have his office at its cen-
»
Gck igle
Original from
UNIVERSITY OF CHICAGO
1854.]
Frauds on Railroad Companies.
85
tral place of business. Thus located, he can best perform his own appropriate duties,
and exercise a suitable and direct control over his entire department. The proper
duties of the superintendent of this road, so extended in its business, are, in the
opinion of the committee, sufficiently onerous without imposing upon him any part
of those of the treasurer’s department ; and it might well be feared that in the mul-
tiplicity of such diverse cares, either one or the other would be neglected From
these remarks, it cannot fail to be perceived that the committee entertain an opinion
that the interests of the corporation would be promoted by a removal of the trea-
surer’s office to Springfield, and by devolving upon it the appropriate and usual
duties. For the same general reasons which influence the mind of the committee
in relation to the location of the treasurer’s office, they are of opinion that that of
the president of the corporation should also be at its central point of business. It
is believed that, so situated, he would be better enabled to exercise his functions of
chief executive officer by personal examinations and oversight of the business of the
road in all its departments. Thus much the committee have thought it within the
sphere of their duty to state. What consideration should be given to their sugges-
tions, and what action should be had under them, it belongs to the board of direc-
tors to decide.”
The following letter is from a gentleman who occupies a prominent
position in the management of one of the leading railroads of Massa-
chusetts. It will be seen that he urges upon all railroad companies the
appointment of an auditor or comptroller of accounts. The suggestion
is the result of actual knowledge on the part of the writer, as a railroad
officer, of the defects existing generally in railroad management :
14 1 suppose it will be conceded by all reflecting men in these times, that there
should be an officer in every corporation or association of any magnitude, whose
duty it is to know, not only what sums are paid out of the treasury, but equally
have control or cognizance of all sums paid in, though he has nothing to do with
receiving or disbursing the funds, which is a duty to be performed only by the
treasurer.
44 An auditor, or comptroller, should first make himself acquainted with all the
sources of revenue to the corporation he represents, which, m the case of a railroad,
are the sale of tickets, transportation of merchandise, mails, rents, etc., and then
see that each produces its due proportion.
41 The Boston and Worcester Railroad, as you may remember, suffered severely
some years since by fraudulent sale of tickets, and it is now but a month since one
of the* parties, who up to that time kept his horse, etc., but then had to retrench,
has, as is generally thought, committed suicide.
“There is nothing in the system now to prevent fraud, provided the clerk who
counts tho tickets can have a confederate in some place of sale, though that is to be
provided against hereafter.
4‘ So with the freight-house, tho sale of old materials, collection of rents, and all
other sources of revenue, it is impossible for tho superintendent of a road like ours
to attend to such matters, which require one kind of capacity, and at the same time
do all those things in his true lino which are of a different character.
“JThe auditor, in fact, wants to know every thing that is going on in the way of
money, though he should never handlo any but his salary, which ought to be liberal
and permanent, so that he can act with entire independence. He should be informed
of all issues of stock, or authority to borrow money, and either he or the president
countersign all certificates, notes, and bonds. He will, of course, examine all claims
against the corporation, and see that they conform to all contracts made by proper
authority. But that part of his duty I really consider of less importance than that
he should see to tho other side of the account, which, according to my experience,
is frequently quite overlooked, as it appears to have been in recent cases.
“ I hope you will impress upon your readers the consideration of the vast amount
of mischief which such an act entails upon all property in the hands of agents, and
especially upon all railroads, which appear to be quite knocked in the head just now.”
•
Digitized by
Gck igle
Original from
UNIVERSITY OF CHICAGO
Digitized by
86 Frauds on Railroad Companies. [August,
The decline in railroad and other securities since the 26th of May, is
shown in the following comparative table of prioes :
May*.
Janet.
June 2.
June 16. July 7.
July 14.
July 21.
U. 8. 6 per Cent, 1867-4
... 128*
l»x
196X
128*
120*
121
126
Panama R.R. 8 hare*,
...
102
108
uex
100
26
96
N. T. and Erie R.R. Shares,,
... at
68*
«8*
62*
66
W*
60
N. T. Central R.R. Share*,..
... 106
104X
108*
101*
#T*
26*
91*
Mich. Central R.R. Sharov
... 108*
102*
100*
»x
82
20
86
Mich. Southern RJ5. Sharov .
... lit
It T*
118
lit
96
26
to
Nor. and Wor. B.R. Sharev*
... 66
66
66
04
60*
40
Hudson RWer R.R. Sharov*
... 66
64*
62*
66
56
MX
Reading R.R. Shares,
... T8#
72
78
TSK
68
68*
Long-Island R.R. Sharee^. . .
... 28*
27*
95*
28
Mx
2t*
Illinois Central R.R. Shares^-
...120
118
118
116
111
106
104
Illinois Central Bonds,
... 77*
77*
76*
75*
78
n*
62*
N. Y. Central R.R. Bondv* .
... 88
86*
85*
86
86*
85*
80
Erie Railroad Ts, 1S52,
... 100
100
101
22*
29
100
100
Erie Income Bonds, ......
.. 26*
27*
27*
27*
9T
26
24*
Erie Convertibles, 1871,
.. 82
88
88
88
Tt*
77*
71
Panama Railroad Bonds,. . . .
... tot
lot*
lot
105*
26
9T
26
Pennsylvania Coal Co.,
.. 106*
106*
105*
102
104
106
108
Bel. and Hud. Canal Co.,. . .
...116
116
102
108
102
111
111
Cumberland Coal Cot,
.. »*
86*
kW*
W*
82
88*
68
New -Jersey Zinc Co^,
.. 7*
7*
r
r
8*
4*
41*
Canton Co.,
.. 26*
»*
26
24
21*
28
28 V*
Nicaragua Transit,
... 26*
27
27 X
27*
25*
21*
22 V*
Had. Blv. B.B. let Molt....
... 106
104 *
108
102*
108
104
101
Crystal Palaoe,
.. 80
—
—
22
—
6
8
The effect of the recent frauds on the foreign market is yet to be seen.
Large amounts of 8tate, railroad, city, and other shares, issued in thia
country, are held in Great Britain and on the Continent, by their capi-
talists. Some of these will be, in the haste of the moment, thrown back
upon the home market by the holders. We would urge upon such par-
ties to hold on to their present investments. Railroad loans and shares
are for the present depressed ; but the time is not far distant when they
will amply repay for capital invested. The market has rarely offered
better inducements for capitalists than at this moment. Railroad securi-
ties have sustained a severe blow. Now is the time to buy. There are
certain well-established roads that pay regularly eight, nine, or ten per
cent dividends, and in all human probability will continue to pay the
same, and perhaps more. The business on the New-Tork, Ohio, Penn-
sylvania, and Western roads, is heavy beyond precedent There is in
some cases an advance in the rates of transportation ; this advance will
be almost clear profit to the companies. Their business is rapidly
increasing, and promises to yield largely to the stockholder. To prevent
any recurrence of fraud, stringent measures will be adopted by railroad
companies generally to make their transfer officers subject to greater
restrictions than heretofore.
City stooks are not much pressed upon the market, but have declined
recently under the severe pressure for money. Few are above par. We
quote Albany Sixes, 101 ; Brooklyn, 101 ; Jersey City, 100. Those
below par are Alleghany City, 61 ; Baltimore, 96; Cincinnati, 96 ; Chi-
a
Gck igle
Original from
UNIVERSITY OF CHICAGO
87
1854.] Ohio Life Insurance and Trust Compary.
eago, 92; Louisville, 82-J- ; Philadelphia, 89} ; Pittsburg, 82}; Roches-
ter, 99 ; St. Louis, 67.
Milwaukee Seven per Cents are quoted at 85 to 86 ; Detroit Sevens,
102}-; Sacramento Ten per Cents, 74} to 76 ; San Francisco Ten per
Cents, 101.
For United States Coupon Sizes, of 1868, 120 is asked. There have
been no transactions within a few days past
Country bonds suffer like other securities. These are among the most
substantial of our current loans, because they are in the first place based
upon real property ; and secondly, they are limited by law. The county
of Bourbon, for instance, in Kentucky, has its millions of property, and
has loaned its credit for a small sum ; yet its bonds are in the market at
79 to 81. St Louis county, Mo., is one of the richest in the whole Union,
yet its Six per Cents are quoted at 82 to 83". These are securities that
can never be repudiated, and, if necessary, the whole issues could be
redeemed by taxation in two or three years.
THE OHIO LIFE INSURANCE AND TRUST COMPANY.
Thb decision of the Supreme Court of the United States in the case of
the Ohio Life Insurance and Trust Company vs. Henry Debolt, Treasurer
of Hamilton county, subjecting the former to the rule of taxation laid
down in the law of March 21st, 1851, and imposing upon it a burden
amounting, under the law of April 13, 1852, to about one hundred
thousand dollars per annum, will probably render the winding up of its
affairs a matter of necessity. The loans of the institution upon bond and
mortgage amount, we are told, to about three millions of dollars, due on
the first day of the present month ; and as the notice required by law
was given in June of last year, proceedings to enforce their collection
may, and probably will, be instituted immediately; especially as it will
become a matter of pecuniary importance to the company to escape as
rapidly as possible the operation of a law which absorbs so large a share
of the interest due upon these choses in action.
It is evident that upon the winding up of this institution, a large part
of the capital now invested in its operations will seek employment in
other quarters, where profits are equally secure and taxation less burden-
some. Of such the country offers an ample field ; and it would afford
no rational ground of surprise if, in a few years, we shall find that very
store of wealth which has, during twenty yean past, done so much to
give activity to enterprise here, employed in adding to the business facili-
ties and growing strength of some rival in our manufactures or competi-
tor for our commerce. But it is not in the loss of capital alone that
injury will accrue. To call in so large a sum of money, cannot other-
wise than produce much individual distress, while it will tend to constrict
and unsettle the money market of the State. And when we take into
Digitized by
Gck igle
Original from
UNIVERSITY OF CHICAGO
88
(fyio Life Insurance and Trust Cfompany. [August,
consideration the fact that there are not only no means at home to sup-
ply the monetary vacuum thus created, and that stringent penal laws were
enacted by the last legislature to prevent the influx of currency from abroad,
we may be excused for suspecting that but a few more turns of the screw
will be required to bring on a condition of things bad enough to suit the
tastes of even constitution-makers and law-manufacturers.
We are precluded from speaking of that policy which has secured the
disbandment of the Life Insurance and Trust Company as inefficient,
by the fact that, in this case at least, it has achieved the object to which
it owes its origin. It was intended to tax its victim out of existence, by
the application of a rule at once unjust and inexorable. It was a delibe-
rate killing of the goose that laid the golden egg, with a full view of the
fact that me slaughter would put an end to its annual ovation. With
this truth before us, we are enabled to get a pretty comprehensive view of
the financial policy of the party to which we are indebted for the bank-
tax law of March 21, 1851, the constitution of the same year, the tax-
ation system of April 13, 1852, and the law of the last legislature pro-
hibiting the circulation of foreign bank notes in Ohio. By the assistance
of these, we have, 1st Banished Capital. 2d. Outlawed Credit.
3d. Prohibited Currency. Add to this the fact that since the adop-
tion of the new constitution, the taxes levied upon the people of the
State have increased at the rate of one million dollars annually, and
we gun an elevation from which to inspect a prospect dreary enough for
the most ardent lover of the high-pressure system in politics.
We have spoken, in the foregoing, of the Ohio Life Insurance and
Trust Company as a fact , without intending to become the apologist for
any of the exclusive privileges which its charter purported to confer, or in
any form assume the advocacy of “vested rights” in its hands. But lest
we be accused, by neighbors more disinterestedly virtuous than ourselves,
of Whiggery, or some other unpardonable political heterodoxy, for the
bare admission that such an institution has a right to live until executed
in due form of law, we beg leave to remark that a glance at its act of
incorporation shows us the signature of John H. Keith, Speaker of the
House of Representatives, and David T. Disney, ditto of the Senate — tes-
timonials which would seem to indicate that it was the work of a legis-
lative body, having what was then esteemed a democratic majority in
both its branches. We freely admit that we did not, at that time, belong
to that stripe of democracy, being then, as we are now, most decidedly in
favor of free trade in money ; but we Lave at least that amount of anxiety
for the public welfare which would induce us to prefer to spare the lives
of a few wicked bankero, rather than involve the community in pecuniary
distress, and press thousands into the Golgotha of bankruptcy. — Cincin-
nati Commercial.
Digitized by
Gck igle
Original from
UNIVERSITY OF CHICAGO
1854.]
Bank Statistics ,
89
BANK STATISTICS.
Massachusetts.
The following is the first Monthly Report of the Country Banks of Massachusetts.
Average Condition op the Banks out op Boston, July 1, 1854.
CAPITAL
STOCK.
LOANS
AND
DISCOUNTS.
SPECIE
IN
BANK.
|DUE FRM.
OTHER
BANKS.
DUE TO
OTHER
BANKS.
DE-
POSITS.
CIRCULA-
TION.
Abington, -
Adams, -
Agawam, -
Agricultural, -
Andover, -
Appleton,
Asiatic,
Attleborough,
Barnstable -
-
Bedford Comrcl.
Beverly, -
Blacks ti»ne,
Blue Hill,
Brighton, -
Bristol County,
Buuker Hill,
tfebot, -
Cambridge,
Cambridge City,
Cambridge Mkt.,
Central, -
Charles River,
«
Citizens’* Worcester,
Commercial, -
Concord,
Danvers,
Dedham,
Essex, -
Exchange, Salem,
Fair ha veil,
Falmouth, -
Fall River,
Fitchburg, -
Framingham,
Franklin County,
Gloucester, - *
Grand,
Greenfield,
Hadley Falls,
Hampden,
Hampshire Manfrs,
Hingham,
Holyoke, -
Hopkinton, .
Housatonic,
John Hancock,
Laighton, -
Lancaster,
Lechmere, -
Leicester, -
Lowell, -
Lynn Mechanics’
Machinists’ -
$150,000
200,000'
200,000
200,000
250, OOOj
179,520
210,000
100,000
850.000
500.000
600.000
125.000
100.000
100,000]
250.000
257,620
225,600
150.000
100.000
100,0001
1277,908
889,131
401,835
888,845
873,991
842,885
419,176
182,593
614,17
831,188
1,092,129
249,874
197,045
200,420
495,595
495,510
458,651
271,913
181,473,
189,780,
800,000
100,000
800,000
150.000
200.000
100,000
150.000
250.000
100.000
200,000!
200,000
100,000
850.000
200.000
200,000
200,000
800,000
l"o,
200,000
150.000
fifi0f000
150^000
140.000
200.000
100,000
150.000
100.000
900,
200,000
lno,o00
200,000
2oo, 000
200,000
100,000
$5,627
6,413
11,323
7,871
6,8491
9,575
15,431
4,837
9, 238|
14,837
13,391
6,751
5,523,
6,650
9,288
7,586
24,514'
6,1261
5,166
4,8831
$18,001
21,6901
89,437
63,758
17, *437
56,244
54,426
9,160
41,959
36,792
11,577
7,336
19,007
43,704
52,501
42,225
150,071
35,048]
8,261
25,153]
$2,800
6,038
1,804]
4,171
14,876
3,768
527
74,882
4,999
62.
1,827
885
1,418
$21,689
41,35s
93,028
85,690
29,181
59,898
112,169
18,972
24,944
62,870
87,483
26,102
80,049
53,741
61,213]
89,118
18,211,
17,244
22,908|
27,632]
546.813
187,571
697,410]
302,141
873,594}
185,982
289,787
490,302}
165,222
327,624|
841,638)
154,082}
580,765]
391,429
890,201
892,390
460,996
172.130
848,439
295,726
407,748
272,962
275.813
875,782
198,218
266,212
200,469
373,821
866,756
191,
356,509
375,725
289.131
16,784
13,849
13,574
10,752
6.245
12,086
2,485
21,627
3.475
3,546
6,574
8,257
17,828
18,101
6,716
11,678
9,273
4,815
8.246
9.476
6,368
13,408
6,250
6,688
4,934
4,115
6,831
8,350
9,058
9,877
6,636
6,205
6,319
8,800
9,196
4,182
28,435
41,074
66,989
21,553
6,781
22,190}
6,772
87,217,
6,574|
14,720
18,831
14,528
37,629
93,821
9,973
84,099
82,778,
19,079|
66,247,
78,914
28,174|
28,643
12,569|
22,455
42,551
21,959
49,509|
20,176
20,499
11,840
28,880,
24,978
43,326
82,495
87,695
81,059
4,848
190|
1,637
7,281
9,457
2,862
2,855
940
9,467
2,800
706
908
2,493
80
3,009
22,978
185|
1,851
4,088|
1,967
21,581
6,2841
13,850
118
717!
8,268|
669!
107,543
60,7091
69,186
36,747
69,848
22,405,
83,296
74,249
28,454|
42,309
66,672)
6,282
72,867
60,944
42,178
28,774
88.869
12,109
84,166
28,949
16,521
8,393
24,459'
24,548
41,140
9,506
88,155)
17,889
41,163
18.869
4<', 863
18,886)
13,875
89,887
49,834)
44,8791
$117,644
160,635
206,871
217,020
99,909
159,232
126,505
64,175
249,755
293,970
356,713
101,302
82,120
96,822
216,773
171,277
186,243
144,730
54,405
90,770
163,407
66,649
283,768
103,058
92,039
96,270
94,416
178,825
46,087
85,555
95,356
64,704
182,260
226,821
149,676
218,444
161,270
82,828
179,835
287,141
150,085
257,442
77,843
127,795
174,380
105,129
126,549
117,570
120,462
102,921
177,414
174,192
135,721
157,738
111,143
Digitized by
Go igle
Original from
UNIVERSITY OF CHICAGO
90
Bank Statistics.
[August,
4-
Digitized by
Massachusetts Country Banks.
BANKS.
CAPITAL
STOCK.
LOANS
AND
DISCOUNTS.
SPECIE
IN
BANK.
DUB FRM.
OTIIKR
BANKS.
DUK TO
OTHER
BANKS.
DE-
POSITS.
CIRCULA-
TION.
Mahaiwe, -
175,000
316,767
7,511
47,926
2,896
28,880
152,660
Maiden , -
100,000
179,915
6,867
12,148
21,212
90,248
Marblehead,
Marine, -
120,000
500,000
194,980
902,606
6,357
9,760
17,934
41,689
9,320
12,415
144,061
68,622
277,866.
Massasoit, -
200,000
847,097
8,879
22,408
894
50,509
97,78#
Mattapan,
100,000
181,888
6,836
17,639
219
27,781
71,795
Mech. New Bedford,
400,000
645,102
6,462
21,868
12,880
70,458
188,775
Mech. Newburypt.
200,000
295,505
9,3 <»
80,781
1,212
61,686
80,983
do. Worcester,
350,000
651,066
17,835
37,719
18,055
116,684
184,520
Mercantile,
200,000
826,268
5,270
6,301
7,176
60,152
65,292
Mch. New-Bedford,
600,000
1,175,912
6,556
34,219
23,255
177,297
888,666
do. Newburyport,
210,000,
859,684
8,361
8,776
5,982
89,212
107,37#
do. Salem,
200,0001
367,618
7,122
80,621
1,157
96,432
92,928
Merrimack,
180,000
290,192
4,217
21,831
8,280
36,421
82,025
Metacomet,
528,600
760,581
8,502
9,530
41,948
15,856
85,655
155,707
Milford, -
200,000
874,033
20,635
68,618
142,612
Millburv,
Mount Wollaston,
75,000
145,571
8,324
2,929
2,264
18,279
63,141
100,000
199,596
8,153
15,061
37,415
77,458
Naumkeag,
600,000
843,885
11,964
19,106
3,939
135,345
209,494
Neponset, -
100,000
202,652
4,064
22,390
25,765
96,459
Newton, -
150,000
271,930
6,237
<14,976
2,710
27,009
100,119
Northampton,
200,000
898,855
8,294
124,097
92
45,444
243,178
Ocean, -
100,000
202,477
7,979
97,926
1,821
69,809
124,746
Old Colony,
150,000
290,819
7,026
80,988
87,860
167,011
Oxford,
100,000
174,209
3,122
5,316
807
9,404
67,299
Pacific. -
People’s,
200,000
890,668
13,429
113,789
2,798
143,898
142,172
150,000
294,690
8,428
11,772
2,195
70,440
90,862
Pittsfield,
300,000
606,903
7,828
17
3,668
66,717
243,290
Plymouth, -
150,000
290,006
9,106
79,707
88,531
163,595
Powow River,
100,000
199,155
4,801
27,762
9,000
109,522
Prescott,
Pynchon,
200,000
150,000
394,342
298,554
7,197
6,281
56,105
47,585
60,659
18,270
174,632
187,431
Quincy Stone,
100,000
190,886
5,688
19,644
37,536
6
45,012
70,753
Quinsigamond,
150,000
297,521
•\9.S7
68,101
112,328
Railroad. -
Randolph,
600,000
1,080,619
10,093
39,238
379
88,079
388,389
150,000
807,196
9,184
83,263
1
42,701
121,006
Rockland, -
100,000
199,193
8,280
30,535
. — ■—-I
41,491
99,225
Rockport,
100,000
198,908
5,* 861
23,335
21,674
102,109
Rollstone, -
Salem, -
200,000
250,000
885,414
837,218
15,859
4,878
51,587
21,664!
8,949
35,308
53,556
205,985
56,345
Southbridge,
Spicket Falls,
Springfield,
Taunton,
110,006
211,806
6,934
18,087
2,283
13,260
107,680
100,000
800,000
181,293
556,016
3,697
12,094
16,537
48,513
4,806
21,768
72,661
264,840
850,000
643,118
11,702
65,737
4,047
148,420
185,346
Tradesman’s,
150,000
243,181
5,766
34,796
3881
53,414
64,766
Union, Haverhill,
100,000
199,828
2,684
12,417
5,660
81,848
64,261
Union, Wevmouth A
150,000
282,383
4,134
11,810
20,537
99,350
Village, [Baintree,
Waltham,
189,880
824,473
2,212
25,441
88,438
105,590
152,910
253,329
8,219
17,500
•jo,, its
107,339
Wamesit, -
Wareham,
180,680
100,000
i ”240,972
199,625
4, *75
8,244
24,372
15,426
835
27,855
29,586
119,034
96,585
Warren,
200,000
862,920
87,507
5,196
43,645
134,284
Western,
250,000
495,013
7,441
96,882
46,293
28,811
304,030
Westfield, -
150,000
292,150
40,474
1,502
16,626
163,164,
96,646
Woburn,
100,000
196,992
6,996
24,927
81,199
Worcester -
800,000
582,635
17,009
44,218
14,667
186,897
176,403
Worcester County,
100,000
148,095
2,121
11,217
8,822
47,449
Wrentham
150,000
282,775
4,691
5,270
345
16,718
116,227
Total, -
22,659,760
41,377,865
906,560
3,941,912
484,138 (
5,451,106
16,215,000
Go 'gle
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1854.]
Life Insurance in England.
91
LIFE INSURANCE IN ENGLAND.
PARLIAMENTARY INQUIRY ON TBS SUBJECT ON UNI ASSURANCE ASSO-
CIATIONS.
Extracts from the Speech of Mr. James Wilson, M.P. /or Westbury,
on the Qth March , 1853.
Mr. Wilson, in rising to more for a select committee upon this sub-
ject, said it was incumbent upon bim to make a few observations in
order to explain tbe general objects be had in view in making this
motion. * * * Perhaps it was not generally understood to what an
enormous magnitude these associations had grown, and what a vast
amount of capital was now invested in the hands of those who managed
them. * * * * The House would probably be astonished to hear that
the capital insured by tbe companies with whom it was now proposed to
deal amounted to £150,000,000 sterling, at the smallest estimate ; and
that the annual income derived from the premiums paid by tbe best and
most deserving class of society — a class who, from the provident habits
which they exhibited, tbe self-denial they exercised, and the amount of
their annual savings, were, he thought, justly and properly entitled to all
the protection which the House could give them — the income derived
from this source in England and Scotland amounted to no less than
£5,000,000 sterling ; a sum almost equal in amount to the whole reve-
nue derived from the income-tax.. When the House considered, there-
fore, the vast magnitude of the interest involved in these associations,—
when they know the unsatisfactory condition in which many of them
were placed — he thought they would hardly be prepared to allow such
a state of things to go on without endeavoring at least to apply a
remedy. * * * * Every individual in the House, as well as out of it,
he was sure would agree with him as to the immense benedt which these
associations were capable of conferring on the people of this country.
He knew of nothing in the history of modern inventions, or in the
progress of modem ingenuity, which, in a social point of view, was of
greater importance than the establishment of these offices, calculated,
as they were, to win the people to provident habits, and to present
an easy and facile mode of making provision for those who came after
them; and just in proportion as the House and the public felt the
importance of these institutions, were they bound to take means to
place them on such a footing as should give a natural and fair security
to the public in order to induce people to use them to the greatest possi-
ble extent. But not only were these institutions to be regarded as a
means of enabling individuals to make provision for the future, but there
was another point of view in which they were of great importance, and
that was, that their large accumulated capital was capable of being used
with great advantage in various ways in which the deposits and assets of
other icstitutions could not be made available. * * * It was, therefore.
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92
Life Insurance in England. [August,
impossible to over-estimate the responsibility of the gentlemen who under-
took the management of these institutions ; and he confessed he should
be glad if he could feel any degree of assurance that in every case the
gentlemen who undertook to bring into existence companies having
objects and ends so sacred, and operations so beneficial, felt tbe full
weight of the responsibility which they thus incurred, and that they only
did so for the advantage of those whose interests they professed to con-
sult. * * * * He begged the House to bear in mind, that the character
of the institutions now referred to was different from that of the other
joint-stock companies which existed under the act of 1844. With regard
to banks and other joint-stock companies, their liabilities and responsi-
bilities to individuals were of a comparatively momentary description.
If a person was dissatisfied with a bank, he could at once close his
account and withdraw from it ; or, if a bank failed, it would doubtless
entail great loss ; but the loss would only be temporary ; and so even
with regard to Fire Insurances. The yearly premiums paid for Fire
Insurances had reference merely to the risk of fire within the year. At
the end of the year the responsibility of the company ceased, unless the
premium was renewed ; and if any one had reason to doubt the solvency
of the office in which he was insured, he could remove to another ; but
with regard to a Life Office, the case was entirely different ; for, while the
premiums were paid from year to year, the responsibility of the company
extended to an indefinite period, and a person could hardly be said to be
in a condition to change liis policy, whatever doubt or apprehension he
might feel with regard to the company. * * * * He was also bound
to say that the security which was provided by the act for the solvency
and responsibility of the associations, namely, the production of the
annual balance-sheet, had been as much evaded as that of registration.
In many cases the returns which had been laid before the House, pro-
fessing to show the annual balance-sheets, had been of such a character
that he believed no member of that House, and no actuary out of
it, could therefrom acurately tell the condition of any one of the com-
panies. It might be quite true that there was nothing absolutely false
on the face of any one of the accounts ; but you might put an account in
money in different forms so as to create delusion and prevent any one
from forming a clear and accurate idea of its contents. There, was one
very striking fact which he begged to mention to the House, and it was
this — that in the case of 25 offices who had submitted their accounts, it
appeared upon their own showing that, while the sums received as pre-
miums amounted to £462,032, the costs of management were actually
so high as to leave only a balance of £86,732, out of nearly half a mil-
lion. He thought the House would agree with him that, in the face of
striking facts of this kind, it would be criminal in the highest degree for
the executive of this country to stand idly by with folded arms, and not
take some Btep with a view to apply a remedy. At the same time, he
was anxious to avoid creating any unnecessary alarm in the public mind
with respect to the condition of these associations. For himself, ho had
not the.slighteat doubt that the great bulk of wbpt were known as respect-
able offices were not only solvent, but in a highly prosperous condition.
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Usury in the Old Times.
93
Mr. Whalley expressed himself highly pleased at the step which the
government had taken in this matter ; but suggested that it would be well
if the committee were also instructed to take into their consideration the
analogous associations known as Benefit Societies. He was induced to
make tbis suggestion from what he had witnessed of the misery and de-
moralization which had resulted in the district where he resided, from the
failure of benefit societies.
Mr. M. Forster admitted the importance of the question. He had
paid a good deal of attention to this subject, and had become acquainted
with many of the abuses of the present system, and he considered the
House and the country were very greatly indebted to the hon. member
for Westbury, for bringing the matter under the attention of the House.
He hoped that, as the clear and able statement of the hon. member
would go forth to the public, it would do much, before the committee
commenced their investigation, to arrest the evils which now existed.
Mr. Brotherton expressed his gratification that the government had
taken up this most important subject. He was certain the determination
of the government would give great satisfaction generally to the institu-
tions which were solvent.
♦
USURY IN THE OLD TIMES.
n No usurer but hu a fool to hia •errant.” — Timon o/Athms.
It may be worth while — when the actualities of the credit-system are
so intimately connected with our polity, public and private, when the
existence of every nation and every individual is constantly under the
influence of what is owing on one side or other — to take a short survey
of the march of borrowing and lending. It must have been an awful
moment when the earliest debtor pledged himself to the earliest creditor ;
a Greek poet would have sent the streams back to their sources, bowed
the forests, and brought flames from the mountains at the tremendous
juncture.
The old Romans, when they found their debts peculiarly oppressive,
usually took the matter into their own hands — they retired to the Mons
Sacer, or raised a tumult, which commonly ended in a special insolvent
debtor’s act, intended only for the moment, like our wise measures of the
last century. It is intelligible that in those days, when such mattere
were managed by a small revolution, debtors should get relief by fits and
starts ; but in our times, when a peaceable parliamentary act did the
business, why insolvents should be released in the year of grace 1766 or
1788, rather than any other year, is a question only to be answered by.
the wisdom of our ancestors.
Sometimes the thing took a different turn. A centurion once was hAuled
off for debt, when Manlius, the conqueror of the Gauls, rushed into the
crowd, exclaiming, that he had not saved the capitol with his own right
hand, in order that a fellow-eoldier should be chained and marched off,
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UNIVERSITY OF CHICAGO
94 Usury in the Old Times. [August,
as if the Gauls had been the conquerors. What could these have done
more f was the idea of the honorable and gallant general.
In those days, imprisonment for debt — although it had a good many
harsh conditions — was at least founded upon a sensible principle. The
debtor was, at any rate, not shut up in a common jail, where he could
be of no use to himself or to any one else* He was taken off to his
creditor’s house, and there made to work out the debt by manual labor.
There is something comprehensible in this. Senates were ever the
great jobbers, and the senators were the general creditors ; hence a sena-
tor’s house was known as a private prison. The creditor’s abuse of his
privilege brought about an abolition of imprisonment for debt — things
ran before our era in the same rut in which they have run since — and
then, as now, the abolition was merely nominal ; it contained provisions
and exceptions, which enabled creditors to imprison very nearly as
before*
The money-lenders at Rome had no Times in which they could adver-
tise u advances to noblemen and gentlemen on personal security but
they could stand in the Forum, and offer their coin to the passers-by— a
more tempting lure to ruin to the heedless even than an advertisement.
What spendthrift could resist the sight of the yellow metal, or hear the
chink unmoved I No creaking stairs to mount — no grim clerk to face
—the money amiably and invitingly brought under your very nose.
They had a thriving business, those Roman money-lenders; the legal
interest was one per cent per month ; but all the laws in the world could
not restrain it within this limit.
The business of debtor and creditor became, in consequence, a matter
of state ; the debtors formed one section, the creditors another ; and a
judge, supposed to be favorable to one party, sometimes paid the penalty
of his life. Every now and then the circumstances of the state were
overhauled — the world was frightened by the amount of private debt^-
new regulations were established — the immediate difficulties postponed—
people got tired of the subject — and all went on just as before. But, it
should be observed, almost the entire debts of those times were due to
the money-lenders ; credit scarcely existed among the tradesmen. Why
should it? A man who could not get credit from a lender, whose profee-
sion was credit, had no business to ask credit from a baker, whose pro-
fession was baking. The latter was not up either to the present or the
future steps of the loan-system ; and he very wisely left them to those -
that were. As for the merchant, his business was merely barter, without
any risk except from the north wind ; speculation, as we understand it
was unknown, and with it the concomitant debts and liabilities.
The usurer, notwithstanding his greatness in Rome, was singularly
obnoxious to the laws. “ The thief is to restore double — the usurer four-
fold—of the value taken,” was one of their maxims. Cato put the usurer
in the same category with the assassin, and would visit him with the
same punishment. This unfortunate member of society fell, besides,
under the bah of the poets, comic and didactic, who both found the
usurer of wonderful utility in pointing their morals and adorning their
tales. This did not prevent him from being a personage of immense
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UNIVERSITY OF CHICAGO
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Usury w the Old Times.
96
influence, and able in other ways to console himself for the sibillations of
the populace, than by counting his coin at home. In fact, he bad all the
great world to keep him in countenance. The proconsul proceeded to
his province — levied exorbitant taxes which the inhabitants could not
pay — and gave them time at eighty per cent. The proconsul’s son
remained at home— outran his allowance — and borrowed of the usurer at
fifty per cent. The latter transaction might be the most convenient for
the satirist ; but for the moralist, it is infinitely the less questionable of
the two.
After all, debt was the exception in the ancient world ; it became the
rule in the modern. Spendthrifts and oppressed provincials borrowed in
the one ; all the world borrowed in the other. We know not the extent
of credit amongst the Goths and Vandals in their primeval forests; but
no sooner had they emerged from them, than we find kings and nobles,
priests and clergy, merchants and artisans, incontinently working up
credit of all kinds. It took a thousand years after the dawn of the old
civilization to produce the usurer, and he was then a rarity. It took a
very few centuries after the dawn of the new to produce bankers and
pawnbrokers, Jews and Lombards, and these were any thing but rarities.
The grandest instance of a growing debt upon record is that of the
king of Leon, mentioned by Mariana. Ferdinand Gonzalves had sold
this prince a falcon upon credit. The interest was high, and it com-
pounded itself in the course of a few years into a sum so enormous, that
the king was forced to make over to Gonzalves his rights on the kingdom
of Castile, to be quit of the liability.
But it is no wonder if the debts of the middle ages were on a grand
scale. Neither king nor subject knew his income. The subject was
to-day master of an estate ; was driven out of it the next by an invading
monarch ; recovered it again by deed of gift ; then pawned it to go cru-
sading to the East ; regained it by a wealthy marriage ; lost it by a
divorce ; obtained it again upon petition — and lost it finally because he
trod on the toe of one of the king’s favorites when out of humor. For
the monarch — whether the sum wanted was for some private caprice, or
the urgent necessities of the nation ; to buy a new suit of tapestry, or
undertake the most necessary war; to pay for a new house for his mis-
tress, or to build a fortress or a cathedral — he bad just the same trouble
in convincing his loyal subjects of the utility of his demand. In conse-
quence he ran into debt, trusting to the necessity of the case for getting
him out — a worthy example, well known to builders of churches and
philanthropic societies of modern times. In fact, it has been said that no
society can be called really flourishing in Great Britain, till it is a bun
dred thousand pounds in debt. The complexity of the modern system
began early. Complexity is a Gothic principle, to be found in its con-
stitution, its buildings, its trade ; and it thus commenced the credit sys-
tem, which soon learned to grow by its own force.
During the middle ages, the credit system was made, in France more
especially, a matter of obligation. The feudal lords had the right of
demanding it The abbot of Compeigne enjoyed by royal charter the
privilege of receiving flesh, bread, and fish from the inhabitants on credit
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UNIVERSITY OF CHICAGO
96
General Banking System of Indiana . [August,
for three months : if he failed to pay, they were not bound to furnish him
any further. The Count of Montfort used to compel the people of Dieppe,
by feudal ordinance, to give him fifteen days’ credit during the time he
resided amongst them. To be sure, the sum on credit was limited to fifteen
livres, which would not make a terrible show before an insolvency com-
missioner. One wonders whether the inhabitants were as anxious for his
lordship’s custom as a modern tradesman, or whether they served him
with sour bread and stale eggs, to induce him to transfer his favors else-
where. The king himself had the right to credit in many localities, and
what was odd enough, many of his nobles had the same right in the
same localities for a longer period. He was often forced to give security,
as were the nobles. In some places when the lord visited a town, he
had unlimited right of credit till he left it. At Poiz, in Picardy, the lord
had the right of credit from each individual once in his life, but not
oftener, and then only to the value of two-pence-halfpenny. When the
dealers concealed their goods, they were liable to a fine. The continues
of the French provinces are full of these regulations. The archbishop of
Vienne was expressly precluded from all right to demand credit It
might be curious to trace the origin of this flaw in archiepiscopal trust-
worthiness.
GENERAL BANKING SYSTEM OF INDIANA.
[From the Official Report of Auditor of State for 1854.]
General Banking Department
Uhder the act of the General Assembly approved May 28, 1852, it is
made the duty of the Auditor of State to take general and special direc-
tion of the operations, and to regulate the business of general banking.
The labors and responsibilities demanded and incurred in this branch
of official service have received a large portion of my time, and engaged
my most careful attention.
The safety of the community, the credit and integrity of the State, and
a proper regard for the rights of those who have or who may make
investments of capital in the business of banking, required, on my part,
a prompt and decisive course of procedure, governed by a desire to
render justice to all parties, and to protect the public from the evils
incident to neglect, or which might arise from a loose construction of the
law, and I take pleasure in stating that no difficulty has presented itself
which has not been overcome, and that the present condition of all the
banks which have been organized, under the general banking law, is
such as to inspire the belief that they are radically sound, and engaged
in a legal and legitimate business.
By the rules of construction of this law, as laid down and acted upon
by me, each bank has been required to furnish undoubted securities to
an amount equal to fifty thousand dollars, as a pre-requisite to its legal
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General Banking System of Indiana.
97
existence, and also to establish a real and tangible place and house for
the redemption of its notes, and to affix to each note which it issues, the
name of a cashier, thus obviating three of the principal objections here-
tofore urged against the propriety and efficiency of the existing banking
law.
By reference to the statement or abstract No. 20, in the appendix to
this report, it will be seen that twenty-nine banks have been organized
and are in operation, the nominal capital of which amounts to six million
eight hundred and fifty thousand dollars. The actual securities, in stocks,
to three million ninety-six thousand two hundred and eighty*two dollars.
The amount of notes received by them for issue, three million twenty-live
thousand one hundred and fifty-six dollars.
These securities consist of the following State stocks, namely :
Indiana 5 per cents, . .
Indiana 2h percents,. ,
Virginia G per cents,, .
Tennessee G per cents,
Missouri G per cents, . .
Georgia G per cents.. .
Louisiana G per cents, .
California 7 per cents,.
Ohio G per cents
Kentucky 6 per cents, .
Michigan 6 per cents, .
§2,027,250
333,220
574,000
6,000
70.000
25.000
84.000
32.000
42^000
2.000
72.000
Total, „ $3,267,470
The Indiana 24- per cent bonds arc taken at such rates as to make
them fully equal to Indiana 5 per cents, and the California bonds are
temporarily deposited at two thirds their face, which is quite below their
market value in New-York. This disagreement in totals of stocks
deposited arises from the difference between the nominal and estimated
value of the securities.
Six other banking companies have partially organized with an aggre-
gate capital of one million four hundred thousand dollars, but not having
perfected their arrangements, the issue of notes has been deferred until
the proper securities are tendered. Some portion of the paper is already
prepared and ready to be delivered as soon as the requirements of the
law are complied with.
It will be seen from the foregoing, that the sum of two million three
hundred and sixty thousand three hundred and fourteen dollars of
Indiana State Bonds are employed as bank capital within the limits of
the State, the interest upon which will be promptly met by the State,
thereby sustaining her credit and the value of the securities. The State
will also be left in possession of a surplus of revenue, with which to
further reduce the amount of her indebtedness.
The rapidly increasing business of the State, the extent and import-
ance of her commercial transactions, owing to her increased facilities for
travel and transportation, anil the great amount of her agricultural pro-
ductions as well as her manufacturing enterprises, require a largo supply
of circulating medium. Up to this period our circulation both by the
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98 General Banking System of Indiana . [August,
State Bank and under the General Banking Law, is quite inadequate to
the actual necessities of our citizens, the more especially, when it is stated,
and true, that large amounts of our issues are taken beyond the confines
of Indiana, to be used by Eastern operators, and that large demands are
frequently made by those residing in adjacent States.
The apprehensions heretofore entertained by 6ome persons that the
large indebtedness of other States might be used under our banking law
to flood the country with paper issues, to our detriment and discredit,
has not shown itself in such a degree as to excite alarm or disquietude.
The requirements of the law, as regards undoubted securities, and the
keeping on hand a supply of coin to redeem their circulation with the
understanding of the fact that all necessary additional securities may be
from time to time demanded, has evidenced a prudent calculating economy
on the part of those who have embarked in the business, and the result
is, that the amount of bank issues in the State is quite as low as the
most cautious citizen could reasonably desire, leaving us, with all our
great resources, and with more than a million of inhabitants, with less
than seven million of Indiana bank paper. This amount, compared with
the issues of other States, is decidedly less than our quota of the sinews
of trade and commerce.
The State Bank of Indiana, by its exhibit of the 81st of October last,
shows a most healthy and responsible condition, with a positive circula-
tion of three million eight hundred and thirty-four thousand seven
hundred and sixty-five dollars. This sum, added to that in the hands of
the general banks, makes the aggregate amount of Indiana bank paper,
supposing the whole to be in circulation, only six million eight hundred
and fifty-nine thousand four hundred and thirty-six dollars.
There will probably be a progressive addition to the active capital of
gome of the banks already established, and other new ones organized ;
but estimating the future increase by the late applications, there is little
ground for the belief that more investments will be made than will be
necessary to facilitate a healthy condition of business.
The charter of the State Bank expires on the 31st day of December,
1856, after which time its issues, loans, and discounts must cease to be
made, and its notes be returned. No renewal of its charter, in connec-
tion with the State or with its present franchises, can be allowed under
the constitution of the State, and it is but reasonable to suppose that
much of the capital now employed in its stock will be transmuted into
such other bank organizations as the emergencies of the times may
indicate.
The business of general banking is measurably an experiment in
Indiana, although its longer existence in New-York and some other
States gives it more substantial claims for safety and utility, and such
States a9 have recently had opportunity to remodel their banking systems
have generally recognized its superiority over more antiquated systems.
The great distinguishing and beneficial feature of the system is the
requirement of security for all bank issues, and strict responsibility for all
liabilities ; thus making it the interest of bankers to protect and sustain
their bills of circulation. The requirements, if honestly and carefully
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enjoined, are certainly bo much gained for the safety and benefit of the
people, who, from the customs and institutions which surround them, are
virtually compelled to use paper money instead of the more substantial
and desirable precious metals.
PUBLIC DEBT OF INDIANA.
From the Official Report of the Auditor of State for 1854.
State Debt and State Stocks.
Thk following brief explanations of the adjustment of the State debt
in 1846 and 1847, and of the nature of different descriptions of State
stocks, are compiled from the last annual report of my predecessor:
The nature of the State debt arrangement of 1846 and 1847 is so
little understood, and purchasers of stocks are so frequently imposed
upon, through want of information as to the liability of the State for
the different descriptions of stock, that a few words of explanation are
deemed necessary and proper in this connection.
The basis of the arrangement was to release the State from all liability
for the payment of principal or interest on one half of the outstanding
debt, and to make such moiety of the debt chargeable alone for its redemp-
tion upon the Wabash and Erie Canal, its lands and revenues. The old
bonds were to be surrendered, and new ones issued, for the State's portion
of the debt, as follows :
First, for one half the principal of the bond surrendered, to bear
interest at four per cent up to January, 1853, and five per cent thereafter,
constituting State five per cent stock.
Second, for one half the interest on the bond surrendered, and the
difference between four and five per cent, on the principal to 1853 ; the
new bond bearing interest at the rate of two and one half per cent per
annum, from the first day of January, 1853, constituting “Two and a
half per cent State deferred stock?
The above are the only stocks upon which the State is bound to pay
either principal or interest under the arrangement.
The canal stocks are divided into two classes, prrferred stocks, and
deferred stocks. The former are issued to the holder of original bonds,
who, at the time of surrendering the same, subscribed to the loan for the
completion of the canal, and are entitled to preference in payment, both
of principal and interest. The deferred stocks are issued to the holder
of original bonds at the time of their surrender, who did not subscribe to
the loan for the canal, and payment is therefore postponed or deferred,
until the preferred stocks are entirely liquidated.
Two sets of stocks are issued in both of these cases, as in the case of
State stocks; one for principal, bearing five per cent interest, and the
other for interest, bearing two and one half per cent interest The former
are termed “Five per centum preferred canal stocks, ” or “Five per
centum deferred canal stocks ,” as the case may be; and the latter,
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44 Two and a half per cent special preferred canal stock” or ihTwo and
a half per cent special deferred canal stock”
For the payment of interest or principal on these canal stocks, it may
be proper to repeat, the State is in no wise bound. The revenues of the
canal are appropriated by the trustees, under the net, to the payment of
liabilities incurred or assumed by the tni<t in the following order as pre-
scribed in section ten of the act supplementary to “An act to provide for
the funded debt of the State of Indiana,” approved January ‘J7, 1847.
The section is here copied in full, for the benefit of nil interested :
Sec. 10. That in lieu and stead of tlio seal* of distribution and application as in
the eighth and thirteenth sections of the said act directed, of the tells and revenues
of said canal, utter defraying all needful and proper expenditures f>r repairs, attend-
ance, and other necessary things, appertaining thereto, which shall he tir>t paid, any
thin# iri the said lornier act, or this act, to the contrary notwithstanding; and of
the produce of the said canal lands, sold and unsold, the same shall hold and
applied by said trustees, in trust and security, for the use and purposes following,
that is to say :
First. In payment of the work, labor, and materials, or contract f>r the supply
of work, labor, or materials, to be done and furnished in and about the further
prosecution and construction of the said canal and works, until th«> sumo shall have
been fully completed to Kvansville, as the moneys to be paid ti»r the same shall,
from time to time, become due and payable; but not by way oi anticipation, and of
all needful and proper expenditure for repairs, attendance, and other causes, save
and except so far as regards the existing toils and revenues of the said canal, which
are hereinafter declared to bo expressly appropriated lor and towards the payment
of interest, at six per centum per annum, on the sums to bo sub-crib. -d, for the
completion of the said canal and works, and which existing tolls and revenues are
hereby declared to be excepted from the operation of this clause to that extent;
Secondly. In payment of interest alb-r the rate of six per centum per annum,
on the sums to he respectively advanced by the ho 1*1 ora of ceniiicate'* to the said
trustees, from time to time, in aid of the completion of the said canal and works,
and to be computed from the respective times of advancing and paying such princi-
pal sums respectively, such interest, to be payable in the eitv of New- York, by
equal half-yearly payments, on the first day of January and the first day of July,
in each and every year, the lirst half-yearly payment to be made on the lirst day
of January, 1818;
Thirdly. In payment in full of the principal sums advanced, or to be advanced
by the holders of certificates subscribing as aforesaid, for and towards the comple-
tion of the said canal and works, and from time to time remaining du-*;
Fourthly. In payment in full to the subscribers making the said advances, or to
their assignees, of interest at and after the rate of live per centum per annum, on
the moiety of the principal of the bonds, which they mav have sum-ndiTed and
exchanged for cert ideates as aforesaid, such interest being to be computed from
the said first day of January, 1847 ; |
Fifthly, in payment in full to the subscribers making such advances, or their
assigns, of the principal of the special stock to be issued to cover the arrears of
interest due and accruing from the lirst day of January. 1841. to the first day of
January, 1847, as last as the same cau bo done, with interest on the same, at and
after the rate of live per centum per annum, to bo computed from the lirst day of
January, 1843;
Sixthly. In payment in full to tho subscribers making tho said advance, or to
their assigns, of the principal moneys secured by each such cert ideate, so charged
over against, the canal lands, and the tolls and revenues of said canal ;
Seventhly. In payment in full to the other holders of any cert ideates of stock
by the said act directed to be issued arid charged as aforesaid, (such holder not
being a subscriber to the said advance.) or their assigns, of interest at and after the
rate of live per centum per annum, on tho amount of the principal thereof;
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Kiirlithlv. In payment in full to tho holders of certificates of special stock to be
issued and charged as aforesaid, (such holders not being subscribers to the said
advance,) or their assigns, of the principal of such special stock, with interest on
the same, at and after the rate of five per centum per annum, to be computed from
the said first day of January, 1853;
Ninthly. In payment in full to the holders of such last-mentioned certificates,
(not being subscribers.) or their assigns, of the amount of the principal thereot
respectively ;
Tenthly. To pay into the treasury of the State, any surplus or balance which
may remain in the hands of the said trustees, alter making the several payments in
tho nine preceding classes mentioned; and it is hereby declared that such sums
shall, from time to time, be paid and applied as soon as conveniently may bo alter
the receipt thereof; saving the just rights of the holders of bonds now outstanding,
and known ns the Wabash and Erie Canal Bonds, as provided for in tho eighth
section of this act; Provohd, That alter the payment in full of said subscribers or
their aligns as aforesaid, the holder or holders of any certificate whose or whose
assignor's bond or bonds were surrendered and cancelled, as in the said original act,
and tin's supplement is provided, on or before the first day of May, 1850, shall be
entitled to i he same preference and priority in the payment thereof, and to be paid
in the same manner, as is provided for the payment of said subscribers to said
advance, and their aligns, according to the time of such surrender and cancellation;
any thing in this or the said original act to the contrary notwithstanding. And
provided, That all payments of principal and interest to be made under or by virtuo
of this act, or the said recited act, amongst the said several clashes of subscribers
or holders of cert i lien t«*s. (as the case may be.) shall be made pro ruin, amongst the
subscribers and holders of certificates in each such class, in the order and priority
of payment given or intended to be given to each such class respectively, as aforesaid,
first paying in full those first entitled, and so on, toties, quoins ; and no interest
shall at any time he charged upon any semi-annual deficit of interest which the
revenues of the canal shall fail to pay. Provided ako} That the proceeds of sales
of the lands in the Vincennes land district shall be applied only to the construction
of the canal from Torre Haute to Evansville, or to the re-payment of tho cash
advances made by the bond-holders for that purpose until the said canal shall have
been completed. The trust hereby created shall cease and determine, upon the
payment of the principal of said certificates, which are hereby authorized to be paid
out of the proceeds of said canal, at any time after twenty years from the passage
of this act; and the State hereby reserves the right to redeem any of such certifi-
cates, at any time twenty years after the passage of this act, and after the re-pay-
nient of said advance, as herein provided, by paying the legal holder thereof the
principal sum due thereon.
FOREIGN STATE DEBT.
Total amount of bonds issued prior to period of arrange-
ment of State debt, July 1, 1847, $15,111,000
Total redeemed and cancelled, prior to surrender under
State debt arrangement with holders, $1,009,000
Add for bonds on which the bank pays interest, and is
to redeem principal, 1,390,000
Add for 7 per cent bonds issued, but never sold, 1,064,000
Making a total amount of bonds redeemed, cancelled,
etc., prior to State debt arrangement, 4,003,000
Total amount of bonds outstanding prior to surrender
under State debt arrangement, 11,048,000
Total amount of bonds surrendered, up to October 31,
1852, ’ 9,834,000
Total outstanding October 31, 1852, $1,214,000
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AMOUNT OF STATE AND CANAL 8TOCK8 ISSUED UP TO OCT. 31, 1852.
Five per cent State stock, $4,922,500 00
Two and a half per cent State stock, 1,S1<>, 3S0 00
Five percent preferred (’anal stork, 4.079.500 00
Five percent drtcrred Canal stock 843. 000 00
Two and a half per cent special preferred canal stock, 1,210,337 50
Two and a half per cent special deferred canal stock, 248,975 00
Total stock issued to October 31, 1852, $13,120,092 50
Deduct 2$ per cent State stock redeemed, 20,000 00
Total outstanding Oet. 31, 1852, $13,100,092 50
Stocks outstanding for which the credit of the State is pledged, Oc-
tober 31, 1852, 0,712,880 00
Stocks chargeable on the Wabash and Erie Canal, October 31, 1852, 0.387,812 50
The reports on file in this office do not agree with the booka’of tbo agent of State. The following
recapitulatory sMaUm^nt of the !>onds outstanding and stock* issued, was made by that officer at
the close of the tlscal year ending October 31, 1S5£.
Bonds outstanding, October 31, 1852, $982,000 00
Five per cent State stock issued, 5,028,000 00
Two and a half per cent State stork issued, 1,814,592 50
Five per cent preferred canal stock, 4,079.500 00
Five per cent deterred canal stock, 948.500 00
Two and a half per cent special preferred canal stock, 1,215.912 50
Two and a half per cent special deferred canal stock, 278,502 50
In noticing this disagreement between the books of the agent of State
and the reports made to this office, my predecessor, in his last annual
report to the legislature, said that this discrepancy could “ only be
adjusted by a careful comparison. The presumption, however, is that
the agent is correct, as all the information on the subject on record in
this office is derived through him.”
BANKING IN ILLINOIS.
Annual Report of the Bank Commissioners, May , 1854.
The general banking law of 1851 makes it the duty of the bank
commissioners to make annual examination in respect to the affairs and
business of the banking associations of this State, and in respect to the
condition and management thereof, and also to inspect the securities filed
with the auditor and treasurer, and to make report thereon.
In conducting this examination, the commissioners have endeavored
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I
to comply with the requirements of the law. The statements of the
resources and liabilities of the several banking associations under their
charge have uniformly been furnished under the oath of the cashier or
president, and in many cases by that of both these officers. The credit
due to all general statements regarding the actual condition of banking
associations, however, depends not more upon the amount than the
character of the funds which go to make up the sum of their resources.
If these are of the full value at which they appear in such statement, it
may be taken as a test of the soundness of the institution ; if not, but
small reliance can be placed upon it
The commissioners have, therefore, throughout their entire examina-
tion, sought, by a uniform series of questions addressed to the officers of
the banks respectively, to elicit the true state of the affairs and condition
of each bank. The answers thereto have invariably been required to be
sworn to by the officer making the same, and, together with a copy of
the interrogatories, have been placed on file in the office of the bank
commissioners.
These embrace a variety of matters connected with the affairs and
business of the bank generally, having for their object to ascertain
whether the banks have acted in compliance with their charter require-
ments, especially in such instances as would not be likely to come within
the knowledge of the public or the commissioners — such as when their
notes were first put in circulation; the average amount of specie on hand
and actually belonging to the bank ; the average rate of dividend ; the
average accommodations as between parties residing within and those
without the State ; the relative proportion between dealings in bills of
exchange, checks, drafts, etc., and loans and discounts on common
business paper; the relation between the circulation of our own and
remote or foreign bank-notes; the practice in relation to the renewal
of notes ; the average rate of discounts upon their circulation in the
eastern and southern cities, and whether any arrangement exists for
the redemption of their circulation out of this State ; the average
rate of exchange ; whether the funds of any association are allowed
to be used with a view to evade taxation, or to derive a higher
rate of interest or profit than the law permits ; whether the business
appertaining to associations for banking purposes is carried on directly
under and by virtue of the corporation, or through brokers owning and
controlling the funds of the bank.
Answers to the above, with other matters equally important to the
public, furnish an outline from which a fair inference may be drawn
of the common mode in which our banking associations conduct their
affairs, and to what extent they have complied with the provisions of
the general banking law. So far as the comments which we may feel
it our duty to make upon the manner of conducting the banking busi-
ness in this State are concerned, we shall confine our strictures mainly to
the defects in the law which controls their operations, for we consider
that most of the errors which have crept into the management of the
affairs of the banks are attributable almost entirely to this cause, leaving
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101 Banking in Illinois. [August,
it to those whose duty it may become, to supply whatever may be
required in the premises.
The essential changes which a few years have wrought in the banking
system of our cuuntry, have had a tendency to modify or unsettle prin-
ciples which were formerly regarded as fundamental ami necessary to
every system of sound banking. The revolution in popular sentiment
upon this subject and in this respect, so far as it relates to our own and
some other States, is very nearly complete, if we regard the present laws
as any indication of change. Under the general banking law, and as
incident to the system which may grow up uuder it, the necessity of an
exclusive specie basis for the redemption of the circulation seems to be
discarded, or at least regarded as of subordinate consideration. The uni-
form general prosperity of our country, and the non-recurrence of those
pressing exigencies which test the security of all banking systems, during
the time this system lias been growing in popular favor, leave it to time
and experience to disclose the wisdom or impolicy of its adoption.
Believed of the restraints of any well-d«dined specie requirements as
indispensable to safe banking, the ready facility with which stocks can at
all times be procured for deposit with the auditor as a basis of circula-
tion, in the usually crowded state of the stock-market, renders it impos-
sible to set any limits to the future issue of paper-currency. The only
way bv which the system, in its present form, can be kept within any
certain limits, consists in carefully limiting the kinds of stocks allowed
to be received on deposit. Instead of enlarging the facilities for
increased banking beyond what they now are, and thereby expanding the
paper circulation to an indefinite extent, it may well be considered,
whether a ju>t regard to the interest of the State may not demand
greater discrimination in favor of those kinds of stocks which sustain the
most substantial character, and are not subject to those peculiar fluctua-
tions which periodically a fleet very many classes of stocks. The leading
object, so far as the public is concerned, is to have a sound currency, and
this cannot be expected when the security for its redemption is not
ample. To make the security sufficient, it should be of such a nature as
to be at any and all times easily convertible into cash. It should not be
consulted, as it might lie, ultimately collectable ; for delay in the sale of
depreciated and unmarketable stocks, thereby prolonging the redemption
of the circulation to a large class of people, differs little from final
insolvency. The poor holder by this would become at once the victim
of the broker. No kinds of security ought to be allowed to be’ deposited
as a basis for circulation, which cannot at any time be cashed for the
amount for which they were deposited.
Since the adoption of the general banking law, thirty -one banks or
banking associations have been established, with an aggregate capital
stock of $17,300,000, upon which have been deposited with the auditor
and treasurer public stocks to the value of $2,050,087.62. Two of this
number, to wTit, the Bank of Lucas ik Simonds, Springfield, and the
Quincy City Bank, Quincy, have closed their business operations, and are
now being wound up under the- law. Some two or three of the above
number have lately gone into operation, and consequently their business
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Banking in Illinois.
105
is as yet rather limited. That the number of banks will increase, may
be confidently expected, from causes before hinted at — the large amount
of stocks ready for i nwstment, and the fact that they can be profitably
used for this purpose. It becomes no part of our duty to speculate upon
the vast interests dependent upon the proper management of these asso-
ciations. Much may depend upon appropriate legislation to remedy
such errors as the system of banking may, from time to time, evolve
during its operations.
The people had a right to expect that these things would follow the
adoption ot a general banking law, as it was adopted for the public
good, and not for the exclusive benefit of those who might avail them-
selves of ils provisions.
First. A safe and reliable basis for banking circulation, such as would
render the circulation secure against lass or depreciation in any reason-
able contingency.
Second. That this circulation, recommending itself to general confi-
dence by ils soundness, would, to a great extent, supply the place of a
foreign or remote currency, which previously occupied the entire channel
of our paper circulation, thereby providing a domestic and well-known
currency entitled to the highest confidence.
Third. That the banks incorporated under the law would afford to the
different classes of our citizens such accommodations and assistance as
the wants and increasing prosperity of the State might require. To
accomplish these objects, was the professed purpose of the banking sys-
tem. The privileges granted and the monopoly conferred could never
have been designed solely to enrich the few who might be so situated as
to enjoy them, but to contribute to give greater vigor and energy to every
kind of industry.
Sections 20 and 21 of the revenue law of 1853 make it the duty of
the officers of each bauk or banking association, having the right to issue
bills for circulation as money, to make return to the bauk commissioners,
in the month of May annually, of the average amount of notes and bills
discounted or purchased, including all the loans or discounts made or
renewed during the year next preceding the time for such return; also
bills of exchange, notes, bonds, mortgages, or other evidences of
indebtedness, at their actual value in money, on which such bank or
banking c mipany had at any time reserved or received, or was entitled
to receive, any profit in the shape of interest, discount, exchange, or
otherwise. Slocks deposited with the Slate Treasurer are required to be
valued at lhe rate at which they were deposited. Upon this return the
bank commissioners are to proceed to ascertain the amount of the pro-
perty valued, in accordance with the provisions of the act.
Section 21 further provides, that in order to ascertain the amount of
notes, bills, etc., discounted and purchased, there shall be taken as a
criterion the average amount of the aforesaid items for each month
during the year, or shorter time, previous to the time of making return,
which average shall be found by adding together each month’s business,
and dividing by the number of months the association may have been
engaged in business. The provisions of the above sections are singu-
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larly vague, so much so as to make it no easy matter to determine satis-
factorily the precise construction they ought to bear, or how much de-
volves upon the respective parties in attempting to comply with the law.
The different constructions put upon their meaning occasions wide
differences in the form of the returns made to the commissioners.
Besides, there seems to be an utter want of power in the bank commission-
ers to compel the returns in case bank oflicers refuse or neglect to comply
with the law. In describing the subjects of taxation, certainty as well
as particularity ought to be carefully observed. It works no hardship to
the honest, while it may sene to guard against those who would seek
occasion to escape taxation. Nothing should be left to inference or con-
jecture ; for it is not common for corporations more than individuals to
desire to appear rich upon the assessment- roll. It will readily occur to
those familiar with the various forms of business which may be employed
by banks, how, under the law, a large amount of property, which, under
a just rule of taxation, ought to be embraced in the aggregate amount
of bank property, from which the average is required to be* drawn, can
be so disposed of as to escape the assessment, while the commissioners
have no power so to correct the returns as to make them conform to
the principles of a just taxation. The bank commissioners are required
to assess the taxes upon the returns of property submitted to them by
bank officers, without the power to inquire into their truth or cor-
rectness.
There is an obvious incongruity in the law in its present shape, in
making it the duty of the bank officers to make return of their assess-
ment-list to the bank commissioners, leaving it for the latter to adopt
the return so made, as the basis of their rejau t to the auditor. The 10th
section of the general banking law provides that the bank commis-
sioners should annually ascertain the value of the property of each
banking association, and fixes the rate of taxation the same as required
to be levied on other taxable property, by the revenue laws of the
State. The revenue law of 1853 has so far changed these provisions as
to make it the duty of the officers of the banks to ascertain the value
of the property of the banks, and make return of it to the commis-
sioners, who are required to report thereon to the auditor. The com-
missioners ought to have the power, in all cases where they have
reason to doubt the correctness of any bank return, to make the neces-
sary inquiry, and if found to be untrue, to cause it to be corrected.
Banket's have too often felt themselves above the restraints of legisla-
tion, and too often enjoyed immunity from legal exactions and penal-
ties, to which the rest of the community could not aspire. To remove
the temptation to transgress, is the wisest policy, and then rigidly
enforce all legal restraints. There is little doubt but that by adroit man-
agement and suitable forms of business arrangements, a large proportion
of the paper assets of the banks escape taxation, which, under the con-
stitution, ought to be taxed.
It has proved difficult so to frame a revenue law as to reach the tax-
able property of banks, and compel them to pay their equal >hare of
taxation ; and it is generally true that a greater proportion of bank
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property escapes assessment than any other species of property in the
community. Their mode of doing business* and the restlessness of their
active means, renders it no easy matter to fix upon it for taxation.
It is a first principle under our form of government that taxation upon
property should be equal, whether held by individuals or corporations,
and any process by which any person or class is enabled to escape a just
share of this common obligation ought to receive its proper corrective.
While the returns from some of the banks show a disposition to do a
legitimate banking business, in the way of loans and discounts, etc.,
others, by adopting a different mode of conducting their business, are
enabled to shield their entire active capital from taxation, and conse-
quently pay tax only upon their bonds deposited with the treasurer. Of
the thirty-one banks in operation, only nine of this number make return
of loans, discounts, bills purchased, etc. These are the Alton Bank,
the Bank of Elgin, the Merchants’ and Mechanics’ Bank, Chicago ; the
Commercial Bank, Chicago; the Stock Security Bank, Danville; the
Farmers and Traders’ Bank, Charleston ; the McLean County Bank,
Bloomington ; the Mechanics and Farmers’ Bank, Springfield ; and the
Du Page County Bank, Naperville. These nine banks make return of
something near $200,000, loans, discounts, etc., upon which taxes are
assessed in addition to their deposits of stock with the treasurer, while
the remaining twenty-two make no such return, and consequently pay
taxes upon those deposits only. This shows how unequally the tax bears
as between different banks. Those conducting their business so as to
accommodate the community to the greatest extent, share all the bank- .
taxes except upon the stock deposits alone.
Section 10 of the general banking law, provides 44 that taxes shall be
levied on and paid by the corporation, and not upon the individual stock-
holders.” Taking this provision in connection with the revenue sections
before referred to, and comparing the returns of the banks as exhibited
in table No. 2 with them, and some estimate may be formed of the
amount of bank property which ought not, but entirely escapes tax-
ation. Under the present laws, except in few instances, it is doubtful
if any tax will be hereafter collected from the banks except on the
stocks deposited with the treasurer. It is hardly to be inferred that the
legislature contemplated such a result from the law, and to illustrate the
manner by which such a result is gained in the course of banking opera-
tions, we will take the following as an illustration :
Bank A deposits with the Treasurer of State say $50,000 in stocks,
for which it receives from the auditor $50,000 in circulating notes. These
notes, instead of being used by the bank in its corporate name, according
to the usual forms of banking, such as loans, discounts, purchase of
bills of exchange, etc., are simply taken possession of by the owners of
the bank, and used as private funds in such a way as may seem best
to the holders. Hence the bank in its own name makes no loans or dis-
counts— employs its means in no way which, under the law, would sub-
ject it to taxation. It is plain that, by adopting this course, many of the
most salutary restrictions of the general banking law may be evaded,
and the funds of the banks be used in a way and for a profit not
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108 Banking in Illinois. [August,
permitted in ordinary hanking bu>inoss. It would w^m, in sueh eases,
that the forms for association were borrowed mainly for the purpose
of shielding such a course of business transactions as would not be ju>ti-
fied in the corporate name <»f the bank, or to escape the restraints ot the
revenue or general banking law. The bank, as a corporation, doe* but a
nominal business, while the funds mav be in the bauds of the broker.
The bank neither loans, discounts, nor purchases bills. This i* done by
the broker in his own name, who controls the circulation of the bank.
Banking corporations are protected by law in the right to bsue as
money an exclusive paper circulation, and for the privilege of supplying
the community with an exclusive paper currency, and enjoying the profits
growing out of such a monopoly, they ought to be made to pay their
full proportionate share of taxes. During the course of our examinations
we have endeavored to ascertain the cau^e why so large a number of our
banks refuse to loan or discount in the name of the bank, or show a
liberal spirit in their accommodations toward the citizens of our State
generally. Wliv this unusual restrictive course, so contrary to the usual
modes of banking ? We have been assured by the officers of banks that
it has been forced upon them by the weight of taxation. That the
revenue rate bears *o heavily upon the bank assets that they would not be
justified in pursuing the common course of banking. It lias been said
that to conduct their business so as to embrace loans and discounts, taken
in connection with the bank interests, seven per cent would of necessity
force ail the banks into liquidation, consequently the banks pursue another
course by which they pay tax on their stock deposits only. It is a
somewhat narrow system of banking which knows neither loans nor dis-
counts, and which thus effectually excludes nine tenths of our people
from all chance of bank accommodation*, and thereby res >lve> itself
simply into a successful scheme of brokerage.
There may he some truth in the reasons above given for this departure
from the true functions of banking. The commissioners, however, are led
to believe that they are not the only reasons — that some of the banks
were never organized with a view to loans and discounts, but solely to
promote the business of brokers. We feel assured that the profits arising
out of the business of those banks, which loan and discount, are fair and
adequate after making allowance for the tax they pay upon these forms
of business. 'W itliout doubt, if the tax provision of the law were out of
the way, an immense amount of bonds would be invested for banking
purposes in a very short time, for they could hardly be etnplovcd so pro-
fitably in any other way. The paper circulation might, in thi* wav, also
be immeasurably increased; whether for the interest of the State or not,
would be well worthy of consideration. It is probable that, with a
reduced rate of taxation, some banks which now refuse to loan and dis-
count, would adopt this form of doing business, while we have no reason
to infer this as respects others, which were not put in operation for any
such purpose. We feel satisfied that the law ought to be so amended
that the tax shall hereafter fall upon all banks and bank property alike ;
that the tax ought to be transferred from loans and discounts, etc., and
be placed upon the circulation.
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This will probably be found the only effectual way of compelling tho
bnnk> to pay their proper share of taxes. By taxing the stocks deposited,
and the circulation, and increasing to a certain extent the rate of interest
on loans and di>couuts, some stronger inducement might exist to engage
in the usual banking business, instead of confiuing it to mere brokerage
operations.
Banks mav, for a considerable time previous to return-day, make forced
preparation to meet it by contractions in certain forms of business, and
the adoption of temporary expedients, which may serve to show such
institutions in the most favorable light. The result of this is to show a
fictitious state of affairs, which becomes apparent under any severe cur-
rency derangement. This practice may be obviated by requiring the
returns for the auditor to be made monthly, instead of quarterly, as the
law now requires, and leaving the time of making them, that is the
day of the month when they shad be made out, to the appointment
of the auditor. Being uninformed of the day the auditor might select
for this purpose, the banks could make no antecedent prepaiation. As
these institutions are created for the public and not individuals, sound
policy requires that every safeguard should be used to bind them to the
strict performance of their duties.
The commissioners have carefully inspected the stocks deposited with
the Treasurer of State by the several banking associations, and below
inse rt a correct table of their kind and amounts:
Table showing the aggregate amounts of the several kinds of securities at their
face <J* poMt' d by the different banks, upon which circulating notes have been
funh.'h'-d to them by the auditor of public accounts, all of the said rates having
be*, n regi.-terod in his ollirc :
Virginia State Bonds, at par, $861,500 00
Georgia State Bonds, at par, 80,000 00
AlisMiuri State Bonds, at par, 847,000 00
Ohio State Bonds, at par 5,0o0 00
'Wisconsin State Bonds, at par, lu,0oo 00
Cah.ornia State Bonds, at 80 cents on the dollar, 98,500 00
Kcntuekv State Bonds, at par, 10,000 00
Illinois Liquidation Bonds, at SO cents on the dollar. 12.000 00
Illinois and Michigan ('anal Bonds, at 45 to 50 cents on the dollar.. . 330,216 00
Illinois and Michigan Canal Interest Certiticatcs, at than 2 to 40 cents
on the dollar, 70,306 74
Illinois New internal Bonds, at 50 cents on tin* dollar, 414,737 20
Illinois New Internal Improvement interest Certiticatcs, at 38 to 4S
cents on the dollar, 253.802 93
Tennessee State Bonds, at par, 25,000 00
The foregoing table exhibits the amount and the character of the basis
of our banking circulation. We have no reason to doubt that these
stocks may, at the pr^ent time, be regarded as sufficient security for the
circulation, at least s>» far as stock security can be so considered. It will
be remarked that the general banking law discriminates unfavorably as
regards Illinois stocks. Whatever may have operated at the time of the
pa^s ige of the law to give it sanction, by placing our own stocks in this
equivocal position, it is conceived that there is no good reason, now
existing, why these stocks ought not to be considered more nearly in their
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relation to their market value, as a deposit, than the law permits. We
feel justified in the belief that the auditor of public accounts and the
treasurer have faithfully and judiciously discharged their duties, involving
great responsibility in regard to the deposits and bank circulation.
The circulating notes of our own banks, as yet sustain but a very
limited relation to our entire currency circulation, perhaps not more
than three tenths. This disproportion will, however, gradually diminish
as our domestic issues find their way into the State, from the distant
points where they were originally put into circulation. Of the remote or
foreign paper which makes up the residue of our paper circulation, a
portion rests upon a stock-security basis for its redemption, while a large
proportion rests upon a foundation always liable to suspicion.
We are inclined to believe that the banks have generally observed
what is usually denominated the small-bill law, in their business transac-
tions. The effect of this law, in those localities where it has been
observed, has, without doubt, tended to force small foreign notes from
circulation ; but its observance has not been so general throughout the
State as was expected or at least hoped for. Prior to the passage of the
law, small foreign notes entered into and made up so large a proportion
of the common circulation that it ought not to seem singular that the
withdrawal of so large an amount, even from particular localities, should
leave a demand for the smaller denominations of notes and specie, which
would be attended with considerable embarrassment. Some of the
banks, with a view to meet this demand, have increased the aggregate
issue of small notes, while others have withdrawn those of a larger, and
substituted, therefore, those of a less denomination. Additional bonds
have also, in several instances, been deposited with the treasurer, and
their amount received of the auditor entirely in small bills, with a view
to immediate issue. To increase the embarrassment following the pas-
sage of the law, there existed at the time a want of a fractional circula-
tion of the minor denominations of notes and specie to answer die public
demand. Specie continued gradually, but constantly, to retire from the
common channels of business and trade, and pass beyond our limits.
Among the causes contributing to this state of tilings may be reckoned
the rapid increase of paper of small denominations and the high premium
upon silver coin in the eastern cities. In the present condition of afiairs,
the return of a sufficiency of specie, to insure a healthy state of the cur-
rency, and meet the wants of the public for fractional specie values, may
be placed at an indefinite day hereafter.
Some two or three banks which have very lately gone into operation,
or are just commencing business, have not been examined by us. In the
discharge of our duties the officers of the banks have uniformly afforded
us such facilities as greatly assisted us in our examinations.
Auo. C. French, I
P. Maxwell, > Bank Commissioners .
W. B. Fondby, j
The annexed table presents a condensed statement of the resources and
liabilities of the several banking associations on the 3d of April last :
Original from
UNIVERSITY OF CHICAGO
Statement of the Condition of the Banks of the State of Illinois , on Monday , April 3, 1854.
1854
■J
Banking in Illinois.
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RESOURCES.
Total of public stocks at the rate at which they were received by
the auditor V", • $2,475,741 62
Amount paid for stocks over the value at which they were
received by the auditor, 196,162 13
Real estate, 31,168 22
'Notes of other banks on hand, 385 339 45
Amount of debts owing to the Association, other than loans and
discounts, 1,368,203 68
Specie on hand, 665,162 04
Loans and discounts, 316 841 76
Deposited with other banks, 878 612 68
Expense account, ’ 24^874 97
Checks, drafts, and other cash items, 63,892 41
Total resources, 6,305,978 86
LIABILITIES.
Capital stock paid in and invested according to law, 2,513,790 17
Amount of debts owing by the Association, other than for deposits, 294,034 60
Amount due to depositors, 1,286 102 25
Notes or bills in circulation, 2,283,526 00
Profit and loss account, 1 71, 787 00
Total liabilities, 6,449,239 92
THE BANK OF EXCHANGE.
For a long time we have been desirous to see established in the city
of New-York, under the general banking law, an institution to be denomi-
nated The Bank of Exchange , whose exclusive business should be the
purchase and sale of bullion, and exchange between all the principal
cities of the United States^ and between London and Paris and New-
York, and not a bank of discount and deposit , to interfere with existing
institutions, or in any way to expand the currency of the United States,
already too large, but one which should form a conduit through which
commercial exchanges might freely pass, which should be perfectly reliable
and which should also be able to furnish capital at the various points,
required by the growth and manufacture, and aid the movement to and
fro of products and commodities between the producers and consumers as
seasons and circumstances should require. An institution which should
combine all the important and necessary functions of a national bank
without the objectionable features of our former institutions; and especi-
ally to enable the banks of our country, by combined action, to control
and direct the exchanges between the various sections of the United
States, and especially betwhen the United States and Europe. Occupy-
ing, however, no position which would enable us to present the subject
vith any probability of success to the parties by whom such an institu-
tion should be constructed, we take the liberty to present it to the public
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through your journal ; should it attract attention in the right quarters,
and result in the establishment of the proposed or a similar institution,
we shall be amply compensated.
Sir James Stuart in his excellent treatise on political economy, which,
though written nearly a century since, is unsurpassed by any modern
work on the subject of money and exchange, illustrates* the importance
of the bank of a country retaining the control of the foreign exchanges,
and impresses it upon his readers as essential to the proper administration
of national finances, as follows:
44 No sooner does a nation incur a balance against itself, than
exchangers set themselves to work to make fortunes by conducting the
operations of paying it They appear then in the light of political
usurers to a spendthrift heir who has no guardian. The guardian should
be the bank, who upon such an occasion ought to interfere between the
nation and the foreign creditors. This it may do by constituting itself
at once debtor for the whole balance, and by taking foreign exchange
into its hands.
44 When a national bank neglects so necessary a precaution, the whole
class of exchangers become united by a common interest against it, and
the country is torn to pieces by the fruitless attempts to support itself
without the help of the only expedient which can relievo it. Exchange
must rise, no doubt, in proportion as the grand balance is great or diffi-
cult to be paid. But where does the blame lie ? — who ought to provide
the coins or the bills for paying this grand balance ! Have we not shown
that it is the bank alone who ought to provide coin for the ready
answering of their notes? Have we not said that the method of doing
this is by sacrificing a part of the interest due upon the obligations in
their hands, secured upon the solid property of the country, and by
means of foreign loans upon that fund to procure either the metals them-
selves, or a power to draw on those places where the nation’s creditors
reside ?” To originate an institution competent to the discharge of this
duty, and to combine the action of the banks of the United States to
whom the duty belongs, is the object we propose to the public.
The capital which we would deem necessary for such an institution
would be ten millions of dollars , with the privilege to increase it to
twenty millions. One million to be subscribed by individuals in New-
York. Four millions to be subscribed by banks in the various cities of
the United States, each appropriating a portion of its surplus to that
object — the amount to bo judiciously distributed. Three millions to bo
subscribed in London, and two millions in Paris. The arrangements to
be made in the two latter cities, either with the banks of England and
Franco, or, if preferred, with a joint-stock bank, or a private banker whose
wealth and position would justify the selection, and who would become
naturally the correspondent and manager of the affairs of the institution
in their respective localities. «
The results of such an institution would be, that every bank in the
United States which became interested, would have a fixed and perma-
nent capital in New-York, upon which it could at all times draw, and to
which the Bank of Exchange could at all times respond, to the amount
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invested ; which would be earning interest for its owner, by the general
profits of the Bank of Exchange, and not like their present deposits
earning interest for others. The capital subscribed in Europe would
also be appropriated as the basis of exchange, on both London and Paris,
to be drawn and for sale at all times at fixed rates by the Bank of
Exchange, which would also be ready to purchase exchange at all times
on both these points at fixed rates. The banks in the United States who
were stockholders, would be the agents of the Bank of Exchange for the
purchase of exchange on London and Paris and on New-York, the result
of commercial operations at their various localities, and thus a perfectly
safe, constant, and free financial intercourse would be established between
all the great commercial centres of the world, and the resulting profits of
exchange, together with the interests accruing upon the fixed capital neces-
sary to their exchanges, which would be invested in public stocks, and the
profits arising from the purchase and transfer of the gold necessary to
complete the final balance, as well as the transfer of gold from our own
mines to the markets where it could be most profitably disposed of^ the
Bank of Exchange reserving to itself the cost of insurance and brokerage,
would furnish the necessary dividends upon its capital to justify the
enterprise of its establishment.
As exchange is to be the principal source of profit to our institution,
let us ascertain precisely what exchange is and see how it is a proper
source of profit. In the present arrangement of commercial transactions,
gold is the fixed and certain index of value, and is in one position identi-
cal to itself in all others, not subject to the changes which attach to all
other commodities. An ounce of fine gold, without regard to its deno-
mination, at all points over which commercial exchanges extend, may
therefore be assumed to be the certain unit of value, and all action based
upon that unit will result in strict accordance with the theory of such fixed
index, involving none of the ordinary risks of commerce arising out of
fluctuations of value.
Exchange arises out of the movements of commerce — A, of New-York,
has gold in London, the result of commodities sold in Qreat Britain,
which he wishes to have in New-York, — B has gold in New-York which
he wishes to appropriate to the purchase of commodities in Eogland ;
the parcels are eqvivalent in their character and their quantities known.
With out the intervention of exchange, both parties would be subject to
the cost, risk, and delay of transferring the two parcels to the localities
desired by their owners; exchange is therefore the equivalent of value in
the service rendered, and consequently a legitimate source of income.
As the amount of commercial transactions must necessarily nearly
balance each other and thus render an actual transfer unnecessary, the
Bank of Exchange would become the market of exchange for its pur-
chase and sale, the perfectly responsible agent of the commercial public
for the transfer of gold from one party to the other, and as the final
balance would be but a minute portion of the aggregate sura, the charge
for each, though small, would realize a large amount, while the cost of
the transfer of the small fioal balance would be the only actual expend-
iture involved except that of administration. The large capital enjoyed
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and required to give perfect responsibility to every transaction and secure
the business to the Bank of Exchange, would, except the amount neces-
sary to its daily transactions, be permanently invested and earning
interest upon its amount ; profit would therefore accrue to the Bank of
Exchange from the use of credit in effecting the purchase and sale of
exchange precisely as it arises to ordinary banks of discount and deposit
by the use of credit in effecting the purchase and sale of commodities;
the difference being, that while in the one case the credit transfers capital
from one position to another, in the other it furnishes a medium which,
being universally accepted, is equivalent to capital in the payment of
debts.
The advantage which we anticipate to accrue to the public from the
establishment of the Bank of Exchange is obvious. The combining of
thed>anks of the United States, the more numerous the interested banks
the better in arranging the domestic exchanges of the country into a
system of the most perfect freedom at the lowest remunerating prices, so
that there may be at all times perfect facility in transferring funds from
one portion of the country to another, without the cost and delay of
moving metal except for the small amount of the final balance. Owing
to the variety of our national products which are ready for market at
various seasons of the year, there is often accumulating in one section of
3xe country a large amount of produce destined for consumption or
manufacture, or for the market of Europe, while the funds necessary for
its purchase and transmission are at another. The action of individuals
or banks to accomplish this transfer are necessarily weak, or they may
operate to retard it. In the case of banks, the withdrawal of their funds
from the ordinary position of their investment occasions disturbance to
local interests creating a stringency in their money markets at the
moment when the largest amount of local facilities are required ; in the
case of individuals the leading object is private profit, which is incom-
patible with a liberal supply of the public want ; the natural consequence
of this is increased cost and difficulty in accomplishing the necessary
commercial movements, and occasioning alternate plethora and exhaus-
tion, and preventing that fr'ee action in the system which is necessary to
health. An institution with perfect credit and ample means would be
able to obviate these difficulties, and able to move the cotton, rice,
tobacco, flour, corn, and wool from the points of production to those of
consumption or export ; to appropriate the funds resulting from their
sale to the liquidation of the obligations created for the supply of domes-
tic and foreign products required to meet the wants of the South and
West. This would all be done without the organization of any complex
or additional machinery ; the local banks, being interested in the central
institution, whose capital was largely derived from them, and whose
profits would accrue to them in the form of dividends upon the stock held
by them, wonkl naturally be its efficient agents in accomplishing this
object, and without themselves being subjected to additional labor, the
concert of action it would produce must greatly promote their comfort
and profit.
At present this immense interest is in the hands of parties who cannot
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' The Bank of Exchange.
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be expected to act either for the interest of the public, or for l^iat^pf the
local banks, but exclusively for their own ; their sole object belng^thefr
individual profit.
Much, we are aware, is now done by the banks in the large cities in
relation to the foreign exchanges ; but the amount is trivial when com-
! >ared with' the grand total. They are exposed to the attacks of the
oreign balance and must necessarily be governed by its influence, and
their action is felt throughout the whole extent of the banks of the
United States; this is the law of their life, which can never be evaded.
Under the influence of the foreign balance their action is accelerated or
retarded, and becomes like that of a complex and powerful machine
destitute of a balance-wheel or regulator, and is subject to influences the
occurrence and forces of which they are unable to anticipate or control.
They are occupied with their proper business as banks of discount and
deposit for their local commerce, and cannot rapidly change their ope-
rations to correspond with the condition of foreign exchange without
serious inconvenience to all those on whose business they depend.
There is not such combined action among them, with reference to the
foreign exchanges, as would enable them to accomplish the object intend-
ed; they occupy different localities, whose interests are more or less
antagonistic, and no one institution among them has the necessary
capital, were it all appropriated to that object for its accomplishment; - *
there is, therefore, no hope from that quarter that the want may be met.
These difficulties the Bank of Exchange would meet perfectly. With
a board of directors and officers adequate to the task of its management,
whose study it would be to comprehend and arrange the foreign
exchange of the nation ; with ten or twenty millions of capital ready at
all times to buy and Bell exchange, both domestic and foreign ; able, from
their intimate connection with it, to comprehend the real condition of
commercial operations, and able also to govern its action, and give timely
warning to all interested — an ample defence to all our local banking
institutions against the foreign balance, that terror of those in the com-
mercial cities, and through them the proper terror of all others, it would
prove of inestimable value to all departments of national interest ; it
would save to the public a vast amount of wealth now abstracted by
many who have no interest in American affairs, not only by the nego-
tiation of domestic or foreign exchange on equitable terms, but by the
purchase and sale of gold , which has now become a leading article in our
exports, the amount of which will probably increase for many years,
securing to the nation its true value.
The nucleus out of which the whole institution would naturally grow,
if our views are correct and our plan a feasible one, is simply one million
of dollars, the subscription of which might be made dependent upon the
concurrence of the banks of the country, and the attainment of the Euro
pean capital, which latter, however, is not essential to the plan. That
amount a few individuals of the proper description might obtain in a few
hours, and an incipient organization bo arranged to demonstrate its
practicability and popularity, and we cannot but bone to see the sug-
g* stion accepted, and the plan adopted by the capitalists and merchants
. of New-York, which is its proper locality. Pab.
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New Railroads in the West .
[August,
NEW RAILROADS IN THE WEST.
I. New Line from the Ohio to St. Louie. II. Lateral Roads in
Indiana. III. Agricultural Products of the West.
The East and the West are becoming rapidly bound together by iron
bands that will secure, in perpetuity, means of ready transportation for
the products of each Bection of the country. The States of Ohio, Indiana,
and Illinois are now among the most zealous in urging to completion an
extensive system of railroad communication between the Mississippi and
the Atlantic. Columbus, Indianapolis, and Chicago are now vast centres
for the development of the resources and the trade of those States, and
will abo contribute to the same end for the adjoining States of Missouri,
Kentucky, and Virginia.
An important link in this great system of railroads was completed last
week. On Thursday, June 29, the Ohio and Mississippi Railroad for a
distance of eighty-seven miles westwardly from Cincinnati, was opened
for travel. This event was celebrated by appropriate ceremonies on the
part of the citizens and the public authorities of Cincinnati, Louisville,
Indianapolis, Madison, and other places. A large number of invited
guests left the Ohio and Mississippi Railroad depot, at the west end of
Cincinnati on Thursday, at 7 o’clock A.M., and proceeded to Seymour,
Indiana, a distance of 87 miles, nearly due west from Cincinnati and
intermediate points. They were met by delegations from the city coun-
cils and merchants of Louisville, etc., for all of whom a collation was pro-
vided at Seymour. At 2 P.M., the train started on its return to Cin-
cinnati, with several hundred invited guests. Soon after their return,
they partook of a dinner liberally provided for them by order of the
city councils and merchants of Cincinnati, at the Burnet House in that
city.
If this road were not extended any further west than its present tem-
porary terminus at Seymour, it would become in itself an important route
for travel between Western Kentucky and Southern Indiana. At Sey-
mour the road is crossed at right angles by the Jefferson and Columbus
Indiana Railroad. Jeffersonville (opposite Louisville) is about 50 miles
due south from Seymour, thus making the whole distance from Cincin-
nati to Louisville 137 miles, a distance easily travelled by the cars in five
hours. At Lawrenceburiih, on the Ohio, 20 miles from Cincinnati, the
Ohio and Mississippi Railroad connects with the Cincinnati and Indian-
apolis, a distance of 90 miles; or 110 miles from Cincinnati.
That portion of the Ohio and Mississippi Railroad extending from
Cincinnati to the Jeffersonville Railroad, and whose completion is now
celebrated, may be viewed as a trunk-line for several avenues, leading
respectively to Louisville and Madison on one hand, and to Indianapolis
and the Upper Wabash on the other.
The several distances to these places are as follows :
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New Railroads in the West.
119
DUtanto. Time.
Cincinnati to Louisville, 131 miles, 5 hours,
“ “ Madison, 80 “ 3 “
“ “ Indianapolis, 113 “ 4 “
•' “ Terre Haute, 183 “ 6 “
By comparing these distances with any other routes, by railway or
river, which are practicable, it appears that as a Louisville or Madison
route, the Ohio and Mississippi Railroad will stand alone, having little or
no competition ; that to Indianapolis it is equally direct as that of the
Central Railroad, and to Terre Haute the same.
This makes a journey to and a return from any one of these places, by
this route, practicable in a single day. It will be quite possible to go by
an early express train to Louisville, accomplish a day’s business, and
return in ample time for a night’s rest! Such facts as these increase
many fold the number of passengers on railways, and make that increase
alone an ample source of profit.
On the western portion of the Ohio and Mississippi Railroad, ground
was first broken on the 7th February, 1852, at Illinois Town, opposite
St. Louis, by Messrs. H. C. Seymour <fe Co., the then contractors. Forty
miles of the western portion were opened for travel in April, 1854. This
added to the 87 miles on the eastern portion, makes 127 miles actually
in operation out of the whole distance between St. Louis and Cincinnati,
335 miles. Seventy-five miles from St Louis the new road intersects
the Illinois Central Railroad. One hundred and forty-five miles from
St Louis it crosses the Wabash river at Vincennes, and also the Evans-
ville and Terre Haute Railroad. Twelve miles eastwardly it will inter-
sect the Wabash and Erie Canal. Forty miles from Vincennes it will
cross the White river. Seventy-five miles west from Cincinnati it will
intersect the Madison and Indianapolis Railroad.
The counties through which the Ohio and Mississippi Railroad is located,
are as follows : In Ohio, Hamilton county. In Indiana, Dearborn, Rip-
ley, Jennings, Jackson, Lawrence, Martin, Davies, and Knox. In Illi-
nois, Lawrence, Clay, Marion, Clinton, and St. Clair counties; the latter
county bordering on the Mississippi river.
The Ohio and Mississippi Railroad unites the great cities of Cincinnati
in Ohio and St Louis in Missouri by a short, direct, and admirable route,
with moderate grades, slight curves, and peculiar adaptation to high
velocities.
Commencing at Cincinnati, it will be seen thaj the road, by its various
connections and intersections, furnishes direct communication with India-
napolis and all Northern Indiana by two short and expeditious routes ;
also with Madison, and with Louisville and New- Albany ; with Evans-
ville and Northern Kentucky, and with Terre Haute and the upper
Wabash ; Northern and Southern Illinois, and with the mouth of the
Ohio river.
A report of Mr. Mitchell, the former consulting engineer of the com-
pany, says :
“ The route passes through a few miles of the State of Ohio, across the
States of Indiana and Illinois, joining by iron bonds four of the most
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populous, rich, and productive States iu the Union. It passes through a
district of wonderful susceptibility, over rich alluvial lands, rolling prairies,
and heavily timbered forests. It lies near to the Ohio river, so near as
to preclude for ever the possibility of any competition, and thus secures to
itself the advantages arising from intersecting all the natural and artificial
channels of communication with this great river at points not remote
from their termination. It crosses many railroads, several navigable
rivers, two canals, all of which must become tributary to its wealth. It
commands the travel of that vast region embraced by the mighty arms
of the lower Mississippi and the interminable Missouri on its western ter-
minus ; while at the East ail the great lines extending to the eastern
seaboard concentrate at its terminus, at a great focal point.”
Travellers from the Southern States bordering on the Mississippi, will
soon have a speedy communication with the Eastern cities, via the Illi-
nois Central (from Cairo) and the Ohio and Mississippi Railroad, and
Cincinnati. In connection with this subject we annex
A table of Lateral Railways which intersect the Ohio and Mississippi, Railroad, and
will contribute passengers to the Central Lino between Cincinnati and St. Louis.
Lints of Rodd.
Illinois Cent k Ohio<fc Mobile R R......
Evansville, Vincenses, k Terre Haute
&
New- Albany, Salem, k Mich. R. R.,
Madison k Indianapolis R. It,
Jefiersonvillo R. R,
Lawrenceburgh k Indianapolis R R,. .
Covington A; Lexing. k Danville R R...
Cincinnati, Dayton, Troy, k Toledo R It,
Cincinnati k Sandusky R R,
Cincinnati k Cleveland R R,
Ten Lines,
Length.
iMiles.
Su rfice
l>rain ed.
Miles.
Papula-
Hon
1,187
55,610
594,300
107
3,030
90,300
272
8,160
244,800
90
2,700
80, 000
70
2,100
63,000
90*
2,722*
81,675
130
3,900
105,300
245
7,350
367,500
132
3,960
198,000
254
7,620
380,000
2,577$
97,102$
2,205,875
Some idea may be formed of the vast supplies of farming products for
which the East is indebted to the West by the annexed table of the
principal agricultural products of the States of Ohio, Indiana, Illinois, and
Missouri, for 1852 :
Articles. Ohio. Indiana . Illinois. Missouri. Total.
Corn, busb., 59,788.750 52,8*7,564 57,177 293 85,709,049 205,599,639
Wheat," 30,000,000 8,200,000 10,366 000 3,283,000 51,799 000
Cattle, No., 1,116145 009,000 678,000 510,000 2.948,146
Hogs, “ 1,436,648 822,000 863,000 722,000 8,664,643
Butter, lbs., 84,190, <53 12,748,186 12,605 654 7,702,164 67,2112,822
Cheese, “ 21,350,178 686,986 1,283,753 201,597 28,522,839
Tobac, “ 10,480,967 1,035,146 844,129 17,038 864 29,898,626
B««ds,bab., 185,598 35 598 13,439 2,182 237,022
The Ohio and Mississippi Railroad, when completed, will be about 335
miles in length, and is under contract to responsible parties for its entire
completion during the year 1855. The contract price is, in round num-
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Western Railroad Shorts.
121
ben, nine millions of dollars; which includes grading, bridges, four
d6p6ts, two machine-shops, 30 locomotive-engines, 30 passenger-cars,
304 freight-cars, 22 water-stations, and 22 sidings of 1000 feet each.
Other expenditures, including the right of way, will perhaps increase the
aggregate outlay to ten and a half millions of dollars.
The railroad interests of this country have for some months past
drawn largely upon the capital and the resources of the East. Too much
has been undertaken ; but while some few other railroad enterprises have
been compelled to suspend their operations, temporarily only we hope,
we are glad to say that the parties having the Ohio and Mississippi Rail-
road in charge are fully prepared to carry this great work on to speedy
completion.
The company have selected the broad gauge for their road, namely,
six feet. The cars are constructed upon the most approved plan, being
somewhat broader than those of the New-York and Erie Road, and the
seats about three or four inches longer. We have travelled on many of
the best railroads now in operation in this country, but the Ohio and
Mississippi Railroad, thus far, and its appurtenances, especially the pas-
senger cars, promise to exceed all for the comfort of those who travel
upon it
WESTERN RAILROAD SHARES.
I. Art they Good Investments t
Ths large amount of New-York capital invested in western railroads,
may warrant our asking attention to a short series of papers on this form
of investment, together with references to certain leading enterprises by
way of illustration. A recent tour of observation has impressed on our
mind the fact that the true policy of eastern capitalists requires a greater
concentration of investments upon the comparatively few roads which
occupy such firm natural positions, and possess such long natural con-
nections, as must give them the advantage over rivals, and make them
the favored lines of travel. Such roads directly connecting the great
centres of western trade, uniting by favorable lines the salient points of
lake and river, running through valleys of great extent and fertility, or
through extensive mineral districts to a market — these natural trunk-
lines of inter-communication, if wisely administered, cannot fail of doing,
in the long run, as profitable business, to say the least, as other branches
of trade may be expected to do. More especially may this result be
anticipated from those roads having au east and west direction. But the
multitude of roads collateral to the former, the side branches, the lines
with short or indirect connections, or even the long ones ending at points
not of commanding importance, the works constructed to subserve mainlv
local or personal purposes, these all must be set down in a class which
the New-York capitalist, far away from the scene of operation, and there-
fore more or less incompetent to form an estimate of the local advantages
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Western Railroad Shares .
[August,
or disadvantages, can touch only at his peril. In the same category
must be also set all the new projects designed to act as rivals of the
strongly-placed roads already in successful operation. So great indeed is
the mania for road-building at the West, that it is not unfYequently the
case that when a road has once succeeded in occupying a fortunate line
of location, and is attracting to itself a great affluence of business, the
heads of a sufficient number of ardent western men will be turned
to enable them to get up a counter project. Then they hurry on to
New- York with their prospectus. They can build a road half a dozen
miles shorter, with grades a few feet lower, with curves a fraction or two
easier, and so on to the end of their catalogue of betterments. They can
do all this, and more, only give them the money . Now the sooner that
we learn to say No to all this class of schemers, the better will it be for
our general investment. If our western friends be so 44 go-ahead” that
they must build two roads where only one ought to be, or one road where
none ought to be, let them be allowed to shoulder the responsibility and
the bills themselves. For our part, we are opposed from interest and
upon principle to contributing our funds to their rival roads, or their tap-
roads, or their cross-roads, or their local roads. If these be good enter-
prises, we prefer that they who are on the spot, and can appreciate the
minor local advantages, should enjoy the undivided benefit of them.
Instead, therefore, of going on to build additional roads, it is time we
looked closer after those we have already, and devoted our surplus means
to finishing and sustaining them. In Europe the method of road-
building has been to complete the works before opening them to travel ;
here it has been to open them before completing them. They have
begun with two tracks — we with one. They have begun operating their
road when nothing remained but to keep them in order. We have com-
menced working our single tracks before we have even finished ballasting
them; with imperfect depot accommodations; with insufficient rolling
apparatus ; with an adequate supply, in fact, of scarcely any thing save
bonds and mortgages. We do not say that, for a new country, we have
not pursued the wisest course of the two. Still, such a commencement
makes a long ending. With half-built roads at the outset, the remaining
half has, of course, to be built afterward. lienee the urgency of expend-
ing our resources only in completing the works we have in hand. We
are now called upon to unite onr efforts in supplying our great leading
highways with double tracks, well laid down, with ample station accom-
modations, with adequate rolling-power ; in short, with whatever goes to
make up a complete first-class railroad, second to none in England or on
the continent. Then only the business of the public can be done to the
best advantage. Then we can run fast trains ; and then we can take our
seats in a rail way- carriage without fear of life or limb. Such are the
roads the country demands, and will not rest satisfied until it gets.
We believe that the managers and owners of our greatest public works
of this sort are ready to set up this high standard ; and that in so doing
they will find themselves eventually sustained by the public. America
has always boasted of her navigable rivers, and why should she not also
take a pride in her great highways of iron ? Napoleon, and all the
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Cleveland and Toledo Railroad.
123
famous kings of modern Europe, have been builders of roads. All the
great conquering nations have ever favored the policy of constructing
highways and bridges. They called these works roads of empire. Nor
• are ours, though not made in the interest of war and conquest, any less
roads of empire. If they are not constructed for the transport of troops
and the engines of destruction, they carry from one end of the land to
the other the blessings of peace. They take up the emigrant arrived
from the lands of despotism or of famine, and bear him rejoicing to a
home in the free north-west — a happy home whence he looks out hope-
fully to the east, until he sees the last of his kith and kin brought by th<
same fortunate wheels to the same place of refuge. In republican Rome,
the priests and high officers of state, who were exempted from all other*
imposts, were subject to the road tax. The consuls were road commis-
sioners. The Senate and people of Rome counted not the cost of their
magnificent via*. What one generation of men left unaccomplished, was
taken up by that which came after. Thus was laid and perpetuated
the Roman dominion. That of America is advancing no less rapidly
over the western world of prairies. It consists in subduing the unresist-
ing surface of the earth. Its warehariots are railroad cars. Thus the
building of roads is more American than the making of campaigns ;
and if a choice were to be given between expending the waste energies
of the nation upon a Cuban war or a Pacific railroad, we should deem
it more patriotic to prefer the latter.
II. The Cleveland and Toledo Railroad.
In our survey of western railroads, in which eastern capitalists are
more particularly interested, we commence with those lying on the
Hew- York parallel and axis of trade. The first of these is the Cleve-
land and Toledo Railroad, the position of which will ultimately make it
second to none in the country.- On any correctly drawn-up map one
will see that between the two points of Cleveland and Toledo, Lake Erie
trends or bellies to the south, so as necessarily to compel travellers coming
from the north-east or north-west to hug the shore between these cities.
Hence a strong tide of business must constantly set along this bend of
the Lake, and render this shore-road one of the greatest channels or
sluice-ways of travel in the States. Since its opening its through-passen-
ger business has constantly kept ahead of the highest estimates ; several
causes must soon operate still greatly to enhance it. In the first place,
when the Northern division shall be opened through Sandusky to Toledo,
as well as the Goshen branch of the Michigan Southern Railroad, the
running time from Cleveland to Chicago will be reduced to ten hours.
This will leave all East and West competition far behind ; and will make
an era in the railroad travelling of this country. A second cause of
increase is to be found in the building of the Wabash Valley Railroad.
Of this, 120 miles from Toledo will be opened this year, and in the next
the whole route through to St Louis. Of the business which will be
brought to the Cleveland and Toledo Railroad bv this affluent, which is
to run through the already populous valley of the Wabash, beside the
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Western Railroad Shares.
[August,
longest artificial water-course in the country, and which constitutes with
its connections to St. Louis and Hannibal a chain of roads upward of
one thousand miles in length, it might look too much like exaggeratioa
to predict the extent A third cause of augmented through-business lies
' ■ in the building of the Mahoning road, sixty miles of which will be finished
this autumn, and the rest next season. This, with its connections, will
lead from Cleveland to New-York by a route considerably shorter than
any now existing, beside having direct communications with Philadel-
phia and Baltimore. The desideratum of one unbroken gauge between
the Mississippi and the Atlantic being then realized, a sight will be seen
on the shores of New-York bay, which will outdo the shows of the
Crystal Palace ; and that will be a train of cars belonging to the Rock-
Island Railroad. In the centre of this magnifioent line of roads, uninter-
rupted by a single ferry, and controlled by an entire harmony of inter-
ests, will lie the Cleveland and Toledo Railroad ; and probably no person
has now any adequate idea of the business which will then be done
on it.
All the through-business of this road, as we are informed by its intelli-
gent superintendent, is clear profit ; the local business already defraying
all expenses. And this latter, too, must go on steadily increasing. Cleve-
land, Sandusky, and Toledo are becoming great marts of inland trade
and commerce ; while the magnificent forests and rich black loam lands
of the intervening country must yield a rapidly augmenting trade in
lumber and agricultural produce.
The position of the road, moreover, secures it remarkably against
rivalry. Being a double road, there is no room left for a third. It can
have no tap-roads ; while its connection at its termini may be compared
to two funnels, opening wide to receive whatever business may come
from between the line of the lake-shore to Buffalo, down to one running
from Cleveland to Wheeling on the East ; and on the West, whatever
may be drawn from the vast regions stretching away from the valley of
the Wabash up as high as Southern Michigan and the city of Detroit.
The lake is much more a bulwark than a rival. During nearly one half
the year both persons and merchandise are excluded from it; and during
the other half, the lighter kinds of freight go more and more by rail,
which in the rates of transportation and insurance by water, finds a suffi-
cient compensation. All the passenger-steamers on Lake Erie are run
at a loss ; and we learn from good authority that of the through travel
brought East over the Michigan Southern Railroad, only about one tenth
continues on from Toledo by water. Nor is the Canada route a for-
midable rival of the south shore roads. For, during the months which
have elapsed since the opening of the former, the receipts of the Cleve-
land and Toledo Railroad have doubled ; and one would not know from
them that there was any such road as the Canada in existence.
III. The Michigan Southern Railroad.
This road is a public work which was commenced by a far-seeing
sagacity, carried forward in spite of obstacles, and has been crowned with
triumphant success. It may, therefore, be pointed to as a model American
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Michigan Southern Railroad.
125
enterprise ; and we wish that our means expended on western railroads
could always be as judiciously placed as in this instance. For here is a
line from lake-head to lake-head as plainly indicated by nature for a
•Treat thoroughfare as if a river ran where now runs the rail. It is a
bridge across the land to unite two great inland seas at points destined
to be their chief marts of trade. It is also the natural highway of that
rapidly augmenting volume of travel which is to come and go between
the regions situated east and north-east of the southern projection of
Lake Erie, even to the seaboard on the one side ; and on the other, the
prairie realms which stretch west and north-west of the southern extremity
of Lake Michigan to the Mississippi river and the Rocky Mountains. The
great north-east and north-west travel of the American States will
naturally go round the southern bend of these two lakes. This is, more-
over, the New-York axis of trade across the continent; running through
Cleveland, Toledo, Chicago, Rock-Island, and Council Bluffs ; and from
the point where it leaves the Alleghany range to that where it strikes
tiie South Pass of the Rocky Mountains, not deviating so much as thirty
miles from an air line.
The western key of this line of road is the city of Chicago, the popu-
lation of which is now about 70,000. Less than a quarter of a century
ago it was a wigwam, and in less than a quarter of a century hence
it will be as large as is now New-York. Toledo, also, at the other
end of the road, occupies a position with reference to Lake Erie'analogous
to that of Chicago on Lake Michigan, being the natural point of centra-
lization and distribution for the vast extent of country lying west and
south-west; and it may therefore look forward to a similar prosperity.
As to the intervening country, we must say that we saw no such length
and breadth of cultivated land on any western road as on this. Except-
ing the region of the downs on the shore of Lake Michigan, the whole
di-lance is a succession of magnificent timber-lands, and richly growing
grain-fields. Large granaries have been constructed at all the stations,
which send to market an annually increasing agricultural surplus. We
counted along the line of the road, upward of twenty flourishing towns;
and as several of them were county towns, the intermediate travel must
necessarily be large. The great movement on the road, however, is that
of through-passengers ; the number of whom from month to month,
increases beyond all anticipations. And next season, the speed with
which the new Goshen branch will be run in connection with the north-
ern division of the Cleveland and Toledo Railroad will render this still
more the favored route of east and west travel ; for then the distance
Wtween Chicago and Cleveland will be reduced to ten hours. Six
degrees of longitude will be crossed in an easy day’s ride. The Mahon-
ir ff road being also then opened with its connections through to New-
York, the traveller will pass, on one unbroken gauge and possibly with-
out even exchange of cars, the magnificent distance between the Missis-
sippi at Rock-Island and the Atlantic at New-York in thirty houre. The
capabilities of transit on this parallel of latitude will then be completely
developed ; and the value of the investment of New-York capital in the
Michigan Southern Railroad and the Northern Indiana Railroad will then
first be fully realized.
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Western Railroad Shares.
[August:
IV. Chicago and Rock-Island Railroad .
This road has recently given a large number of eastern capitalists an
opportunity of seeing it, with its magnificent river and prairie connec-
tions, on the occasion of its opening celebration. It forms the western
section of the great south shore line of road from New-York to the Mis-
sissippi river ; of which the Michigan Southern and the Cleveland and To-
ledo railroads are the central ones. It is the last completed part of the due
east and west high road from the commercial centre of the country on the
Atlantic to its future agricultural centre on the prairies. It lies on the main
route of trade and travel from the eastern seaboard and the western lakes
not only to the farming lands of Illinois and Iowa, but also to the emi-
grant tracks which run through Council Bluffs to Nebraska, and by way
of the South Pass to California, Oregon, and the north-western territories.
It is, therefore, located on the longest, the most direct, and by far the most
important east and west line of railway communication in the country ;
and one which must be gradually extended across the remaining half of
the continent to the gold shores of the Pacific.
The road has been run from the lake, at Chicago, to the Mississippi at
Rock-Island, opposite the town of Davenport, because that is the only
point west of Chicago where the river can be bridged advantageously.
There a bridge so constructed as not at all to interfere with navigation,
will connect the road with one now being built to Iowa City, the capital
of the Suite of Iowa, and which will soon be extended to the Missouri
river at Council Bluffs. At Davenport and Rock-Island the road has a
very large steamboat connection; on the one hand, vrith the river-towns
down to St. Louis, and on the other, with those of the upper Mississippi
to St Paul. At Lasalle, midway on the line, and the head of navigation
on the Illinois river, it has still another very important steamboat con-
nection with Peoria, and the well-settled banks of the river down to
Alton, as well as beyond to St. Louis and New-Orleans. All these river
routes will ultimately be supplied with railroads, making the connections
both at Lasalle and Rock-Island still more important.
From Cnicago to the point where the road leaves the valley of the
Illinois beyond Lasalle, it passes through a dozen or more rapidly grow-
ing towns and villages; and along its whole course, through undulating
prairies, already well occupied by farmers, and which in a very few years,
will become one of the richest grain and cattle districts in this or any
other country. A great lumber trade must immediately spring up, both
from the lake and river, for the supply of the towns and country on the
line of the road ; and a no less important coal trade from the extensive
and very valuable mines in the vicinity of Sheffield. The amount of
merchandise offered for transportation, even before the road was opened
to the river, was so great as to excel the capabilities of the machinery
provided for it; and the whole business has so far surpassed expectation
that five daily trains are already run out of Chicago, and one through
passenger-train beyood what was originally supposed would be necessary
during the first year after the opening.
The road has been delivered to the company by the builders a year
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1854.]
Public Debt of the United States.
127
and a half in advance of the time allowed them by contract. It is
thoroughly well built and equipped ; and we feel entirely confident that
the fertile regions it traverses, the vast extent of navigable lake and river
waters it connects, and the 1200 miles of due east and west rail of which
it forms a link on this side of the Mississippi, together with the 300 to
which it will soon be joined on the other, will cause it speedily to take
rank with those few western roads whose success has outrun the antici-
pations of the most sanguine. — R. R. Observer. m
PUBLIC DEBT OF THE UNITED STATES.
The following is a very copious exhibit of the public debt of the United States,
showing the periods of its redemption, and its condition, including interest payable
to July l, 1854. The whole amount redeemed since the creation of the several
stocks is $*28,31 1,290.96. Of this amount the proportion redeemed since March 3,
1853, reaches the large sum of $21,948,931.22.
Treasury Department, Register’s Office, July 1, 1854.
Sir : I have the honor to submit herewith a statement showing the
amount of interest upon United States stock, of the loans of 1842, 184(5,
1847, and 1848, and Texan indemnity bonds ; also, where and by whom
payable on the 1st July, 1854 ; the amount separately of each; trans-
ferable stock, and coupon bonds ; the old funded and unfunded debt ;
treasury notes ; and debt of the corporate cities of the District of Colum-
bia— outstanding this day.
The usual schedules of dividends have been forwarded to the govern-
ment pay agents at New-Orleans, Charleston, Soutb-Carolina, Washing-
ton, District of Columbia, Baltimore, Philadelphia, New-York, and
Boston.
At the date of my last letter referring to this subject, (January 1,
1854,) it was estimated that stock of the United States was held by
foreigners to the amount of twenty-four million dollars. ($24,000,000.)
This amount has been reduced by redemption and transfers to twenty
million dollars , ($20,000,000;) requiring, however, the payment of
$1,200,000 interest annually. ♦
Transferable stock held abroad, (as per books,). . . . $14,315,437
Coupon Bonds, held abroad, (estimated,) 5,024,503
$20,000,000
On the 1st day of January. 185*1, the amount of
tho public debt outstanding was, $54,398,757 52
Amount redeemed since, of the loans of 1842, 1843,
1846, 1847, 1818, and Texan indemnity $7,201,101 47
Treasury notes paid, 350 00
Debt of corporate cities 10,800 00
— 7,218,251 47
Outstanding this day,
47,180,606 05
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Digitized by
128 Public Debt of the United States . [August,
The total amount redeemed since the creation of these several loans is
as follows :
Loan of 1842, $3,146,405 22
“ 1813, 0,07 G, 331 35
“ 1816, 2.305,036 19
“ 1847, 11,473,4(»0 00
“ 1848, 3,115,358 20
Texan indemnity, v 521,000 00
Corporate cities, .. * 712.800 00
$28,311,290 96
Of which there have been redeemed since the 4th March,
1853, $21,948,931 22
As soon as it is presumed that all the stock has been presented that is
entitled to the benefits of your notice of the 20th May last, a statement
will be prepared in this office showing the amount saved to the United
States by this operation.
There is still outstanding stock of the loan of 1843 for $27,900,
$25,500 of which is held by the Superintendent of the State of New-
York in trust for the Suffolk County Bank. This stock ceased to draw
interest on the 1st day of July, 1858.
I have the honor to be, sir, most respectfully, your obedient servant,
F. Bigger, Register .
Hon. James Guthrie, See. of the Treasury.
Statement showing the amount of the United States stock outstanding on which
interest is payable, on the loan of 1842, loan of 1846, loan of 1847, loan of 1848,
and Texan indemnity, the amount of interest payable on the 1st July, 1854.
and also tho amount of old funded and unfunded debt, treasury notes and debt
of tho corporate cities of the District of Columbia outstanding 1st July, 1854.
Loan. Per c#nt.
Principal.
fnierctL
1842, 6
$4,110,713 36
$123,321 40
1846, 6
2,767.613 26
83,028 40
1847, 6
17,039,600 00
511,188 00
1848, 6
5,034,541 80
169,036 25
Total transferable stock,
$29,552,468 42
$886,574 05
Coupon Bonds, 1842, 6 per cent,
1,195,000 00
35,850 00
“ “ 1848, 6 per cent,
“ “ Texan, 5 per cent,
a
7,362,000 00
220,860 00
4,484,000 00
112,100 00
w
$42,593,468 42
$1,255,384 05
Add loan of 1843 outstanding,
“ Texan indemnity not issued,
27,900 00
6,000,000 00
“ old funded and unfunded debt,
114,118 54
“ treasury notes outstanding,
113,261 64
“ debt of corporate cities
7,200 00
$47,855,948 60
Deduct the amount of stock redeemed and
included in the above upon which inter
est was not paid at tho treasury,
675,442 55
Amount outstanding per weekly state-
meat,
$47,180,506 05
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Public Debt of the United States.
129
Table showing where the transferable stock was held July 1, 1854.
Loan op 1842.
Where payable.
New-Orleans,
Charleston,
Washington, ... *
Baltimore,
Philadelphia*
New- York,
Boston,.
Principal . Total prn'l.
$700 00
6,000 00 . .*
337,811 64
50,600 00
230,670 00
3,229,631 72
255,400 00
$4,110,713 36
Loan OP 1846.
Where payable.
New-Orleans,
Charleston,
Washington,
Baltimore,
Philadelphia
New- York,
Boston,
Principal*
22,000 00
7,500 00
124,713 26
56,500 00
135,600 00
2,347,300 00
74*000 00
Total prn'l.
$2,767,613 26
Interest.
$21 00
180 00
10,134 30
1,518 00
6,920 10
96,885 95
7,662 00
Interest.
660 00
225 00
3,741 40
1,695 00
4,068 00
70,419 00
2,220 00
Loan of 1847.
Where payable.
New-Orleans,
Charleston,. ,
Washington,
Baltimore,
Philadelphia,
New-York,..
Beaton,
Principal Total prn'l. Intereel
26,050 00 781 60
163,400 00 4,902 00
404,700 00 12,141 00
709,000 00 21,270 00
1,270,450 00 38,113 50
14,235,260 00 427,057 50
230^760 00 6,922 50
$17,039,600 00
Loan or 1848.
Where payable. Principal. Total prn'l. Inter eel.
Charleston, 1,500 00 46 00
Washington, 149,241 80 4,477 25
Baltimore, 138,650 00 4,159 50
Philadelphia* 149,250 00 4,477 50
New-Yorit, 6,143,700 00 154,311 00
Boston, 62,200 00 1,566 00
$6,634,541 80
Total transferable stock, $29,552,468.4*
IinmfBH Wealth. — The late Mr. Richard Benyon de Beauvoir, of Englefield
House and Culford Hall, has left, it is said, in real and personal property, seven mil-
lions and a half sterling. His original name was Richd. Benyon, and he represented
Berkshire in parliament, his property then being some twenty thousand a year.
Most unexpectedly, forty years ago, ho was left considerably over a million, by the
Rev. Peter de Beauvoir, no relative ; ho thereupon assume! the patronymic of de
Beauvoir, in addition to his own. His mode of living w^s that or a plain country
gentleman, devoid of extravagance or show. — Welshman. A
9
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UNIVERSITY OF CHICAGO
130
Public Debt of Cities.
[Augast.
Digitized by
PUBLIC DEBT OF CITIES.
Statement of the amount of bonde outstanding on the 30/A of June <
1853, and of the amount thereof then held by foreigners residing
beyond the limits of the United States , so far as could be ascertained,
according to returns made to the Treasury Department , by the follow^
ing cities , towns, and counties, and including some reported by brokers ,
place.
Portland, ....
Boston, ....
Other towns and counties,
Providence,
Otter towns and counties,
Mew-Haven, .
Bridgeport,
Hartford, city,
Hartford, town,
Norwich, .
New -London,
New-York, .
Brooklyn, ....
Williamsburgh,
Buffalo, ....
Utica,
Albany, ....
Rochester, . . . .
Syracuse, ....
Newark, ,
Paterson, ....
Jersey City, .
New-Brunswick,
Trenton, .
Camden, ....
Philadelphia City, .
District of Northern Liberties,
Spring Garden,
Kensington, •
District of Richmond,
District of Penn,
Southwark, .
Moyamensing, .
Philadelphia County, ^
Pittsburgh, . .
Alleghany City,
Alleghany County,
Lancaster City,
Harrisburgh,
Reading,
Brie City, ....
Brie County,
Chester County,
Washington County,
Wilmington,
Baltimore,
BONDS.
OUTSTANDING.
HELD IT
FOREIGNERS.
Maine,
Massachusetts,
do.
Rhode- Island,
do.
Connecticut,
do.
do.
do.
do.
do.
New-York,
do.
do.
do.
do.
do.
do.
do.
New-Jersey,
do.
do
do
do.
do.
Pennsylvania,
do.
do
do.
do
do.
do.
do.
do.
do.
do.
do.
do.
do
do.
do.
do.
do.
do.
Delaware,
Maryland,
$2,393,410
7,286,459
*2,600,000
150.000
None.
113.900
160.000
629.000
70,000
83.000
76.000
14,915,856
1,008,000
None.
375,00#
None.
No return.
263.000
37,661
100.000
157.000
616.000
None.
46,750
20,009
6,153,300
825,700
1,484,100
666,098
190.000
185.000
414.900
118,343
1,61 3,067
2,483,000
862.000
fl, 000, 000
208,418
149,803
No return.
30,00#
15.000
8,000
$260,000
237,911
6,464,389
Nene.
$4,000,000
None.
None.
None.
None.
" *4,109,372-
Not known.
None.
Not known.
None.
No return.
> • • # r# «r« • •• «
None.
None.
None.
350.000
None.
None.
None.
Net known.
424.000
422,500
None.
5,000
None.
None.
None.
No return.
360.000
Not known.
No return.
None.
None.
Ne return.
Nona
Nona.
None.
None.
316,675
• Miniate by Auditor of Commonwealth.
X A small amount i
t Report to Legislature of fensjfrwB&s, Feb, 1833.
ij be held abroad.
Gck igle
Original from
UNIVERSITY OF CHICAGO
1854.]
Public Debt of Cities .
131
PLACE.
BONDS
OUTSTANDING.
HELD BT
FOREIGNERS. ,
Washington City,
.
.
District Columbia,
193,860
Nona
Georgetown,
da
187,754
Nona
Alexandria,
Viivinia,
• 633,450
Nona
Richmond,
da
1,396,932
26)000
Petersburgh,
da
691,500
Nona
Lynch burgh,
do.
386,000
None.
Portsmouth,
da
169,340
None.
Norfolk,
da
No return.
No return.
Staunton, .
do.
21,126
Nona
Augusta County, .
do.
3,460
None.
Rockbridge County,
da
38,645
None.
Wheeling,
da
794,550
$100,000
Ohio County,
do.
160,000
Wilmington, .
North-CaroUna,
100,000
None.
Raleigh, .
da
7,000
None.
Fayetteville, .
do.
None.
None.
Charleston,
South-Carolina,
1,831,311
Columbia,
da
160,000
None.
Camden, «
da
None.
Nona
Hamburg,
da
None.
None.
Augusta, .
Georgia,
441,000
None.
Savannah,
da
847,840
None.
Columbus, .
da
160,000
None.
Macon, .
da
36,018
35,018
Montgomery,
Alabama,
131,800
Nona
Selma, .
da
•50,000
Tuscaloosa,
do.
1,000
Nona
Wetumka,
do.
16,000
Nona
Mobile,
da
1,081,829
442,856
Huntsville, .
da
49,000
Nona
New-Orleans,
Louisiana,
♦8,699,101
14,000,000
Columbus,
Mississippi.
None.
None.
Natchez, .
da
Nona
Vicksburgb, .
da
Nona
Nashville, .
Tennessee,
660,000
15,000
Memphis,
da
610,000
None.
Murfreesboro,
da
30,000
None.
Knoxsville, .
. do.
6,436
None.
Louisville, .
Kentucky,
Covington,
do.
362,000
Newport, .
da
69,0(>0
$36,000
Maysville,
. do.
206.000
Not known.
Frankfort, .
da
1,000
Nona
St Louis,
Missouri,
2,416,796
Not known.
Galena,
Illinois,
68,609
Not known.
Chicago,
da
610,000
76,000
Springfield,
da
4,000
None.
Quincy, .
da
153,000
None.
Alton,
•
•
da
220,000
None.
Indianapolis, .
•
Indiana,
Nona
None.
Richmond,
•
do.
1,600
None.
Lewreaeebargh,
. do.
66,000
Nona
Madison, .
•
do.
130,000
60,000
• Part or ths wbofca bellmd to be bald by foreigners,
t Estimate of City Treasurer,
t Hold la Switzerland.
Digitized by
Gck igle
Original from
UNIVERSITY OF CHICAGO
132
Public Debt of Cities.
[August,
Digitized by
PLACE.
BONDS
OUTSTANDING.
HELD BY
FOREIGNERS.
Jeffersonville,
Indiana,
$160,000
None.
New- Albany,
do.
70,000
None.
Evansville, ....
do.
100,000
None.
Terre Haute,
do.
None.
None.
Cincinnati, ....
Ohio.
2.520,000
1,300,000
Sandusky, ....
do.
101,600
None.
Toledo,
do.
136,048
None.
Dayton, ....
do.
141,739
None.
Cleveland, ....
do.
314,000
167,000
Portsmouth,
do.
125,000
None.
Marietta, ....
do.
100,000
75,000
Steubenville.
do.
200,000
100,000
Chilicotlie, ....
do.
60,000
None.
Columbus, ....
do.
100,000
75,000
Detroit, ....
Michigan,
352,522
Not known.
Milwaukee,
Wisconsin,
411,550
Not known.
Burlington, ....
Iowa.
100,000
Dubuque, ....
do.
12,000
None.
Keokuk, ....
do.
39,770
None.
Muscatine,
do.
None.
Davenport, ....
do.
None.
None.
San Francisco, .
California.
fl, 600, 000
Sacramento, ....
do.
800,000
San Joaquin County, .
do.
60,297
Other cities and bounties,
do.
450,000
Various counties
Ohio,
*5,000,000
*4,000,000
U tt
Indiana
*760,000
tl it
Ketueky,
*2,000,000
*1,000,000
Total of 113 cities and towns and 347 counties,
93,280,518
21,462,322
t Bondi or floating debt of $490,491
* From Winslow, Ltnltr 4 Co.
Not*.— Tha only dtlei or towns supposed t" have bonds outstanding of any largo amount, not
embraced in this table, are Albany, New- York ; and Norfolk, Virginia.
Perfumery.— The amals of chemistry illustrate the wealth of England by
showing what BritannnApends, and the duty she pays to the exchequer, for the
mere pleasure of perfuming her handkerchief. As flowers, for the sake of their per-
fumes, are on the continent principally cultivated for trade purposes, the odors derived
fVom them, when imported into this country in the form of essential oils, are taxed
with a small duty of la. per pound, which is found to yield a revenue of just £12,000
per annum. The duty on Eau de Cologne imported in the year 1852 was in round
numbers £10,000, being Is. per bottle on 200,000 flacons imported. The duty
upon the spirits used in the manufacture of perfumery at home is at least £20,000,
making a total of £42,000 per annum to the revenue, independent of the tax upon
snuff, which some of the ancient Britons indulge their noses with. If £42,000
represents the small tax upon perfuming substance for one year, ten times that
amount is the very lowest estimate which can bo put upon the articles as their
average retail cost By these calculations, and they are quite within the mark,
we discover that Britannia spends £420,000 a year in perfumery.
Gck igle
Original from
UNIVERSITY OF CHICAGO
1854.]
Alphabetical List of Cashiers.
133
ALPHABETICAL LIST
OF
CASHIERS OF THE VARIOUS BANKS IN THE UNITED STATES.
For the names of the Banks m which the Cashiers are employed, the reader is
referred to the “ Merchants and Bankers' Almanac for 1854,” containing a List of aM
the Banks and Private Bankers in every Town and City in the Union.
Abell, Alex Pope, Cliarlottesville, Va.
Acly, Thomas R., New-York City.
Adams, Alexander HM Detroit, Mich.
Adams, D. Eatonton, Ga.
Adams, G. S., Sag Harbor, N. Y.
Adams, J. D., Stockbridge, Mass.
Adams, James, Washington, D. C.
Adams, Joseph, Gardiner, Me.
Alexander, W. F., Washington, Geo.
Alexander, H., Jr, Springfield, Mass.
Alexander, Junius B., Louisville, Ky.
Alexander, Samuel H., Moorfield, Va,
Alden, John, Glen’s Falls, N. Y.
Aldrich, W. II. A., Cranston, R. L
Allen, George, Waldoboro, Me.
Allen, L. D., Connereville, Ind.
Allen, Wm. B., Groensburg, Ky.
Allnutt, James W , Baltimore, Md.
Ames, Dyer, Bridgeport, Conn.
Amy, Francis, Stonington, Conn.
Anderson, A, Port Deposit, Md.
Anderson, J. B., Owensboro, Ky.
Andrews, David, Providence, R. L
Andrews, Edwin, Union Village, N. Y.
Andrews, John, Newbury port, Mass.
Angell, J. W., Providence, R. L
Anthony, J., Buchanan, Va.
Applegate, T , Hightstown, N. J.
Armstrong, Thomas D., Wantage, N. J.
Arnold, Joseph, Birmingham, Conn.
Arnold, Olney, North -Providence, R. L
Arnold, 0. B., East-lladdam, Conn.
Arnot, John, Elmira, N. Y.
Arthur, George D., New-York City.
Atwater, Wyllys, Seymour, Conn.
Atwell, Joseph D., Vergennes, Vt
Atwood, D., Millbury, Mass.
Ault, J., Marion, 0.
Austin, John B., Philadelphia, Pa.
Avery, Isaac T., Morganton, N. C.
Baabs, J. Frederic, Bristol, R. I.
Babson, John J., Gloucester, Mass.
Bachman, B. C., Lancaster, Pa.
Bailey, Frederick S.. Springfield, Mass.
Baker, Daniel F., Bath, Me.
Baker, Francis, Warren, R. I.
Baker, J, S., Green Bay, Wig.
Baker, S. P., Wisca^set, Me.
Baker, W, Evansville, Ind.
Baker, Timothy, Jr., Lockport, N. Y.
Baldwin, R. D., Lake Mahopac, N. Y.
Ball, Cyrus, Lafayette, Ind.
Ballard, 0.. Jr., Circleville, 0.
Ballou, L. W., Cumberland, R. I.
Ballow, W. B., New-York City.
Bancroft, B. F., Salem, N. Y.
Banker, J. Theodore, Sing Sing; N. Y.
Banks, David, Henderson, Ky.
Barbor, J. C., Sackett’s Harbor, N. Y.
Barbour, James, Maysville, Ky.
Barker, John P., New-Bedford, Mass.
Barnard, John D., Thomaston, Me.
Barnes, Marquis, Amsterdam, N. Y.
Barner, Benjamin, Smithland, Ky.
Barrett, George, Now-Ipswich, N. H.
Barry, Charles C., Boston, Mass. .
Barry, W. F., Memphis, Tenn.
Bartlett, Stephen, Boston, Mass.
Bassett, Charles J. H., Taunton, Mass.
Bassett, William, Lynn, Mass.
Batchelder, J. F., Albany, N. Y.
Bates, H. M., Northfield, Vt
Beach, James C., New-York City.
Beach, 0. M., Williamsburg, N. Y.
Beadle, Tracy, Elmira, N. Y.
Beakes, William L., Goshen, N. Y.
Beardsley, N. W., St. Alban’s, Vt.
Beatty, John, Mount Holly, N. J.
Beatty, Robert C., Bristol, Pa.
, Beatty, Elie, Hagerstown, Md.
Bede, Stephen, Sandwich, N. H.
Beetem, William M., Carlisle, Pa.
Belden, R. N., New-London, Conn.
Belknap, E., Ann Arbor, Mich.
Bell, Samuel C., New- Orleans, La.
Bellinger, F. C., Plattsburgh, N. Y.
Bennett, George, Monticello, N. Y.
Bennett, Jonas, Boston, Mass.
Bennett, Martin, Bristol, R. I.
Bennett, Robert G., Beverly, Mass.
Berry, Richard, Now- York City.
Bertholf, Daniel V. H., New-York City.
Bestor, Chauncey, Washington, D. C.
Bibb, William A, Charlottesville, Va.
Bicknell , G. F., Rome, N. Y.
Digitized by
Gck 'gle
Original from
UNIVERSITY OF CHICAGO
Digitized by
134 Alphabetical List of Cashiers . [August,
1
BidweH, Henry L., Hartford, Conn.
Bingham, Samuel, Windham, Conn.
Binns, Jonathan, Mount Pleasant, 0.
Bishop, Samuel P., Cincinnati, 0.
Bispham, Edward J., Dorchester, Mass.
Bissell Charles P., Rochester, N. Y.
Bissell George P., Hartford, Conn.
Bixby, Lorenzo, Brandon, Vt
Bixby, Paul H., Francestown, N. H.
Black, William P., Manchester, Yt
Blackford, William M., Lynchburg, Va.
Blackwood, Jolm J., Hamburg, S. C.
Blake, E. J., New- York City.
Bliss, Edward A., Lee, Mass.
Blodget, B. T., Bradford, Yt
Boardman, Thos. C., East-Iladdam, Conn.
Bond, Geo. W., Adams, N. Y.
Boon, William 0., Fayette, Mo.
Borden, Leander., Fail River, Mass.
Bostwick, Wm, Great Barrington, Mass.
Bostwick, R., Pine Plains, N. Y.
Boughter, Charles, Lancaster, Pa.
Bourne, Ezra, Providence, R. L
Bourne, Joseph H., Providence, R. L
Bourne, Samuel P., Falmouth, Mass.
Bowden, Robert W., Norfolk, Ya.
Bowditch, J. W., Pawling, N. Y.
Bowler, C. L., Providence, R. I.
Bradbury, Nathaniel H, Belfast, Me.
Bradbury, John C., York, M \
Bradford, Louis H., Fitchburg, Mass.
Bradford, Nathaniel G, New-York City.
Bradley, Amos A , Fort Plain, N. Y.
Bradley, John A., Chester, S. C.
Bradley, Francis, New-Haven, Conn.
Bradley, M. M., New-York City.
Brady, Sobieski, Wheeling, Va.
Brainard, Orville V., Watertown, N. Y.
Brainerd, K. P., Franklin Mills, O.
Bray ton, Wm. E., North- Adams, Mass.
Breese, William C., Charleston, S. C.
Brent, Henry M., Winchester, Va.
Brower, Lyman, Norwich. Conn.
Brewer, Rufus, Milford, MW
Broadfoot, Wm. G., Fayetteville, N. C. •
Bronson, Stephen, Chicago, III
Brooks, William B., Dorchester, Mass.
Brown, Albert, Springfield, Yt
Brown, Ephraim D. New-York City.
Brown, K H, Covington, Ind.
Brown, George G., JefFersonville, Va.
Brown, Henry H, Detroit, Mich.
Brown, Jonathan, Jr, Boston, Mass.
Brown, J. F., Cumberland, R. I.
Brown, Timothy, Syracuse, N. Y.
Bruce, William W., Lancaster, N. Y.
Bryson, Peter M., New-York City.
Buchanan, Henry, Newport, Ky.
Buell, J., Troy, N. Y.
\
Buffum, David IL, Somersworth, N. H.
Bull, Stephen C., Orwell, Vt
Bullen, £ H., Louisville, Ky.
Bunce, John L., Hartford, Conn.
Burch, I. H., Chicago, HI.
Burge, Lemuel, East -Greenwich, R. I.
Burkhart, D., Marti nsburg, Va.
Burnham, C. A , Ogdensburg, N. Y.
Burritt, Ransom, New-Haven, Conn
Burroughs, G., Bridgeport, Conn.
Burrows, Lorenzo, Albion, N. Y.
Burton, T. W., Swanton Falls, Y |
Buttrick, John A, Lowell, Mass.
Butler, A. G., Fond du Lac, Wis.
Butler, A. T., Syracuse, N Y.
Butler, Charles, New- London, Conn.
Butler, E. P., Orono, Me.
Butler, James H., Bangor, Me.
Butler, John A., Hartford, Conn.
Butts, James E., Providence, R. L
Cake, J. W., Pottsville, Pa
Caldwell, C. A, Alton, III
Caldwell, Stephen W., Philadelphia, Pa.
Caldwell, William, Haverhill, Mass.
Caldwell W A., Greensboro, N. C.
Callender, W. H. D., Hartford, Conn.
Calvert, Thomas C., Bowling Green, Ky.
Cameron, Simon, Middletown, Pa.
Camp, William S., Middletown, Conn.
Campbell, F. M., Athens, Tenn.
Campbell, A., Springfield, 111.
Campbell James, Springfield, I1L
Campbell J., New-York City.
Cannon, Thomas B., Shelbyvilh, Tenn.
Carpenter, Charles H , Pittsfield, N. H.
Carr, George W., Warren, R. L
Carr, Samuel Boston, Mass.
Case, Everett, Vernon, N. Y.
Carson, Robert Dn Lancaster, Pa.
Carver, B. F., Hion, N. Y.
Chadwick, J., Salem, Mass.
Chamberlain, James H , Ellsworth, Me.
Chamberlain, R H.f Norfolk, Va
Chapin, Edmund D., Springfield, Mass.
Chapin, Horatio, South-Bend, Ind.
Chapman, G. W., Madison, Wig.
Chapman, R., Tarboro, N. C.
Chase, C. L., Chicago, 111.
Chase, Edwin S, Brooklyn, Conn.
Chase, Augustus S., Waterbury, Conn.
Cheney, John M , Concord, Mass.
Chrystie, John S., Troy, N. Y.
Church, Leonard H., New-York City.
Clapp, Dorin F., Peekskill N. Y.
Clark, A. B., Coxsackie, N. Y.
Clark, A. B., Providence, R. I.
Clark, Albert, Cleveland, 0.
Clark, Edwin, Bangor, Me.
Go 'gle
Original from
UNIVERSITY OF CHICAGO
1854.]
Alphabetical List of Cashiers .
135
Clark, Merritt, Poultney, Vt.
Clark, William W., Newbem, N. C.
Clarke, CL C., Havana, N. Y.
Clarke, Elijah P., Boston, Maas.
Clarke, William A., Newport, R L
Clarkson, Gerardus, Lancaster, Pa.
Ciaypoole, James T., Springfield, 0.
Cleage, David, Athens, Tenn.
Cobb, Daniel R, Derby Line, Yt
Coburn, John, Topsham, Me.
Cochran, J. Clarenee, Charleston, 8. C.
Coffin, Elijah, Richmond, Ind.
Coggcshall, T., Newport, R L
Coggeshall, William, Tiverton, R. I.
Cogswell, Francis, Andover, Mass.
Coit, Charles T., Buffalo, N. Y.
Colgate, Charles, Friendship, N. Y.
•Colby, HL, Mansfield, 0.
Colt, Joseph S., Milwaukee.
Cole, Richard G., Burlington, Yt
Comegya, B. B., Philadelphia, Pa.
Comstock, Sylvester R, New- York City.
Comstock, E. S., Cuyahoga Falls, 0.
Conahau, Charles, Cincinnati, (X
Cone, Ephraim, Genesee, N. Y.
Cone, J. J., Doylestown, Pa.
Congdon, James B., New-Bedford, Mass.
Congdon, Joseph, New-Bedford, Mass.
Oongdon, Lewis, Quincy, Mass.
Conover, Geo. R, New- Brunswick, N. J.
Converse, D. C., Zanesville, 0.
Cook, George, Cumberland, R L
Cook, H. K, Bath, N. Y.
Cook, J. S., Burrillville, R. L
Cooke, J. A., Cattskill, N. Y.
Cooke, S., North-Providence, R L
Cope, Jacob J., Philadelphia, Pa.
Corey, Benjamin, Watertown, N. Y.
Corbin, Pliny ML, Troy, N. Y.
Cornell, John H., New- York City.
Cornwell, Charles H., Salem, 0.
Correy, James, Nashville, Tenn.
Cossitt, George A., Lancaster, N. H.
Covill, Robert S., Boston, Mass.
Cowman, R J., Annapolis, Md.
Craig, John, Augusta, Gea
Crawford, J. 0., Carrollton, Ky.
Crawford, J. R, Athens, 0.
Cross, II. T., Batavia, N. Y.
•Cross, Trueman, Baltimore, Md.
Cross, William, Worcester, Mass.
Cruzat, G., New-Or leans, La.
Curran, John C.v Philadelphia, Pa
Currier, Moody, Manchester, N. H.
Curtiss, C. B., Chicago, I1L
Curtis, A- 8., Mount Yernon, Ind.
Cushman, Isaac W., Irasburg, Vt
Pall am, J. M^ Paducah, Ky.
Dana, Charles B., Cambridge, Mass.
Danforth, James R., Springfield, Mo.
Dann, J. C., Buffalo, N. Y.
Daugherty, M. A., Lancaster, 0.
Davies, James W., Augusta* Gea
Davis, E. N., Providence, R I.
Davis, Dolphin A., Salisbury, N. C.
Davis, G. F., Hartford, Conn.
Davis, Frederick M., Poughkeepsie, N. Y
Davis, Robert M., New-Orleana, La.
Davis, Stephen G., Boston, Mass.
Davison, G. M., Whitehall, N. Y.
Day, F. 8., Peru, HL
Day, Mathias W., Newark, N. J.
Day, Robert L., Boston, Mass.
Deane, F. W., Canton, Mass.
Do Angefis, G., New- York City.
Dennett, William 8, Bangor, Mo.
Denny, William H., Pittsburgh, Pa.
Do Saussure, D. L., Camden, 8. C.
Desdoity, John B., New- York City.
Devendori; H. H., Camden, N. Y.
Dewey, Charles, Raleigh, N. C.
Dewey, Thomas W., Charlotte, N. C.
De Wolf; Delos, Oswego, N. Y.
Diekey, J. R, Wheeling, Va.
Dickinson, J. M., Woodbury, Conn.
Diraock, E. L., Janesville, Wis.
Divelbiss, M., Springfield, III
Dobbins, M. G., Griffin, Geo.
Dodd, Benjamin, Boston, Mass.
Dodd, James, Boston, Mass.
Dodd, Theodore 8., Bangor, Mo.
Dodge, L., Brooklyn, N. Y.
Donnell, James 0., Philadelphia, Pa.
Doolittle, Harvey, Herkimer, N. Y.
Doughty, John 8., Brooklyn, N. Y.
Douglass, Joseph C., New-London, Conn
Doyle, Thomas A, Providence, R. L
Drake, Jeremy, Boston, Mass.
Durfee, A. G., Providence, R L
Dyer, George G., Plymouth, Mass.
Ebbert, John H., Ravenna, 0.
Ebbctts, Daniel, New-York City.
Eberraaa, A. M., Akron, 0.
Eddy, A. A., Gloucester, R L
Edmonds, Francis W., New-York City.
Ehringliaus, J. C., Elizabeth City, N. C.
Eldridge, T. R B., Buffalo, N. Y.
Elliot, FL L., Winnsboro, 8. C.
Eicbelberger, R A., Hanover, Pa.
Ellis, E. W. R, Goshen, Ind.
Ellis, George, New-York City.
Ell wood, E. B., Rochester, N. Y.
Emery, W., Flcraington, N. J.
Emley, 8. C., Dayton, 0.
Endioott, Charles M., Salem, Maas.
Ernst, William, Covington, Ky.
Digitized by Gougle
Original from
UNIVERSITY OF CHICAGO
136
[August.
Alphabetical List of Cashiers .
Kspy, Henry R, Urbana, 0.
Evans, Daniel P., Ripley, 0.
Evans, James S., Kingston, N. Y.
Eveleth, Joseph J., Augusta, Me.
Everitt, John L., New-York City.
Ewing, Orville, Nashville, Tonn.
Fairchild, G. H., Bridgeport, Conn.
■Fairfield, Seth S, Biddoford, Me.
Fairman, F. F., Elmira, N. Y.
Famum, J. S., Worcester, Mass.
Farrar, M., Blackstone, Mass.
Farrar, J. W., Abington, Mass.
Fanvell, George Claremont. N. H.
Ferguson, David, Milwaukee, Wis.
Ferry, Starr, Bethel, Conn.
Field, A. L, Beliot, Wis.
Field, George, Williamsburgh, N. Y.
Field, John A., lYovidenco, R. I.
Fifield, Moses, Warwick, R. L
Finley, Augustus C., Clarkesville, Ya.
Finn, John R., Elyria, 0.
Fish, Henry Hn Fall River, Mass.
Fisher, Calvin, Jr., Wrentham, Mass.
Fisher, C. F. Petersburg, Va.
Fisher, Georgo SM Ottawa, 111.
Fisher, John, Westminster, Md.
Fisher, John, Columbia, S. C.
Fisk, Clinton B., Jackson, Ind.
Fisk, J., Trenton, N. J.
Fitch, John W., New-Havon, Conn.
Floyd, Samuel, Wilmington, Del.
Flynt, Henry S., Sandusky City, 0.
Flynt, James R., Tolland, Conn.
Follett, Urial C., Michigan City, Inch
Foot, A. E., Cleveland, 0.
Foot, George, Methuen, Mass.
Foote, Charles B., Cincinnati, 0.
Foote, Charles, Bridgeport, Conn.
Forman, McEvers, Easton, Pa.
Forrest, Henry L., Chicago* III.
Foster, Archibald, Boston, Mass.
Foster, William H., Boston, Mass.
Foster, William H., Salem, Mass.
Foster, Ethan, Westerly, R. I.
Fowler, Isaac, Ballston Spa, N. Y.
Fox, J. S., Jersey City, N. J.
Fracker, G., Washington, 0.
Franklin, G. F., Rensselaer, Ind.
Fraser, Alfred SM New-York City.
Fraser, R. EL, Georgetown. S. C.
Frenclv, J. E., Bristol, R. I.
Frick, George A., Danville, Pa.
Frothingham, A. T., Boston, Mass.
Fuller, John K., Boston, Mass.
Gale, James E., Haverhill, Mass.
Gale, N. B., Meredith, N. H.
Galuaha, EL C., Mount Morris, N. Y.
Gano, W. G. W., Cincinnati, 0.
Ganson, Corneal IL, Buffalo, N. Y.
Gan son, James M., Buffalo, N. Y.
Gardiner, John, Nowalk, 0.
Gardner, C. B., Christiansburg, Va.
Gardner, George J , Syracuse, N. Y.
Cask ill, Georgo, Bordeniown, N. J.
Gay, Joseph B., Thompson, Co nn.
Gay, Willard, Troy, N. Y.
Gerrish, E. R, Portland, Mo.
Gibbons, James New-York City.
Gilbert, Horatio Albany, N. Y.
Gibson, Henry B., Canandaigua, N. Y.
Gibson, Patrick, Baltimore, Md.
Gilbert, A., Chicago, I1L
Giles, Aquila P., Baltimore* Md.
Gillespie, Thomas EL, Jeffersonville, Via
Gilman, Samuel A., Bangor, Me.
Gladding, Henry G., Providence, R. I.
Gleason, Frederick il, Middletown, Conu.
Glenn, George, Lebanon, Pa.
Godfrey, William, Cheraw, S. C.
Goodale, Georgo S., Watertown, N. Y.
Goodcll, R. EL, Joliet, 111.
Good winy Arthur, EYedericksburg, Va.
Goodwin, Daniel B., Waterville, N. Y.„
Goodrich, William L., Schenectady, N. Y.
Gordon, James M., Boston, Mass.
Gordon, Wm. K., Fredericksburg, Va.
Gore, Jeremiah, Boston, Mass.
Gott, J. Rm Rockport, Mass.
Gould, Edward, Portland. Me.
Graham, Charles &, Newark, N. J.
Graham, William M., Middletown, N. Y
Granniss, F. W., Martinsburg, N. Y.
Granniss, T. C., Greene, N. Y.
Granniss, T. Ossian, Utica, N. Y. ,
Grant, E. PM Marion, 0.
Grant, William J., Camden, S. C.
Gray, Israel J., Whites town, N. J.
Gray, John M., Eaton, 0.
Grayson, William PM New-Orleans,
Green, Luke, Providence, R. I.
Green, T. R., Providence, R. I.
Green, Thomas, Northampton, Mass.
Greene, Albert C., Providence, R. I.
Gregory, Ephraim, Danbury, Conn.
Griffin, W. W., Elizabeth City, N. C.
Griswold, Walter H., Delhi, N. Y.
Groesbeck, Anson, Lansingburg, N. Y.
Grosvenor, George, Fulton, N. Y.
Guion, EYanklin G., Kinderhook, N. Y.
Gulliver, Lemuel, Boston, Mass.
Gunn, John A., New-York City.
Gunnison, A. C., Troy, N. Y.
Gunnison, C. EL, Terre Haute, Ind.
Hackett, W., Easton, Pa.
Haight, R^ Cubay N. Y.
Digitized by
Gck igle
Original from
UNIVERSITY OF CHICAGO
1864.]
Alphabetical List of Cashiers .
137
Hale, Oscar C.t Wells River, Yt
Hall, Charles B., Boston, Mass.
Hall, J., Now- Albany, Ind.
Hall, John IL, Boston, Mass.
Hall, William A., New- York City.
Halsey, Anthony P., New-York City.
Halsted, D. B., Now- York City.
Hammett, Charles D., Newport, R. L
Hammond, A. G., Hartford, Conn.
Hammond, Hampton B.,Wadesboro, N.C.
Hammond, Pardon T., N. Kingstown, RJ.
Hammond, P., Worcester, Mass.
Ham, Benjamin W., Providence, R. I.
Hamner, S. A., Columbia, Tenn.
Hand, Theodore F., Oneida, N. Y.
Handy, P. W., Rocliester, N. Y.
Handy, Truman P., Cleveland, 0.
Hannah, Samuel, Charleston, Va.
Harden bergh, Thos. H , Wilmington, N.C.
Hardy, Charles E., Ithaca, N. Y.
Hardy, J. F. E., Asheville, N C.
Harmon, George W . Bennington, Yt.
Harrington, E. W., Manchester, N. II.
Harris, J. A., Scituate. R. L
Harris, Henry H., Chicopee, Mass.
Hartshorn, G. F., Worcester, Mass.
Ilartt, Charles P., Burlington, Yt.
Harvey, James, Baltimore, M<L
Harvey, Samuel, Gennantown, Pa.
Hasbrouck. B. M., Kingston, N. Y.
Haskell, B. B., Waldoboro, Me.
Haskell, H. S., Portage City, Wis.
Hatch, D. G., Harrodsburg, Ky.
Hatch, Milo, Augusta, Geo.
Hawes, William, New-York City.
Hawkins, A. F , Lexington, Ky.
Haydock, R. H., New-York City.
Hayes, C. J., Unadilla, N. Y.
Hays, Aaron B., New-York City.
Dayman, Edward, Sou ill- Berwick, Me.
Hayward, Ebenezer W., Uxbridge, Mass.
Heald, Daniel A., Proctorsville, Vt
Hemingway, C., West- Win field, N. Y.
Henning, B S, Oshkosh, Wis.
Henry, Caleb B., Princeton, Ky.
Henry, Isaac, Augusta, Geo.
Hicks, Robert D., Wilmington, DeL
Higby, W. R., Bridgeport, Conn.
Higgins, W. W., Michigan City, Ind.
Hill, Edson, Concord, N. H.
Hill, Horace B., Lexington, Ky.
Mill, Frederic k 1. N. Y.
Hill, William R , Milton, N. C.
Hinckley, T„ Belleville, 111.
Hoag, Edward, Waterville, Me.
Hobbs, Henry K., Lawrenccburg, Ind.
Hockloy, John, Philadelphia* Pa.
Holbrook, E M., Ogdensburg, N. Y.
Holley, H. K., Madison, Wis.
Holloway, David W., Newport, R. I.
Holloway, Thomas W., Newberry, S. C.
Holmes, A. G., Hudson, N. Y.
Hoof, John, Alexandria, Y a.
Hoogland, Bonj T , New-York City.
Hooker, Henry, Westfield, Mass.
Hooker, William T., New-York City.
Hoskins, James B., Providence, R. I.
Houghton, Abel, St Alban’s, Yt.
Howard, A. H., Hallowed, Me.
Howard, S. T., LeRoy, N. Y.
Howell, D. C., Bath, N. Y.
Howes, George, Montpelier, Yt
Howes, Henry, St. Alban’s, Yt
Hubbard, J., Cortland, N. Y.
Hubbard, Amos F , Ashtabula, 0.
Hubbell, H. G., Sheldon, Vt
Hudson, Henry E., Providence, R. I.
Hull, Ashbury, Athens, Geo.
Hull, John F., Poughkeepsie, N. Y.
Hume, William P., Clarksville, Tenn.
Hunt, C. C. P., Galena, 111.
Hunt John M., Nashua, N. H.
Hunt S., Massillon, 0.
Hurd, Ezekiel, Dover, N. H.
Hurlburt, H. B , Cleveland, 0.
Hutcheson, Joseph, Columbus, 0.
Hutchins, Azro D., South-Royalton, Yt
Hurxthal, Lewis, Jr., Massillon, 0.
Hyde, Louis A., Norwich, Conn.
Hyde, William, Ware, Mass.
Ingiiai), S. R., Pulaski, N. Y.
Irwin, Robert, Springfield, 11 L
Jacob, Samuel, Wellsburg, Ya.
Jackson, C. W., Lebanon, Tenn.
Jaques, Francis, Framingham, Mass.
James, H. W., Kenosha, Wis.
Jenkins. H., Galveston, Texas.
Jenks, E. J., Wroburn, Mass.
Johnson, Eliakim, Woodstock, Yt
Johnson, Frank, Norwich, Conn.
Johnson, George W., Danville, Va.
Johnson, James A, Maysvillo, Ky.
Johnson, J. T., Chester, N. Y.
Johnson, Matthew, Toledo, 0.
Johnson, W., Westfield, N. Y.
Jones, E. D, Pittsburgh, Penn.
Jones, Paul, Portsmouth, 0.
Jones, Thomas G., Farmington, Me.
Jones, William H., Raleigh, N. C.
Joslyn, John U., South Bend, Ind.
Judson, E. B , Syracuse, N. Y.
Judson, John D , Ogdensburg, N. Y.
Keating, George, Buffalo, N. Y.
Keith, A., Napierville, III
Kellogg, J. B., Milwaukee, Wis,
Digitized by Gougle
Original from
UNIVERSITY OF CHICAGO
138
Alphabetical Lift sf Cashiers.
[August,
Digitized by
Kellogg, W., Royal ton, Vt
Kelhim, J. Smith, Laporte, Ind.
Kelly, Thoraae, Paris, Ky.
Kendrick, Edward E., Albany, N. T.
Kendrick, James H , Lebanon, N. H.
Kendrick, L B., Logans port, Ind.
Kenyon, D. C., E. Greenwich, R L
Kerr, George W., Newburgh, N. Y.
Ketchum, Andrew J., Saugorties, N. Y.
Kibbe, II. C., Mount Clemens, Mich.
Kilgour, D., Williamsburgh, N. Y.
Kimball, Otis, Bath, Me.
Kimball, D. A., Waltham, Mass.
Kimberly, T. C., Batavia, N. Y.
King, Frederic, Rahway, N. J.
King, H. A., Albion, N. Y.
King, John P., Delaware City, Del
Kingman, Pliny E., Boston, Mafia
Kingsley, Daniel, Newton, Mam
Kingsbury, F. Waterbury, Con*.
Kingsbury, L. IL, Dedham, Mass.
Kingsley, C. W., Cambridge, Mam
Kirby, William S., New-York City.
Kissam, William A., New-York City.
Knox, David Smyth, Brownsville, Pa.
Koontz, Godfrey, Frederick, McL
Lacey, Alfred T., Cape Girardeau, Mo.
Lair, John G., Somerset, Ky.
Laird, William, Jr., Georgetown, D. C.
Lamb, Daniel, Wheeling, V*
Lane, Calvin S, East- Boston, Mast.
Lane, John II., Searsport, Me.
Lane, Martin, Cam bridge port, Mass.
Lane, Samuel M, Southbridge, Mass.
Lane, William J., New-York City.
Langworthy, John 8., Rondout, N. Y.
Lash, Israel Gn Salem, N. C.
Lathrop, S. H., Oswego, N. Y.
Lawrence, Koel K., Circleville, 0.
Lawson, Joseph J., Yancey ville, N. C.
Lazear, John, Waynesburg, Pa.
Leake, John S., Saratoga Springs, N. Y.
Learned, Edward H., Norwich, Conn.
Lee, F. A., Coopers town, N. Y.
Lee, James P., Watertown, N. Y.
Lee, Robert P., Newport, R L
Leonard, G. W., Auburn, N. Y.
Leonard, Silas, Augusta, Ma
Leverett, Thomas H., Keene, N. H.
Lesley, James, Chambersburg, Pa.
Leslie, George, Chelsea, Vt
Levinga, C. W., Rockville, Ind.
Lewis, Benedict, Jr., New-York City.
Lewis, Edwin M., Philadelphia, Pa.
Lincoln, Solomon, Boston, Mass.
Lindsay, Jesse H., Greensboro, N. C.
List, Daniel C., Wheeling, Va
Littig, Philip, Jl, Baltimore, Md
Little, Samuel, Roxbury, Mass.
Uoyd, Thomas W., Williamsport, Pa.
Loeser, Charles, Pottsville, Pa.
Logan, John B. J., Salem, Va.
Lonoy, John, Baltimore, Md.
Lord, Samuel, Portsmouth, N. H.
Lord, William J., Bangor, Ma
Loring, Joshua, Boston, Mesa
Lovett, John O., Hingham, Maas
Lovett, J. M., Albany, N. Y.
Loud, John W., Wevmouth, Maas.
Lownds, James, Baltimore, Md.
Lowry, Robert H., New-York City.
Lucas, Henderson C., Fayetteville, N. C.
Lucas, William A., Charlotte, N. C.
Luther, John, Providence, R L
Lynch, Edward, W ilkesbarre, Pa.
Lynch, James 8., Utica, N. Y.
McAlister, A., New- Haven, Coon.
McCalla, Aulay, Camden, N. J.
McCara, L., Newark, N. Y.
McCandlish, A. J., Weston, Va.
McClung, A., Knoxville, Tenn.
'McClurg, A-, Racine, Wis.
McCollin, J. G., Chester, Pa.
McCulloch, Hugh, Fort Wayne, Ind.
McDaniel, Union, Va.
McDowell, F. M., Homellaville, N. Y.
McDuffie, John, Rochester, N. H.
McKean, A., Nashville, Tenn.
McKeen, W. R, Terre Haute, Ind.
McKenzie, James, Alexandria, Va
McLaren, John, Gloversville, N. Y.
McLean, Archibald, Fayetteville, N. CL
McMeens, W., Springfield, 0.
McPherson, Joseph B., Gettysburg, Pa.
Macrae, William S., Memphis, Tenn.
Magoffin, John, Pittsburgh, Pa
Magoun, D. N., Bath, Me.
Madison, James H., Fredonia, N. Y.
Mallory, Laurin, Coming, N. Y.
Manlove, John, Dover, I>eL
Mann, S. H., Rock Island, III
Markell, Henry, Brockport, N. Y.
Marsh, Joseph M., Boston, Mass.
Marshall, D. C., Rhinebeck, N. Y.
Marshall, Thomas, Charlestown, Maas.
Marshall, Thomas A., Charleston, Ind
Marahell, John, Washington, Pa
Martin, Henry IL, Albany, N. Y.
Martin, R C., Schoharie, N. Y.
Marx, Samuel, Richmond, Va
Mathews, Thomas, Lewisburg, Va
Mattocks, Samuel B., Danville, Vt
Mayhew, J. K., Jamesville, N. Y.
Maynard, Edwin, Greenfield, Mass.
Mayo, Henry S., Troy, 0.
Meigs, Charles A., New-York City.
Gck 'gle
Original from
UNIVERSITY OF CHICAGO
1664.]
Alphabetical List of Caihimrs.
139
Meigs, Henry, Jr., New- York City.
Mercer. Hugh W., Savannah, Geo.
Mercer, William V. J., Waterloo, N. Y.
Merriam, David E.. Leicester, Mafia
Merrill, E., Malden, Mass.
Merrill, G., Danville, 111.
Merriman, C. II., Auburn, N. Y.
Mickle, Robert, Baltimore, McL
Miles, Thomas R., Waltham, Man.
Miller, George C , Baltimore, Md.
Milligan, J., Augusta, Geo.
Mills, William II., Bangor, Me.
Milton, John, Louisville, Ky.
Minot, Charles, Sanborn ton, N. H.
Minot, George, Concord, N. H.
Mitchell, P. L., Georgetown* Ky.
Mitchell, Robert C , Lynchburg, Va.
Mitchell, Thomas, Danville, Ky.
Mitchell, William, Nantucket, Mctw
Mitchell, William, Mount Sterling, Ky.
Moodie, Thomas, Columbus, O.
Moore, Cato, Charlestown, Ya.
Moore, Joseph M., Madison, IncL
Moore. J. W., Danby, Vt
Morehead, Charles R., Lexington, Ma
Morford, Samuel D., Newton, N. J.
Morgan, James A., Pawcatuck, Conn.
Morgan, Thomas W., Frederick, Md.
Morgan, Tracy R., Binghamton, N. Y.
Morisoo, Hector, Brooklyn, N. Y.
Morrison, James M., New- York City.
Morrison, Thomas J., Wythe villa, Ya.
Morris, J. F., Hartford, Conn.
Morrow, Samuel Knoxville, TemL
Morse, C. A., Lockport, N. Y.
Morton, James, Nashville, Term.
Morton, M. B., Russellville, Ky.
Morton, W. A., Rollinsford, N. H.
Mosher, Charles, Warsaw, N. Y.
Moyer, W., Canajoharie, N. Y.
Mudge, E. W.T Lynn, Mass.
Muenscher, William, Taunton, Mass.
Muhlenberg, Henry II, Reading, Pa.
Mulford, A. S., Brooklyn, N. Y.
Mumford, Benjamin, Newport, R. L
Murray, James B., Pittsburgh, Pa.
Nash. C. D., Milwaukee, Wis.
Nazro, John P., Troy, N. Y.
Netherland, G. W., Rogers ville, Tenn.
Neville, Morgan L., Columbus, 0.
Newell, Elijah B., Woonsocket* R. L
Newell, Zobina, Keene, N. H.
Ncwland, Robert Jamestown, N. Y.
Newton, S., Sraithfleld, R. L
Nig^ols, A. I)., Rockland, Me.
Nixon, William G., Bridgeton, N. J.
North, Reuben, Poughkeepsie, N. Y.
Northrop, C. C , Racine, Win
Noyes, Enoch J., Eastport, Me.
Noyes, George W., Mystic River, Conn.
Noyes, James, Haverhill, Maas.
Noyes, James R., Utica, N. Y.
Noyes, John L., Providence, R. L
Noxon, J. O., Crescent, N. Y. *
Nutter, Ichabod, Hallowell, Me.
Nye, A. Spencer, Chillicothe, 0.
Nye, Reuben, Fairhaven, Maas.
Oakley, E. J., New- York City.
Oakley, R. S., New-York CSty.
Oakley, Walter, New-York City.
Officer, Samuel P.T Logan, 0.
Olcott, George, Charlestown, N. H.
Olcott, Horatio J , Cherry Valley, N. Y.
Olcott, Thomas, Albany, N. Y.
Oliphant, Jonathan, Medford, N. J.
Oliver, William M., Penn Yan, N. Y.
Olmstead, Jonathan, Savannah, Gea
Ordway, J. L-, Lowell, Mass.
Orton, J. D., Newark, N. J.
Osborne, George A., Danvers, Mass.
Osborne, Pleasant C., Petersburg, Va.
Osborne, S. S., Painesville, 0.
Osborn, William R., Binghamton, N. Y.
Otey, John M., Lynchburg, Ya.
Otis, Amos, Yarmouth, Mass.
Outwater, P., Syracuse, N. Y.
Owens, William, Jr., Hickman, Ky.
Oxnard, Charles, Portland, Me.
Page, John A., Montpelier, Yt.
Page, John B., Rutland, Vt.
Palmer, C., Bangor, Me.
Palmer, Francis, New-York City.
Pardee, T., Bloomington, III
Parker, A., Adrian, Mich.
Parker, Gideon, Deep River, Conn.
Parker, Nathan, Manchester, N. H.
Parker, E. W., Whitehall N. Y.
Parkes, Thomas, Franklin, Tenn.
Parkhurst, Arch., Middletown Pt, N. J
Parmelee, Henry, Lansingburg. N. Y.
Parsons, William H., Bangor, Me.
Partridge, L. C., Seneca Falls, N. Y.
Patten, William S., Providence, R. L
Payson, Edward H., Salem, Maas.
Pearl K. G.. Chattanooga, Tenn.
Pearmain, William It, Cbelsear Mate
Pease, R. M. S., Falls Village Conn.
Peck, J. J., Syracuse, N. Y.
Peirce, Andrew, Dover, N. H.
Pellett, William B., Norwich, N. Y.
Penn, James, Memphis, Tenn.
Perkins, Augustus, Waterville, Me.
Perkins, Nathaniel B., Salem, Maas.
Perrin, R. P., Brooklyn, N. Y.
Perry, Chariea, Westerly, ft. I.
Digitized by
Gck igle
Original from
UNIVERSITY OF CHICAGO
140
Alphabetical List of Cashiers.
[August,
Digitized by
Perry, F. D., Southport, Conn.
Peters, John, Zanesville, 0.
Pettit, James, Somerville, Tenn.
Phelps, E. R? Albany, N. Y.
Philbrick, William, Skowhegan, Me.
Philler, George, Philadelphia, Pa
Phillips, Thomas, Exeter, R. L
Phillips, B. M., Cadi/., 0.
Phippon, Joseph II., Salem, Mass.
Pickering, John I, Portsmouth, N. II.
Pierce, E. D., Old Town, Me.
Pike, Daniel, Augusta, Me.
Pitts, William, Rockland, Me.
Placo, Raymond G., Foster, R. I.
Plant, James C., Macon, Ga
Platt, F. A., New-York City.
Plumb, Josiah B., Albany, N. Y.
Pollard, W. H. J., Stonington, Conn.
Pomeroy, R. ]£., Frankfort, N. Y.
Porter, Elcazar A., Haverhill, Maas.
Porter, N. C., Attica, Ind
Post, Alfred, Newburgh, N. Y.
Potter, A., Providence, R. I.
Powell, James B., Hartford, Conn.
Powell, William A., Leesburg, Va
Powers, Benjamin, Delaware, 0.
Powers, Hiram, Flemingsburg, Ky.
Prentiss, Nelson, Albion, Ind.
Preston, Robert R., Abingdon, Ya
Priestly, Joseph R., Northumberland, Pa
Punnett, James, New-York City.
Putnam, Charles A., Boston, Mass.
Quixby, E., Jr., Wooster, O.
Radeker, H., Deposit, N. Y.
Rainey, Wm. II., Kinderhook, N. Y.
Ramsey, John C., Mt. Vernon, 0.
Randall, A. C, Meriden, Conn.
Randall, John C., Quincy, Mas&
Randall, R., Woonsocket, R. L
Rankin, Adam, Paducah, Ky.
Ranlott, Charles W., nolyoke, Mass.
Ransom, W. C., Albion, Ind.
Rasbach, D. II., Chittennngo, N. Y.
Rathbone, George W , Evansville, Ind.
Rathbone, S. K., Providence, R. L
Ray, James M., Indianopolis, Ind.
Read, Elisha T., Smithtield, R. I.
Rector, Isaac. Bedford, Ind.
Redfield, J. E., Saybrook, Conn.
Redington, E. C., St. Johnsbury, Vt
Reed, George B., Charleston, S. C.
Reese, Jacob, Westminster, Md.
Reeve, Thomas T., Goshen, N. Y.
Rel£ Richard, New-Orleans, La,
Reston, William, Wilmington, N. C.
Rhodes, T. H,, Providence, R. I.
Richards, Charles R., Troy, N. Y.
Richardson, Edward, Cambridge, Mass.
Richardson, II N., Attleborough, Mass.
Richardson, William L., Baltimore, Md.
Rich, Andrew J., Buffalo, N. Y.
Richmond, L. C., Bristol, R. L
Ricker, John S., Bangor, Me.
Ridgely, Charles, Springfield, 111.
Ring, Thomas C., Newburgh, N Y.
Ripley. Franklin, Green fie lit Mass.
Rittenhouse, Charles, Georgetown, D. C.
Robbins, Augustus C., Brunswick, Me.
Roberts, A F., Cumberland, Md.
Roberts, John M, Newbera, N. C.
Robinson, Antoine S., St. Louis, Mo.
Robinson, Attinore, Wakefield, R. I.
Roche, F. G., Columbia, Tenn.
Roe, N. C., Chicago, 11L
Rogers, John, Brunswick, Me.
Rogers, John F., Lowell, Mass.
Rogers, P. V., Utica, N Y.
Rogers, W. T., Tona wanda, N. Y.
Root, A. C., Belvidero, 111.
Root, Sydney D., Castlelon, Vt
Ross, John, Vincennes, Ind.
Ross, Robert J., Harrisburg, Pa.
Rousseau, Eugene, New-Orleans, La.
Ruggles, A. G., New-Paltz, N. Y.
Ruggles, A. K., Bloomfield, Ind.
Russell, James, Philadelphia, Pa.
Rutter, Thomas B., Baltimore, Md.
S afford, A. B., Shawn eotown. Ill
Sampson, Daniel C., Mobile, Ala.
Sampson, George L, Brooklyn, N. Y.
Sanford, B. F., Cincinnati, O
Sanford, Cassius B., Covington, Ky.
Sanford, W. M., Conners ville, Ind.
Sanger, Ilenry K., Detroit, Mich.
Sanger, H. K., Canandaigua, N. Y.
Sass, Jacob K., Charleston, S. C.
Satterlee, D. R., Stamford, Conn.
Savage, Ilenry R, Wilmington, N. C.
Savage, John, Jr., Cambridge, Mass.
Savage, Timothy, Wilmington, N. C.
Scammon, Tristam, Saco, Me.
Schaffer, William L., Philadelphia, Pa.
Scott, Aaron B., Hudson, N. Y.
Scott, E. J., Columbia, S. C.
Scott, Henry, Cooperetown, N Y.
Scott, Isaiah, Glen’s Falls, N. Y.
Scott, Josiah B., Portland, Me.
Scott, James B., Chillicothe, 0.
Scott, James S, Columbia, S. C.
Scott, M. S., Milwaukee, Wis.
Scott, S. B., Kenosha, Wis.
Scott, William T., Geneva, N. Y.
Seagrave, William H., Smith Sold, R. I.
Segur, Thomas B., Dover, N. J.
Severance, Thomas 0., Cleveland, 0.
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Alphabetical List of Cashiers.
141
Seymour, Isaac, New- York City.
Seymour, J. C. W., Detroit, Mich.
Seymour, Stephen P., Palmyra, N. Y.
Seymour, William T., Waterford, N. Y.
Shackelford, E. L., Richmond, Ind.
Sharpe, Thomas H, Indianapolis, Ind.
Sherman, Charles A., Lowell, Mass.
Shaw, 13. F., Damariscotta, Me.
Shaw, John, Bath, Me.
Shearman, R. H , Buffalo, N. Y.
Sherman, F. D., W atertown, N. Y.
Sherman, G-. IT., Watertown, N. Y.
8herrard, Joseph H , Winchester, Va
Sherwin, J. P., Erie, Pa.
Shields, James R, New-Albany, Ind.
Shoch, Samuel, Columbia, Pa.
Shipp, Richard D, Versailles, Ky.
Shores, James F., Portsmouth, N. H.
Short, J. C., Bloomington, Ind.
Short, J. C., Danville, IlL
Shriver, Edward T., Cumberland, Md.
Sill, John, Albany, N. Y.
Silliman, Augustus E., New- York City.
Simonds, Alvan, Boston, Mass.
Simonton, O F., Lawrenceburg, Tenn.
Sistare, Charles G., New-London, Conn.
§ Sivret, James, Boston, Mass
Skinner, L A., Westfield, N. Y.
Spinner, Francis E., Mohawk, N. Y.
Slingluff, William H., Norristown, Pa.
Small, Albert II., Lewiston, Me.
Small, Samuel, Jr., Portland, Me.
Smith, Aaron C., Charleston, S. C.
Smith, A. F, Rochester, Ind.
Smith, A. T , Jersey City, N. J.
Smith, Beverly, Parkoreburg, Va.
Smith, E B., Pulaski, Tenn
Smith, Frederick W., Memphis, Tenn.
Smith, George R, Bangor, Me
Smith, TL B., New-Havon, Conn.
Smith, Henry D , Middletown, Conn.
Smith, John Adams, Richmond, Va.
Smith, Louis P , Princeton, N J.
Smith, Moscr, Buffalo, N. Y.
Smith, Nathaniel, Providence, R. L
Smith, P. B , Montgomery, Ala.
Smith, Richard, Washington, D. C.
Smith, R A., Peoria, IlL
Smith, S. E., Thomaston, Mo.
Snow, Amos W., Providence, R. 1.
Snow, Erastus, Winchester, N. II.
Snyder, Jolm, Pittsburgh, Pa.
Sorcn, John J , Boston, Mass.
South, Samuel D , Palmyra, Mo.
Southgate, Wright, Norfolk, Va.
Sparks, George W., Wilmington, Del.
Spence, James, Murfreesboro, Tenn.
Spencer, Samuel W., Chestertown, Md.
Spencer, William, Steubenville, 0.
Spink, Nicholas N., N. Kingstown, R. I.
Spooner, John J. B.. Lock port, N. Y.
Sprigg, Daniel, Baltimore, Md.
Sprigg, G. IL, Fairmont, Va.
Stanley, William H., Cleveland, 0.
Stanley, David, Winthrop, Me.
Starin, Josiah N., Auburn, N. Y.
Steele, Charles R, Waukegan, IlL
Steele, William G , Somerville, N. J.
Stebbins, William, New- York City.
Stephens, W. H., Jackson. Tenn.
Stephenson, William II , Portland, Me
Steinbach, George W., Petersburg, Va
Sterling, James, Burlington, N. J.
Stevens, C. H.. Charleston, S C.
Stevens, Henry C., Newport, R. I.
Stevens, Samuel H., Exeter, N. H.
Stevenson, M, Washington, N. C.
Stickney, M. T., Bangor, Me
Stillwell, Albert G , Providence, R I.
Stockley, Ayres, Smyrna Del.
Stoddard, Isaac N , Plymouth, Mass.
Stone, Baman, Roxbury, Mass.
Stone, C. M., Providence, R I.
Stone, George A., Troy, N. Y.
Stone, Gyles P.. Newburyport, Mass.
Stone, Jacob, Newburyport, Mass.
Story, Albert G , Little Falls, N. Y.
Stow, Silas K , Troy, N. Y.
Stowell, S. H., Waterbnry, Vt.
Strayer, C. C, Harrisonburg, Va.
Strong, David 0 , Norwich, Conn.
Strong, Robert, New- York City.
Strong, William L, Burlington, Vt.
Strother, William P., Richmond, Va
Stryker, Thomas J., Trenton, N. J.
Stuart, John, Belvidere, N. J.
Suydam, F. J., 'Watertown, N. Y.
Swain, Charles G , Dayton, 0.
Swan, F. K., Calais, Me.
Swazey, Sewall B., ElLsworth, Me.
Sweeney, Hugh B , Georgetown, D. C.
Swift, C. C, Silver Creek, N. Y.
Swift, R, Hartford, Conn.
Swits, Nicholas, Schenectady, N. Y.
Taliaferro, C. B , Danville, Va
Taliaferro, John A, Trenton, Tenn.
Tallman, John C., Bridgeport, 0.
Tams, W. H , Staunton, Va
Tarbox, Anthony, Coventry, R. I.
Taylor, George, Warren, 0.
Taylor, George, Plymouth, Ind.
Taylor. Edmund H, Frankfort, Ky.
Taylor, Edwin M, Staunton, Va
Taylor, Henry P., Buffalo, N. Y.
Taylor, George, Plymouth, Ind.
Taylor, R W.f Youngstown, 0.
Taylor, Thomas L^ New- York City.
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Alphabetical List of Cashiers .
[August,
Taylor, Tracy, Troy, N. Y.
Teall, W. W., Syracuse, N. Y.
Teflt, J. K , Savannah, Geo.
Temple, John Bn Frankfort, Ky.
Terry, Howell J, Newcastle, Del.
Thacker, William, Somers, N. Y.
Thaw, William, Philadelphia, Pa.
Thayer, E. S, Buffalo, N. Y.
Theobald, F R, Richmond, Me.
Thomas, Francis IL, Rome, N. Y.
Thomas, George R, Rome, N. Y.
Thomas, Richard, Easton, Md.
Thomas, W. A., Syracuse, Ind.
Thompson, Andrew, Keeseville, N. Y.
Thompson, A. P., Port Jervis, N. Y.
Thruston, Alfred, Louisville, Ky.
Tilden, L. K, Bethel, Vt
Tinkham, E. J, Chicago, 111.
Tinsley, William B., Savannah, Geo.
Titcomb, William H., Rockland, Me.
Tooker, R A., New- York City.
Tompkins, Alexander, Lynchburg, Va
Torrey, Ebenezer, Fitchburg, Maas.
Torrey, S. W., Sandusky City, 0.
Tourtollot, J. S., Providence, R I.
Tower, Augustus M., Providence, R L
Tower, John C., North-Providence, R I.
Towle, Ebenezer S», Concord, N. H.
Towno, J. Hardy, Salem, Mass.
Town, J. J., Elgin, IlL
Townsend, Amos, Now- Haven, Conn.
Townsend, H., Farmers’ Mills, N. Y.
Townsend, Wash., Westchester, Pa
Townsend, W., Carmel, N. Y.
Tracy, J. C., Wins ted, Conn.
Trader, A Xenia, 0.
Trask, Ebenezer, Bangor, Me.
Trefry, Samuel S., Marblehead, Mass.
Treacott, Henry, Charleston, S. C.
Tripp©, A. S., Fall River, Mass.
Troutman, Goorgo M., Philadelphia, Pa.
Trumbull, George A Worcester, Mass.
Tufts, Asa A., Dover, N. IL
Tunnell, Isaac, Georgetown, Del
Turner, J. P., Marblehead, Mass.
Turner, Otis, Boston, Mass.
Turner, Seth, Randolph, Mass.
Tyler, Artemas S., Lowell, Maas.
Tyler, Edward, Boston, Mass.
Tyler, L., Jewett City, Conn.
Ullmann, H. J., Racine, Wis.
Underwood, A Ivan G , Oxford, Mass.
Upton, Peter, East- Jeffrey, N. H.
Usher, Luke, Potsdam, N. Y.
Vail, Henry F., New- York City.
Vail, Hiram, Amenia, N. Y.
Vance, William A., Romney, Va.
Van Culin, John H, Hopkinsville, Ky.
Vanderveer, B. M. Clyde, N. Y.
VanGasbcck, C H., Kingston, N. Y.
Van Lear, John, Jr, Williamsport, Md.
Van Steenburgh, J. E, Fishkill, N. Y.
Vaughan, Archibald, Farmville, Va.
Vennilye, Jacob D , Newark, N. J.
Vermilye, William II., Orange, N. J.
Verplanck, Samuel H., Rochester, N. Y.
Vickery, Charles R, Taunton, Mass.
Wagner, Samuel, York, Pa.
Wagner, William, York, Pa.
Wagner, William, Morgantown, Va.
Walton, Robert, Augusta, Geo.
Ward, Stephen D., Honesdale, Pa.
Wardnor, Henry, Windsor, Vermont.
Walsh, Alexander, Lansingburg, N. Y.
Ward well, Samuel, Rome, N. y.
Want well, Stephen S , Providence, R L
Ware, nenry B., Salem, N. J.
Waring, Thomas R , Charleston, S. C.
Warner, Benjamin F , Springfield, Mass.
Warner, Charles F, Burlington, Vt
[qu] Warner, G. A , Owego, N. Y.
Warner, Joseph, Middlebury, Vt
Warner, J. T„ Wilmington, Del.
Warner, T., Jr., Norwalk, Conn.
Warriner, J. L., Springfiold, Mass.
Warrinor, J. R, Pittsfield, Mass.
Warriner, Lewis, Springfield, Maas.
Washburn, A. J., Hallo well, Maine.
Washburn, Edgar, Carmel, N. Y.
Washburn, Z, China, Me.
Washington, John H R, Macon, Geo.
Weaver, George T, Newport, R I.
Webb, Charles, Westport Conn.
Webb, Moses F., New- Brunswick, N. J.
Webb, Henry A, Providence, R. I.
Webster, John B., Salisbury', Mass.
Weed, Jonathan N , Newburgh, N. Y.
Weir, James W., Harrisburgh, Pa
Weller R, Westfield, Mass.
Wells, Edward, Johnstown. N. Y.
Wells, Philip, Brattleboro, Vt
Wells, Amos I\, South Kingstown, R I,
Wells, S. P., Westerly, R. L
Wells, T. P., South Kingstown, R L
Wells, Philander, Troy, N. Y.
Wendell, B. Rush, Cazonovia, N. Y.
Westcott, J., Warwick, R. I.
Westfall, P. R, Lyons, N. Y.
Weston, William L, Danvers, Mass.
Wetherboe, John B., Boston, Mass.
Wheeler, Paul J., Ne\vj>ort, N. H.
Wheeler, W. A, Genesee, N. Y.
Wheloss, Wesley, Nashville, Tenn.
White, Andrew, Albany, N. Y.
White, Benjamin, Providence, R L
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Operations of the Bank of France.
White^OharieB, Northampton, Mass.
White, 0“. M., Knoxville, Term.
White, H. A. M., Knoxville, Tenn.
White, Hamilton, Syracuse, N. Y.
White, Horace, Syracuse, N. Y.
White, Horace H, Boston, Mass,
White, Joel, Norwich, Conn.
White, Joseph, Boston, Mass.
White, Nathaniel, Lawrence, Mass,
White, Samuel B., New- York City.
White, Thomas B., New- Bedford, Mass.
Whiting, W. H., Geneseo, N. Y.
Whitman, Joseph, Hopkinsville, Maas.
Whitman, T. A., Coventry, R. L
Whittlesey, G. W., New-Milford, Conn.
Wicks, E. B., Syracuse, N. Y.
Wightman, Elisha D , Mystic, Conn.
Wilcox, E. C., Rockford, I1L
Wild, James C , Boston, Mass.
Wilkins, Francis, Warner, N. H.
Wilkinson, R. S., Lockport, N. Y.
Willard, EL W, Chicago, IlL
Willard, F. N., Lowville, N. Y.
Willard, James 0., Ironton, 0.
Williams, D. R., Stockbridge, Maas,
Williams, George C., Lancaster, N. H.
Williams, James H., Bellows Falls, Yt
Williams, James Watson, TTtioa, N. Y.
Williams, John H, Frederick, Md.
Williams, Nathan T., Ithaca, N. Y.
Williams, Thomas C., Warren, 0.
Williams, William, Buffalo, N. Y.
Wilson, C. S., Utica, N, Y.
Wilson, Noah L., Marietta, 0.
Wilson, William H., Portsmouth, Va,
Wing, A., Fort Edward, N. Y.
Winsor, William, Smithfield, R. I.
Withers, Reuben, New- York City.
Wolfe, Robert B^ Winchester, Va.
Wood, C. J., Toledo, 0.
Wood, Phenix N., New-Orleans, La.
Wood, Theodore T., Morristown, N. J.
Woodman, C. C , Mineral Point, Wis.
Woodworth, Robert N., Brighton, Mass.
Woodruff, A. S., Elizabethtown, N. J.
Woodruff, J. C., Quincy, 111.
Woodruff, Lauren C., Dansville, N. Y,
Woolley, John, Indianapolis, Ind.
Woodward, M. W., Philadelphia, Pa.
Yerkes, Charles T., Philadelphia, Pa
Young, B. F., Rochester, N. Y.
Young, Joseph B , Piqua, 0
Young, William M., Sparta, Term.
OPERATIONS OF THE BANK OF FRANCE.
From (he London Economist
The annual report of the Bank of France for 1869 gives ns some
important information of the operations of that body in the year, which
will contribute to complete the history of money for the year. Never, it
observes — showing a coincidence between England and France, the
causes of which are worthy of investigation — was activity in commerce
and in industry, in public works and speculation of all kinds, greater than
in 1853, particularly in the first nine months of the year. In conse-
quence, the business of the Bank was unusually large. The shortness
of the harvest led to large purchases of grain abroad, and in part to a
reduction of the bank reserve. At the same time the increasing import-
ation of gold made a considerable change in the money of France. It
formerly consisted chiefly of Bilver ; now, in the vaults of the Central
Bank, and in all payments at Paris, gold predominates. The relative
value of the two metals, the report asserts, withont stating the amonnt,
has undergone an alteration. These circumstances are a cine to the
course of the Bank and its present situation.
Prior to the revolution, 1847 was the year of most business. In that
year, including the operations of the departmental banks united to the
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Operations of the Bank of France.
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Bank of. France in April, 1848, its operations amounted to 2714 million
francs, in 1849 they fell to 1328 millions, in 1852 they recovered to
2540 millions, and in 1853 they rose to the unexampled sum of 5984
millions. In 1853 the operations of the Bank exceeded those of
/
1847 by 1,250,000,000
1849 by 2,636,000,000
And of 1862 by 1.424,000,000
The discount of commercial bills in Paris and in all the branch banks
was in
/.
1852 1,824.000,000
1853 2,842,000,000
Increase of 1853, 1,018,000,000
The discount was more extensive in the second than in the first half of
the year.
The advance on rentes, in consequence of the conversion of the 5 into
per cents in 1852, was in that year very large, 330 millions ; in 1853,
it was reduced to 216 millions; at present the amount of rentes in the
possession of the Bank is 43 millions. The advance on the shares of the
tour canals increased from 22,500,000f to 35 millions in 1853. On rail*
way shares and other railway obligations 193 millions was advanced in
1852, and in 1853, 522 millions. On December 25th the amount of
these securities in the Bank was 84 millions. The discount of treasury
bills (bons du tresor) only varied from 7,900,000f to 5,900, OOOf. The
bills of the mint (bons de la monnaie) were discounted only to the
amount of 18, 500, OOOf in 1852, and in 1853 to the sum of 246,900,000£
The Bank sent to its branches or put into circulation gold coin to the
amount of 329, 030, OOOf.
Compared to 1852 the increase of effects paid into the Central Bank,
which is first notioed, on current accounts, was 155 millions. The
following is a tabular view of its payments and transfers :
1854. 1858. Inetttu*.
Million*. Million*. Million*.
/./■/■
Payments by notes, 6,682 7,488 1,806
Payments by specie, 796 1,636 741
Transfers, 16,662 17,025 1,493
Totals, 22,009 26,049 4,040
The maximum advanced on the current account with the treasury was
144 millions; the minimum, 39 millions ; the average, 76 millions. On
private accounts the maximum was 227 millions; the minimum, 132
millions; the average, 172 millions. The maximum of the metallic
reserve was 534 millions on June 9th ; the minimum, on December 29th,
307 millions; diminution, 227 millions. Though a change has since
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Operations of the Bank of France.
145
taken place, and th* metallic reserve has rapidly increased of late to 468
millions according to the last return, it was in January 290 millions.
After the revolution, the bills which .were not paid amounted to the
enormous sum of 84,500,000f, but of this sum there has since been
recovered 83,000,000f, leaving only the small sum not recovered of
l,500,000f. To cover losses 4,451,000f had been laid aside, but
3,806,000f have been recovered, and have gone to increase the dividends
and pay for new buildings and repairs.
The operations of the branch banka amount to 2098 millions, being an
increase above 1852 of 792 millions. The gross profit was 7,455,000f;
the net profit, 4,582,000f. The most business was done at Marseilles;
then came Lyons, Bordeaux, and Lille.
The two dividends in 1852 amounted to 118f; in 1853, to 154f,
namely, on 91,250 shares, 7 Of each in the first six months, and 84f the
second. In 1846 the dividends in the year were 159f, and in 1847,
I77f. These evidences of the prosperity of the Bank, prior to the revo*
lution of 1 848, are of great social importance.
That, with the increase of business, the expenses of the Bank should
increase is natural. The stamps on their notes, increasing with the
extent of the issue, cost 333,Q00f ; the expense of transporting specie and
money was 7l2,000f, and the specie transported was 360 millions.
Upward of 760,000f have been expended on buildings, and considerable
sums have been appropriated to improvements and rewarding the ser-
vants of the Bank.
These accounts are worthy of especial notice as confirming the state-
ment of the general commercial prosperity, and particularly the prosperity
of the banking interest in 1853. Our own banks — the Bank of England
and the Joint Stock Banks — all paid larger dividends than usual. The
Bank of France, too, paid higher dividends than in any year since 1847.
Of the variations in the interest of money, showing a similarity in France
and England, the Governor says: “ The rate of discount has varied more
frequently, and to a greater extent of late than formerly. On March 3,
1852, the Bank for the first time since it was in existence lowered the
rate from 4 to 3 per cent. Causes generally known compelled the Bank
on October 7, 1853, to raise it again to 4.” On the 17th of that month
it abated these terms on railway and state obligations falling due in
determinate or indeterminate periods. Ob the 20th of January of the
eurrent year, the rate was raised to 5 per cent The governor, in the
report, expresses a wish that the Bank may soon be able to proceed in a
different direction — a wish that has since been realized by the reduction
of the rate of discount by the Bank of France to 4 per cent From
such facts it is pretty plain that the low rate of interest in 1852 and
its high rate iqg&Jjf 4 were not the consequences of the action of any
one bank, but oTgeneral circumstances affecting the money market of
Europe. Against such variations, such an abundance of capital and such
a depression of the market as occurred in 1852, followed by such intense
activity as prevailed in 1853, and a scarcity of capital and high rate of
interest in 1854, governments which undertake to regulate commerce
are bound to warn their subjects, if not to prevent them ; but their own
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146 Coins, Coinage, and Bullion. [August,
inability to foresee and to prevent them should, suggest the impropriety
of taking on themselves the responsibilities they incur when they interfere
to regulate trade.
We reserve for the last paragraph a statement we find in a note relative
to the import and export of gold and silver. According to the latest
official documents, there was imported into France in
/ / /
1853, 316,000,000 113,000,000 425,000,000
EXPORTED.
29,000,000 216^000,000 245,000,000
From which it appears that the total imports surpassed the exports by
184 millions, but the imports of gold exceeded the exports by 287
millions, and the imports of silver fell short of the exports by 108
millions ; so that there was a displacement of silver by gold to the extent
of 103 millions, and in addition an increase of the gold in circulation to
the extent of 81 millions, the total increase of the precious metals in cir-
' eolation being 184 millions. Of the gold imported into Europe, France
appears to have absorbed in 1853 upward of 12,000,000?.
COINS, COINAGE, AND BULLION.
Thk following table will show tbe coinage at the Mist of the United States,
Philadelphia, for the first six months of 1854 :
Tint fim month*. June. Total.
Double eagles,
FjurlftA ...... k.. .
.$9,790,920 00
. 365,040 00
$9,790,920 00
366,640 OO
Half do.,
.* 333’585 00
333,585 00
939,695 00
Quarter do.,
696,755 00
342,940 00
Three dollars,
311,484 00
(145,497 00
36,150 00
347,634 00
Dollars,
138,446 ,00
783,943 00
Total gold,
$12,043,881 00
517,536 00
12,561,417 00
Dollars,
• ••»••••#••
33,140 00
33,141 00
Half dollars,
1,095 000 00
58,000 00
1.153.000 00
2.068.000 00
Quarters,
Dimes,
. 1,861,000 00
217,000 00
. 135,000 00
47,000 00
182,000 00
Half Dimes,
. 138,000 00
74,000 00
212,000 00
Three cents,. .. . .
8,100 00
3,900 00
12,100 00
Total silver,
.$3,227,100 00
433,040 00
9,451 10
3,660,140 00
Copper,
21,930 78
31,381 88
Gold, Silver, and Copper,
.16,292,911 78
6,177,022 18
960,027 10 #
16,252,938 88
9,071,270 74
Gold bars,
2,894,248 66
Total,
.21,469,933 96
3,864,276 66
26,324,204 62
30,707,726 03
In 1853,
.25,279,813 20
6,427,912 83
Decrease, 1854, ..
.$3,809,879 24
$1,673,637 17
$5,383,616 41
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The whole number of pieces coined in June, 1854, was 4^329,922 (including 927
bare) against 4,007,836 the corresponding month of 1853. Of the pieces coined this
year, 287,672 were gold, 3,097,140 silver, and 845,110 copper.
The gold bullion deposited in June was :
Prom California, * . . . .
From other sources, .
Silver bullion deposited,..*,.. .
$4,000,000
The deposits of precious metals for the first five months of the year were :
January,
February,
March,
April, .... ......
May
June,
IKS.
Ml
..$4,962,091
.. 3,648,523
.. 1,633,152
.. 4,766,000
.. 4,425,000
.. 4,546,179
Stiver.
$14,000
13,560
70,000
2.550.000
1.447.000
1,447,000
1854.
Gold. SUter.
$4,215,579 $108,000
2.515.000 1,166,000
3.982.000 147,500
3.442.000 129,000
3.596.000 196,000
4,000,000 100,000
Total,**.*,
..$29,780,561
$5,541,660
$21,749,679 $1,846,500
Extraordinary Cocxterfeit Coin.— -We understand that under instructions of
the Secretary of the Treasury, given some months since, to the Mint of the United
States, to collect specimens of counterfeit coins in circulation, for the purpose of
examination and report, one has lately been received of a very singular character.
It purports to bo of a Mexican dollar, coined at the city of Mexico in 1851. Two
pieces have been assayed, and give an average fineness of 776 thousandths, and a
consequent valuo of 91 £ cents in silver; but Strange to say, the amount of gold
contained in them is sufficient to add 12 cents to the value of each, after paying the
charge of separating, making a net value of 103 J cents ; and if to this the usual
premium on silver is added, the worth of this counterfeit coin is actually 109
cents!
The quality of the silver m these dollars proves them to be a spurious issue.
There is also an irregularity in the letters “ Mexicans,” which is regarded as a test
for throwing them out, as we learn from a source familiar with them in Mexico,
where they appear to have had at times a considerable circulation.
The silver produced by the Mexican mines is understood to contain gold, but
generally too small an amount to defray the expense of parting. In making the
coins in question it would seem that silver more auriferous than usual had fallen
into hands capable of the double dishonesty of cheating the public and themselves
at the same time.
Though there are probably some specimens of this singular counterfeit among the
Mexican dollars in circulation, it is not at all probable that they are sufficiently
numerous in this country to excite attention other than as curiosities. — Washing-
ton Union.
Sale op old Coins. — The nine days1 sale of Mr. Caff’s coins brought £3760 Is
There is to be another nine days, commencing on Monday next, so that we may
estimate Mr. Gaffs cabinet at something like £6000. It was essentially a cabinet
of English coina The largest sura obtained for any one coin was £140, for the
very rare and very celebrated crown-piece of Henry VIII. The King is seen in fbH
<ace, and crowned, 4he sword in his right hand, and the orb in his left. Tho next
largest sum was £80 for a gold coin (a ry&l) of Queen Mary L Tho Queen is
represented standing in a ship, crowned, with a sword in her right hand, and her
left resting on a shield, bearing the royal arms. On the side of the ship is a rose,
*nd at the stem a flag, with the letter M. Tho third highest sum was £77, for a
pattern jrieco in gold of Edward VL From its weight, it is supposed to have been
designed for a three-sovereign piece. Throe coins of kings of Mercia brought £62,
£51, and £48. A gold ryal of Queen Elizabeth £30 10s., and a spur tyal of James
L brought £25 10a. — London Jkws, June 24.
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Government , State, and City Bonds.
[August,
GOVERNMENT, STATE, CITY, COUNTY, AND RAILROAD STOCKS,
BONDS, etc.
New-York, July 2 6, 1854.
NAMES OF COMPANIES.
Alabama k Tenn. River
Baltimore k Ohio
do. do. . . ,
do. . do.
Buffalo k Slate Line .
do. do. . .
Buffalo k New-York City .
Bcllerotualne k Indiana .
<£in.. Wilmington, k Zanesville
Tinclnnatf, Hamilton, A Dayton
do
Cincinnati k Marietta .
Cleveland, Painesville.A Ashtabula]
Cleveland k Pittsburgh
do. do. . ,
Cleveland k Toledo
do. do. (Ohio June.)
Chicago A Rock Island, (Illinois)
Chicago A Mississippi
do. do. *. . •
do. do. . . ,
Covington k Lexington
do. do. .
Dayton k Western . . .
Fort Wavne k Chicago .
Galena k Chicago ....
Indianapolis k Bellefontaine .
Indianapolis k Lafayette «
Indiana Central .
Illinois Central ....
Illinois Great Western
Jeffersonville (Ind. to Louisville)
do. do.
Lake Erie. Wabash, k St. Louis
Lawrenceburgh k Indianapolis
Little Miami
Maysville k Lexington .
Madison k Indianapolis
Michigan Central
do. do
do. do
Michigan Southern
Milwaukee k Mississippi .
do. do. . , .
New-York Central
xr . .A? (Subscription) j
New-York k New-Haven .
New-York k Harlem .
New-Haven A New- London .
New-Haven A Hartford .
New-Albany and Salem
do. do. . * .
Northern Indiana ....
M d.°- ~ do. Goshen Branch
Northern Cross
Ohio Centrul *
do * .
Ohio k Pennsylvania
do. do
Ohio k Indiana ....
Ogdenslmrgh. (Northern,) .
„ do. do. .
Panama
Pennsylvania ...
Philadelphia A Westchester
Reading
do
Scioto A IIockiDg Valley .
gpringf., Mt. Vernon. A 'Pittsburgh
Steubenville A Indiana
Tennessee R. R.'g guar, by State
Terre-IIaute A Ind iunapolis
Terre Haute A Alton . .
w ilniingtou A Manchester (N. Ca.)
I I I
AMOUNT. i NATURE OF BONDS. IN WHEN PATADLK AT
♦ 833,000 1 st mor t . eon. till 10 J 71 Jan. Uuiy N.Y.]iro
1,UOU,0(IU Transferable — taxed f» Quarterly, Balt. 1*85
l,mouu Coupons, free of tax 6 January. July! * |1»75
700.000 do. do. 6 Half-yearly |
600.000 1st mort., not conv. I 7 April. Oct. |N.Y.
300.000 No mort.. do.
1.900.000 1st mort.
600.000 1st do. convertible
1,800.00011*1 do. do.
6oo,ooO{2d mort.. not conv.
l.ooo.oooad do. do. 7 May, Nov. I
2.500.000 1st do., conv. till 1062 7 January. July
567.000 1st mort., not conv. 7 Feb.. August
6 Half-yearly
7 April. Oct.
7 .la unary, July
7 Divers
7 January, July
7 May, Nov.
7 May, Nov.
£00,000
1,300,000
605.000
900.000
2,000.000
1,000,000
1.000.000
do.
do.
do.
do.
do.
<!■<.
do.
convertible
2d sec., conv.
not conv.
convertilde
conv. till 1*58
do. 1856
not conv.
1.600.000 3d mort. con. till 1858
400,000; 1st mort, uot conv. I
1.000,000 2d mort., convertible!
800.1KW 1st ruort., do.
1.250.U00 do. conv. till 1863
1.200.000 do. not conv.
450,000
17.UOO.OuO Mort., not conv.
1,000,000
800.000
800,000
8.400.000
600.000
1.600.000
600,000
000,000
1st mort., do.
do. 1st sec. do.
do. 2d do. do.
do. conv. till 1859|
do. 1867i
not conv.
conv. till i860
convertible
do.
do.
do.
, do.
1.000. 000 No mort., do.
1.305.000 do. do.
1.163.0001 do. not conv.
1.000. 000.1st mort., do.
600.000 (io. 1st sec. con. 1857
650.000 do. 2d do. 1858
8,287,(100^0 mort., not conv.
750.000
760.000
1,800.000
460.000
1.000,000
600.000
2.326.000
l.utm.oou
1.600.000
1,200,000
4’iG.lKlO
800,000
1.760,000
(100.000
do.
do.
1st mort.,
do.
d<».
do.
do.
do.
do.
do.
do. on 1st sec.
7 Feb., August
7 March. Sept.
7 Feb.. August
7 Divers
7 10 Jan., 10 July
i 7 April, Oct.
, 7 April, Oct.
7 January. July1
6 April. Oct.
7 March, Sept.
7 March, Sept.
7 January. July]
7 Feb., August
7 January. July,
7 16 Feb., 16 Aug.
7 May, Nov.
7 1 Oct., 1 April
10 April, Oct.
7 March, Sept.
7 April, Oct.
7 Feb.. August
7 March. Sept
6 April. Oct.
6 January. July
7 May. Nov. 1
8 April, Oct.
8 April, Oct.
8 Semi-annually
7 May, Nov.
8 January. July
8 April. Oct
6 May, Nov.
6 May. Nov.
7 June. Dec.
7 May. Nov.
7 10 M’ch, 10 Sep.
, 6 January. July
|10 April, Oct.
do.other do. con/68 8 May, Nov.
do. not conv. ] 7 Feb., August
do. do. 7 Feb., August
do. convertible I 8 January, July
do. conv. west sec.1 7 Feb., August
do. do. east do. i 7 May, Nov.
do. convertible , 7 January, July
Income, no mor. con.j 7 April, Oct.
7 Feb., August
I 7 April, Oct.
Bost.
N. Y.
wv.\iW|im;yiuc, IIU mor. c
1.000. 0001st mort., conv,
1,600,000| do.
1.460.000 2d mort., conv. V w. .
mort. con. 1866-68 7 January, July R°v*
6.000. 000 1st mort. con. till l*iO 6 1 Jan., 1 July N;.Y-
**j,000i do. do. 1803 7 January. July m „
6.014.0001 do. • , • 0 January.
3,039,000|2d mort. . . ! 2
300.000 1st mort. 1st di v. con.
600,000| do. convertible
‘ do.
do.
do.
conv. till 1865
convertible
1,500,
600.1
1,000,1
600.000
I 6 April, Get.
7 May, Nov.
7 January, July
7 January, July1
*■
7 March, Sept.
7 Feb., August
7 June, Dec.
N.Y.
8H0
"<>
8»il
860-66
806
062
*i8
NJ0
801
860
873
18H8 i v
A
870 *
874
862
8KJ
862
m I
**>-61
861
*75
*;i
873
875
866
*03
873
8<>1
1800
856- 56
857- 68
m
863
m ■
•SSj
1866
1878
KVMI2
872
1867
m
M
866
880
m
m
070
861
*68
866
I8G6
865
866
X
X
I
X
$
X
X
X
OFF*D.
asx’d
•
96
«V4
«2Aii
84
05
81
02
I1”
100
'103
94
80
90
02
95
87V<|
00
05
87
90
£9
90
72
73V*
*4
1 05
^V*
96
90
8»t4
90
94
!*
96
69
70
81
81V*
87
89
91
■
05
67
| 96
98
ll"J
101
l«3
94
83
83L*
90
96
100
101
0* |
1 87V*
96
| 97 ■
96
93
'96
102
m
05
■
100
65
70
93
97
96
90
81
83
76
76
84
05
99
100
X
X
X
IX
X loo
X 0*
X 9*Vi
101
M
" X” a lands for Ex-iuterest.
Original from
UNIVERSITY OF CHICAGO
j
Digitized by Gougle
1854.]
Government, State, and City Bonds.
149
U. S. Gov. Sccurit’ft,
Loan, 6 per cent 18661
do. do 1«8
do. do 186T
do. do 18681
do. do Coup, b’s.l*^1
do. 6 perct. do. 1865|
Slate Securities. |
N Y. 6 per ct....l86&-’61-’62'
do. do 1864-’66
do. do 1866-’67
do. 61/a per ct 1860-’61,
do. do 1866
do. 5 per ct
do. do 1866
do. 4^2 per ct. 1858-’59-’»>4
Canal Cer tide’s, 6 p. ct...l861
Ohio, do. 1856
do. do. 1861
do. do. 1870
do. do. 1«75
do. 5 per cent 1865
Pennsylvania, 5 per ct f
do. 5 per ct. coup.. 18771
sachusetts, 6 per ct
ns>Lr«r it n KM IQCn
Ih’T. PAYABLE.
[Jan. July,
do.
do.
do.
do.
do.
Jan. April.
Jan. April.
July, Oct
Jan. July,
do.
do.
do.
do.
do.
Feb. August
do.
[off’d.
103
114
116
116
116
110
114
115
105
108
10334
1W34
100
,10134
102
106
109 ...
pOVttlll
104
ASK’dJ
105“
115
[119
119
119
103
103
107
111
do.
do.
do.
Kentucky, 6 p. ct.bn.1 869^*72 'Jan. Jm]v
Illinois, Int. Imp. 6 p. ct.l847j do y*
• £ 1>er cent* Interest do.
Indiana State, 5 per ct
do. „ per ct i
do. C anal Loan, 6 per ct.
do. Canal Pref. 6 do.
* Maryland, 6 do.)
d®. 5 do.)
Alabama, 5 do.
Tennessee, 5 per ct. bonds. .
do. 6 do. do. long
do. do.. 1886
do. do.. 1873
do 1873
do 1872
do 1870
Jan. April.
July, Oct.
May, Nov.
Jan. July,
do.
do.
do.
E
do.
do.
Virginia, 6
Missouri, 6
N. Carolina 6
Georgia. 6
California, 7
City Securities.
New York 5 per ct. . .185*-’6o!
do. do.
ip.c.isn-’Hiip
do. 1 *75-77 j
do. Wro-’SOiJa. ApT Ja. OeJ
86
92
164
K5
60
97V2
60
96
22
103
sr
106
89
62 .
WVfc
62
96
. 34
104
K. R. Co.’s.
Baltimore A Ohio... .100.
L**t year
I April, Oct.
Cm., Ham.. A DaytonlOU l0|Feb.Aug.
Cleveland, Col. A Cin.100 13 Jan. July.
C eve. A Pittsburgh. .50 10 do.
Cleveland A Toledo... 50 10 M’cta, Sept.
1 5ri,e* — v- «i-a 100 7 April, Oct
1 Galena A Chicago... .100 20 Feb. Aug.
Harlem 50 4 I do.
do. preferred 50 8 Jan. July.
Hudson River 100 May, Nov.
Illinois Central 100 7 Jan. July.
Little Miami 50 10 June, Dec.
Macon A Western 10i 9 Feb. Aug.
Mad. A Indianapolis. .50 9 Jan. July.
Michigan Central.... 100 8 Dec.
do. Southern.. 100 k15 Jan. July,
do. do. con. st.lOO* 8 I do.
New Jersey 50 10 'Feb. Aug.
Nor .hern Indiana ...100,15 Jan. July.
" do.
Apr. Oct.
Feb. Aug.
15 Fe 15 Au|
Jan. July,
do.
May 15 No.l
Jan. July.
Feb. Aug.
Feb. May.
•AJfwnj. Bond.'6p.'c.lc71-4| peb“ Aub°T-
•Allryhenydo. do. 187S-’77ljan j
Baltimore do. do. . n\JU,Y
•Boston do. 5 do.
102
102
164
105
“8
99 1/2 1
. 8*
100
1U3
103
,106
106
80
too
1001/2)101
ioiv5 io3Va
April. Oct
Jan. July.
do.
Divers.
Jan. July.
[Peb. Aug.
Jan. July.
Brooklyn do. 6 do
•Cleveland do. W.W7p.c.l879
•Cinciriatl do. 6 p. c
•Chicago do. <fo. 1873-77
•Detroit W.W. 7 pc. 73-78- *83
•Jersey C. do. 6 do 1877 .....
•Loui«villedo. 6 do.. .1809-’83 ntveri
•“‘orri,1; do 6 - Vli^P“SfcP«.
^iudeto d0- « Julv-
•Pittsb’gn do. 6 do, ’69>,78-’83
•Rochest’rdo. 6 do 1878
•St Louis do. 6 do
•Sacramentoln do.... 1862-73'
•S. Francisco 10 do 1871
(Jan. July.
do.
Divers,
do.
do.
do.
101
1013^
96
93
103
99
821 2
85
89
w
83
9934
87 .1
75 I *
85
100
IOOI/2
103
1021/1
98 1
93
164
101
85
86
90
91
83
1001/2
88 i
76
J.
County Hoitd««*
IS*- LuoIk-Mo- « P. «... .IWK J»n. July,
•fayetle, Ky. fiilo.coti.1XHl do.
•Bourbon, Ky. 6do.do.«l-**l
•Mason. Ky. Odo.do.Sl-TQ.
• Allegf 1 any , Pa.6 do 18781
May, Nov., 1011 2 1021,4
Railroad Itonds.
do.
do.
do.
83 ,
I 78V21
7*
7*
83
N. Y. Central
Erie 1st inert. do.
do. 3d do.conv.do.
do. 3d do. do.
do. Income do.
do. Oonvertiblesdo.
do. do. do,
Hud'n R. 1st mor.do. 1^9-70 Peb. A
do. 3d do. do. . .1860 16 Ju. 16
do. oonv. do.
Michigan South, do.
North. Indiana do.
7p. ct.. 1883 Mat, Not.
..18*.; «Bo.
..1859 March, Sept.
..1883 do.
..1865 Fob. Aug.
..1871 do.
.1*’>3 Jan. July.
)ec.
.1867 May. Nov.
..18601 do.
..1801 F#b. Aug.
■ 83
|1U
9934
86
93 ,
78^
, 77 '
IOOI/4
76
96
96
N. B. All Stocksjiot
Id Mortgage
112 ,
1001 *2
85-1 4
931.2
in
mW
95
"w
97
97
T _ do. con. st. 100 8
N. Haven A nartford.100 10
New-York Central.. ..100i 5
N. Y. A Ncw-HavenlOO
Ohio A Pennsylvania. 50 7)4
Panama 100 10
Pennsylvania 50 6
Reading 80 6
Rome A Watertown. .100 10
Itliftcellaueous.
N. Y. Life A Trust Co.l00]10
Ohio do. ]<*» 8
N. Y. Gas-Light Co 60 10
Manhattan do 6O1IO
Dela. A Hud. Can. C0IOO1 9
Pennsylvania Coal Co.50, 10
U. 8. Bank lOOl
Boston Ranks,
par
Atlantic 100
Atlas 100
Blackstone 100
Boston 60
Boylston 100
Broadway, (8. Boston). ..lot)
City 10t)
Columbian 100
Commerce 100
Eagle 100
Kliot (new) 100
Exchange loo
Fancuil Hall 100
Freeman’s 100
Globe 100
Granite. 100
Grocers' 100
Hamilton 100
Howard, (new) loo
Market 70
Mass 360
Mechanics’, (8. Boston).. 100
Merchants’ 100
National, (new) 100
New-England 100
North loo
North America 100
Shawmut 100
Shoe and Leather .700
State 60
Suffolk 100
Traders* 100
Tradesman's, (Chel.) loo
Trcmout 100.
Union 100
Washington 100
Webster, (new) 100]
Exchange*.
London,
Amsterdam
Frankfort,
Bremen
Hamburg
Antwerp
[Feb. Aug.
Jan. July.
May Nov.
Jau. July.
June Dec.
Feb. Aug.
Hn liqdati’n
off’d
ask’d
50
1 51
92
1 93
100
IOH/2
60
«
«>■/»
70
49
1 50
120
124
52
55
104
106
IK)
95
100
10214
35
84
►5
93
1*4
84
88
136
138
93
92Vtj
84
86
120
122
86
87
‘ 84
85
93
94
8534
861/2
67
66
1 88
90
140
150
88
90
133
128
132
113
115
103
104
lVfc
3
103 '
57
111
101
102Lh
105
98
105
99L^
110
104
115
113
99
94
HI
K)
83
255
108
1071/2
|103
1110
101
102 1/2
194 1
no
106
108
1031/2
, 58
112
■
106
9814
■
,100
111
105
I 10
114
100
96
113
M
B
268
MM
108
10314
103
94
107
109
103
103)4
106
[112
64
m
m
I
109
110
1021/a lto
195 10514
109 109ty
5.11X5.1*
41 W
§i
&
4IM|
A
tocJtH?.ot5Pcciflc<1 *8 Bonds are transferable by Inscription. All Bonds (except Hudson 1st
aod Erie Convertibles) are payable to bearer. “ * ” denotes Ex-Interest or Ex -Dividend.
and
Digitized by Gougle
Original from
UNIVERSITY OF CHICAGO
150
Foreign Item*.
[August,
Digitized by
FOREIGN ITEMS.
Finances op Spain. — The finances of Spain are in a deplorable condition. Three
years since, that government had creditors in England to the extent of seventy
millions sterling. Since when, the interest on the debt has been allowed to accu-
mulate without payment. Now it is proposed to raise $18,000,000 additional, (or
180,000,000 reals,) at the extraordinary rate of 12 per cent per annum.
It seems to us that the Allies have committed a serious error in negotiating and
procrastinating their movements during the six months ending January last If a
prompt and severe blow had been struck in the first iistance against Russia, the
war would have been shortened. As it is, the military and naval expenditure®
will bo very heavy, and in six or nine months hence will create a serious disturb-
ance of the money channels of Eastern Europe. It will be seen that England does
not retain any portion of the immenso receipts of gold from Australia and the
United States. They are required in discharge of heavy balances in her foreign
trade.
The absorption of capital for the use of the British government will inevitably
produce a great fall in the public securities and in stocks generally. This revulsion
will of course affect our own market, and it becomes the duty of our merchants
and capitalists to husband their resources. Great care should bo especially taken
in forming new engagements for any extensive public improvements.
A letter from Madrid, dated 17 th ult., to the Times f alludes to an extraordinary
loan to the extent of eighteen millions of dollars, at twelve per cent interest, namely:
“The Queen, I am informed, has relented, and permits the forced loan. It is to
be of 180,000,000 reals, bearing interest at the high rate of 12 per cent. It is said
that one third of the sum will bo taken by capitalists, and that the houso of Roths-
child subscribes for 15,000,000. The large interest renders this not improbable.
Such portion as is not thus voluntarily taken will have to be supplied by certain
classes, notably by traders and manufacturers. There was a report yesterday, that
before having recourse to a compulsory loan, it was the intention of Ministers to
try to coax half a year's taxes out of the pockets of the nation by the offer of a
handsome discount, but I hear nothing of this plan to-day.”
Finances op France. — The privato advices from London are to the effect that
although a rise has occurred in consols, the money market is too unsteady for us to
rely on the last quotations as any index of the next thirty daya It seems generally
conceded that the bank rate of discount will be advanced 6 or 7 per cent The
British government will require, in a few months, another loan, to meet the extra-
ordinary demands on account of the war.
Franco has managed to obtain a large loon of 250,000,000 francs, (or fifty mil-
lions of dollars,) of which the French Minister of Finance thus reports :
“The amount of subscriptions registered was 468,315,400 francs (nearly nineteen
millions sterling)-;-^ much did tho enthusiasm of the subscribers exceed what
might have been expected. As the loan was specified to be 250,000,000 francs*
the subscribers for incomes exceeding 60 francs had to submit to a reduction in
their amounts.
“ Only two months have elapsed since the commencement of the subscription*
and although only one sixth part of the loan is due, subscriKrs have paid already
more than the half. Mr. Bineau has a right to congratulate himself and the
Emperor on the success of the operation.
“The total number of subscribers is 99,224. Of these 60,142 paid in sums the
interest of which will not exceed 50 francs per annum ; while 6475 have subscribed
for the minimum, 10 francs per annum. 27,902 subscriptions were paid in from
the department of the Seine, and 71,322 from the other departments and Algeria^
63,311 subscribed for the higher rate of interest, (4^ per cent,) and 35,919 for tho
lower, (3 per cent)
Google
Original from
UNIVERSITY OF CHICAGO
1854.]
Foreign hems.
151
“Thus two thirds of the whole number of subscribers have taken shares produc-
ing less, or not more, than 50 francs per annum. Of these, three fourths inhabit
other departments than that of the Seine”
Decimal Coinage in Great Britain. — A deputation of gentlemen from an
association lately formed for the purpose of promoting a decimal system of coinage,
waited upon the Cliancellor of the Exchequer on Tuesday, June 20, at his official
residence in Downing street, to urge upon Iler Majesty’s Government the propriety
of adopting that system. The deputation consisted of Lord Monteagle, Lord Stan-
ley, M.P., the Hon. H. Liddell, M.P., the Hon. Arthur Kinnaird, M~P., Sir Joshua
Walmsley, M.P., Sir Charles Pasley, etc. Mr. W. Brown, M.P., in opening the
business, mado a statement, in the course of which he said that in all the fol-
lowing countries the decimal system of coinage was either in existence or was in
course of adoption : Sweden, Holland, Belgium, Lombardy, the Zollverein, Poland,
Switzerland, France, Rome, Sardinia, Greece, Madeira, Spain, Portugal, South*
America, the United States of America, Canada, Bermuda, China, Japan, and
Russia. The Chancellor of the Exchequer said the feeling of the government was
that the people were not ripe for decisive measures, and the opinion of Parliament
ought not to bo invoked until they were ripe. Sir John Herschel, a favorable
witness, had said that it would take twenty years to carry out an object of thfc
nature. He was far from committing himself to such an opinion as this, but he
quite agreed in the statement of Mr. Brown, that the system proposed would be
a labor-saving machine, and it was by labor-saving machines that tho power and
greatness of this country had been achieved.
PRIZE-MONEY. —
44 Sweet le prise-money especially to seamen."— Byron.
According to an old story, once upon a time a sailor on board a ship just going
into action, was observed in an attitude of prayer; and in answer to a question, he
made known unto all whom it might concern, that he was praying that the enemy’s
balls might be apportioned like prize-money — the lion’s share among tho officers !
The joke may excite a curiosity to know what are the relative proportions of prize-
money assigned to officers and men. We shall adduce a famous instanco by way
of answer to tho inquiry. In 1799, the four British frigates, Naiad , Ethalion, Alc-
mbne, and Triton, captured the two Spanish frigates, Thetis and So ntn- Brigade
bound from Vera Cruz to Spain with specie, etc. The treasure in the Thetis was
worth £311,690; and tho other prize contained as much or more specie, beside
a valuable cargo of cochineal, etc. The prizes were safely carried to Plymouth,
and the treasure was forwarded, with much pomp, to London, and deposited in the
Bank of England. The prize-money, exclusive of tho value of the hulls and stores
of the Spanish frigates, was distributed among the offioere and crews of the British
frigates in the following rates:
Captains, each £40,730 J8 0
Lieutenants, ...» “ . . 6,091 7 3
Warrant-offieera, ............. “ 2,468 1 0 9^
Midshipmen, etc., “ 791 17 0£
Seamen and Marine^ “ 182 4 9£
When a ship is captured, a prize crew is immediately sent on board to take pos-
session, and navigate it to the nearest available port, where, if it proves a legal
capture, it is condemned by the Vice-Admiralty Court, and the vessel and all it
contains then becomes the sole property of the officers and crew of the ship or ships
which effected the capture.
Scotland. — A bill has likewise been introduced by the government to amend
the Scotch Banking Law, by establishing the right of joint-stock banks in that
country to exercise a lien over the shares of any of their proprietors who may be
indebted to them, provided such shares shall be sold and accounted for within six
months from the date of their being impounded.
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Foreign Items.
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Savings Banks in Scotland. — There are 43 Savings Banks in Scotland ; but
there are none in the counties of Haddington, Kinross, Linlithgow, Orkney, Peebles,
Sutherland, or Wigton. There are six in Aberdeenshire, and only one in all Lan-
arkshire, with a population of upward of half a million. In File there are four,
and in Sterling and Edinburgh there are three. Although there is only one sav-
ings bank in Lanarkshire, its transactions are equal to one third of the aggregate
of Scotland. The total sum invested with the Commissioners for the reduction of
the National Debt by all the Scotch savings banks, is £1,032.(134, of which
£564,010 was paid in from Glasgow. Tho annual number of receipts from
depositors, amounts, for Scotland, to £197,854, and the number of payments to
£120,922 ; tho average value of tho former being £3 5s. 6d., and of the latter,
£4 8s. 8d. Lanark alone has 76,950 annual receipts from debitors, and 42,886
payments. Selkirk has the highest average individual deposits, and Clackmannan
the least
The Usury Laws. — The British Parliament, at the instance of leading mer-
chants in the principal commercial places of Great Britain, some years since, modi-
fied the law of Bilis of Exchange, by removing from them the operation of tho
usury laws — at least upon all paper having less than twelve months to mature — so
that any rate of interest is legal for such paper.
On tho 28th June last, it was proposed in tho House of Commons to abolish the
usury laws altogether, not only as applied to negotiable paper, but to loans on real
property. For this purpose a bill was introduced by the Chancellor of the Exche-
quer. His remarks are reported in the Times as follows :
“ Tho Chancellor of tho Exchequer would now briefly state to tho House tho
object of the bill. Though it bore the ambitious title of a bill to repeal the usury
laws, the fact was that tho usury laws, except on a particular point, were already
repealed. The change of sentiment on this subject had been very great of late
years. In tho reign of Elizabeth an act was passed limiting the rate of interest to
10 per cent; in the reign of James I., it was limited to 8 per cent; in that of
Charles II., to 6 per cent; and in the reign of Anno, the act which was the basis
of the present law limited tho rate of interest to 6 per cent; but while tho aim
was to put shackles on tho freedom of private individuals, it was found in prac-
tice that tho state was tho great offender against these laws. The law it was
proposed to repeal was the law that prohibited loans of money at a greater rate of
interest than 5 per cent, when founded on real securities. The kind of transactions
chiefly affected was mortgages on land in Scotland, and railway debentures in Eng-
land. As regarded tho mortgages on land in Scotland, they might occasionally hear
of them as low as 3 or 4 per cent, the practice being to fix the rates of interest at
very short times, ranging from 12 to 18 months. In times of scarcity of money,
there was often a great pressure on tho landed proprietors so circumstanced, and
serious inconvenience was tho consequence, becauso if a man were not able to
allow more than 5 per cent on a temporary pressure for money, bo was liable to be
subjected to sudden demands on tho part of tho lender calling in bis money. It was
obviously better for the borrower to be able to give the market price of money, for
tho amount borrowed, than to be called on suddenly to pay up a largo sum that he
might find it very difficult to obtain. (Hoar, hoar.) Tho other class of securities
that were affected were railway debentures. Ho believed that if they were to rip
up the history of many of our railway companies, it would be found that the usury
laws had driven them to constant evasions of tho law. It was proposed there-
fore to give them the most perfect freedom in tho money market. They had
already recognized the principle of freedom of trade as applicable to money, and let
them not keep up a fragment, a mere shadow of the law, that had the effect of
driving men to all kinds of shifts and tricks to evade it (Hear, hear.) Let tho
landed proprietor and the railway proprietor go into the market free and unshackled
like other people, and then would bo completed entire and unrestricted freedom of
trade in all that related to the borrowing and lending of money. (Hear, hoar.)
He then moved for leave to bring in a bill to repeal the usury laws.” (Hear.)
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153
MISCELLANEOUS.
Retired Officers. — At a late meeting'of tlie directors of the Bank of Charleston
the board of directors were induced to pass a resolution, directing the annual appro-
priation of one thousand dollars out of the current profits of the business, to be set
apart as a fund for the relief of indigent retired officers, who may now, or here-
after, need pecuniary assistance for their support.
The provision was highly creditable to the directors of that flourishing and ably
managed institution, and it is gratifying to record the hearty and unanimous appro-
val tendered by the stockholders.
This, we believe is the first instance of the definite permanent appropriation of a
fiind by any of our banks to the laudable purpose of affording needed relief to
invalid or worn-out officers, and we most heartily commend the example as one
worthy of imitation. The duties of the bank officer, in many departments, are
onerous, exacting, and harassing, involving an amount of wear and tear, both
physical and mental, that those accustomed only to the more diversified pursuits of
out-door occupations can not appreciate. That those who, by fidelity and industiy,
erven in pubordinnto positions, have added to the interests or subserved the pros-
perity of a monied institution, should receive some reward when no longer able
to work, is rather a requisition of justice than an impulse of charity; and we are
truly pleased at this practical recognition of the claim, which by establishing a
distinct fund sacred to that object removes all objections that delicacy might urge
against special and exceptional relief to each case.
That such cases are not likely to be numerous among the number required in
the management even of our largest banks, is an additional reason why provision
should be made for the few that may occur.
We doubt not that this fund will yield richly remunerative dividends in the
renewed and increased zeal, activity, and devotion which all officers must feel
toward an institution thus providently guarding them against the result of contin-
gencies and reverses to wliich all are liable. — Charleston Courier .
New Banks in Rhode-Island. — Apprehensions have repeatedly been expressed
at the multiplication of banks in this State; yet it seems that the capitals required
by the new banks have been promptly subscribed by men who have the money to
let, not by those who wish to acquire an influence in the banks for the purpose of
using their facilities. We believe that the subscriptions to the new banks have
been of the soundest character, and that they commence business upon a basis of
solidity greater than that which marked the beginnings of some of the banks that
have taken their places among our most reliable institutions. There has been a
great increase of capital among us, and the business of the city demands the
increased facilities which the addition to our banking capital furnishes. The new
banks, too, have been placed under the charge of experienced and capable men.
While, therefore, we see no cause of alarm in the recent increase of banking insti-
tutions, we arc still of opinion that any further increase should be made to the
capitals of those already chartered, rather than to new ones. And we think that
the public is entitled to some better and more prompt information of their condition
than the present laws provide for. A monthly statement, published immediately,
would give additional confidence to the public, and would keep the banks in a state
of constant preparation. A permanent bank commission is also a matter worthy of
consideration. There is much to be said on both sides ; the chief objection being
the difficulty of finding suitable men to accept the office, which would bo, in some
respects, the most important in the State, and the danger of its falling into politics.
— Providence Journal.
Boston. — The suspension of Messrs. Willis k Co., bankers, is announced in the
Boston papers. Of this failure, much regretted in Boston, the Evening Transcript
says :
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Miscellaneous.
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“We regret to learn that the well-known house of Willis & Co. have, from the
financial panic and other causes, been obliged to stop payment. The announcement
of this fact created a great sensation in State street this morning. Tho liabilities of
the firm must be very large, from the extensive business which they have followed,
being, we believe, tho largest exchange brokers in the city.
14 The well-known energy and activity of this house, and their hitherto great facili-
ties, have enabled them to be of great servico to tho mercantile community, and
many will regret that circumstances should liavo occurred to obligo them to suc-
cumb to the great pressure which prevails in the stoek and mouetary atl'airs of tho
country. This house has recently been largely engaged in railroad enterprises, and
the depreciation of that species of property, taken in connection with the suspicion
thrown upon railway securities within the past week, has caused this suspension.
Tho news of this failure will cause much regret in business circles, from the enter-
prising character of the members of the firm, and their well-known public spirit
We can but hope that they will, at no distant day, resume their extensive business;
and we feel that we express the general desire of our business men in that pleasing
anticipation.
Wesley Smead, nis Benefactions : The Citizen’s Bank. — The Citizens’ Bank,
Smead, Collard & Hughes, proprietors, has been enlarged, and when all repairs are
completed will be as comfortable a banking-room as any in tho city. Wesley
Smead, who commenced his career in Cincinnati as an active carrier boy of the
Liberty Llall, and ailerward as a druggist and physician, early evinced business
talent. The rapidly growing city and its financial demands for transaction of com-
mercial and mechanical enterprises, awakened in Dr. Smead all of lib* latent talent*
and, step by step, ho attained a commanding position as a private banker.
His institution, tho Citizen’s Bank, has been tho safe depository for a number of
years, of tho earnings of the mechanics, manufacturers, and laboring portion of the
community, which have paid tho depositors an interest* and by their magnitude
given him an opportunity of growing wealthy thereby.
Much of his wealth, thus gained, we believe, has been generously devoted to all
enterprises promising tho amelioration of the condition of the people of our city.
His beneficent donations, liberally bestowed to all the charities of the city, without
regard to creeds or class, has made the namo of Smead synynomous with liberality,
when liberality was proper; but one of the crowning acts of his life was his action
In reference to the erection and endowment of the Widow’s Home, a retreat for
aged widows.
Yesterday we announced that the Doctor contemplated sailing from Ncw-York
to Europe, and was intrusted by the President with government dispatches to
Constantinople. We learn also, that previously to leaving Washington ho con-
tributed one thousand dollars to tho treasury of the Monument Association, the
directors of which in commemoration thereof; resolved that the name of Wesley
Smead should be carved on tho monument, his donation adding a section of about
one foot in its elevation.
Tho example afforded by Dr. Smead in liberally bestowing of his superabundant
means on worthy objects is deserving of imitation.
Learning that a praiseworthy enterprise had been started on Clinton street, in a
room, given rent free, by Mr. Longworth, for tho care of aged widows no longer
able to aid themselves, and was languishing for want of hinds, Mr. Smead deter-
mined that some permanent home should bo provided for them, and contributed
$13,000 toward the erection of the building, and liberal sums were paid in by
other citizens. After its establishment, Mr. Smead gave a further proof of hia
liberality, making his donation $20,000, by endowing tho institution with a gift of
$7000, which was loaned to the Mechanics’ Institute at 10 per cent interest, which
gives seven hundred annually to pay expenses. This noble benefaction is an
honorable one to the liberal donor. — Atlas .
Indiana Banks. — Many of our Indiana friends are hostile to our city, because
the bankers of Cincinnati send back the bills of the Indiana private banks to be
redeemed in specie. They complain of this, because it embarrasses the operations
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of their private bankers, in causing them to fhlflll what they promise to do, on the
face of the notes of the bills they issue, which is, to redeem their notes in specie on
demand. Our Indiana friends say, if this is continued, they will trade no more with
Cincinnati. This is very foolish on their part. The merchants of Cincinnati are not
responsible for the acts of these bankers, and the continual cry of a gang which is
got up because of our bankers demanding specie, throws discredit on the private
Indiana banks. If they cannot pay specie when demanded, they ought not to
promise to do it. These transactions are monetary and commercial, and there is
no use for editors to embroil themselves in a controversy of this character.
Heavy Forgery. — Last week, three men, named Charles Saxton, James More-
ton, and John Gill, were concerned in the forgery of a check on the Rutland Bank,
Vermont, for $3800, for which they received the cash in bank bills. The money
was then equally divided, and the men left town. Soon afterward, the forgery
was discovered, and the police put upon the trail. Moreton and Gill fled to Mon-
treal, Canada. Soon after arriving at that place, Gill became intoxicated, and
while in that state accused some body at the hotel with being a robber. The person
retaliated by saying that Gill must be a thief to accuse him. Gill was soon after-
ward arrested upon suspicion, and on searching his pockets over $600 of the
money was found. Moreton was arrested somewhere in Vormont. Information
being received in this city that Saxton was on his way here, the police were put on
the watch. On Saturday night, between 10 and 11 o'clock, officers Sneed and
Conrad discovered this man in a house in Rose alley, between Second and Third
streets. He was arrested and conveyed to the lock-up under the Mayor's office.
Yesterday morning Saxton had a hearing before Mayor Conrad, and was then com-
mitted to await a requisition from the Governor of Vermont Most of the money
has been recovered The three men above mentioned are charged with being
implicated in a number of forgeries and robberies. — Philadelphia North American,
July 18.
BANK ITEMS.
NjEgJQM^Benjamin T. Hoogland, Esq., was, in June last, elected Cashier of
the National Bank, New- York City, in plaoe of Frederick Dobbs, Esq., resigned on
aocount of ill-health.
Bank Capital — The Mercantile Bank, Broadway, has enlarged its capital to\
$1,000,000, and declares a dividend of five per cent The Corn Exchange Bank \
has enlarged its capital to $913,000, and will increase to $1,000,000 on or before
1st January next The Bank of New-York has decided to increase its capital to
$2,000,000. The American Exchange Bank has increased itscapital to $2,600,000,
and will further increase it to $3,000,000 on or before 1st January next J
Albany. — John G. White, Esq., has been elected President of the Bank of the
Capitol, in place of Noah Lee, Esq., who has aooepted the presidency of the Erie
and Kalamazoo R. R. Bank, Michigan.
West - Winfield. — The West-Winfleld Bank, Herkimer county, will commence
business in July, 1854, with a capital of $100,000. President, David R. Carrier,
Esq. ; Cashier, 0. Hemingway, Esq.
Buffalo. — The International Bank at Buffalo commenced business in July with a
capital of $400,000. The following are its officers:
President : George W. Tifft Vice-President : E. S. Prosser. Cashier : Charles
T. Coit Directors : G. W. TifTt, E. 8. Prosser, O. H. Marshall, H. Shumway, M.
S. Hawley, George Coit, Wm. G. Fargo, M. P. Bush, Chas. D. Gibson, Cyrus Clarice,
J. C. Harrison, Charles T. Coit, A. R. Cobb.
Mr. F. A. Mayhew, of the People's Bank, New-York City, has been selected as
teller of the new International Bank.
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Bank Items.
[August,
^ A ^^Aj^aiCllUSETlS. — Alpheus Hardy, Esq., has been elected President of the
Granite Bank, Boston, in place of Henry M. Holbrook, Esq., resigned.
Rhode-Island. — The Mercantile Bank at Providence commenced business early
in July. President, W. W. Updike, Esq. ; Cashier, A. Potter, Esq.
New- Hampshire. — Among the bills passed by the late legislature of New-Hamp-
ahire were the following :
“ Bills to incorporate the Lake Bank at Wolfborough ; the Weare Bank, at Hamp-
ton Falls; tho Farmington Bank; the Langdon Bank, at Dover; and the Peter-
boro’ Bank ; to increase tho capital stocks of Indian Head Bank, at Nashua ; of the
Amoskeag Bank, at ManchOvSter; of tho Manchester Bank, and of the City Bank,
at Manchester ; to prevent and punish the fraudulent issue of stock in bank, rail-
road, and other corporations.”
New Banks in Connecticut.— Notwithstanding the free banking law adopted
in 1852 by tho State of Connecticut, tho new legislature which assembled this year
authorized a number of new chartered banks, without repealing the free law. The
following is a list of tho new charters :
Hams and Location,
Elm City, New-Haven,
Tradesmen’s, “
Mattatuck, Waterbury,
Home, West-Meriden,.
Stafford, Stafford,
Capitol.
$500,000
500,000
500.000
300.000
300.000
And granted the following amounts to institutions already chartered :
Winsted, West-Winsted, 200,000
Thames, Norwich, 200*000
Danbury, Danbury, 125]o00
Bridgeport, Bridgeport, 100.000
Fairlield County, Norwalk, 100,000
North America, Seymour, IOO^oOO
Deep River, Deep River, 75*000
Meriden, Meriden, 60,000
Stamford, Stamford, . 45,000
Windham County, Brooklyn, 3b!oOO
$3,133,000
Maryland. — The Bank of Commerce, chartered by the last legislature of Mary-
land, commenced business at No. 26 South street, Baltimore, on Saturday, July
15th. President, Charles R. Taylor, Esq., (formerly paying teller of the Bank of
Baltimore;) Cashier, George C. Miller, Esq. The Bank gives notice that it will
be open daily during tho ordinary business hours of the day, and on Saturdays will
be kept open until 5 P.M.
New- Jersey.— The Hunterdon County Bank, at Flemington, N. J., has com-
menced business with a bona-fide capital of $50,000. J. A. Farley, President ; W.
Emery, Cashier. The circulation is secured by a deposit of Virginia State Stocks
and Newark City Bonds. The bills are redeemed at the Bank of the Common-
wealth, in this city.
Virginia. The Bank of Kanawha, at Kanawha Salines, has commenced busi-
ness under the general banking law of Virginia. President, James L. Carr, Esq. •
Cashier, O. W. McKinney, Esq. ^ ’
Kentucky.— William Hoffman, Esq., Cashier of the Branch Farmers’ Bank of
Kentucky, at ML Sterling, has resigned, for the purpose of engaging in the business
{7 private banking at that place. He is succeeded in the office of cashier by Wil-
liam Mitchell, Esq. J
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Ohio. — James Espy, Esq., has resigned the cashierehip of tho Franklin Bank,
Columbus, and is succeeded by Joseph Hutcheson, Esq., formerly teller of the bank.
South-Carolixa. — Donald L. McKay, Esq., who has for some years been Presi-
dent of the Bank of Georgetown, has been elected President of the People’s Bank,
at Charleston, S. C., in place of Edwin P. Starr, Esq., resigned,
Gtorfj' iown. — James G. nenning, Esq., hitherto Cashier of the Bank of George-
town, S. C., has been elected President thereof; in place of Mr. McKay, who ha a
accepted the presidency of the People’s Bank, at Charleston. R. E. Fraser, Esq.,
succeeds Mr. Henning as cashier.
Michig an. — Noah Lee, Esq., of Albany, has been appointed President of the Erie
and Kalamazoo Railroad Bank, in place of A. J. Comstock, resigned.
Bank Dividends for July. — Bank of Louisville, per cent ; Bank of Ken-
tucky, 6J per cent; Northern Bank of Kentucky, 5 per cent; Farmers’ Bank of
Kentucky, 5 per cent ; Southern Bank of Kentucky, 4(.
Tennessee. — Planters’ Bank of Tennessee, 4 per cent; Union Bank of Tennesseef
4 per cent
Bank of the State of Missouri, *1 per cent.
Virginia. — Bunk of Virginia, 4$ per cent; Farmers’ Bank of Virginia, 4£ per
cent; Exchange Bank, of Virginia, 4-J- per cent ; Bank of tho Valley, 6£ per cent ;
Bank of the Old Dominion, 4 per cent.
Dividends of the New - York City Banks for January and Julyt 1854, with amounts
of Capital of each .
Diyidkxp. Amount.
Capital. Jan'y '64. July ’54. July ’M.
Bank of America,
$2,000,000
4
4
$80,000
Bank of Commerce,
5,000,000
4
4
200,000
Bank of Now- York,
1,500,000
4
4
60,000
Bank of North America,
1,000,000
34
34
35 000
30,000
Butchers and Drovers’,
000,000
5
5
Central,
300,000
34
34
10,500
Chemical
300,000
6
6
18,000
Continental
1,500,000
4
4
60,000
East River
413,050
4
34
14,460
Empire City,
Groce i s',
308,000
34
34
10,180
300,000
300,000
34
34
10,500
Irving
34
34
10,500
Knickerbocker,
400,000
34
34 •
14.000
35.000
Hanover
1,000,000
—
34
Island City Bank
300,000
—
4
12,000
Market,
650,000
4
4
26,000
Mercantile,
1,000,000
5
5
50,000
Merchants’ Exchange,
1,235,000
4
4
49,400
Metropolitan,
2,000,000
4
4
80,000
Nassau,
500,000
4
4
20,000
North River,
655,000
5
5
32,750
New- York Dry Dock,
200,000
4
4
8,000
Newr-York Exchange Bank,..
130,000
4
4
6,200
Ocean Bank,
1,000,000
3*
3*
35,000
Pacific,
422,100
4
4
16,908
People’s,
412,500
3*
H
14,437
Pheuix,
1,200,000
*15
*7
84,000
Seventh Ward,
600,000
4*
5
25,000
Tradesmen’s,
400,000
f3
+3
30,000
• Including turpi ub dividend* at expiration of charter,
t Per share of (40 or 7X per cent
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158 Notes on the Money Market. [August,
Boston Five Cents Savings Bank. — This institution, located in the basement
of the Uni verbalist church, School street, opposite the City ITall, is now in the ‘‘full
tide of successful experiment.'’ Its board of officers are generally well known as
men of sterling integrity and high ability, from various business circumstances, and
it therefore commenced' under the most favorable auspices. We stepped into the
rooms a day or two since, when the Secretary, Mr. Curtis 0. Nichols — who, by the
way, is admirably fitted for his station, being an accomplished penman and account*
ant, and above all, a young gentleman of perfect uprightness of character— politely
gave us some statistics of the practical operations of the new bank.
Within the two months since its opening on the first of May, there have been
Upward of 3000 depositors, more than two thirds of whom are from the working
classes in the community, and the remainder are children and youth. The total
amount of deposits has reached the round sum of $70,000. The deposits each week,
thus far, have been from $8000 to $10,000, with no present prospect of diminution,
but rather an increase. An average of the depositors would give to each one more
than $20, notwithstanding the deposits range in amount from five cents up to a
thousand dollars. It is evident that the institution will thus soon accumulate so
large a fund that the most ordinarily prudent investment must yield handsome
dividends. Savings banks of this class are rapidly being established all over the
country, and the beneficial individual influence they exert is doubtless more than
commensurate with that of the public enterprises which their means help to carry
forward.
Silver at toe Mint. — The director of the Mint giVos notice that from and after
the first of July, 1854, the price to be paid for silver purchased at the mint, will be
one dollar twenty-two and a half cents ($1.22£) per ounce of standard fineness,
(nine tenths) as determined by assay at the mint The net value calculated at the
above rate, will, on the report of the assay or, be paid to the owner or his order, in
gold or silver coins at his option. According to the above rate of purchase, the
yield per ounce gross, of the various classes of silver coin usually in the market,
will be about as follows :
Five francs, whole dollars (except “hammered”) and United States coins
issued since 1837, and prior to April, 1853, except three cent pieces, . . $1 22|
United States coins of mixed dates, and the Spanish and Mexican ports
of a dollar, excluding pistareens, 1 22
German Crowns, 1 19
German Thalers, 1 02
The prices fixed for the circular for December 21, 1853, will be continued as to the
branch mints, until further notice. — Philadelphia Ledger, June 30.
SCotta on t)e Jfcottr# JWarfcet.
Nr w- York, July 26, 1854
Exchange on London, sixty days' sight, 8f a 9| premium.
Thb month of July has brought with it a long train of serious financial evils, more remarkable
than daring any month since the spring of 1887 when the banks of the Atlantic cities suspended
specie payment The spirit of speculation that has prevailed for one or two years past in this
country, and particularly so at New-York, has produced factitious prices in nearly all classes of
property. Real estate has advanced in prices beyond all reason, and the rents demanded this season
have been far beyond ordinary means to pay. Speculation has, however, been more observable
In the creation of new railroad companies, some of which contemplated improvements of a doubtfhl
character and others were projected of a decidedly competing order.
The abstraction of capital to a large extent for the construction of long lines of railroad In Ohio,
Indiana, Illinois, and other States, has hampered this market for a year past Such has been the
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Notes on the Money Market.
159
pressing demand for capital for these new concerns, that railroad paper has been among the heaviest
in the market Some companies have paid as high as 1* to 9 per cent per month for a series of
months, and that, too, on large sums.
Another cause of the difficulties in the money* was In the enormous Imports of foreign goods,
amounting during the past fiscal year to about two hundred and eighty millions of dollars.
The following is a summary of government revenue for the past fiscal year :
1st quarter, %d quarter, 8 d quarter, 4thqr,esL
From Customs, $19,718,922 $18,587,891 $18,898,794 $15,800,000
From Lands, 1,489,589 2^28,076 2,012,908 *2,000,000
Incidentals, 147,994 101,988 488,091 400,000
Loans, 1,650 850 800
Total, $21^858,028 $15^911 $19,895,025 $18,000^)00
Total receipts for the fiscal year 1854, $74,766,264
Total receipts for the fiscal year 1858, 61,000,000
Increase of receipts for the present year. $18,766,264
The balance In the treasury last year on the 1st July was, 82,000,000
Increase of means at the beginning of the fiscal year lSOi-TS, $10,057,106
The amount of public debt paid off will have been about $20,000,000. Tho revenue collected has
been, therefore, about $80,000,000 more than the current wants of government have required. Of
(his entire revenue, the existing tariff has produced $68,000,000, and the public land $9,100,000.
The spirit of speculation has engendered this year, as It has in other seasons of excitement, numer-
ous frauds. We have alluded to these in the earlier part of this No. Tho same degree of culpa-
bility existed daring the speculative years of 1885-’6 and 7, when real property and stocks reached
enormous prices. The recent frauds perpetrated on the New-York A New-Haven Railroad Co.,
the New-York A Harlem K&ilroad Co., the Vermont Central Railroad Co., and on the Parker
Vein Coal Co., have temporarily unsettled the markets and Impaired tho confidence which pre-
viously existed among the commercial community and In the management and stability of our
railroad corporations.
The fail in stock values is perhaps greater than at any prior season. If e annex the quotations of
a fow prominent shares In this market from January to July, 1854 :
JhV 3. Jn'y 16. Feb, 1. Fsb. 16. Mar. 1.
Mar. 16.
Ap'l l.Ap'llb.
New-York Central Railroad,
114)4
USX
a 109
uox
111*
109*
103
106X
Erie Railroad,
79*
78
78*
MX
82*
79’<
74*
70
Harlem Railroad,
15*
54
52*
M*
MX
M*
54*
50
Hudson River Railroad,
6T
67
68
70
70*
67*
66
62*
Reading Railroad,
wx
79
MX
MX
80*
73*
76*
MX
N. Y. A N. Haven Railroad,
1 01*
99
#»x
MIX
102X
100*
99
95
Michigan Central Railroad,..
100*
99
109
108X .
104X
106*
107*
104X
Michigan Southern Railroad,
118
11TX
116
118*
—
118
USX
11«X
Cleveland A Toledo Railroad,
99
—
MX
98
100
99
s*l
88
Cleveland A Pittsburg R.R.
86
—
81
S»X
—
84
88*
81
Cleveland, Columbus, A Cin-
cinnati Railroad,
198
118
—
—
191
120X
—
114
May 1. May 16.
•TmI.
18. July 1. July 15. J'ly 19. J'ly 2«.
New-York Central Railroad,
106*
108*
1MX
101X
100X
o»x
69
88
Erie Railroad,
T0X
69*
«®x
MX
62*
M*
49
40X
Harlem Railroad,
50
61*
DO
46*
41*
—
—
—
Hudson River Railroad,
MX
64
«x
«2*
#1X
56
—
51
Reading Railroad,
MX
MX
MX
70*
n*
67*
MX
64*
N. Y. A N. Haven Railroad,.
98
98
04
87
75
—
—
— ■
Michigan Central Railroad,..
108X
108*
lo»x
99*
98
90*
88
86
Michigan Southern Railroad,
—
119
m
U9X
08*
95
—
wx
Cleveland A Toledo Railroad,
99
»x
01
89
35*
TTX
70
72
Cleveland A Pittsburg R.R.
—
—
»X
—
—
—
—
50
Cleveland, Columbus, A Ctn-
nsti Railroad,
uex
UTX
11«X
—
noo
—
100
Digitized by
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160
Deaths.
[August, 1854,
Digitized by
Those who were unfortunate enough to be largo holders of stocks have suffered severely, and In
numerous Instances the parties have failed to meet their engagements. Antony the suspensions of
the month we enumerate at New- York, Messrs. Delaunay, Iselin and Clarke, stock -brokers;
Messrs. li. and G. L Schuyler, and Gouvorneur Morris, railroad contractors ; Messrs. Clark, Watson
A Co., dry-gooda dealers.
At Boston, Messrs. Willis k Co., bankers, Mr. II. M. Holbrook, Mr. James W. Baldwin, Messrs.
Dana & Co., grocers. At Philadelphia, Mr. J. Tucker, President of the Beading It. It. Co.
Numerous failures have occurred also at Si Louis Cincinnati, and Philadelphia.
We stated in our last No. that the treaty between the United States and Mexico, had Wen con-
firmed, whereby this government agreed to pay ten millions of dollars for the Requisition of more
territory. Early in July the treasury draft for seven millions of dollars in part payment of thi#
treaty stipulation was presented and paid at the New-York Sub-Treasury. For the pre^nt, the
Mexican minister has agreed to leave a portion of this on deport at a low rate of interest, with
several of our city banks, namely. Bank of Commerce, $1.5<*>,ooo, Bank of Americi, $5<M),uflO
Merchants' Bank, $5on,noo, Bank of New-York, $3oo,uihi. Phenix Bank, $2 and the remain-
der on special deposit with the three tlrst-named banks. This aeee*don of sjM-eie fund to the active
means of the banks named has enabled them to enlarge their discount line. The increase through-
out the city banks rdnee l»t inst. ha* been $3,4ih\i*00.
We annex a summary of the business of the New-York city banks for the past eight weeks :
Date.
Loans.
Specie l (
May 27, ’54,
.... 90,981,974
10,9^1,531
June 3, ‘54
.... 91,010,710
l‘»,2" 1,969
June 10, ’54, . . ,
. ... 91,015,171
9,0 17, ISO
Juno 17, ’54,
.... 90,003,573
10,013,157
June 24, ’54,
.... SS, 731, 952
9.62/375
July 1/54,
SS 60s 591
1 1,13 i/00
July / ’54,
8/347, 2"1
12,207,313
July 15, ‘54,
.... 90,437,004
15,074,093
J uly 22, ’54,
.... 92,011,870
15,720,309
rendition.
Deposits.
Sub .
Trrasu r\j.
Aggregate
coin.
9,2" 1,^07
61,023,070
8,799, > *0
19, 7 "1,300
9, 3" 1,71 1
71,7**2,290
8.921.3 M)
19.2 13,200
9,3<»7/"9
72, 49 5, "59
S,9 *1.0 M)
1".51\ "00
9,144,2*4
71,959,105
8,954,500
1 ",907.700
9,009,726
69, 59 ",724
9,10*0.3 *0
1 ",794, 700
9/0*.253
71,457,984
8,13 i,2 tO
19,201.000
9,195,757
72.718,443
9,795.100
22, < *62,400
/"37.6S1
75,227,333
8,52'*, "00
1 ",394/00
8, 70S, 2^9
75,959,0^2
4,137,4*0
19, "57, 700
The Increase between May 27 and June 8 is only apparent: as at the latter date, the banks, for
the first time, included among their dejxislts their balances due to other banking institutions. The
Increased coin in their vaults for the week ending July 15, arose from the deposit of coin made by
the Mexican government.
The annexed statement exhibits the average condition of the loading departments of the banks
of Boston during the week ending Monday morning, the 3d of July:
Loans.
Specie.
Deposits.
Cirru lot ion.
June 5,
$4/309,492
$2/00,277
$1 3.270.01 i*j
$",277,019
June 12,
2,933,521
18,129,0 *2
8,400.280
June 19,
2,929,756
12, 2 9 \"37
8.221,337
June 20,.
2,796,914
13,' *15.916
8,0.5/265
July 3,
2,044,5.33
13,1 "3, 190
•S,**99,**S9
July 10,
49,110/57
2,s39.025
12.73S.605
9,1 5/459
July 17
2/07,795
12,917,429
S, 502, 122
July 24,
2,934,940
12,672,918
8,541,494
DEATHS.
At Alexandria, \ a., July 4, 1S54, Washington C. Page, Esq., Cashier of the Farmer*’ Bank of
Virginia, at that place.
At Lyons, N. Y., on Friday, July 7th, Henry K. Holley, Esq., aged 26 years, Cashier of the Slate
Bank, at Madison, Wisconsin.
At Camden, S. C.,June 3)ih, Thomas Salmond, Esq., President of the Brunch Bank of the State
of South-Car<dina, at Camden.
At Brattleboro, Vermont, E. Seymour, E*q., aged 71 years, formerly Cashier of the Bank of
Brattleboro.
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#
THE
BANKER
0tati0
AZINE
0t*r.
Vol. IV. New Seriks. SEPTEMBER, 1854.
No. m.
FRAUDULENT BILLS AND CHECKS.
Thb importance attached by bankers to the recently decided case of
Ellis & Morton v«. Tbr Ohio Lire «fe Trust Co., at Cincinnati, has
induced us to obtain a copy of the opinion of the court as rendered by
Judge Storer. It will be found that in reviewing the case and the points
urged by the couhsel on both sides, the court has referred to all the
important or leading cases contained in the English and the United
States Reports that may be considered as similar cases or that have a
bearing upon the present one.
As our readers are not presumed to have at hand the numerous law
reports or cases referred to in that of Ellis & Morton vs. The Ohio Life
& Trust Co., which we furnish in our present No., (pp. 177-188,) we
have thought it advisable to publish a summary of these cases for the
information of our banking friends. The American cases of this charac-
ter have been decided in the New-York, Massachusetts, Vermont, and
Louisiana Courts, and in the Supreme Court of the U. S. In a prior
volume of the Bankers’ Magazine, (Vol. IL pp. 280-288,) we have given
in full the celebrated case of the Bank of the State of Georgia vs. Bank
of the United States, wherein it was decided that “ a bank having
received its own notes in payment, is concluded from afterward denying
their genuineness.” We now proceed to give the main points decided in
the other cases quoted in the opinion of the Superior Court of Cincinnati;
including those of the English as well the American courts.
11
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1G2 Fraudulent Bills and Checks. [September,
Summary of Cases.
English Cases. — 1. Young. v s. Grote; 2. Snow vs. Peacock; 3.
Beckwith vs. Corrall ; 4. Slater vs. West ; 5. Arbouin vs. Anderson ;
0. Goodman vs. Harvey ; 7. Uther vs. Rich ; 8. Foster vs. Pearson ;
9. Bramah vs. Roberts ; 10. Price vs. Neal; 11. Wilkinson vs. Lut-
wxdge ; 12. Jenyns vs. Fowler; 13. Bass vs. Clive ; 14. Smith vs.
Mercer; 15. Jones vs. Ryde ; 16. Bruce vs. Bruce; 17. Smith vs.
Chester; 18. Lickbarrow vs. Mason ; 19. Wilkinson vs. Johnson ; 20.
Cook vs. Mas ter man ; 21. Gill vs. Cubitt ; 22. Down vs. Hailing ; 23.
Hall vs. Fuller ; 24. Lawson vs. Weston ; 25. Crook vs. Jadis ; 2G.
Backhouse vs. Harrison.
American Cases. — 1. Levy vs. Bank U. S. ; 2. Bank XJ. S. vs.
Bank State of Georgia ; 3. Gloucester Bank vs. SaUm Bank ; 4.
Bank of St. Albans vs. Farmers <& Mechanics ’ Bank ; 5. Bank of
Commerce vs. Union Bank , N. Y. ; 6. Goddard vs. Merchants' Bank ;
7. il/arsA vs. Small ; 8. City Bank , iV*. 0. vs. Girard Bank ; 9. Herf
and Co. vs. Schultz ; 10. Powell vs. Jones ; 11. Talbot vs. Bank of
Rochester ; 12. Canal Bank vs. Bank of Albany ; 13. Cone vs. Bald-
win ; 14. Wheeler vs. Guild; 15. Adams vs. Ottcrback ; 10. Weisser
vs. North River Bank , N. Y.
I. Checks in Blank.
Young vs. Grote and others, 4 Bingham's Reports , 253. In this
case a customer of a banker delivered to his wife certain printed checks
signed by himself, but with blanks for the sums, requesting his wife to
fill the blanks up according to the exigency of the business. She caused
one to be filled up with the words fifty pounds two shillings: the word
fifty being commenced with a small letter and placed in the middle of
the line. A clerk of the party altered it by inserting the words three
hundred before the fifty and the figure 3 between the £ and the 50.
Before the English Court of Common Fleas, 1827, it was held (the
bankers having paid the check) that the loss must fall upon the bankers.
II. Stolen Bank-Note.
Snow and others vs. Peacock and others, 2 Carrinyton <k
Payne's Nisi Prius , (1827.) If a banker in a small market- town
change a £500 bank-note for a stranger, without any further inquiry
than merely asking his name, he is liable in trover to a party from whose
possession such note had been unlawfully obtained ; and the question in
such case is not, whether there was an honest holding on the part of the
banker, but whether under the eircnmstances, there was a want of due
caution on his part. The plaintiff, however, in such case, must show that he
has done every thing which in reason he ought. In this case a dividend
warrant was paid into a bankers’ by a customer. The bankers sent it.
by a porter of the house to the Bank of England, to get cash for it : he
returned without the money, saying he had been robbed of it. Held by
»
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Fraudulent Bills and Checks.
163
the court, (the porter being dead,) that proof of those facts was sufficient
evidence of possession on the part of the bankers, to enable them to
maintain trover for a £500-note against a party into whose hands it had
come under circumstances which would not entitle him to retain posses-
sion of it
III. Stolen Bill of Exchange — Failure of Notice.
Beckwith vs. Corrall and others, 2 Carrington <k Payne's Nisi
Prius. If a party possess himself of a stolen bill or note improperly, a
demand and a refusal are not necessary previous to an action of trover
brought for its recovery by the loser. This was an action on a lost bill
of exchange for £33 2s.
Held, if a party be robbed of a negotiable security eight days before
it is payable, and he does not give notice of his loss till the end of
seven days, and then only to the payer, but gives no notice of any kind
to the public, he does not use due diligence, and cannot recover in trover
against a party who discounted such security six days after the loss.
And in 6uch case, tbet questions proper for the jury are, first, whether
the plaintiff has used due diligence, and then whether the defendant has
acted with due caution — unless there should be reason to suspect that
the defendant knew when he discounted the security that it had been
obtained by means of a felony : in which case the conduct of the plain-
tiff may be left out of the question.
IV. Stolen Bill of Exchange — Want of Inquiry.
Slater and others vs. West, 3 Carrington tk Payne, 325, (1828.)
A trader in Loudon took a bill of exchauge in part payment for goods,
of a person representing himself to be a tradesman from the country, and
to have been recommended by a customer, and sent the goods, in con-
sequence of an order from the buyer, to a public house, which was not a
booking-office, without making any inquiries except as to the respecta-
bility of the acceptor. The bill turned out to have been stolen, and in
an action by the trader against the acceptor the defendant had a verdict,
on the ground that the plaintiff had taken the bill out of the ordinary
course of trade, and under circumstances which ought to have excited his
suspicion.
V. Accommodation Bill — Want of Consideration.
Arbocin vs. Anderson, 1 Queen's Bench, 498, (1841.) Assumpsit
by indorsee against acceptor of a bill of exchange alleged to have been
indorsed by R., the drawer, to M., and by M. to plaintiff.
Plea that the bill was for the accommodation and at the request of M.,
and without any consideration or value drawn and indorsed by R., and
accepted by defendant, and that there never was any consideration or
value for the drawing or indorsing by R. or the accepting by defendant,
or for either of them paying the bill, or for M. indorsing or paying.
Replication, that the bill was indorsed by M. in blank and that after-
ward, and before the bill was due, namely, on etc., A. and B., who then
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164
Fraudulent Bills and Checks . [September*
appeared to be, and whom plaintiff then believed to be the lawful hold-
ers of the bill and entitled thereto, delivered the same to plaintiff for a
good consideration, and for value, namely, for the amount of the said bill,
and plaintiff then received the same for such good consideration, and
without notice of the premises in the plea mentioned.
Held, on special demurrer, that the replication made out sufficient title
in the plaintiff, if it showed that he received the bill bona fide from per-
sons who were the holders, nothing to the contrary appearing, and that
the replication did, in effect, show such a receipt from the holders, and
was well enough pleaded in confession and avoidance.
Quaere, whether the plea was good, as it did not show that the plain-
tiff gave no consideration. Per Wightman, J., it was bad on special, and
semble on general demurrer.
On argument of a demurrer, the paper books must state the points
intended to be made on each side. The party whose pleading is
demurred to cannot argue that a prior pleading of the opposite party is
bad, unless his paper book states the point, although the objection would
be available on general demurrer.
VI. Failure of Consideration — Gross Negligence.
Goodman vs. Harvey and others, 4 Adolphus A Ellis , 870,
(1836.) In giving notice of non-payment to the drawer of a foreign bill,
resident abroad, it is sufficient to inform him that the bill has been pro-
tested without sending a copy of the protest.
In an action by the indorsee of a bill who has given value, if his title
be disputed on the ground that his indorser obtained the discount of
such bill in fraud of the right owner, the question for the jury is, Whether
the indorsee acted with good faith in taking the bill ? The question
whether or not he was guilty of gross negligence is improper. Gross
negligence may be evidence of mala fides, but is not equivalent to it
VII. Bill of Exchange — Failure of Consideration.
Uther vs. Rich, 10 Adolphus A Ellis , Queen's Bench Reports ,
784, (1839.) To assumpsit on a bill of exchange, drawn by defendant,
indorsed by him to H. and by H. to plaintiff, defendant pleaded that he
indorsed in blank and never delivered the bill to H., but delivered it to
L. who, till H. became possessed, held it for the sole use of defendant and
for the specific purpose that he, L., should get it discounted for and pay
the proceeds to defendant; that L. fraudulently and in violation of good
faith, and contrary to the said purpose, delivered the bill to H. ; and H.
took it without discounting for defendant, contrary to the said purpose,
and in breach and violation thereof; to wit, for the purpose and under
color and pretence of securing an alleged debt from L. to H. ; that H. was
not bona-fide holder for value or consideration ; and that defendant never
had received consideration or value from L., or H., or plaintiff, or any
other, for the indorsing or payment of the bill replication de injuria.
Held, that on this issue, the question as to plaintiff was, whether he
gave any value for the bill, and that if he did, he was entitled to the
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verdict, though the circumstance of the fraud alleged m i ghT'tn oth er
respects be true, and the plaintiff privy to them, for that the denial of
his being a bona-fide holder for value, as here worded, did not raise the
question of his privity to the fraud.
VIII. Bills of Exchange as Collaterals for Advances.
Foster vs. Pearson, 1 Crompton Meeson «k Boscoe, , 849, (1835.) W.
• and P., brokers in London, had in their possession bills of different cus-
tomers to the amount of nearly £3000, which had been left with them to
raise money upon. They mixed these bills with others of their own to
about the same amount, and deposited the whole with F., who were
merchants and capitalists, for an advance of £3000, then made, and for
a preceding advance made a few days before on a promise to bring bills.
Evidence was given that it was usual and customary for bill-brokers in
London to raise money by a deposit of their customers’ bills in a mass,
and that the bill-broker alone was looked to by the customer who gave
the bill-broker dominion over the bill.
In an action brought by F., on one of the bills against one of the cus-
tomers who was a party to the bill, the judge left it to the jury to say
whether F., the plaintiffs, took the bills from W. and P., the bill-broker,
with due care and caution, and in the ordinary course of business; and
the jury, be: ag of opinion that they had so taken the bills, found a ver-
dict for. the plaintiffs. Held, that the defendant, the customer, could not
complain of such summing up and that the court would not disturb the
verdict
In another action arising out of the same transaction, and which was
an action of trover brought by one of the customers (who was himself
also a bill-broker) against F. to recover the value of some of the bills,
the judge directed the jury that the principle laid down in Haynes vs.
Foster, that a bill-broker who receives a bill from a customer to procure
it to be discounted, had uo right to mix it with the bills of other custom- ,
ers, and to pledge the whole mass as a security for an advance of money,
and still less had no right to such bill as a security or part security for
money previously due from him, was to be taken by them as the
general law; but that, notwithstanding such general rule of law, the
parties might contract as they thought proper, and he left it to the jury to
say whether the usage set up by the defendants as to the course of deal-
ing in such cases was established to their satisfaction, and if so, whether
thqy thought that the plaintiff, who was a bill-broker himself, had con-
tracted with reference to that usage ; and the jury having found for the
defendants, the court refused to disturb the verdict.
A bill-broker is pot a person known to the law with certain prescribed
duties, but his employment is one which depends entirely upon the
course of dealing ; his duties may vary in different parts of the country,
and their extent is a question of fact to be determined by the usage and
course of dealing in the particular place.
Semble that the old established rule of law, “ that the holder of bills
of exchange indorsed in blank, or other negotiable securities transferable
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166
Fraudulent Bills and Checks.
[September,
by delivery, can give a title which he does not himself possess to a person
taking them bona fide for value,” is not to be qualified by treating as
essential that the person so taking them should take them with due
care and caution ; but that the person taking them bona fide for value,
has good title, though he take them without care or caution except so
far as the want of such care and caution may affect the bona fides and
honesty of the transaction.
IX. Fraudulent Negotiation — Failure of Consideration.
Bramah vs. Roberts, 1 Bingham's New Cases , 469, (1835.) To a plea
by the acceptor of a bill of exchange that it was to the knowledge of the
holder negotiated by fraud, and that no consideration was given for the
indorsement to the holder, it is sufficient for the holder to reply generally
that he had no notice of the fraud and that the bill was indorsed to him
for a good consideration.
X. Forged Bill paid by Drawee.
Prick vs. Neal, 8 Burrows, 1354, (1*762.) Where a forged bill of
exchange has been accepted and paid by the drawee, he cannot recover
the money back from the indorsee to whom the drawee paid it.
XI. Bill of Exchange — Proof of Acceptance.
Wilkinson vs. Lutwidge, 1 Strange's Exchequer, 648. In an action
against acceptor of a bill of exchange the holder need not prove the hand of
drawer. The Chief-Justice was of opinion that the proof of an accept-
ance was a sufficient acknowledgment on the part of the acceptor, who
must be supposed to know the hand of his own correspondent.
XII. Bill of Exchange — Bandwriting of Drawer.
Jents vs. Fowler, 2 Strange, 946. In an action by the indorsee
of a bill of exchange against the acceptor, it was held not to be necessary
to prove the hand of the drawer ; and the plaintiff rested on the proof of
the acceptance.
XIII. Bill of Exchange — Signature of Firm.
Bass vs. Clive, 4 Maule if Stlwyn, Nisi Prius, 13, (1815.) A bill
of exchange drawn in this form, “ Pay to our order,” etc., signed in the
name of two persons and Co., and accepted by defendant, may be
declared upon by the indorsees as a bill drawn by an aggregate firm, and
if it be proved that the firm consists of only one person, yet it is not a
variance.
XIV. Forged Acceptance of Bill of Exchange.
Smith v#. Merger, 6 Taunton, 16, (1615.) The defendants took a
bill, accepted payable at the plaintiffs who were the drawee’s bankers,
and indorsed it to their [the defendants’] agents, to whom the plaintiffs
paid it when due, and seven days after ^ent it as their voucher to the
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drawee, who apprized them that the acceptance was forged. Held , by
three against Chambre, J, that the plaintiffs could not recover from the
defendants the amount which they had thus paid on the forged accept-
ance.
XV. Discount of a Forged Bill by a Broker.
Josss vs. Ryde, 5 Taunton , 488, (1814.) A person who discounts a
forged navy bill for another who passed it to him without knowledge
of the forgery, may recover back the money as had and received to his
use upon failure of the consideration.
So a person who receives forged bank-notes in payment.
XVI. Forged Government Bill.
Bruce vs. Bruce, 5 Taunton, 495, (1814.) A similar case to Jones
vs. Ryde was argued on a subsequent day in this term, on the forgery of
a victualling bill which the victualling officer, on whom it was drawn,
had paid before the forgery was discovered ; and Pell, Sergt. contended
that circumstances identified the case with Price vs. Neal, 3 Burr, 1354.
But the court held it was distinguishable from that case, but not from
Jones vs. Ryde.
XVII. Bill of Exchange — Proof of Indorsement.
Smith vs. Chester, 1 Term Reports, 654, (1787.) In an action
against the acceptor of a bill of exchange it is necessary to prove the
handwriting of the first indorser, notwithstanding such indorsement was
on the bill at the time it was accepted.
XVIII. Bill of Exchange — Consigned Goods — Insolvency of
Consignee.
Lickb arrow vs. Mason, 2 Term Reports, 63, (1787.) The consignor
may stop goods in transitu before they get into the hands of the con-
signee in case of the insolvency of the consignee, but if the consignee
assign bill of lading to a third person for a valuable consideration, the
right of the consignor as against such assignee is divested.
There is no distinction between a bill of lading indorsed in blank and
an indorsement to a particular person.
XIX. Bill paid by Mistake — Entitled to Recovery.
Wilkinson vs. Johnson, 8 Bamwall <k Cresswell , 428, (1824.)
Certain bills of exchange purporting to have, amongst others, the indorse-
ment of H. <fe Co, bankers, of Manchester, were presented for payment
in London, at a house where the acceptance appointed them to be paid.
Payment being refused, the notary who presented them took them to
the plaintiff, the London correspondent of H. & Co, and asked them to
take up the bill for their honor. lie did so and struck out the indorse-
ments subsequent to that of H. and Co, and the money was paid over
to the defendants, the holders of the bills. The same morning it was
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discovered that the bills were not genuine, and that names of the drawer,
acceptor, and fi <k Co., were forgeries. Plaintiff immediately sent notice
to the defendant and demanded to have the money repaid. This notice
was given in time for the post, so that notice of the dishonor could be
sent the same day to the indorsers. Held , that the plaintiff having
paid the money through a mistake was entitled to recover it back, the
mistake having been discovered before the defendant had lost his remedy
against the prior indorsers. Heldy secondly, that the rights of the parties
were not altered by the erasure of the indorsements, that having been
done by mistake, and being capable of explanation by evidence.
XX. Forged Bill paid — Failure to Notify — Non-recovery.
Cook vs. Masterman, 9 Bamwall A Cresswelly 902, (1829.) A bill
purporting to have been accepted by A. was presented for payment to
his banker on the day when it became due. The latter believing it to be
the genuine acceptance of A. paid the amount, but on the following day
having discovered that the acceptance was a forgery, they gave notice of
that fact to the party to whom they had paid the bill, and required
him to return the money. Held , that the holder of the bill is entitled to
know, on the day when it becomes due, whether it is honored or dis-
honored, and that as no notice of the forgery had been given on the day
the bill became due, the parties who had paid the money were not
entitled to recover it back.
XXI. Stolen Bill of Exchange — Want of Caution.
Gill vs. Cubitt, 3 Bamwall <k Cresswelly 466, (1824.) Where a bill
of exchange was stolen during the night, and taken to the office of a dis-
count broker early in the following morning by a person whose features
were known, but whose name was unknown to the broker, and the latter
being satisfied with the name of the accepter, discounted the bill accord-
ing to his usual practice, without making any inquiry of the person who
brought it. Heldy that in an action on the bill by the broker against
the acceptor, the jury were properly directed to find a verdict for the
defendant, if they thought that the plaintiff had taken the bill under cir-
cumstances which ought to have excited the suspicion of a prudent and
careful man ; and they having found for the defendant, the court refused
to disturb the verdict
XXII. Lost Check — Want of Caution.
Down vs. Halling, 4 Bamwall A Cresswt\ly 330, (1825.) The
owner of a check drawn upon a banker for £50 having lost it by acci-
dent, it was tendered five days after the date to a shop-keeper in pay-
ment of goods purchased to the value of £6 10s., and he gave the pur-
chaser the amount of the check after deducting the value of the goods
purchased.
The shop-keeper the next day presented the check at the bankers, and
received the amount. Heldy that in an action brought by the person who
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lost tbe check, against the shop-keeper to recover the value of the check,
the jury were properly directed to find for the plaintiff if they thought
the defendant had taken the check under circumstances which ought to
have excited the suspicion of a prudent man. Held , secondly, that the
shop-keeper having taken the check five days after it was due, it was
sufficient for the plaintiff to show that he once had a property in it with-
out showing how he lost it.
XXIII. Bank Check — Fraudulent Alteration.
Hall vs. Fuller, 5 Bamwall <k Cresswell , 750, (1826.) Where a
check drawn by a customer upon his banker for a sum of money
described in the body of the check in words and figures, was afterward
altered by the bolder, who substituted a larger sum for that mentioned in
the check, but in such a manner that no person in the ordinary course of
business could observe it, and the banker paid to the holder this larger
sum. Held, that he could not charge tbe customer for any thing beyond
the sum for which the check was originally drawn.
XXIV. Lost Bill — Recovery.
Lawson and others vs. Weston and others, 4 Espinasse, 56,
(1801.) If a bill has been lost and the loser has advertised it in the
newspapers and it is discounted for the person who found it, and so came
fraudulently by it, this entitles the person discounting it to recover the
amount, if done bona fide and without notice of the way by which the
holder became possessed of it
XXV. Fraudulent Negotiation — Accommodation Bill.
Crook vs. Jams, 5 Bamwall <k Adolphus, p. 911, (1834.) In an
action by the indorsee against the drawer of an accommodation bill, which
had been fraudulently disposed of by the first indorsee, and afterward
discounted by tbe plaintiff, it is no defence that tbe plaintiff took the bill
under circumstances which ought to have excited the suspicion of prudent
men that it bad not been fairly obtained : the defendant must show that
the plaintiff was guilty of gross negligence. This was an action on a bill of
exchange dated May 23, 1831, for £1000, accepted by Lord Foley. The
defence was that it was a mere accommodation bill, and had been issued
by the defendant to a bill-broker to get discounted, and that the latter
had fraudulently negotiated it for his own use. Judgment for plaintiff.
XXVI. Lost Bill of Exchange — Fraud.
Backhouse vs. Harrtson, 5 Bamwall <k Adolphus , 1106, (1834.)
To an action by an indorsee against the indorser of a bill of exchange,
who had lost the bill by accident, it is a good defence that the plaintiff
took the bill fraudulently, or under such circumstances that he must have
known that the person from whom he took it bad no title ; or that the
plaintiff was guilty of gross negligence in taking it. But it is no defence
that he took it under circumstances in wbioh a prudent and cautious man
would not have taken it. Action on two bills of exchange which were
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Fraudulent Bills and Checks.
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dropped by a lady into the canal and much disfigured thereby: but
which were discounted for a stranger who could not write his name, and
had to make his mark in lieu of indorsement Judgment for plaintiff!
American Cases.
I. Bank Check — Forgery.
Levy vs. Bank U. S., 1 Binney's Pennsylvania Reports , 27, (1801.)
The entry of a check as cash, made by a bank in the private bank-book
of the holder, is equivalent to payment ; and if the check is a forgery, of
which the holder was ignorant, the bank must support the loss. It
seems that the acceptor of a forged bill is bound to pay it, not upon the
principle that his acceptance has given a credit to the bill, but because it
is his duty to know the drawer’s handwriting, which he is precluded from
disputing. If a forged check is credited as cash in the holder’s bank-
book, and afterward, upon being informed of the forgery, and under a
mistake of bis rights, he agrees that if the check is really a forgery it is
no deposit, he is not bound by the agreement.
II. Forged Bank-Bills.
Bank U. S. vs. Bank of the State of Georgia, 10 Wheaton's U. S.
Supreme Court Reports , 333, (1825.) In general, a payment received
in forged paper, or in any base coin, is not good ; and if there be no
negligence in the party, he may recover back the consideration paid for
them, or sue upon bis original demand.
But this principle docs not apply to a payment made bona fide to a
bank in its own notes, which are received as cash, and afterward dis-
covered to be forged.
In case of such a payment upon general account, an action may be
maintained by the party paying the notes, if there is a balance due him
from the bank upon their general account, either upon an insimul corn-
put assent , or as for money bad and received. [(See Bankers? Mag , vol. ii.,
p. 280.
III. Genuine Bank-Bills — Forged Signatures.
Gloucester Bank vs. Salem Bank, 17 Mass ., 33, (1820.) Where
a banking company paid notes on which the name of the president had
been forged, and neglected for fifteen days to return them, it was held
that they had lost their remedy against the person from whom the notes
had been received.
IV. Bank Check — Forgery.
Bank of St. Albans vs. Farmers & Mechanics’ Bank, 10 Vermont,
141, (1838.) Where a forged check, purporting to be drawn by a cus-
tomer on a bank where such customer keeps a deposit, is paid at sucb
bank to an innocent holder, who paid a valuable consideration for it, and
who had no knowledge of the forgery, such bank cannot recover of such
holder the amount so paid.
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If such check is purchased by another bank in good faith, and is
received in the course of business by the drawee, and passed to the credit
of the bank that purchased it, and notice of the forgery is not given the
bank so purchasing it until two months afterward, the bank on which
the check purported to have been drawn thereby makes the loss its own.
In such a case, notice of the forgery should be immediately given to
entitle the drawee to a recovery.
V. Altered Bill of Exchange .
Bank of Commerce vs% The Union Bank, N. Y., 3 Comstock's Reports
N. Y. Court of Appeals, 230, (1850.) The drawee of a bill of exchange,
it seems, is presumed to know the handwriting of the drawer.
And the payment of a bill by a drawee is ordinarily an admission of the
drawer’s signature, which he is not afterward, in a controversy between
himself and the holder, at liberty to dispute.
And, therefore, if the drawer’s signature is on a subsequent day dis-
covered to be a forgery, the drawee cannot compel the holder, to whom
he has paid the bill, to restore the money, unless the holder be in some
way implicated in the fraud.
But the reason of the rule fails, and the rule itself does not apply,
where the forgery is not in counterfeiting the name of the drawer, but in
altering the body of the bill.
A bank in New-Orleans drew a bill at sight upon the plaintiffs’ bank in
New-York for $105, payable to 44 J. Durand.” After it was issued, the
bill was fraudulently altered to a bill for $1005, payable to J. Bennet,
and indorsed with that name. The plaintiffs, at sight, paid the bill to
the defendants’ bank in New-York, which had received it for collection
from a bank in Charleston. Held, that the plaintiffs, on ascertaining the
forgery, were entitled to recover back the money, the jury having found
that they were not guilty of any negligence in not discovering the forgery
before paying the bill, and notice oi the forgery having been given as
soon as discovered.
Money paid by one party to another, through a mutual mistake of
facts in respect to which both were equally bound to inquire, may be
recovered back.
VI. Forged Bill paid Supra-Protest.
Goddard vs. The Merchants’ Bank, 4 ComstocVs N. Y. Reports ,
147, (1850.) The drawee of a bill is bound to know the handwriting of
the drawer ; $nd if he pays the bill to a bona-fide holder, he cannot
recover the money back, although the bill turns out to be a forgery.
And the same rule applies in general, it seems, to a party who inter-
venes and takes up a protested bill for the honor of the drawer. If he
pays the bill after seeing it, he is concluded by the act, and cannot
recover back the money, although the bill is a forgery.
A forged bill, purporting to be drawn by a bank in Ohio, was presented
to the drawees in New-York, and payment refused on Saturday, for want
of funds of the drawers. On Monday following, the plaintiff on being
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Fraudulent Bills and Checks.
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informed of tbe matter, called at the office of tbe notary who had the bill
for protest and notice, and left bis check for the amount, in order to take
up the bill for the honor of the drawers. In consequence of the absence of
the notary from his office he did not see the bill, but left word to hare it
sent to hla place of business. The notary, on the Bame day, delivered
the check over to the holder of the bill, but did not send the bill to the
plaintiff. The plaintiff called again the next day at the office of the
notary, and on being shown the bill ascertained and pronounced it to be
a forgery. Held, that under the circumstances the plaintiff was not
chargeable with negligence, and that he was entitled to recover the
money he had paid, on the ground of mistake.
And although in consequence of the omission on the part of the plaintiff
sooner to declare the forgery, the notices of protest were not sent out until
Tuesday, when it was too late, yet held, that this was no defence to the
action. The defendant, who held the bill for collection merely, needed
no recourse to any other party, and the payee who forged the bill was
answerable to the owner without notice of the dishonor,
VII. Stolen Bill of Exchange.
Marsh et al. vs. Shall et al., 3 Louisiana Annual Reports, 402,
(1848.) Where a check on a bank is received in payment during bank-
ing hours of the day on which it was drawn, in the usual course of business,
and under circumstances not calculated to excite suspicion, and no negli-
gence is shown from which bad faith can be inferred, the holder may
recover the amount against the drawer, though the check was lost by, or
stolen from, the real owner.
VIII. Bill paid Supra-Protest — Damages.
City Bank, New-Orlkans, vs. Qiraro Bank, Philadelphia, 10
Louisiana Reports , 562, (1837.) Where a bill is paid supra-protest, for
the honor of the drawer, he can only recover of the drawee the costs of
protest for non-acceptance.
Where an agreement contains a dissolving condition on notice given
by one of the parties, and before the expiration of the notice, the other
desiring to contiuue it proposes some new modifications which are
accepted by the adverse party two days after the notice to dissolve bad
expired. Held , that this was a waiver of his right of considering the
agreement at an end, and that he was bound for a bill drawn in the mean
time, under the agreement.
The obligation on the drawee to pay a check and a bill of exchange
is the same. Both contain a request from the drawer to the drawee,
to pay a sum of money to a third person, in whose favor the check or
bill is drawn.
When there is no question of fact, and the sole question being the
construction of an agreement or written instrument, of which the court is
the legitimate judge, although the verdict be set aside, the case will not
be remanded for a new trial.
The acts of the legislature giving damages on protested bill and notes,
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only relate to those doe by the drawers and indorsers, and are silent in
regard to those which are claimed from drawees and acceptors.
But when damages are claimed by the drawer from the drawee, who
was bound to honor the draft, the latter must indemnify the former for
the damages resulting from the dishonor, that is, whatever he has had to
pay the holder.
IX. Informal Specification.
Hkrf it Co. vs. Shultz et al., 10 Ohio Supreme Court Reports, 263,
(1840.) In a capias ad respondendum, the insertion of the mere initial
letters of the plaintiff’s Christian name is a fatal defect in the description
of the person.
In or about the sum of $4030 in an affidavit to hold to bail, is not
sufficiently certain. The amount sworn to in the affidavit must be
indorsed on the writ
The Supreme Court do not allow the writ of certiorari before a final
disposition of the cause in the court below.
X. Non-Suit.
Powbil vs. Jokes, 12 Ohio, 35, (1843.) Whenever it appears, in
the progress of a trial, that the plaintiff is not entitled to maintain his
action, the court may interpose and direct a non-suit, although the same
objection appears on the face of the declaration, and might have been
made upon demurrer.
An action may be maintained before a justice of the peace by scire
facias , against a constable for a false return upfon mesne process. A just-
ice of the peace has jurisdiction of such cases under the statute.
XI. Certificate of Deposit — Fraud.
Talbot vs. Bank of Rochester, 1 Hills N. Y. Supreme Court
Reports, 295, (1841.) T., the owner of a certificate of deposit in the
Bank of L., payable to order, caused it to be indorsed with directions that
it should be paid to W. & Co., and then transmitted it to them by mail,
though without their knowledge or request. It never reached W. it Co.,
but was stolen on its way and their names forged upon it, after which it
came to the defendants’ hands in the ordinary course of business, who
collected the money on it, supposing themselves to be the owners. Held,
that T. had An election, either to sue the defendants in trover as for a
conversion of the certificate, or to recover the amount in an action for
money had and received.
And though the Bank of L. had been guilty of laches in apprising the
defendants of the forgery after the payment of the certificate : held, that
this constituted no defence against T.’s claim, however the matter might
stand as between the defendants and the bank.
Under such circumstances, a recovery and satisfaction in favor of T.
against the defendants would transfer the property in the certificate to
the latter.
The owner of a certificate of deposit who indorses it payable to another,
and sends it to him by mail, but without his knowledge, retains the pro-
perty in it until the indorsee receives it
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XII. Bill of Exchange — Forged Indorsement.
Canal Bank vs. Bank of Albany, 1 Hiirs N.T. Reports , 287, (1841.)
The defendants, indorsees of a draft payable to B.’s order, received the
same through several successive indorsements, B.’s name appearing as
the first; and, as agents of their immediate indorser, but without dis-
closing their agency, presented it to the plaintiffs, by whom ij was paid.
The latter subsequently ascertained that the name of B. was a forgery,
and having notified the defendants of this fact, sued to recover back
their payment Held, that though the defendants were innocent of
any intended wrong, they had obtained the money of the plaintiffs on
an instrument to which they had no title, and were therefore bound to
refund ; and this though no notice of the forgery was given till more than
two months after they had received the money and transmitted it to
their principal.
Held, also, that the payee was not disqualified by interest from being
a witness for the plaintiffs.
None but the payee can assert any title to a bill, or note payable to
order, without his indorsement.
Semble , that if one accept a draft in the hands of a bona-fide holder,
he will not be allowed after to dispute the genuineness of the drawer’s
signature, though he may that of the indorsers, and payment operates, in
this respect, the same as an acceptance.
Money paid by one party to another through a mutual mistake of facts,
in respect to which both were equally bound to inquire, may be recovered
back.
Semble , where a drawer of draffs has paid to an innocent holder, on
the faith of a forged indorsement, mere lapse of time in the abstract,
however long, between the payment and notice of the forgery, will not
deprive him of his remedy, even provided he has incurred no unreason-
able delay after discovery of the forgery.
[Cases relating to the effect of delay in giving notice under these and
similar circumstances, commented on, and some of them disapproved,
especially Cocks vs. Masterman, 9 Barnwall <fc Cresswell, 902.]
Where several successive indorsees have advanced money on a draft
payable to order, and it turns out that neither had title, by reason of the
first indorsement being a forgery, each may recover from his immediate
indorser.
A bank, to which a draft indorsed and sent for the purpose of collect-
ing it, as agent of the indorser, and which transacts the business without
disclosing its agency, may be regarded and charged as principal by those
with whom it thus deals ; and it will be no answer, that it is the uniform
custom of banks to transact such business without disclosing their agency.
XIII Promissory Note — Failure of Consideration.
Conk vs. Baldwin, 12 Pickering's Massachusetts Supreme C. Reports ,
645, (1832.) In an action by the holder against the maker of a nego-
tiable note, founded on a consideration which failed, the defendant is ik I
obliged to prove that the plaintiff purchased with full and certain know-
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ledge of the want or failure of consideration ; if the circumstances attend-
ing the transfer were such as to put him upon his guard, and he made
no inquiry into the consideration, he purchased at his peril.
Where a promissory note, payable to the payee or bearer in nine
months, was within three or four days from the date, and for a full and
adequate consideration transferred by the payee to the plaintiffs by
delivery merely, the payee saying that the plaintiffs must take it at their
own risk, and that he would not be responsible for it, it was held that the
circumstances would not justify the jury in finding that the plaintiffs
knew that the note had been obtained by the payee without a valid con-
sideration, or by fraud.
XIV. Promissory Note — Failure of Consideration.
Wheeler vs. Guild, 20 Pickering's Massachusetts S. C. Reports ,
545, (1838.) Where a person takes a promissory note transferable by
delivery, and not overdue or otherwise apparently dishonored, for a valu-
able consideration, in the usual course of business, and without actual or
constructive notice that the holder has no right to collect or receive it,
his title thereto is valid, notwithstanding it may have been lost by, or
stolen from, the true owner, or deposited with such holder for a special
purpose without authority to collect or transfer it; but otherwise the title
of the person so taking the note is not valid as against the true owner.
So if a note is paid in full at maturity, by a party liable thereon, to a
person having the legal right to the note in himself by indorsement and
the possession thereof, and the party paying has no notice of any defect
in the title of such holder, the payment will be good.
The plaintiff, who was the holder of a note indorsed in blank, delivered
it to B. & G., who were in partnership as attorneys, to be held by them
as collateral security for the payment of certain debts due from the plain-
tiff to B. Sc G. and other persons ; and the note was placed among the
private papers of G., by whom the business was, in fact, transacted.
Some time after the payment of the debts so secured, but before the
maturity of the note, the maker paid to B. the amount due on the note,
exclusive of interest, and toqk therefor a receipt signed by B. alone,
setting forth that it was in full payment of the note, and that the note
was to be delivered up to the maker. It was held, that as the note was
not in fact delivered up to the maker, and as the right of B. Sc G. to
transfer and collect the note ceased upon the payment of the debts for
which it was pledged, the payment to B. did not operate as a payment
and discharge of the note, and that the plaintiff might, notwithstanding
such payment, recover the amount thereof of the maker.
XV. Promissory Note — Protest — Usage.
Adam8 vs. Otterback, 15 Howard's U. S. Supreme Court Reports,
539, (1853.) Where a note was given in the District of Columbia on
the 11th of March, payable sixty days after date, and notice of its non-
payment was given the indorser on the 15th of May, (beiDg Monday,)
the notice was not in time.
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Although evidence was given, that since 1846 the hank which waa
the holder of the note had changed the preexisting custom, and had held
the paper until the fourth day of grace, giving notice to the indorser on
Monday when the note fell due on Sunday, this was not sufficient to
establish an usage.
An usage, to be binding, must he general as to place, and not confined
to a particular bank, and in order to be obligatory, must have been
acquiesced in and become notorious.
XVI. Fraudulent Checks.*
Weisser, Administratrix, etc., vs. Denison, President North
River Bank, New-York. Before the X. Y. Court of Appeals, 1854.
Checks forged by the confidential clerk of a depositor were paid by a
hank, charged to the depositor in his pass-book, balanced, and with the
forged vouchers, among others, returned to the clerk, who examined the
account at the request of the principal, and reported it correct And the
principal did not discover the forgeries until several months afterward,
when he immediately made it known to the bank.
In an action by the administrator of the depositor to recover the
balance of the deposit, held, that the bank could not retain the amount
of the forged checks. That the bank paid the checks at its peril, and the
depositor owed it no duty which required him to examine his pass-book
or voucher*. The general term ordered a new trial, unless the plaintiff
should consent to the reduction of the judgment to a specified sum, upon
which consent the judgment was to be affirmed for the reduced amount
The plaintiff consented to the modification, and the defendant appealed
from the judgment The record not showing what items the general
term rejected, was erroneous by reason of the uncertainty. But it appear-
ing to the court that the original judgment was entirely correct and its
reduction an error, it was held, that the reduced judgment could not be
reversed on the defendant’s appeal, as he was not prejudiced either by its
reduction or by the uncertainty. .
What circumstances will amount to actual or constructive notice of
any defect or infirmity in the title to the note, so as to let it in as a
bar or defence against the holder for value, has been a matter of much
discussion, and of no small diversity of judicial opinion. It is agreed on
all sides, that exprdfes notice is not indispensable ; but it will be sufficient
if the circumstances are of such strong and pointed character, as neces-
sarily to cast a shade upon transaction, and to put the holder upon
inquiry. For a considerable length of time, the doctrine prevailed that
if the holder took the note under suspicious circumstances, or without due
caution and inquiry, although he gave value for it, yet he was not to be
deemed a holder bona fide, without notice. But this doctrine has been
since overruled and abandoned, upon the ground of its inconvenience,
and its obstruction to the free circulation and negotiation of exchange,
and other transferable paper. — Story on Promissory Notes, § 197.
* This case, being a very recent one, is not quoted in the opinion delivered hr
Judge Storer; but as applicable to the points at issue, we add it. — [Ed. B. M.
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FRAUDS ON BANKERS.
Ellis & Morton vs. The Ohio Life Insurance & Trust Co. Before
the Superior Court of Cincinnati. June Term, 1854.
Opinion of the Court, by Judge Storer.
The plaintiffs are bankers and brokers, and the defendants are bankers,
in Cincinnati. In this action a recovery is sought upon the following
facts : On the fourteenth day of December, 1852, the defendants presented
at the counter of the plaintiffs, for payment, a check for seven thousand
five hundred dollars, ($7500,) purporting to be drawn upon the plaintiffs
by the mercantile house of Evans & Swift ; that firm kept a laige deposit
with the plaintiffs, and at that time, a much larger sum than the amount
of the check was at their credit on the plaintiffs’ books : the check was
paid to the defendants, and the same day the amount was charged up to
Evans A Swift On the 28d of the same month, the account of Evans
& Swift was discovered to be overdrawn, and their bank-book sent for
to be adjusted. The next day, Mr. Evans called at the plaintiffs’ banking
house, and on examining the checks charged to Evans & Swift, discovered
that the check paid to the defendants on the 14th was a forgery. The
plaintiffs immediately informed the defendants of the fact, and demanded
that the amount should be refunded. This was declined. It is also
in evidence, that the check in controversy, with some others, making in
the aggregate $10,000, and all drawn upon the plaintiffs, were presented
for payment between 10 and 12 o’clock in the forenoon of the 14th
December; that the checks were pinned together and attached to a
memorandum or ticket, made out at the office of the defendants, stating
the several amounts in figures only ; that when the checks were paid
they were not examined, but the payment was made of the amounts as
stated on the ticket In the afternoon of the same day, the checks were
severally charged up to the parties by whom they purported to have
been drawn, and then laid away. It is further in proof, that the business
relations between the parties were Bomewhat different from those which
existed between the defendants and the other bankers of the city. Be-
tween these parties a rule had been established, that the checks taken by
either should be redeemed in cash, with the understanding between them
if any mistake occurred in the payment of checks during the hurry of busi-
ness, it might be corrected on the same day. It is also in evidence, that
on the morning of the 14th, the check referred to, with another for a
similar amount, was presented at the defendants’ office by a person in
the dress of a drover, with a request that the defendants should purchase
it and pay in Kentucky funds or gold. The paying-teller, to whom the
application was made, referred the matter to the cashier, who, after hav-
ing seen the checks, decided that they should be purchased, and they
were accordingly cashed; gold at a small premium bang given in
return.
12
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The paying and receiving-tellers of the Trust Co. both testified that the
checks of parties upon other banks were often received from strangers in
payment of exchange or the purchase of gold, a large amount of which
was then in the vaults of the company ; that the transaction was in the
usual course of business, and there was nothing in it to excite suspicion or
distrust. The paying-teller further says, that he saw nothing in the manner
or appearance of the person who presented the checks to excite his suspi-
cions ; that he was a stranger, but checks to large amounts were fre-
quently presented by drovers and paid without any hesitation, unless
there was some fact out of the ordinary course to put the officers of the
bank on their guard. It is also in evidence, that when the check
was cashed by the defendants it was in the middle of what is called the
pork season; that the drawers of both checks were largo purchasers of
produce, and their checks for large sums were given in the course of their
business It is further in proof, that Evans <fc Swift had kept their cash
with the plaintiffs for seven or eight years, and the average balance to
their credit would be $15,000 or $*20,000.
No general usage by the bankers of the city as to the purchase of
checks is proved ; the witnesses all uniting in the opinion, that every
bank and banker pursued his own course, exercising at the time the best
judgment in every such matter. Several witnesses who were tellers and
clerks of banks, have testified that they would not, as a general rule,
take so large a check upon another bank, unless some reference was given,
or they were satisfied the check would bo paid, by inquiry ; this, how-
ever, is limited by some to those checks that are made payable to order,
others make no distinction. Other witnesses, one of whom is among the
oldest cashiers in the city, state that in all cases there is a discretion to
be used, and unless there is something in the form or manner of the
application, or the check itself, that excites suspicion ; if they were satis-
fied of the ability of the drawer, and had no reason to doubt his signa-
ture, they would not hesitate to purchase or receive the check.
All the evidence before the jury is that which is offered by the plain-
tiffs ; the defendants have introduced none. The testimony offered was
admitted subject to every proper exception, both to its competency and
relevancy.
A non-suit is asked by the defendants’ counsel, who contend that the
plaintiffs have made out no such case as will entitle them to recover.
They insist:
First. That the party who accepts a bill of exchange, or pays a check
or draft drawn upon him, is estopped from denying the genuineness of
the drawer’s signature.
Second. That the only exception to the rule is, when the party who
holds the bill, check, or draft, has been guilty of fraud, or such gross
negligence as would be equivalent to fraud; in other words, that the
holder must be held, actually or constructively, to be a participant in the
act by which the drawee has been made liable to payment or subjected
to loss, and there is no such evidence of mala jtdes in the transaction on
the part of the defendants.
Third . That when payment of a forged bill or check is once made by
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the drawee, the party to whom the payment was made is entitled to
notice of its invalidity, the same as the indorser of a bill of exchange ;
and that such notice, in a case like the present, must be given on the
same day that the payment was made ; that the drawee, on that day,
was bound to examine all such checks, bills, and drafts, and to notify the
former bolder if any error or mistake has been made in tbeir payment ;
that the duty to thus examine, if not performed, is an act of omission
equivalent to an adoption of the check, and a discharge of the person
who presented it and received the amount.
Fourth . That no general usage or custom among banks or bankers,
in relation to the purchase or receipt of checks or money drawn on
other banks or bankers, can be received in evidence, but testimony
may be given as to the particular usage and understanding that existed
between the plaintiffs and defendants in relation to their daily business,
and upon which they mutually acted.
The plaintiffs’ do not deny the general principles of law as to the
effect of an acceptance or payment of a forged bill, but contend that
the present case is an exception to the rule ; that the peculiar circum*
stances connected with it necessarily exclude it from the operation of that
rule.
They claim :
First . That money paid under a mistake of the fact, or where there is
misrepresentation, fraudulent pretence, or concealment, may be recovered
back by the payer.
Second . That when payment by the drawee of a forged check does
not work an injury to the holder of the check, such payment dees not
estop the payer from proving the forgery ; and, as in this case, the
holders of the check must have lost their remedy upon the person who
sold it, as he was a stranger, so soon as they had paid him the money,
that their condition is not changed by the receipt of the money from
the drawees ; and in such a case, notice of the forgery, as would be
required in other cases, need not be given, for it would be a vain thing,
and the law requires no such act to be done.
Third. That the numbers and amounts of the checks, stated on the
ticket sent by the defendants to the plaintiffs, were a guarantee that they
were such checks, and if paid by the plaintiffs, they can compel the
defendants to refund. The plaintiffs’ counsel also contend that
there is a distinction in the books, between the notice required to be
given to the guarantor, and that which is required to be given to an
indoTser.
Fourth . That when the fault that caused the loss can be traced to
either party, there the loss must fall.
Fifth. That the check or draft must have been purchased or received
in the usual course of business, in good faith, and without suspicion.
Sixth. That here there is a total failure of consideration, and the
amount paid cannot ex cequo et bona be retained by the defendants.
Seventh. That there are questions of fact before the jury, that they
alone are competent to try, and the case cannot properly be taken from
that tribunal.
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The last proposition, if true, most decide the present motion. Let us
examine it.
A motion to arrest the evidence in any case from the jury, and to
grant a non-suit, necessarily assumes the fact that upon the case as pre-
sented, there can be no recovery by the plaintiff.
There is an admission, also, that the testimony offered by the plaintiffs
is true, and talcing it as true, there is no ground to sustain the action.
If there is doubt as to the facta proved, if the credibility of witnesses is
called in question, if there is a dispute as to any material part of the tes-
timony, a jury is the proper tribunal to decide the controversy ; but where,
as upon a demurrer to evidence, all the matters in evidence are held to be
fully proved, and the only real question can be the application of the
law to those facts, it is not only within the power, but it is the duty, of
the Court, to take the responsibility, and direct or refuse a non-suit, as in
their judgment shall be right and proper.
At this period in our judicial history, the power to grant a non-suit
cannot be seriously questioned ; it is a part of the machinery by which
justice is administered, and without wnose existence parties would be
involved in useless, it may be said, endless litigation. Whenever a court
is fully satisfied that the action does not lie, and that even if a verdict
should be found for the plaintiff, it could not be sustained, they ought to
interfere. The plaintiff having offered all his testimony, it is for the
court to decide what effect is to be given to it, and what the law is that
controls it. And in a case where all the facts are admitted, there can be
nothing left for the jury to decide, if the law of the case is at last to
determine the controversy.
We find nothing in the present case to prevent a full exposition of the
law as applicable to the rights of the several parties ; and upon what that
law is found to be, the controversy must be determined. This has been
the invariable practice in Ohio.
Herf & Co. vs. Schulze et al., 10 Ohio Rep., 263, 268. Powell vs.
Jones, 12 Ohio Rep. 35.
What, then, is the law upon the facts proved in this case ?
Since the case of Price vs. Neal, (3 Burrows, 1355,) decided by Lord
Mansfield in 1762, it has uniformly been held in England, that the
acceptor of a bill, by the very act of acceptance, admits the genuineness
of the drawer’s signature, and will not, as a general rule, be permitted to
dispute it in the hands of a bona-fide holder for value, without notice of
any fraud ; and if the bill is paid by the drawee, he is precluded from
recovering back the money, on the mere allegation that the drawer’s name
■ was forged. The principle thus asserted was but the recognition of the
ruling of Chief-Justice Pratt, in Wilkinson vs. Lutwidge, (1 Strange,
648,) and in Jenys vs. Fowler, (2 Strange, 946.) It is now the settled
law in Great Britain.
Bayley on Bills, 5th Ed., ch. 8, pp. 318, 319. Chitty on Bills, 11th
Am. Ed., 307. Smith vs. Chester, 1 T. IL, 655. Bass v«. Clive, 4 M. Sc
S., 15. Smith vs. Mercer, 6 Taunton, 76. Wilkinson vs. Johnson, 3
B. k C., 428. Cocks vs. Masterman, 9 B. <fc C., 902.
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' The American courts hare, without an exception, adopted the prin-
ciple, and it mav now be regarded as the law of the land.
Levy vs. Bank U. 8., 1 Binney, 27. Bank U. S. vs. Bank of the State
of Georgia, 10 Wheat, 333. Salem Bank vs. Gloucester Bank, 17 Mass.,
33. Bank of St Albans vs. F. A M.Bank, 10 Verm. 141. Bank of Com-
merce vs. Union Bank, 2 Comstock, 230. Goddard vs. Merchants’ Bank,
4 Comstock, 149. Marsh et al. vs. Small, et al.t 3 Lous. An. Rep., 402.
Story on Bills, §202. Story on Prom. Notes, §197. Parsons on Con-
tracts, §220.
The reason of the rule thus established is, that by his acceptance the
drawee has given currency to the bill ; on the faith of that acceptance, it
may have been afterwards negotiated, and become a representative of
important commercial transactions. If, then, after performing the func-
tion of a genuine bill, having been the means of credit, and been made a
substitute for cash, it could be afterwards dishonored by the acceptor,
every sound principle of the law-merchant would be violated, and the
foundation of mercantile confidence fatally impaired.
The drawee is supposed to know the signature of the drawer. He is
generally his correspondent, and in the mutual interchange of business
relations, no want of knowledge on the part of either, as to their duties
or liabilities, will be presumed. And when the drawee is a banker who
is accustomed daily to examine and honor the checks of his depositors,
and must thereby have become familiar with their signatures, the rule
applies with very great force. The plaintiffs do not deny the existence of
the rule, nor its universal acceptance as the established law ; they only
contend that the present case is an exception to its application.
It is admitted by the plaintiffs that the holder of the bill must have
obtained it in good faith, for value, and without notice of the fraud, before
they can claim to be protected. For the plaintiffs it iB assumed, that the
holders should be guilty of no neglect in taking the bill ; if they have
been imprudent or unguarded, if they have purchased it incautiously
even, they ought to be held liable to refund.
What is the true rule, however, presents another question. It ought
not to depend upon mere opinion, or temporary usage, or what may be
adjudged, under all the circumstances, to be the equity of the case ; the
determination of legal questions should not rest upon any thing vague
or indefinite in the application of established rules. It is not the appli-
cation of the rule in any particular case, but rather its reason, propriety,
and general acceptance, that must be regarded ; whether it may operate
liberally, or perchance severely, is not a question for the court When- •
ever the rule is ascertained, and has met the acceptance of the profession
as established law, it is the duty of the judge to preserve its integrity,
andpermit no modification, to meet the exigency of any particular case.
How, then, is the holder of a bill to be protected ! I reply, that he
must have taken it in the usual course of business, paid a full consider-
ation for it, and received it in good faith, without actual or constructive
knowledge of any fraud on the part of the person from whom it is
received. The mere neglect of the holder of every possible or supposed
means to asoertain the genuineness of the bill before he purchases it, is
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not evidence of bad faith, for until suspicion is excited there can be no
necessity for inquiry, and to question the right of the party who offers the
bill for sale, before any doubts are raised as to its validity, would defeat the
established maxim that every bill of exchange upon its face imports to
be genuine, and implies a consideration either paid to or received by the
drawer, from the drawee.
There has been, until the last thirty years, much diversity of opinion
as to the degree of prudence to be exercised by the purchaser of a bill,
the omission of which would charge him with notice of the equities of
the parties, but it is believed there is now no doubt as to what is the
true rule.
Until the case of Gill vs. Cubit et al. was decided, in 1824, by
Chief- Justice Abbot, (3 B. <fe C., 406,) it was held that the holder took
the bill, freed from all equities, except those of which he had actual or
constructive notice ; and the question of neglect or omission to do what
the strictest prudence might suggest, neither created, nor did it charge
the purchaser with any liability for latent fraud. But in the case just
referred to, without any notice to the profession, and, as it would seem,
uncalled for by the commercial world, a new rule was introduced, “the
court holding, for the first time, that if the bill was taken by the plain-
tiffs under circumstances which ought to have excited the suspicion of a
prudent, careful man, the verdict should be for the acceptor.” This,
decision virtually overruled the authority of Lawson et al. vs . Weston
et a/., (4 Esp., 56,) decided by Lord Kenyon in 1801, and established a
new and, what was found to be, a very flexible and uncertain rule. In
Down vs. Hailing, (4 B. & C., 330,) decided in 1825, the law in Gill w.
Cubit was admitted ; it was recognized in Snow vs. Peacock, (2 Carr. <fc
Payne, 215,) and in Beckwith vs. Correl, (2 Carr. <fc P., 201.) In Slater
et al. vs. West, (3 C. &. P., 325,) Lord Tenterden held the law to be as.
he had decided, while Chief-Justice Abbot, in Gill vs. Cubit, “This doc-
trine,” he says, “is of modern origin. I believe that I was the first judge
who decided [the point at nisi prius; the court to which I belong con-
firmed my decision, and the other courts, I believe, have acted on the same
principle. But in every case of this description, the question is one
which out to be guardedly and carefully considered.”
The English courts were governed by the rule thus laid down, until the
case of Crook vs. Jaddis, in 1833, (5 B. & A., Oil,) when it was held
by Chief- Justice Denman, Littledale, Taunton, and Patterson, justices,
“ that gross negligence should be proved on the part of the purchaser of
the bill, or he must recover against the acceptor.” “I use,” says the
Chief-Justice, “the expression, gross negligence, advisedly,” and Taunton*
J., said, “ I cannot estimate the degree of care that a prudent man
should take ; the term gross negligence is more definite and appropriate.”
This case came under consideration in Blackburn vs. Harrison, (5 B. &r
A., 1106,) and was fully confirmed. Patterson, J., in giving his opinion,
observed, “ I have no hesitation in saying, that the doctrine first laid
down in Gill vs. Cubit et al ., and acted on in the other cases, goes
too far and ought to be restricted. I can perfectly understand, that a
party who takes a bill fraudulently, or under such circumstances that he
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must know that the person offering it to him has no right to it, will
acquire no title ; but I never could understand that a party who takes a
bill bona fide , but under the circumstances mentioned in Gill vs. Cubit
et al., did not acquire a property in it.”
In Branch vs. Roberts, (1 Bingham N. C., 469,) though the question
mooted was upon the pleadings, the authority of the last case was fully
sustained. The question was again considered in Goodman vs. Harvey
et al., (4 Ad. & Ell., 870,) and all the prior decisions were examined.
Lord Denman, in deciding it, said, “ I believe we are all of opinion that
when the party has given consideration for the bill, gross negligence
would not be a sufficient answer to a recovery. It may be evidence of
mala fides, but it is not the same thing. We have shaken off the last
remnant of the contrary doctrine. When the bill has passed to the
plaintiff, without any proof of bad faith in him, there is no objection to
his title.” The case was affirmed in Uther vs. Rich, (10 Ad. & Ell., 784 ;
see also, Foster vs. Pearson, 1 Crompton & Ros. Ex. Rep., 855, and
Arbouin vs. Anderson, 1 Ad. <fc Ell. N. S., 645,) where it is said, “ that
the owner of a bill is entitled to recover upon it, if he oame by it honestly ;
that fact is implied prima facie by possession.”
In Chitty on Bills, 9 Eng. Ed., 216, it is stated as the result of all the
authorities, that “ it is not enough to deprive a holder for value of his
remedy on the bill, to show that he was guilty of gross negligence, unless
it also appears that he acted mala fides ; ’ and again, at page 2 1 7, “ The
doctrine of Lord Tenterden is now completely exploded, and the old
rule of law, that the holder of bills of exchange indorsed in blank, or
other negotiable securities transferable by delivery, can give a title, which
he does not himself possess, to a person taking them bona fide for value,
again reestablished in its fullest extent.”
Such is the law as it now exists in England, and the American cases
but reiterate the rule. In his treatise on bills of exchange, §416, Judge
Story says, “ The reasonable doctrine now established is, that nothing
short of fraud, not even gross negligence, if unattended with mala fides,
will take away the right of a bona-fide holder of the bill;” and in §194,
he further states, “ The former doctrine has been overruled and aban-
doned.”
See also, Story on Prom. Notes, §178, §197. Parsons on Con., Vol.
1, p. 213. 10 Verm., 147 ; 3 Louis. An. Rep., 402 ; 4 Comstock, 147 ;
3 do., 230; 1 Hill, 287, before quoted. Cone vs. Baldwin, 12 Pick.
545. - Wheeler vs. Guild, 20 do., 545.
The law as thus interpreted, cannot at this time he questioned, and it
is adopted by the court, as the only proper rule that snould govern the
commercial community. We hold that unless the defendants in this
suit have been proved to be complicated with the fraud by which the
plaintiffs have suffered, they cannot be held to refund the amount that
has been paid to them.
Does the evidence sustain this assumption ? The check was purchased
in the regular course of business ; there was nothing in the manner of its
presentment, the appearance of the holder, or the nature of the transac-
tion to excite suspicion. The officers of the Trust Company testify, they
saw nothing to induce any particular inquiry as to the title of the holder;
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his demeanor and apparent calling were such as to disarm suspicion ;
the drawers of the check were perfectly solvent, and their signature was
not doubted.
There was then nothing to put the officers of the bank upon inquiry :
but if from abundant caution the cashier or teller should neverthe-
less have sent to the plaintiffs’ banking house, to ascertain if the check
would be paid, the answer must have been that the drawers had
ample funds to their credit; and is it not probable, from the feet that the
drawees never discovered the forgery themselves, that they would have
certified the check to have been valid ! It is in proof that the signature
of the drawers was well imitated, though the bodv of the check was a
failure ; but as checks are not always filled up by the drawers, there was
nothing in that fact to excite doubt
It is further urged, that a check for so large an amount should not
have been taken without inquiry, and a usage is attempted to be proved
that in some of the banks in Cincinnati, such a course is always adopted.
The proof, however, is unsatisfactory, even as to any individual bank or
banker. The result of the whole evidence is, that there is no general
usage, that each bank is governed by its own rule, an honest discretion
being exercised in the purchase of bills and checks, as the peculiar cir-
cumstances of each case may suggest
But if a special usage with one or more banks existed, it could not
avail ; the usage, to affect the defendants, should have been general. In
the late case of Adams us. Otterback, (15 How, 545,) Judge McLean very
dearly lays down the true rule, “To constitute a usage it must apply to
a place, rather than to a particular bank. It must be the rule of all the
banks of the place, or it cannot consistently be called a usage. If every
bank could establish its own usage, the confusion and uncertainty would
greatly exceed any local convenience resulting from the arrangement”
An examination of the cases, however, already quoted, will exhibit
objections much stronger than the fact that is pressed upon the court, of
the large amount of the cheok ; yet these objections were all overruled
and held insufficient to excite suspicion, or to lead to inquiry. We bold
the true test of good faith to be, what should have been done at the time
the transaction took place, when no suspicion existed and there were no
obvious difficulties to avoid ; not what might have been done, or what,
after the fraud is accomplished, a more rigorous caution would have indi-
cated. We must not determine the degree of prudence, by any other
standard than would have governedl honest men in their ordinary pur-
suits ; nor can we with the new light we may have obtained from the
discovery of a fraud, decide that any precautions other than those that
were used could have prevented its perpetration. It would be an unsafe
and certainly a most uncertain rule, to permit mere opinion to give a
character to a past transaction when its consequences have been injurious;
such an opinion is too often produced by reflecting upon the act done,
and the probable means by which it could have been avoided ; when
perhaps the witnem who expresses it, would if he had been present, when
the fraud was perpetrated, have pursued the same course that he indi-
rectly censures.
We have said that the evidence of mala fide* need not be such as
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would charge the purchaser of the bill with actual notice of the fraud ;
if such facts are proved as will be equivalent to constructive notice, the
result must be the same. We find a very satisfactory illustration of the
rule in what is required from the purchaser of real estate in order to
perfect his title. Caveat Emptor is the rule by which he is held, but it
applies only when the buyer neglects the proper precautions in the
investigation of his title, does not examine the usual sources of informa-
tion, and shuts his eyes upon those facts that would necessarily lead
him to the knowledge of a defect in his title, or an incumbrance upon
the estate. If, however, the registry of deeds, and the records of the
courts are examined — if the parties in possession are interrogated, all has
been done that the law requires, and the purchaser is protected.
Sugden on Vendors, 730, ch. 17. Story’s Eqn vol. 1, §400.
If we apply this doctrine to the present case, the reason and propriety
of the principle we adopt as the law, are fully vindicated.
.It is further contended by the plaintiffe, that the envelope or ticket,
within which the checks were folded when they were presented for pay-
ment at their counter, contained a list of the checks and their several
amounts, and it was therefore a representation on the part of the defend-
ants, that they were bona-fide checks, and if so, the payment did not
change the situation of the parties. We cannot so regard the evidence.
The labels upon which the checks were described contained figures only ;
the names of the drawers of the checks or their date were not stated, and
we cannot regard it as any thing more than the presentation of such
checks for payment, imposing no more liability upon the holder than if
they were presented without any statement of their several amounts.
Every person who exhibits a check at a bank for payment, makes the
same representation, whether he speaks or is silent. He asks for the
proceeds as effectually, when he shows the check and does not utter a
word, as if he minutely described it. We cannot assume that what was
adopted by both parties as a matter of convenience only, shall impose
any liability upon either to guarantee the genuineness of the checks.
The plaintiffs also contend that the money was paid by mistake, and
the defendants cannot in good conscience retain it. The rule is admitted
that where money is paid by one party, through mutual mistake of facts,
in respect of which both are mutually bound to inquire, it may be
recovered back.
Chitty on Bills, 9th Edn 425. Commercial Bank vs. Bank of Albany,
1 Hill, 287, 292, 293. Bank of Commerce vs. Union Bank, 3, Corn-
stock, 237.
But this doctrine involves this question whether the parties are in
mutual fault It does not apply to that class of cases we have considered,
when the bill is taken in good faith and paid to the holder by the
drawee, thereby admitting the genuineness of the instrument ; if it could
be so applied, then another rule of law, and a most salutary one would be
abrogated, “ that when one of two innocent persons must suffer by the
act of a third, he who has enabled such third person to occasion loss,
must sustain it.”
Chitty on Bills, 9th Ed., 256. Lickbanow vs. Mason, 2, T. R. 70.
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The principle is more fully stated by Judge Story in 10 Wheaton
342, already referred to. “In respect to persons equally innocent, when
one is bound to knowr, and act upon his own knowledge, there seems to
be no reason to change the loss from the former to the latter, and there
is nothing unconscientious in retaining the sura received from the bank,
in payment of notes, which its own acts have assumed to be genuine.”
Any other view of the legal relations of the parties, would defeat the
right of the purchaser of a bill to be regarded as a bona-fide holder and
place the parties where they would be found, if they had been impli-
cated with the original fraud.
It has been suggested that there is a distinction between bills and
checks, which takes the present case without the ordinary rule. We
cannot so understand the law ; for all practical purposes they are the
same, governed by the same legal principles, and with some exceptions
subject to the same rules. Both may pass by indorsement ; though checks
generally pass by delivery ; both are orders drawn for the payment of
money, on a third person, and are a substitute in every commercial com-
munity for cash. They are so universally regarded as media of exchange,
that to restrict their negotiability would seriously affect commercial con-
fidence and impair the facilities of business. We cannot admit the
ingenious argument of counsel by whom the distinction has been assumed ;
we perceive none in any important particular upon general principles,
and we find none in the books. Whenever a check has been paid by a
banker, drawn upon him and which has afterwards been discovered to be
a forgery, the rule applicable to bills has been universally applied to
such checks.
Smith vs. Mercer, 6 Taunton, 74. Hall vs. Fuller, 5 B. & C., 750. Chitty
on Bills, 429. Young vs. Grote, 4 Bing., 258. Levy vs. U. S. Bank, 1
Binney, 27. City Bank N. O. vs. Girard Bank, 10 Louis, 562. Marsh,
et al. vs. Small et al. 3 Louis. An. Rep., 402.
It is very strenuously urged, that the plaintiffs were not bound to
claim the amount they had paid, until they had discovered the forgery.
The check it will be recollected was purchased on the 14th December,
paid the same day, and the defendants were not notified until the 24th,
that it had been forged. The examination of the authorities already
made by the court, and the conclusion to which it has arrived, as to the
position in which the plaintiffs placed themselves by the payment of the
check, will preclude any further argument, as to the duty of the drawees
to examine the signatures of their customers. The question, however,
very properly arises, when the notice should have been given, and the
check returned to the defendants. It will be borne in mind, that it is in
evidence, that as between these parties, all mistakes were to be corrected
on the same day the checks were paid ; if they were found to be defect-
ive they were returned on that day, and all errors were rectified. This
was the mutual understanding of the parties, and imposed upon both
the duty of examining all checks on the day they were received, and to
communicate at once any discovery that would affect the relations of
either. Their liability to refund for checks improperly paid, was limited
to the day upon which the payment was made.
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If there had been no such agreement, we should hold that the claim
must have been asserted, and the demand for re-payment made, on the
same day. Any other rule would measure the degree of diligence in
giving notice, by the circumstances of the case, and that to be deter-
mined by mere discretion or perhaps caprice.
In Wilkinson vs. Johnston, (3 B. <fe C., 428,) notice was given on the
same day. In Cocks vs. Masterman, (9 B. & C., 902, 907,) Mr. Justice
Bayley said, “ But we are all of opinion that the holder of a bill is
entitled to know on the day when it becomes due, whether it is honored
or dishonored, and if he receive the money and is suffered to retain it
during the whole of that day, the parties who paid it cannot recover it
back.”
See also Levy vs. Bank United States, 1 Binney, 27. Story on Bills,
§ 451-
The situation of the parties would be different where the forged notes
or checks of third persons or of other banks had been received. Then
there would have been no legal payment, as no consideration passed, and
the question of notice to the party from whom they were received would
be one of time only, to be determined by circumstances. This was the
ground of the decision in Jones vs. Ryder, (5 Taunt*, 488,) and Bruce vs.
Bruce, ib. 495.
The rule is very clearly stated by Judge Parker, in Gloucester Bank
vs. The Salem Bank, (17 Mass., 33.) “ The party receiving such notes
must examine them as soon as he has opportunity, and return them
immediately. If he does not, he is negligent, and negligence will defeat
his right of action. The principle will apply in all cases where forged
notes have been received, but certainly with more strength when the
party receiving them is the one purporting to be bound to pay ; for he
knows better than any other whether they are his notes or not, and if
he pays them or receives them in payment, and continues silent after he
has had sufficient opportunity to examine them, he should be considered
as having adopted them as his own.”
But it is said that the strict rule should not be applied here, because
the defendants lost nothing by the delay ; that the moment they pur-
chased the check their remedy was gone, as in all probability the forger
immediately fled. The receipt of the money, it is said, did not alter the
situation of the parties, or place the defendants in a better condition than
they held before. This proposition is but a petttio-principii ; it involves
the propriety of the rule the court has already adopted, and might well
be considered ns sufficiently answered and refuted. But it may well be
asked, if we should permit the inquiry, is there not a full reply to the
question, in the facts of the case ? Can it be said with any certainty,
that if notice had been given on the same day the check was paid,
the culprit might not have been secured ? At any rate the probability
of his arrest would have been stronger than if the knowledge of the
fraud had been postponed, and opportunity thereby given for escape ;
the chances of detection would certainly decrease with the delay.
We tbiuk there is no propriety in discussing the question, whether the
defendants might or might not have suffered by the postponement of the
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Fraudulent Bills of Exchange. [September,
notice ; it is sufficient that no notice was given. It is the settled law that
“ the death, bankruptcy, or known insolvency of the maker or acceptor, or
his being in prison do not constitute an excuse, to give due notice of non*
acceptance or non-payment It is no excuse that the chance of obtain-
ing any thing upon the remedy over was hopeless ; the parties are entitled
to have that remedy offered to them, if it is not, the law says they are
discharged.” Chitty on Bills, 482, 483.
Some confusion has occurred in blending the case where the indorse-
ment is forged, and that in which the name of the drawer or maker is
counterfeited ; and many of the elementary writers permit the notes to
their text to be filled up with contradictory authorities, thereby sustaining
no principle, much less describing the obvious difference that exists
between cases so clearly distinguishable from each other. It is very clear
that the holder who traces his title through a forged indorsement cannot
be protected, though he may have been paid the amount of the bill by
the drawee or acceptor. A bona-fide purchaser even of such a bill would
acquire no right ; he would be regarded as in mutual mistake with the
payee as to the genuineness of the indorsement, and be compelled to
refund if be had ken paid. There can be no analogy drawn from this
state of facts, to affect in any degree the relations between parties situated
like the plaintiffs and defendants in this suit.
Chitty on Bills, 286, 430. Canal Bank vs. Bank of Albany, 1 Hill,
291. Talbot vs. Bank of Rochester, ib. 295. Story on Bills, §309.
We hare thus considered the various questions submitted for our con-
sideration. We have been relieved of much labor by the ability and
clearness with which the counsel for both parties have stated and argued
their several propositions. The case is important not only as to the
amount in controversy, but in the many very interesting principles also
ita decision necessarily involves. It is but just that the law should be
known and, when it is known, promptly administered. There should be
no doubt where the business of the mercantile community may be so
vitally affected by ignorance of the rule or a want of confidence in its
adoption by the court It is our duty then to declare what the law is,
to vindicate its certainty by adhering to its spirit and meaning.
The plaintiffs must be called and a judgment of non-suit entered.
Fox and Walker for plaintiffs ; Worthington and Matthews for defendant
Fraudulent Bills or Exchange. — In a trial, in July last, before the
Court of Qneen’s Bench, London, Oumey and others, bankers , vs. Wo-
mersly and others, to recover from the defendants the value of a bill of
exchange for £3050, which the plaintiffs had discounted when brought
to them by the defendants, though without their indorsement, the
Chief-Justice held that the defendants were liable for the genuineness of
the bill. The defendants had acted as bill-brokers for Mr. Anderson, and
in that character had carried the bill to Messrs. Overend <fc Gurney, who
had discounted previous bills of the same character without their
indorsement. There was some difference of testimony as to whether
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Decimal Coinage.
189
the plaintiffs took the bill as coming from Mr. Anderson through Messrs.
Womerely, or as coming from them ; but the jury found for the plain-
tiff), implying, on the ruling of the Chief- Justice, that they did not act
merely for Anderson. Though there was some difference as to the facts
of the case, there can be none, we apprehend, as to the Judge’s law, that
if the parties were not merely and avowedly agents, they virtually gave
a warrant for the genuineness of the document Such a decision may,
however, induce more caution in dealing with paper, as imposing greater
responsibilities than some persons have thought they were incurring.
Were proper caution used in all cases, such frauds and forgeries as those
we have lately had to regret could scarcely be perpetrated.
DECIMAL COINAGE.
The United States are blessed with the simplest decimal coinage in
the world ; and it is a matter of surprise to any man of reflection, that
we have not long since applied the decimal principle to weights and
measures.
A great contest is going on in England just now, in relation to a deci-
mal currency ; and the movement is headed by William Brown, Esq.,
M.P. for. Liverpool, and head of the house of Brown, Shipley & Co., so
largely connected with the American trade. Mr. Brown is an exceed-
ingly practical man, and withal well posted-up on all public affaire. In
consequence, he exercises a very decided influence in the House of Com-
mons, and will, beyond all question, carry his measure next session.
Indeed, it could be carried this session, but it is deemed wise to agitate
the subject more extensively in the provinces.
Every nation must, of necessity, regulate its own coinage, and there
are many reasons which enter into such a subject which militate against
the possibility of adopting the same decimal unit throughout the world.
Not so, however, in regard to weights and measures. All the nations of
the world may and should unite in establishing a universal system of
weights and measures; and they would thus accomplish a reform worthy
of the progressive age in which we live.
• The following letter from the Hon. William Brown will be read with
interest:
Fenton’s Hotel, St James’s street, )
London, February 11, 1854. f
My Dear Sir : This may be considered a second edition of the letter
which I had the honor of addressing to you, on the 18th of December,
1853, with the addition of some new matter, which I hope may aid in
pointing out the advantages of a decimal system of coins, weights, and
measures, and which the Chamber, over which you so worthily preside,
ordered to be printed and circulated.
The father of the present Lord Wrottesley, some years ago, called the
attention of the House of Commons to the importance of the subject ;
but nothing was done, and no progress made in it tor a long time afterward,
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190
Decimal Coinage. [September,
until Doctor Bowring took the < (notion up, and induced the govern-
ment to issue the florin, the tenth of a pound sterling.
He went to China, and the subject again remained in abeyance, until
your Chamber, in November, 1852, petitioned government to decimalize
our currency, and which induced me in the last session of Parliament to
move in the House of Commons for a committee to investigate the merits
of a system, which is adopted by four hundred millions of the human
race, and ascertain whether any insuperable difficulties stood in the way
of our availing ourselves of its advantages.
Before submitting my motion to the House, which embraced our cur-
rency, weights, and measures, I brought it under the notice of some
judicious friends, who wished me to omit weights and measures, and I
considered it was right to adopt their suggestions ; for by taking up only
one subject at a time, it would be more easily understood ; and when
carried, and its advantages demonstrated, it would remove much of the
difficulty in decimalizing our weights and measures, and making our
system uniform throughout the kingdom.
A committee was appointed from both sides of the House, consisting
of the following gentlemen : The Right Honorable E. Cardwell, Mr. John
Ball, the Right Honorable II. Tufl'nell, Mr. Dunlop, the Right Honorable
Lord Stanley, Mr. Moody, Mr. G. A. Hamilton, Mr. Alderman Thomp-
son, Mr. J. B. Smith, Sir W. Clay, bart., the Marquis of Chandos, Sir W.
Jolliffe, bart., the Honorable A. F. Kinnaird, Viscount Goderich, and
myself; and after examining twenty-seven witnesses, the committee made
its report, which, with the evidence, may now be obtained through any
bookseller, from Messrs. Hansard, the publishers of all parliamentary
papers. .
The report was unanimously in favor of a decimal coinage and in
urging the government to its adoption ; indeed, there was not a single
division during the frequent sittings of the committee.
No one can doubt the value of a system that will abridge the labor of
masters in teaching, and scholars in learning, arithmetic ; that will sim-
plify accounts and all monetary transactions ; decrease the chances of
error, and enable us to enter into many scientific and difficult calculations,
which we cannot accomplish without using decimals, and which, in many
pursuits, are now used.
All our present gold and silver coinage, except the three-peuny and •
four-penny pieces, can be made available with the copper coinage, as fol-
lows— and even the three-penny pieces can be used as the eighth of a
florin, and the four-penny pieces as the sixth, and made available as change :
The Sovereign, taken as the unit,
Florin,
Cent,
Mill,
Half-Sovereign,
Crown,
Half-Crown,
Shilling,
Sixpence,
Five Mill pieces,
Two Mill pieces,
1000 Mills')
100
10
1
500
250
125
50 V
Money
of
Account.
Money
fur
25
5
Change.
2
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Decimal Coinage .
191
The copper was the only coin that was recommended to be altered,
and one, two, and five mill pieces substituted.
The crowD, half-crown, three-penny, and four-penny pieces, were recom-
mended to be withdrawn, and ten and twenty-mill pieces, and any other
coins that convenience may require, from time to time, issued. It was
considered that the half-crown was too near the value of the florin, which
is becoming a popular coin, and the crown is considered inconvenient,
and not liked.* It is not absolutely necessary to coin a ten-mill piece in
silver which would be very small ; it is represented by two five-mill pieces
in copper.
Since I wrote you on this subject, a Liverpool town meeting took place,
under the auspices of the Mayor, and a decided opinion was expressed
and embodied in resolutions, and transmitted to government, in favor of
a decimal system, which has excited an interest throughout the country,
and although Parliament has only been a few days in session, petitions
are coming in for its adoption.
Russia uses a decimal coinage. A Currency Congress of the States of
the Zollverein and Austria is about to take place at Vienna. Mr. Von
der Heydt, the Prussian Minister of commerce, trade, and public works,
has deputed a Mr. Delbrack to attend it, to represent the Prussian
government %
France has not only a decimal coinage, but decimal weights and mea-
sures. Switzerland has decimalized her system in part ; so has Portugal,
and is about introducing the French weights and measures. All the
South- American States that were once under the Spanish rule used deci-
mal coins, and also the United States, but strange as it may appear, the
latter have no law decimalizing their weights and measures, but the con-
venience is so great in most cases, the citizens have decimalized them for
themselves.
The Geographical and Statistical Society of New-York, of which Mr.
Bancroft, the late American Minister here, is president, has resolved to
memorialize Congress to take the subject of weights and measures into
consideration, and to endeavor to obtain a meeting of delegates of all
nations, at Brussels, or some equally convenient place, with the view of
considering the pacticability of adopting a common standard.
Canada has just passed an act for abandoning £ s . d., and adopting
the decimal system of their neighbors in the United States ; so, I believe,
has Bermuda.
The whole of the Chinese Empire, and the Japanese, make their cal-
culations by decimals.
A gentleman in France has sent me a list of nations, in addition to
those I have named, which he believes to be correct, which have adopted
the decimal system — Belgium, Lombardy, Holland, Sardinia, Spain,
Madeira, Greece, and Poland — and it is surprising that we, the most com-
mercial nation in the world, should have put off so long availing our-
selves of such a convenient and valuable system of keeping our accounts.
♦ It was on this ground that the committee suggested that no moro should be
re-coincd, not that they interfered with a decimal system, and it may be a conve-
nience to retain them until a sufficient amount of florins is ready for circulation.
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192
Decimal Coinage.
[September,
It will be quite a matter of convenience and taste bow we keep onr
books : to express £1 19*. 1 l{d. it now takes seven figures, in decimals we
MILLS. r. K. r. C. M.
do it in four figures, either £l. 999. or £1. 9. 99. or £l. 9. 9. 9., all
equally correct and equally simple It will be quite a mental calculation
of moment to turn £l. 19*. llfd., or any sum into decimals. The other
coins (not intended as coins of account) are merely for the convenience
and facility of making change. Some parties Beem to consider, if we
keep our accounts in more than two lines, it is not, in their estimation,
Btrictly decimal ; this objection is met at once by their keeping their
K.
books, and making their calculations in pounds and mills ; thus, £1. 999,
to which I cannot see an objection. There was but one opinion in the
minds of the witnesses, or of the committee, that great advantages would
arise from our adopting a decimal coinage, and only one witness sug-
gested any other unit man the pound sterling. Although at the Bame
time a decided advocate of the decimal principle, he thought that we
might adopt the penny. But when it was considered that the pound
sterling is known to all the world in our exchanges, that our national
debt, dividends, and all large contracts, rents, etc., are associated in our
minds with pounds sterling ; and that the penny is most generally used
for the small payments of the day, which can easily be replaced by a
new copper coinage, as suggested ; the present penny, whicn cannot be
brought into a decimal scale, and its present nominal value with the
pound sterling, found no favor with the committee. You are aware that
both our silver and our copper coins are mere tokens, and not of the
intrinsic marketable value of silver or copper. The silver is only a legal
tender for forty shillings, and the copper for five shillings. Their current
exchangeable value in weight and fineness with reference to gold, I
believe can be changed any day by a proclamation, or probably by an
order in council, without putting a single coin now in use out of circu-
lation.
It has been said, that if the pound sterling is adopted as the unit, we
will require an entire new silver coinage ; this is quite a mistake. If
the mills are marked on all the new silver coins, as issued, as the com-
mittee recommended, and contain the same weight and fineness of silver
as the florin, shilling, and sixpence, they will pass for exactly the same
amount. None of the present silver coinage need therefore be withdrawn,
except the three-penny and four-penny pieces, until worn out ; its remain-
ing m circulation would at once show the least intelligent person, that
there was no difference in value between the old and the new coins ;
twenty-five mills would still be the Bame sixpence as twenty-four farthings,
and the shilling, in like manner, retains the same intrinsic value in weight
and fineness of silver, although divided into, or called fifty mills, in place
of forty-eight farthings, and will buy just the same quantity of bread,
under whatever name it may be called.
The system of buying and selling bullion, which has hitherto been
customary, has lately been abandoned by the Bank of England, which
now buys and sells it decimally. The Master of the Mint, Sir J. Her-
schel, informed the oommittee be meant to follow its example.
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Decimal Coinage.
193
I may here observe that I think there is a great misapprehension with
some parties as to the bearing of Sir J. Herschel’s evidence. He does
not say that it would require twenty years to introduce decimals, but that
from the commencement it might require twenty years for all the old
coins to be withdrawn and new coins issued, but that in the mean time
it might gradually proceed, without inconvenience, to full completion.
Lieut. Gen. Sir C. W. Pasley, (who wrote a very excellent book in
1834, on coinage, weights, and measures,) and Mr. Henry Taylor, (who
has published a small, convenient work on the subject,) gave the com-
mittee some very striking exalnples of the decreased number of figures
that would be necessary, and the consequent saving of labor that would
arise from our adopting a decimal system of book-keeping and calcula-
tions over that now in use, as the following example from Lieut Gen.
Pasley’s evidence will show :
PRESENT SYSTEM.
Tons. cwt. qrs. lbs.
215 17 3 0
at £9.
11s.
61(7. per ton.
Ton.
T.
c.
qrs. lbs.
£. s. d.
As 1 :
215 ,
, 17
.3.9 : :
9 . 11 . 61
20
20
20
20 *
4317
191
4
4
12
SO
17271
2293
23
28
4
2240 lbs.
133177
34542
9193 farthings,
483597 lbs.
9193
1450791
4352373
483597
4352373
2240)4445707221(1081090 farthings.
224
2205
2016
1897 4)1934090 farthings.
1792
12)4961721 pence.
1050 :
890 20)41347 . 8| shillings.
1517 £20G7 . 7 . 8| Answer.
1314
2032
2010
1021 203 Figure*.
13
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Dcci mol Coi nage.
[September,
194
PROPOSED NEW SYSTEM OF WEIGHTS AND ME AST RES.
lb<. florins. cents, tithing or mills.
435507 at £-1. 2 7 5 per 1000 lbs.
lbs. lbs. €. r. c. m.
As 10m0 : 48.7507 : : 4. 2. 7. 5.
4275
2417085
3285179
967194
1054388
1000)2007377,175
F. C. M.
2007377 or £2007. 3. 7. 7.
73 Figures.
Mr. Taylor gave a very frequent calculation, which, in decimals, requires
twenty-six figures; and another, that in the present mode requires forty-
nine figures, and in decimals thirty-seven figures.
Professor Airy, Astronomer Royal, stated, that the poorest dealers of all
referred every thing to the standard of a pound sterling, and that to dis-
turb it as the unit would lead to great confusion.
The Spanish dollar, the florin, the franc, ten shillings, one shilling, and
the penny, have all been suggested by some writers, as the unit of
account, but it is obvious, if we give up the sovereign, we must multiply
figures, and parting with an old friend of so much importance, which it
is not necessary to do, would be very distasteful to the British people.
If you adopt dollars at their present value, sixteen shillings and eight-
pence, as compared with the pound sterling, or francs, which take 25 to
the sovereign, you have a double calculation in both instances. If you
adopt the penny as the unit, it involves the difficulty of estimating the
sovereign as £l. 0. 10., and makes a double calculation necessary; and
the ten shillings and one shilling places us in the difficulty of leaving
fractional parts in the copper without a re-coinage and a division into
half-farthings, which was considered too small and unnecessary. They
all throw the pound sterling out of the decimal scale.
It may be supposed that we shall have a new lesson to learn, if a
decimal system is introduced, but there will be no difficulty in under-
standing what nature teaches us by our ten fingers or digits, and which
is the first book of every rude and savage people. Once understand that
ten mills or farthings (digits) make a cent, ten cents a florin, and ten
florins a pound sterling, and your lesson is learned, as respects our cur-
rency. This is surely easy enough, and by adopting it, and decimalizing
our weight and measures, you get clear of compound addition, compound
subtraction, compound multiplication, and compound division, which
plague both master and scholar. Decimals obviate all this difficulty, and
make it simple addition, multiplication, division, and subtraction. Our
compound system is created by four farthings making a penny, twelve
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Decimal Coinage .
195
pennies one shilling, and twenty shillings one pound, and hundred weights,
quarters and pounds, in place of moving by tens.
Professor De Morgan considered that adopting a decimal system of
arithmetic would save one half, or four fifths, of the time in teaching it,
and leave that saving for the pursuit of other studies ; he frequently finds
it necessary, as a matter of convenience, to turn £. 8. d . into decimals,
work out his calculations in them, and re convert the decimals into
£ 8 . d. It is of the greatest possible importance to the industrial classes,
that the short time they are able to remain at school be made the most
of, to save which, teaching decimal arithmetic, in place of our present
system, would very much assist. In the companion of the British Alma-
nac, of 1841, 1842, and 1854, he has given three valuable papers on this
subject, to which I beg to call your attention.
Mr. Lindsey and Air. Kirkham, who have extensive dealings with the
poor, and take as much as 1000 farthings each per week, gave a very
decided opinion, that if it was explained to the poor that they could get
twenty-five mills for their sixpence in place of twenty-four farthings, there
would be no difficulty in their meeting the change, but Mr. Kirkham
thought they would prefer the name of farthing to mill. The evidence
before the committee clearly stated that the quantity of any article sold
to the poor would readily be adjusted to the value of the coin received.
The Duke of Leinster, from his own practical experience of the fact
informed the committee that when the Irish currency was changed from
13d. Irish to 12d. English, it was Boon understood by the poor, and no
difficulty arose with them, although they might have supposed they lost
a penny by the change.
Ten-penny bank tokens were readily received in Ireland, and so
were the five-shilling tokens in England, the latter having only about
4$. 2d. value of silver in them.
I am quite sure that the intelligence and aptitude of the laboring
classes readily to comprehend and understand any change in the value
of our coins and its advantages, are not sufficiently appreciated.
Dr. Bowring says that his Chinese servant, and a Chinese boy in his
service, by the use of decimals were rapid and accurate calculators : he
never knew them to make a mistake ; they were an overmatch for him
in the use of figures, and be never met a Chinaman who had not those
advantages. He is publishing a book on decimals, now in the pres?,
which I have no doubt will give us much interesting information on the
subject.
I need not make further allusion to the evidence before the committee,
which, with one solitary exception, was decidedly in favor of the sovereign
as the unit; and there was no doubt with any one as to the advantages
that would arise by getting rid of our present system of making calcu-
lations and keeping accounts in £ rf., and by adopting decimals.
Indeed those who suggest other units do not undervalue the advantage of
decimals, but are advocates for them.
The limits of a letter compel me to merely glance at the parliament-
ary evidence which is most valuable, and which ought to be read to
be sufficiently appreciated. The Board of Trade, before I moved for a
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196
Decimal Coinage.
[September,
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committee, had addressed letters to several parties, who it was thought
could give information on the subject; those parties we called before the
committee, and there never was, I may venture to say, more concurring
testimony offered in favor of any system, than by the witnesses who
attended.
Some trontlemen think it might be a great advantage if our coins were
the same as those used in France or the Fluted States; or if there were a
universal coinage of the same intrinsic value in all civilized nations.
There are two fatal objections to this — that it would be impracticable
to got all to agree, and all history shows that despotic monarchs, to meet
the exigency of the moment, have depreciated the value of their coins;
and within my recollection the United States, to get more gold into the
country, and prevent their own leaving them, increased the value of the
sovereign fiom 8-1.44 to 84.84, and I believe it is now under consider
ation, if not actually done, to depreciate the value of their silver 7 per
cent, so that, if all coins were made everywhere of the same weight and
fineness at once, although we would be right to-day, there is nothing to
prevent our being wrong to-morrow'. Therefore ail we can do for our
own interest is to decimalize our own currency, without reference to what
other parties may do; I hope with the certainty that the same adjust-
ment of weights and measures will follow.
It was thought that difficulties might arise in adjusting customs-duties,
bridge-tolls, etc., etc., but the evidence that came before the committee,
demonstrated that no serious obstacles stood in the way of an equitable
settlement of such questions, if respectable actuaries were called in to
make the necessary calculations to do justice to all parties. Indeed, the
skeleton of a bill, given in evidence by Mr. Arbuthnot, would remove the
difficulty with respect to the customs : and as to the post-office stamps,
if we reason by analogy, four mills, which would be one twenty-fifth less
than our present penny, would soon produce as much as we now pay, at
least this was the opinion of Mr. 11. Hill.
I am strongly impressed with the belief that any difficulty that may be
supposed to arise from the change recommended is more imaginary than
real, and it is pleasing to think that there is an almost universal opinion
in favor of our adopting a decimal system. The press, as far as I know,
advocate it, and I have just been favored with a copy of the following
document, which unmistakably shows the opinions of government. It
will at once call the attention of the publishers of school-books and
teachers to prepare for the contemplated change :
decimu.s.
“Committee of Council on Education, )
“Council Office, Whin-hall, 31st January, 1S0L \
‘ Rev. Silt: I am directed by the Lord President, to bring1 under your notice the
fact, that there is a very strong feeling in the country that we should adopt a sys-
tem of decimals in our coinage, and in our weights and measures.
“ The strongest objection urged against this change is, that it would create mis-
apprehension and mistrust in the minds of the people.
“ The Lord President thinks you might, with advantage, call the attention of the
principals of training-school.? to the importance of thoroughly imbuing the* students
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Debt and Credit in France.
197
under their charge with such a practical knowledge of decimals as will enable the m
to disseminate the information needed to accompany such a change.
“The Lord President thinks that this maybe done by a special notice in your
Report for the years 1853-4, by personal communication in the course of your next
circuit of inspection, and by introducing a few questions that bear upon the subject,
in the examination papers to be proposed in December, 1854.
“ I have the honor to be,
u Rev. Sir,
“Your obedient servant,
“ R. R. W. Lixgex.
4i H. M. Inspector of Training-Schools.”
I therefore hope you will encourage, as much as you can, discussions
on the subject, that its advantages may be made known, and the presenta-
tion of petitions to Parliament expressing public opinion. This, I believe,
is all that is wanting to confer a great national benefit, in abridging the
time necessary for education, and putting us in a position, by a labor-
saving machine, (for such it practically is,) more easily to meet our
foreign rivals in the market of the world. We know the advantage of
labor-saving machines, in all our manufacturing towns, and in our
improved instruments of husbandry. The saving of labor, by increasing
the demand for our industry, requires more hands to carry on the work,
and in every view is an important benefit
Believe me, my dear Sir,
Ever yours, respectfully,
Wm. Brown.
DEBT AND CREDIT IN FRANCE.
From Chambers’s Edinburgh Journal.
Restriction of Credit in France — Billets de Banque — Bill Brokers in
Paris — Imprisonment for Debt in Paris arid in London .
Six-AND-EiGiiiTENCE, says one of Hook’s heroes, is at the bottom of
every thing in this world. Of all the discussions which are discussed in
this discussing age, one half at least hinge in some way or other upon
debt and credit; and yet of the millions talking, thinking, and disputing
about the matter, the greater part know but little of its real principles:
and there are things connected with it known to very few indeed, even
of the initiated.
Who, for example, would suppose that London firms of character and
eminence deal, knowingly and systematically, in forged bills? ^ et such
is actually the case. Great money-dealers, whose names alone can some-
times turn the current of the market, have a quiet drawer in whi<*h they
stow away these bills, just as they would any other. The principle upon
which they proceed is a simple one. They know their customer ; lie is
a man in business, with a stock in trade, a character to lose, and greatly
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in want of ready money. This customer forge9 to his bills the name,
usually, of a near relation, or some one of monied fame with whom
lie is connected. The dealers, fully aware of the circumstance, take the
bills. They know well that their customer will pay this bill before any
others — that he will run all risk, refuse all payments, make all sacrifices,
rather than leave these bills unpaid, with the terrible consequences of
their examination. The customer, in fact, says to the dealer : “ I put my
liberty, my character, and prospects, in your hands: if I fail in my
engagements, you will have the power to transport me as a felon. I shall
not run that risk ; I have such and such property — such and such con-
nections— lend me so much money.” The dealers do not hesitate to
comply.
Again: there is a class of tradesmen who will furnish goods on credit
at a time when they are morally certain they will never be paid. We
remember a London tailor who used to make periodical visits to Cam-
bridge, almost forcing his coats and trousers upon every one to whom ho
had the shadow of an introduction, charging high prices and offering
infinite credit. One of his customers left the University much in his debt,
and the tailor lost sight of him for years. At last he found him and
presented his bill. 1 1 is quondam customer fairly told him that he could
not pay him. The tailor fidgeted, remonstrated, threatened. What was
the use ? — the man had no money. At last the tailor cried: “Well, sir,
if you will not give mo my money, at least give me an order, that I may
not quite have lost my time.” With these men, business is every thing :
if they can do a certain amount in the day, they go to bed happy, com-
pelling themselves to forget how much of that amount will never be paid
for; aad safe enough, after all, for the profits on their genuine business
are an ample set-off' against all losses. There are many even second-rate
tailors in London, who, if they cho^e to risk their entire connection, could
in a month call in between £40,000 and £50,000.
A man begins tolerably early to be initiated into the credit system.
He leaves school, where he never had a five pound note in the world, for
the University. He knows nothing of purchases beyond bats and balls,
cakes and oranges. From a position wdiere he carefully reckons his half-
pence, he is removed to one where he has the command of a limited £300
a year — one hundred of which will suffice for his necessaries — and the com-
mand of credit unlimited. The very day after his arrival at college, his
table is covered with cards from horse-jockeys, print-sellers, wine-merchants,
confectioners, jewelers, unnecessary tradesmen of all kinds and classes.
Presently he is visited by a man with prints of the colleges — things, he
is told, indispensable to a freshman ; as for payment, he may suit his own
convenience. Next walks up a dentist, who insists on examining his
mouth ; the tutors have such a partiality for young men with white
teeth. Next is the wine-merchant; a stock of wine is so essential to
hard reading, and Mr. A. has the best and cheapest. It would he end-
less to repeat the items of the list, quite enough to turn the head of any
young man who thus, at his very first entrance into life, becomes forced
into habits so injurious, if not fatal, to his future career.
In modern France, the credit system is far from being carried to the
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same extent which it is in England* Every one knows the neat little
ix x in which sits the Parisian dame at one side of the shop to receive the
money; if you stay there long enough, you may see that nine tenths of
the goods taken are paid for. Credit, when it is given, seldom lasts
longer than a month. The butcher, if you don’t pay him, is not given
to threaten, but he forthwith stops the supplies. Of course there are
exceptions, but this i3 the general rule.
Mercantile credit in the provinces is utterly deficient in the organiza-
tion it possesses in this country. We were some time ago at Orleans,
and received from a distance, as cash for a letter of credit which we had
forwarded, a parcel of Ilottinger’s notes. These were payable in about
sixty towns in France, of which Orleans was not one ; but I was assured
that this was only owing to its proximity to Paris, and they could be
negotiated there quite as easily as in the capital. There were two banks
at Orleans : the first would not even look at the notes ; the second under-
took to transmit them to Paris : it was all that could be done. For
seven mortal days the bank waited for an answer to this simple matter,
and at last paid the money without receiving it, as a special favor. And
yet Orleans wras in those days — it was before the railway — but a single
night's post from Paris.
If you enter a Parisian hank, you are struck with the absence of the
air of business. A single gentleman is probably standing with his coat-
tails to the fire; he looks at your document, and very likely pays you
the money out of a drawer, though, to be sure, he generally hands this
part of the business over to the caissier . No hurried merchants’ clerks,
no fat farmer from the country, handing checks or bank-notes eagerly
over the counter. It is with great difficulty that the banker in France
will permit ordinary people to open an account, the fear is so inveterate
that they may be taken in. No doubt there are business banks in Paris,
as Rothschild s and the great bank of the Rue St. George ; but they
are very few, and even here half of the business is confined to paying
coupons: the multitudinous requirements of British affairs are totally
unknown.
At the present moment, the influence of this country, and the growing
desire for greatness and excitement, which is making France a mercantile
nation, as it once made it a nation of soldiers, is creating the necessity
for greater monetary accommodation both for borrowing and placing
money. As the bankers are not to be moved from their routine, other
institutions are starting up on all sides. An institution has been estab-
lished in France, completed only at the close of last year, known as the
Credit Mobilier. It is an immense joint-stock lending concern, taking
every body’s money, as much or as little as you please, and finding for it a
safe investment. It lends to the railways, to mines, to departments, to
the amount of three or four millions sterling. One of its features is
worth notice. It issues notes payable at fixed periods, commonly short
ones, and bearing interest during the time they run. By this means a
portable savings bank is established, in which persons of moderate earn-
ings may invest their gains, and at the same time a useful medium of
exchange is created, in which the money never lies entirely idle. It is
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peculiarly suitable to the Frenchman, who, as has been observed, always
prefers to have his money about him, and yet is not subjected to the
absolute loss of interest, which he incurs by hiding away his coin in his
chimney. There is another institution for investing other people’s
money, whose main principle is to lend it to the communes ; it is known
by the name of the Caisse des Consignations.
The ordinary use of the billet de banque dates only since the Revo-
lution of 184 8. Of course the Bank of France issued as many of its
notes in previous years as the public chose to take ; but excepting in the
great towns, the public did not choose to take them. The great convul-
sion six years ago, both bv testing the stability of the bank and by its
destruction of the old system of managing money, did an immensity of
good to the bank. At present, the notes of the bank are found every-
where. Up to 1848, it had no branches in the great towns, from the
opposition and influence of the local establishments. Up to 1811, the
bank had but three branches any where — at Rouen, Lille, and Lyon ; and
these it was forced to shut up in that year for want of business. During
Louis Philippe’s reign, fifteen branches were established — all in second-
rate towns. Since 1848, they have been established in the great towns.
Institutions exist in the south, at Marseilles especially, which the good
people there consider a marvel of convenience : with U9 it would seem
the clumsiest and most primitive idea imaginable. The principle is this:
A grocer wants to buy a cargo of plums, which he has not the money
to pay for. He goe9 to the Bank of Exchange, as it is called. The
bank gives him an order for the plums, on his making over to it an
equivalent in sugar. This sugar it hands over to another of its customers
who wants it, and, in the multiplicity of its business, finds something to
give in exchange to the original owner of the plums. This i9 the prin-
ciple on which traders went, not merely before paper-currency, but before
coin itself was known. It is systematized and modernized, but it is the
same. An Englishman would find it a much simpler proceeding to bor-
row money of the bank upon proper security, and purchase the plums
upon his own terms. As it stands, lie is compelled to submit to the
terms of other people. But, as he cannot borrow money, he is glad to
find such a substitute for it as he can meet with. Money on mortgage,
so easily found with us, is obtained with far greater difficulty in France,
and under many formalities ; it usually commands from six to ten per
cent. It is much more easily raised in Germany, where mortgages are
systematized. A large establishment, authorized by the state, manages
this kind of business in many of the Teutonic kingdoms, where the
ownership of each estate is registered, with all the contingencies, succes-
sions, and liabilities to which it is subject, and its value accurately ascer-
tained. This makes mortgaging a wonderfully easy business. The
French are slowly endeavoring to imitate their neighbors in their facili-
ties on this head.
Notwithstanding the limited range of the credit system on the conti-
nent, compared with its extent in England, there is enough left to do a
world of mischief. In fact, what credit does exist, is in great part in the
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most mischievous shapes. Its annals are full of the piquancy inseparable
from all the proceedings of our lively neighbors.
The borrowing-system in France is divided into three professions. You
have first the usurer; secondly, the entremetteur or proxenete ; and
thirdly, the faiseur or agent. These three differ as entirely in their
personal character and habits as they do in their several departments of
business. The usurer keeps his gains, the faiseur spends them in gam-
bling at the bourse, the entremetteur in cabaret-dinners in the Banlieue,
in a society we blush to name.
The usurer never sees the pigeon, or very rarely. He is banker, count,
minister of state, ’director of theatres, lives in a grand hotel, gives dinners
to princes, dresses in suits from Dusantoy, and is far above the acquaint-
ance of a mere pigeon. This he leaves to the courtier. This last, a gen-
teel and knowing personage, deals in every thing. He tells the pigeon
that if M. , not being inclined to part with his ready money, can
only give wine or furniture in exchange for the bill, he, the courtier, will
undertake the sale ; and this he does, upon occasion. But in the majority
of instances, wine, furniture, and all the rest of the old story, is a mere
pretence. The pigeon proposes a bill. The faiseur goes to the banker
and gets it done at fifty per cent in ready money. He returns to the
pigeon, says that the bill is discounted, but that the price is given in
goods, which he will undertake to sell. In two or three days, he returns
with the story that the goods are not to be sold. The pigeon is impatient.
The faiseur then offers to take the goods at his own risk, at a discount.
This the pigeon is only too glad to do, and gets one half of the money
handed to the faiseur, just one quarter of his bill. The faiseur gets the
other half, without any risk whatever; and in half an hour is to be seen
trotting down the liue Vivienne, eager for the excitement of the new
loan or the latest scheme.
This is the most favorable result, and too happy ought the pigeon to
be with it He is lucky if his money is handed to him at all until within
two or three days of his bill falling due — just in time to save the agent
from the charge of bill-stealing, concerning which the French laws are
rather rigorous.
As for the amount the pigeon receives, he may, as we have said,
receive a fourth, but not uncommonly he receives nothing, and that with-
out the suspicion of bill-stealing. Authentic instances are know n where
the pigeon has taken a horse for a note of 1000 francs. The horse
remains in the stables of the courtier, who in a few days sends in the bill
for its keep — thirty francs. The pigeon orders the horse to be sold at
auction. It fetches twenty-seven francs. All the pigeon gets by the
transaction, is the pleasure of paying three francs ready money, and the
bill when it becomes due. In another case equally authentic, a young
man signed a note for 28,000 francs. He was credited in return with
GO, 000 blocks of marble, 11,000 mouse-traps, G000 iron rods, and 3000
francs in money. The marble remained in the quarry; no one would
buy it in situ , or advance the money for its removal. The mouse-traps
and rods sold for about a thousand francs, and the pigeon w\as finally
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credited with 4000 francs, and received about half, the courtier pocketing
the rest.
The number of these courtiers in Paris is estimated at above 20,000 ;
there are above 10,0u0 in the provinces. Let any one who knows the
lives, habits, and expenses of these men, estimate the amount of loss in a
single city which feeds 20,000 courtiers.
W e had almost forgotten the proxencte. It is his business to discover
youths in difficulties, or out of difficulties, with easy temperament and
eyes liable to be dazzled. They haunt especially the ecoles of droit and
medicine, places where extravagance and libertinage are prescriptive.
These are the worst of their class — seedy, stale, and villainous-looking
men, who have no need even of the appearances of character. A better
set, at least in appearance, loiter around the hotels or apartments of the
rich. They must, in this instance, have the manners and clothes which
would not subject them to be kicked into the street by the domestics.
Their highest flight is into the salons of an actress; their lowe>t the cells
of Clichy — for the prisons themselves are not beyond their arts and
expectations.
The annals of the prison of the Rue Clicliy, or its predecessor, St.
Pelagic, are yet more fertile in extraordinary characters than those of our
own Fleet. Some of these same characters, it may be observed w'ere
English. There was the famous Swan, who lived there three and-twenty
years, and only preserved his post by threatening his wife, his daughter,
and liis son-in-law to disinherit them, and give all liis property to the
prison, if they paid his debts. lie used to pace the corridors half the
day, which he called his “town of the P>ois do Boulogne/’ Released,
mucli against his will, by the revolution of 1830, he died of his liberty
in a few months, before the reestablishment of atlairs could enable hirn
to find fresh debtors and a new' imprisonment.
One of Napoleon’s men declared that he never was so liappv as in
prison, for it was the only place where he could not ruin himself. Re-
leased by the course of law when seventy years old, at which age no man
in Franco is allowed to bo a prisoner for debt, he used to amuse his
friends by calculating the millions he had saved by his sojourn in prison,
and demanding where he could have employed his time to more advan-
tage. This was Ouvrard’s way of looking at the matter. Every one has
heard of Ouvrard, the great banker, who received other people’s money
to the extent of 5,000,000 of francs, never spent it, hoarded it [n rich
investments, and laughed at his dupes from the gay w'alls of Clichy.
Five years, by the French law, is sufficient imprisonment for any man,
whatever lie owes ; at the end of this time he is released, as a matter of
course. Ouvrard’s friends and connections, peers and ministers of state,
remonstrated with him on his proceedings. “I have no peculiar fancy
for prison,” he answered : “ find me another place where I can gain a
million a year, and I will leave Clichy on the instant.” He did his busi-
ness in style; if he wanted the chamber of any prisoner, he would pay
liis debts to secure the vacancy. He hired an entire house opposite the
prison for his domestics and his cuisine. Every day, his dinner-party
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consisted of twelve persons. This life, and a million a year for leading
it ! What wonder if M. Ouvrard was content with Clichy ?
Another of the imperial barons, formerly prefect of a department,
found his way to Clichy. He recognize! in the doctor of the establish-
ment his physician in his prefectorial days. The doctor expressed his
astonishment at finding so great a man in such a situation. “What
would you have, my friend ?” said the prefect “ I have a rent-roll —
rather a large one — but it went to pay the interest of my debts. Now, I
receive it without deduction; boil my own coffee in the morning; an
excellent femme de menage prepares my dinner; I have five or six
capital fellows to share it ; I spend the evening in whist and punch — a
jovial life, of which I shall certainly not be tired for five years. I shall
then go abroad into the world not owing a farthing, and without the dis-
agreeable necessity of receiving my rents only to hand them over to other
people.”
It is the commonest thing in French society to hear men expatiating
on the delights of their “ little boudoir in Key Street,” Rue de Clef — the
cant term for Clichy amongst all choice spirits. Another term is “the
palace of debt.” In fact, its gay courts, where flowers, water, trees, and
a well-swept lawn afford him amusement in the sunny hour; a joyous
companion and good cheer when the sun no longer shines ; a well-stocked
library of romance ; and the knowledge that all restraint will end in a
few years, without the stigma of bankruptcy, the distasteful gathering of
creditors, the angry frowns of a commissioner, or the most uncomfortable
queries of an opposing counsel — all this unites such a variety of charms,
that the expression is more than justified. Not unfrequently, young
men who, at their first entrance into Clichy, give themselves up to
despair, spend their days in writing lamentations to choice friends, and
sternly refuse all companionship with their fellows, in a few months are
rioting amidst all the excesses and enjoyments of their new position,
leaving their distant friends to fancy them dead, from the total cessation
of their jeremiades ; declaring that they had found in the prison the most
charming of companions, and had crowned their felicity by making the
acquaintance of a rich and venturous usurer. One of the great recom-
mendations of the place is, that a man can receive society which he does
not venture to bring within the walls of his own house.
Our owrn happy and enlightened country, in the last century, has the
merit of being the only one in existence which first locked up the debtor,
aud then starved him. This was actually and literally the case, unless a
man could live on a half-penny a day. The old records of our debtor-
prisons are full of persons starved to death. The old Roman law, which
permitted the body of the debtor, after a certain time, to be cut to pieces
and distributed, like the Levite’s concubine, amongst his creditors — even
this not particularly humane and sensible law guarded against actual
starvation. Starving to death was a punishment reserved for Italian
barons of the time of Count Ugolino, and English gentlemen of the time
of Fox and Wilberforce.
All the legislations of Europe compel the creditor to allow the debtor
sufficient to keep him from starving. Sometimes the sum is fixed, as in
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France, at a franc a day ; sometimes, in Holland, it is regulated by a
tariff fixed by the government, according to the price of provisions. In
all, the allowance must be paid for a month in advance by the creditor:
and if he fails, the debtor is instantly released ; but in that case he may
be arrested again for the same debt.
The legislation of Geneva is peculiarly lenient. It forbids the b^d of
the debtor to be taken under any circumstances. Unless there is nothing
else to pay the debt, it is compulsory to leave ploughing instruments,
farm animals, and a month’s supply of flour. The creditor is likewise
compelled to leave, at the option of the debtor, one cow, two goats, or
three ewes, workmen’s tools, and the instruments of the art or profession
of the debtor, to the value of sixty florins. As in the rest of the conti-
nental system, the debtor is entitled to release as soon as he attains the
age of seventy years. But Geneva is in another respect the most lenient
toward the debtor. In France, the prisoner is discharged, as a matter
of course, after an imprisonment of five years ; at Geneva, after an
imprisonment of three. lie can be imprisoned anew, however, if he
shall afterward come into possession of notorious means of payment.
The old annals of the Fleet will produce instances of prison luxury
and extravagance equal to those of M. Ouvrard. Prisoners served upon
plate are upon record more than once. There are, on the other hand,
some piquant stories of a different character. Thomas Pope was confined
in 1792 for a debt of £10,000 — money which he had appropriated in his
capacity of executor to a baronet. It was discovered after he had been
put in prison, that ho was worth at least £100,000. He lived in the most
penurious manner — spending less than £50 per annum. From the
length of his confinement, he was entitled to a better room than ordinary ;
this he let to another prisoner for a guinea per week, and contented
himself with one at a shilling. Meanwhile, he was actually saving £500
a year, the interest of his debt and expenses, which the creditors could
uot legally claim during his imprisonment. To be sure this was a good
way from the million francs per annum of M. Ouvrard.
A man was at the same time confined within the walls, who at once
amused and enriched himself by building houses within that favored
locality. The prison authorities stated at the time, to a committee of the
House of Commons, that very many prisoners omitted to sue out their
discharge when they were entitled to it ; and in some instances, the
debtor, freed by the act of his creditor, actually refused to quit the place,
and it became necessary to turn him out by head and shoulders.
The prisoners, when they could afford it, used to amuse themselves by
changing, by habeas , one prison, when they became tired of it, for
another. Many of them spent the winter regularly in the Fleet, and the
summer in the Queen’s Bench, taking their seasons like other fashion-
ables. It was supposed that the summer in the Fleet was peculiarly
uncomfortable and unhealthy.
It is enough to make one’s blood run cold to read the annals of debt
imprisonment scarcely fifty years ago. Xo medical advice allowed in the
prison, men and women dying of disease, no support but chance charity,
clergymen and ladies perishing for actual want. But the most out-
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rageous anomaly was this : a man might be arrested, if his supposed
creditor had a spite against him ; he might be in prison possibly for
twelve months before it became necessary to try his cause, and after all,
he might, and frequently did, obtain a verdict, lie had no remedy or
compensation whatever for his long imprisonment, except by pleas so
difficult of proof that no one was ever known to make the attempt.
W orse than all, a man might be arrested and kept in prison for a year
for a debt which he did not owe, and when the injustice of the claim
against him was proved, might still remain a prisoner for life, because
unable to pay the prison-dues.
In those happy times, prisoners slept on the stairs — men, women, and
children by dozens, in a single small room ; and if a prisoner died, his
body remained for days in the same room with his former chums! This
was in the days of Wilbcrforce and Whitbread, of Pitt and Fox, of the
fathers of the present generation, and even of some of the present gene-
ration itself. Truly, the march of civilization is subject to wonderful
caprices. Amongst other things, the arrest of insane persons for debt
was not an uncommon occurrence.
So far as legislation is concerned, a few years have done wonders in
the improvement of our system of treating debt legally. The next great
step must come, not from the lawyer or the legislature, but from society
itself. The one has at least done something, the latter has every thing
to do. Corrupting the young, tempting the inexperienced trader to
overtrading, pandering to the passions of the rich, making a lottery of
credit, offering unlimited advances at huge premiums on the purest
risks, forcing goods on people to be paid for at their convenience, and
even sacrificing all hope of payment for the sake of doing business: all
this is beyond the reach of the most searching law. We have been a
thousand years making physical laws against the debtor : it is time we
did something to enforce a moral law against the creditor. Hitherto, the
moral punishment has been all on one side, while the fault is with the
one at least as often as it is with the other.
New -II a Ursulas. — The legislature of New-Hampshirc at its present session has
passed a law to punish by fine and imprisonment any officer who shall be guilty
of issuing fraudulent stock. The law is as follows:
AN ACT to prevent and punish the false or fraudulent issue of stock in bank,
railroad, and other corporations.
Sec. 1. Be it enacted , etc. That any president, cashier, treasurer, or secretary, or
any other officer or stockholder of any bank, railroad, manufacturing,. or other cor-
poration in tli is State, who shall knowingly, falsely, and willfully sign, issue, or
cause to bo issued, any shares, or what purports to bo shares, in the capital stock
of their respective corporations, other than those authorized in their charters, or by
sorno amendment thereto, shall be deemed and adjudged guilty of felony, and when
duly convicted thereof, shall be punished by a lino not exceeding one thousand
dollars, and imprisonment in the State prison for not less than one or more than
seven years, at the discretion of the court.
Skc. 2. This act shall take effect from and after its passage.
Approved July 15, 1854.
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The Finances of California.
[September,
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THE FINANCES OF CALIFORNIA.
Tiie financial affairs of the State of California have been in bad hands
for more than a year past. Not content with reckle-s and extravagant
expenditures by the legislature, the fiscal agents of the State have proved
unworthy of their trust.
It will be recollected that in January last when the coupons of the
State seven per cent bonds became due, no funds were provided at New-
York for their payment. The American Exchange Bank, the New-York
correspondent of Messrs. Palmer, Cook <fc Co., the fiscal agents of Cali-
fornia, were not furnished by that firm with the requisite funds for such
payment.
In this emergency the banking firm of Duncan, Sherman & Co., of
New-York, stepped forward and advanced the requisite funds for the
payment of the coupons, due and payable then in this city, and forth-
with notified His Excellency, Governor Bigler, of such intervention on
their part for the honor of the State. All parties here conversant with
the facts in the case, gave Messrs. Duncan, Sherman <fc Co., due credit
for this unlooked-for advance of seventy thousand dollars in aid of a
defaulting State : and it was believed by all that the least that the
said State could do on information thereof, would be to pass a vote of
thanks to the firm for this valuable aid.
The legislature of California was in session when the intelligence of the
default of that State reached San Francisco ; but although the subject
was discussed by that body, nothing was done by them in acknowledge-
ment of the favor conferred. No other parties in New-York were willing,
or had expressed a readiness, to make such advances for that State in the
time of need.
The following letters were written by the Secretary and the Governor
of California, in reply to communications on the subject :
State Treasurer’s Office, )
Benicia, Wednesday, Feb. 22, 1854. \
Messrs. Page, Bacon & Co : Gentlemen : I have the honor to
acknowledge the receipt of your letter of inquiry under date, “ San
Francisco, Feb. 21, 1854;” and the pleasure to say that I have been
assured by Messrs. Palmer, Cook & Co., that prompt steps were taken to
refund the money advanced for this State by Messrs. Duncan, Sherman
<fc Co., as soon as intelligence was received by them of the failure of the
American Exchange Bank to pay the January coupons.
I have the honor to be, very respectfully, your obedient serv’t.,
S. A. McMeans, State Treasurer.
Executive Department, ^
Sacramento City, Thursday, April 20, 1854. \
Messrs. Duncan, Sherman & Co., Bankers, New-York. Gentle-
men : Your favor of the 20th ult. reached me in due time, and like the
former one, apprising me of the payment by your house of the California
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207
coupons, due on the 1st of January last, was handed to the State Trea-
surer— that officer, under the law, having the entire control of the matter
in question.
From him I learn that sufficient funds have been transmitted to your
house to pay not only the January coupons, but also the coupons falling
due on the 1st of July next
I have the honor to be, very respectfully, your obedient serv’t,
John Bigler.
The letter of Messrs. Duncan, Sherman <fe Co. to Mr. Cook in refer-
ence to the letter of the State Treasurer aud Mr. Cook’s explanation are
now annexed.
Nrw-Yobk, Wednesday, May 31, 1854.
Sir : Since our consent to receive from you the deposit of a bill of
exchange, due 28th June prox., for $50,000, for account of the State of
California, to be applied when paid toward payment of the interest of
that State, due here on 1st July next, we have received a letter dated
April 25, 1854, from S. A. McMeans, Esq., Treasurer of the State of
California, of a character so extraordinary and language so offensive as
promptly to determine us, while it remains unexplained or unwithdrawn,
to decline on any terms acting in behalf of the State as its financial
agents for the payment of its interest in this city.
We shall give no reply to such a communication, but should we here-
after deem its publication necessary, in justice to ourselves and to truth,
we shall not hesitate to give it to the public.
That you may be in possession of its extraordinary contents, we herein
hand you a copy of the same, and in doing so, request your particular
attention to the following paragraphs :
44 The first letter that you addressed to his Excellency, Gov. Bigler, in
regard to the failure, was truly commendatory of your own actions in
the case, and but for one declaration it contained (wholly irreconcilable
to me when considered in connection with the known facts) it would
have afforded me the utmost pleasure to have promptly communicated
the supreme satisfaction your generous conduct gave to the officers of
the State and people.”
44 In your letter to which I above referred, you used the following
language : 4 Who the agent of the State is we know not’ In the face
of this declaration it is alleged by Palmer, Cook <fe Co., that the house of
Duncan, Sherman & Co. had made formal application to them for the
agency of the State, which was conferred on the American Exchange
Bank.”
Now, inasmuch as we have never, directly or indirectly, made any such
application to Messrs. Palmer, Cook & Co., (of which firm you are a mem-
ber,) on this or any other subject, and never entertained the most remote
idea of doing so, we are enabled to pronounce the allegation referred to
wholly , barely, and unconditionally false.
W e are certainly getting a very poor and, to say the least, very
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The Finances of California.
[September,
singular return for an act of disinterested kindness toward your State;
such, we think, as the good people thereof will hardly approve — for we
are as yet quite unwilling to hold them responsible for the extraordinary
conduct manifested on this occasion by some of their temporary
officials.
Should we be wrong in this opinion, we apprehend such gratitude as
we have received will scarcely prompt to like action, in case of need, from
other quarters. Your obedient servants,
Duncan, Siierman <k Co.
To Ciiakles W. Cook, Esq., of California — now in New-York.
Nkw-York, Monday, Juno 5, 1854.
Gentlemen' : I am this morning in receipt of your favor dated May
31, inclosing copy of a letter received by you from S. A. McMeans, Esq.,
Treasurer of the State of California, and truly regret that such a commu-
nication should have been addressed to you, or that any thing should
have occurred to disturb the arrangement with you to pay the interest on
State of California bonds due in New-York on the 1st July next, out of
funds to be placed with you, to the credit of the State for that object.
Will you allow me to say that I am very sure the treasurer lias
written the letter referred to without a full knowledge of all the facts,
and without knowing, as I do, how entirely disinterested and generous
the action of your house has been toward our State ?
You lfiav be assured, gentlemen, that in due time this matter will be
put entirely right, and your liberal conduct be properly appreciated. So
confident do I feel of this, and of the honest and correct intentions of Mr.
McMeans, our State Treasurer, that I feel no hesitation in assuring you
that he will cheerfully and properly withdraw any and every imputation
upon your motives, and any offensive language alluded to byr you, written
under an entire misapprehension of your position and action in this
matter.
Mr. McMeans is a gentleman of too high a sense of honor to know-
ingly and intentionally do injustice or wrong, and I therefore repeat that
I feel very confident that he has w'ritten you under wrong impressions,
and will promptly do you justice when he comes to know all the facts.
Under these circumstances, I beg you will, for the present, at least,
pass over the offensive letter and allow the arrangement for the pay-
ment of the 1st July interest to remain undisturbed.
I ask this with the more earnestness, as I am very desirous that your
house should be the medium of these payments.
Respectfully your obedient servant,
Ciias. W. Cook,
Of firm of Palmer, Cook <fc Co.
To Duncan, Sherman & Co., New-York.
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1854.]
The Finances of California.
209
The following is a copy of the letter of Messrs. Duncan, Sherman &
Co. to the Governor of California, in which they inform him of the default
on the part of the State’s agents in the payment of the January coupons.
To this letter, it seems, no reply was made. A copy of this letter was
transmitted by the mail of the same date to the “ Comptroller” of the
State of California.
New-York, January 5, 1854.
His Excellency John Bigler,
Governor of the State of California :
Sir : We take the liberty to address your Excellency on a subject of
vital importance to the interests of your young but rapidly growing and
prosperous State.
By this mail, the financial officers of your government will doubtless
be notified of the refusal, on the part of the correspondents or agents of
the State here, to pay the interest coupons due on the 1st inst., and pay-
able in the city of New-York.
It is represented by them, that no provision of funds has been made
for that object. We cannot suppose this seriously bad and mortifying
position is caused by any neglect or omission on the part of your State,
out are rather led to the belief that it has been produced by the unpar-
donable neglect, or bad management , or bad faith, of its agents. Who
they may be we do not know ; but this state of things being likely to
cause much excitement both here and in Europe, and to operate most
disastrously on the credit of California, which we have hitherto been
Satified to perceive was steadily growing in public confidence all over
e world, we determined promptly to interfere for the honor of your
State and to protect its credit by giving public notice that we would pay,
on presentation, the coupons due 1st inst.
This we have done, as your Excellency will doubtless observe by our
city newspapers, and we trust this timely protection on our part will not
only receive the approbation of yourself and your government, but also
of all your good citizens, and will also tend to strengthen public confi-
dence in your State bonds, which we cannot but believe are entitled to
take high rank among American securities.
With prudent and judicious legislation, a careful avoidance of a large
public debt, and the observance of good faith, this must be the case.
It is by no means pleasant, in the present state of our money market,
to come under heavy advances for objects like this, especially so with the
uncertainty that we may be obliged to await return advices from Califor-
nia before receiving reimbursement ; by which time, at least, we trust the
State will promptly remit us a sufficient amount to cover the advances
we have assumed.
Trusting our motives in thus protecting the interests of the State will
be properly appreciated, and that measures will be adopted to prevent the
possibility of the recurrence of an omission so fatal and disastrous to the
credit of California,
We have the honor to remain,
Your obedient servants,
Duncan, Sherman, dc Co.
14
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210
The Finance* of California.
[September,
No reply to the preoediog letter baring been received by Mean*.
Duncan, Sherman dr Co., up to the 5th of April, they addressed another
by the mail of that date to the Governor, of which the annexed is a
copy;
Naw-Yowt, April 5, 1854.
To Hib Excellxnct John Biolbb,
Gotkrnob or th* Statb or Cautormia :
Sir : On the 5th day of January last we had the honor to address
your Excellency, informing you that no provision had been made for the
payment here of interest due on the 1st day of that month, on the State of
California Bonds, and the refusal of those representing the State or its
agents here to pay the same. At the same time we also informed your
Excellency that, on hearing the facts, we immediately interfered for the
honor of the State, and had given public notice that the interest coupons
would be paid on presentation at our banking-house, and requested your
Excellency to see that prompt remittance was made for our reimburse-
ment. By the same mail, at the same time, we gave similar advice to
the Comptroller of yonr State. On the 20th day of the same month we
transmitted to yonr Excellency a duplicate of our letter first referred toy
and at the same time and by the same post forwarded like advice to the
State Comptroller.
It is now with much dissatisfaction and some pain that we are com-
pelled to inform your Excellency that up to the date at which we write,
we not only have not had the pleasure to receive reimbursement for our
advances for acoount of the State, but we have not even received any
acknowledgment of the letter we have had the honor to address to
your Excellency, nor has the Comptroller or any other officer of your
State paid us the courtesy to acknowledge any of our communications
or action on this subject.
What we have reoeived, however, is information through the public
press that the news of default on the part of the State or its agents and
our interference for its protection reached California some two months
since. That some of the newspapers of the State, in commenting upon
our course, shamefully and unjustly attributed to us the most unworthy
motives in voluntarily, and to our own inconvenience, performing an act
of timely courtesy and disinterestedness toward your State.
We do not, however, hold your government responsible for this con-
temptible baseness and ingratitude. We make no complaints other th»n
those we are justified in, so long as we are without reimbursement, in the
absence of which your Excellency will permit us to repeat our request,
and to beg, if the necessary measures have not already been adopted for
that object, that your Excellency will cause them promptly to be taken,
that we may receive payment, and the State place herself here in the
good position to which we feel well assured she is justly entitled.
We have the honor to remain,
Your obedient servants,
Duncan, Shirk an, <fc Co.
P. S. — The foregoing was written for dispatch by the last steamer,
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The Finances of California.
211
bnt was withheld until the arrival of another mail from California, in the
hope that we should then receive a remittance from the State to cover
our advances. That mail having reached us without any communication
from your Excellency, or other State officer, on the subject, we have now
to report that a Mr. Cook, representing himself as one of the house of
Palmer, Cook, & Co., of San Francisco, called on us on the 10th inst,
and placed in our hands the sum of $46,305.52 on account of our
advances for the State, promising that within three days he would
hand us the balance, amounting to the further sum of about $12,000.
But we regret to say this promise has not been kept, and that the amount
of our advances, as above reported, has not yet been repaid to us.
We have distinctly informed Mr. Cook, that our action was in behalf
of the State, and that it is to the State we look for reimbursement
Palmer, Cook, <k Co. we know not, and do not recognize in the premises.
Your Excellency will permit us to remark, that if the State has com-
mitted her finances to the hands of these gentlemen, it certainly appears
unfortunate; for this miserable default and delay is damaging to the
credit of California, and making her appear in an attitude unworthy the
dignity of any State pretending to respectability. She should promptly
put herself right, as she is abundantly able, and, no doubt, willing to do.
D. S. <fc Co^ N. Y., April 20.
Immediately following this correspondence is the extraordinary letter
of the Treasurer to one of the representatives of California in Coogrees.
It was perhaps not intended for publication — certainly should never have
met the public eye — but having been published in the daily papers of
New-York, we give it a place as a matter of record. It certainly should
have a place alongside of the noted message* of Governor McNutt, of
Mississippi, in reference to the repudiated bonds of that State.
Sacbamento Crrr, Wednesday, June 28, 1854.
To rax Hon. M. S. Latham, M.C, Washington :
Mr Dear Sir : As one of the representatives of our State, of whose
attachment to her interest we need no better evidence than is to be found
in your past political history, you doubtless could not have avoided feeling
more or less mortified by the proceedings of parties in this, and in the
State of New-York, in relation to the non-payment of the January
coupons on our seven per cent civil bonds ; and it is for the purpose of
affording you some information which may enable you to aid your adopted
State in her struggle against the contemptible schemes of bankers and
stock-jobbers that 1 have felt myself called on to pen this communication.
• Governor McJCutt, m one of hie messages to the legislature of Mississippi, m reference to the
repudiated bonds , said, iSte message, etc.. Bankers' Magazine, Jfovcmber, 1849, pp. 337-353,]
44 The bank, I have been informed, has hypothecated these bonds , and borrowed money upon them,
of the Baron Rothschild. The blood of Judas and Shylock flows m his veins, and he unites
the qualities of both ms oouktbtmbn. He has mortgages upon the silver mines of Mexico , and
the quicksilver mines of Spam. He has advanced money to the Sublime Porte , and taken as a
security a mortgage upon the holy city of Jerusalem and the Sepulchre qf our Saviour. It is for
this people [fAa* is, the democracy of Mississippi) to say whether he shaft have a mortgage upon
our cotton-fields and make serfs qf nr children.”
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212 The Finances of California. [September,
The State of California is leaving nothing undone in her power to
accomplish, (as 70a are aware,) so & as the action of the Executive is
concerned, what she considers necessary to the protection of her honor,
and in despite of all opposition, has succeeded in placing herself in a con-
dition to prevent any default in the payment of her interest due for the
future. In addition to this, those who are interested may rest satisfied
that the principal of her indebtedness can and will be promptly met at
maturity also.
We have extinguished our 9 per cent debt, and redeemed, before
maturity, so much of the principal of those bonds which fall due on the
1st of March, 1896, as to leave the unpaid balance within theweaoh of
the succeeding fiscal year’s revenue, and with the proceeds of the “ Custom-
House Block,” recently sold to the government of the United States, we
will be able to liquidate all the bonds falling due in 1861, before or at
maturity; beside this, a large amount of the bonds due in 1866 and
1870 will also be redeemed before they fall due, should the holders of
them see proper to surrender them.
In view of these facts, to talk about the State of California failing to
pay the interest on her civil bonds, or repudiating her debts, is the con-
summation of nonsense, and could never have found existence in the
brain of a well-informed man, nor one possessing any regard for truth.
Many here^believe that three reasons have had their influence in creat-
ing the late difficulties about the January coupons. First, that there
are bankers in New-York who desired to create a panic among holders
of California bonds, and, if successful, to buy them up on speculation.
Secondly, that there exists palpable evidence that there is a crisis enter-
tained by some to bring discredit on the house of Palmer, Cook A Co., of
San Francisco, (a fact necessary to the success of the first object,) and by
this means deprive them, as business men, of the confidence of the State.
Third, all know here that this house has ever been the uncompromising
friends of Democracy, and in their zeal have not only employed their
personal influence, which, by the way, is of great moment, but have lav-
ished their private funds without stint or grudging, when such sacrifices
have been deemed necessary to the success of the Democratic party.
Differing, however, in opinion from a portion of the democracy of the
State as to its expediency, they took an active part in an effort made
the past winter, to bring on the senatorial election, and were anxious to
secure the success of their devoted personal friend, Mr. D. C. Broderick,
who it is known was a prominent candidate at that time for this dis-
tinguished position. They thus became an object of persecution by a
gortion of the Democratic press, and of the Whig press generally , of this
tate, as also of letter-writers ostensibly residents of New-York, and of a
portion of the Whig press of that city. The great injury as well as mor-
tification which this house have suffered in consequence of these proceed-
ings, have forced them, in self-respect, to decline further agency for the
State, after the payment of the next July coupons; and, in view of this
fact, 1 desire you to aid me by your advice in creating one in their stead
in the city of New-York, on whom I may confidently rely in making
future payments. If such persons can be named, of which I have no
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1664.] The Finances of California.
shall have it in my power to plaoe future defaults beyond a pos-
my fixed determination to have nothiog to do with any of the
parties in New-York who have been in any manner concerned in the late
transactions to which I have referred. You are aware that complaints
have been made by Messrs. Duncan, Sherman & Co., and others, that
they have been treated with disrespect by the California press and her
State officers. Had the State officers pursued a different course from
the one which they did, they would, under the circumstances, have been
wanting in self-respect Duncan, Sherman & Co. have not addressed a
single letter to a State officer on the subject of the late failure of the
State to meet her January payments, which has not been unwarrantably
supercilious, or else contained sentiments grossly insulting to the State or
her public authorities. Had they been dealing with semi-barbarians,
they could hardly have manifested a conviction of more self-superiority,
nor a spirit more imperious or dictatorial.
One other fact in this connection should be known, to enable you to
judge of what we conceive to have been the policy and motives of those
gentlemen, as we glean from the course which they have pursued. The
statute of this State, passed in 1851, authorizing the emission of the
Civil Bonds of that year, provides that, “ It shall be the duty of the
Treasurer of this State to make certain arrangements for the payment of
the interest on said bonds, when the same mils due, at least sixty days
before the time of payment.” ****** * “The said
Treasurer is authorized and required to make such contracts and arrange-
ments as may be necessary for the payment of said interest, and the pro-
tection of the faith of the State.” These gentlemen would hardly plead
ignorance of the existence of these provisions of law, yet, not until the
6th day of April last,* did they pen aline to the proper disbursing officer
of the State, whose duty it was to remedy the evil they complained of,
on the subject of the failure of the American Exchange Bank to meet the
State coupons, due January last, nor of their advance of funds necessary
for that object ; but, on the contrary, in rapid succession, they dictated
letters of complaint, addressed to the governor, to the Comptroller of State,
and to private bankers, none of whom could have had any thing to do with
the case, until it was clearly ascertained that the State Treasurer bad
failed or neglected to discharge his duties in the premises. This afforded
new pretext for the abuse which was heaped upon the present adminis-
tration, as well as the house of Palmer, Cook & Co., without stint, by
the opposition press, much to the prejudice of the State’s credit — an influ-
ence which I, in common with other of her friends, am anxious to see
counteracted.
Your early attention to my request, in relation to the agency I desire
to create, will greatly oblige. I would also be pleased to have the
cooperation of the whole California delegation, and it is respectfully
solicited by Your friend and obedient servant,
S. A. McMrans.
* See letters of the Secretary and Governor, p. 306, ante.
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214
Bank Statistics.
[September,
BANK 8TATI8TIC8.
Annual Report of the Bank of Charleston.
At the regular annual meeting of the stockholders of the Bank of Charleston,
South-Carolina, which was held at the hall of the bank, in accordance with public
notice, and as required by the charter, on Monday, 10th July, 18M, the Hon.
Mitchell King was called to the chair, and John Cheesborough appointed secretary.
The meeting being organized, the president, A. G. Rose, Esq., submitted the
following
Report :
Gbntlimek : The President and Directors of the Bank of Charleston
respectfully submit to the stockholders the following report on the affaire
of the institution, accompanied by the usual statements of its condition
on the 30th ultimo, the close of our fiscal year.
On referring to the profit and loss account, it will be seen that the
net profits of the years business, after deducting the current expenses.
amount to------- - $336,232 14
From which, two semi-annual dividends, of 5 per oent
each, have been declared, amounting to - • 816,080 00
Leaving, as reserved, profits to be carried to the credit
of the contingent fund account, the sum of - • $20,152 14
We beg to refer particularly to the suspended debt of the bank, which
is embraced in the annexed report of the committee. It will there be
seen that an unusually large amount of paper lies under protest, chiefly
growing out of transactions of the present year. In explanation, how-
ever, it may be proper to observe, that a large portion of these claims are
only held over from accidental or unavoidable causes ; they are perfectly
good, and will promptly be paid. Others are in process of arrangement,
and will soon be placed in a more satisfactory shape ; while others again
are so well secured, that no doubt is entertained of their being settled
without loss.
But there is also a considerable amount of the debt remaining in sus-
pense, which consists, for the most part, of returned bills of exchange.
These bills were chiefly drawn on a house that has recently suspended,
whose high standing and respectability hitherto, fully justified the belief
that they were entitled to the unlimited credit they enjoyed. In com-
mon, however, with many others, this bank has had the misfortune to be
a large sufferer by such misguided confidence. As yet, the exact position
of their affairs cannot be satisfactorily ascertained, in consequence of the
nature and extent of their transactions, and the loss, if any, to ensue must,
we presume, chiefly depend on future results. Whether the expectation
will ever be realized, which the parties themselves so confidently enter-
tain, that their assets will amply pay all their liabilities, is probably an
assumption more to be desired than relied on. Time alone will deter-
mine it
The committee, it will be perceived, have carefully reviewed the whole
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Bank ef Charleston.
215
existing debt, and arranged it nnder three different classes, estimating
each class according to the supposed value of the respective claims
embraced in it.
But, notwithstanding this large suspended amount, if we take into
view the extraordinary character of the season through which we have
just passed, distinguished as it has been for its aggregate of disastrous
events and influences— namely, the unprecedented loss of property cm
sea and land ; the agitated condition of Europe incident to a state of
war between powemil nations; the unsettled state of markets and
exchanges, defective grain crops, financial embarrassments and multiplied
failures, together with what especially affects our sectional interests — the
comparative deficiency of the last year’s cotton crop— all of which have
operated, more or less, to derange and cripple the resources of commerce ;
and, when too, we consider the various and multiplied interests which
the bank has had constantly at stake in meeting the current demands of
trade, we think, on the whole, there is reason to be gratified that we
have met with so few reverses, likely to result in actual loss ; when at
the same time we have been able, out of the realised profits of the busi-
ness, to declare the usual dividends of 10 per cent for the year, and
reserve the surplus of 820,152.14, to be held applicable to such losses as
may finally be determined.
The special report of the examining committee, certifies to the cash
assets of the bank being carefully counted, and found to be correct and
satisfactory.
Under the power of attorney, signed by a majority of the stockholders,
authorising the board of directors to provide in time for a renewal of the
charter of tbe bank, with itB present capital, an application to that effect
was presented at the last session of the legislature, and the same having
been granted, with a few unimportant amendments, measures were
immediately adopted to comply with the requisitions of acceptance.
Accordingly the institution will now continue to enjoy, as heretofore, all
its chartered rights and privileges for the renewed period of twenty-one
years, from and after the 1st day of June 1856, when the present charter
expires by its own limitation.
The present number of shareholders in the bank is 983.
Tbe stock being distributed as follows, namely:
Held by individuals in their own right, ... $1,911,100
“ by Widows, Guardians, Executors, and Trustees, 240,700
“ by Banks and Incorporated Bodies, • - 1,009,000
$3,160,800
The board of directors have recently been induced to authorise an act,
which we desire to bring to tbe notice of this meeting, trusting it will
meet with general approbation.
This bank has now been in operation for nearly nineteen years, during
which period of time many changes have necessarily taken place amongst
its officers. But among those changes, it has sometimes happened,
unfortunately, that from natural disabilities, or other causes, individuals
have found themselves reluctantly constrained to relinquish their situs-
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216
Bank Statistics.
[September,
tions end retire from employment in straitened circumstances. It is
always painful to behold estimable men, who have perhaps exhausted
their best energies in the service of the bank, thus necessitated to aban-
don their ordinary means of support, but especially so, when in a state
of infirmity and indigence. Instances have occurred, and now exist,
where the aged and infirm have become reduced to extreme poverty and
destitution, their condition appealing to the common sympathies of
humanity. Such instances ought not to be overlooked or neglected;
and, with the view to their alleviation, the board have been induced to
pass a resolution, directing the annual appropriation of one thousand
dollars, out of the current profits of the business, to be set apart as a fund
for the relief of indigent retired officers, who may now, or hereafter, need
pecuniary assistance for their support
These remarks are elicited simply to explain the object of the new
item that appears in the cashier’s general statement, under the head of
“fund for relief of aged and disabled officers” — not doubting for a
moment that its position there as a standing record will meet, gentle-
men, with your cordial acquiescence.
Among the events that have occurred during the year, and which it
becomes our painful duty to record, is the reoent death of one of onr
directors — the late Honorable Eer Boyce. Mr. Boyce had been identi-
fied with the institution from its very first inception to the period of his
demise. He had served for several years as president of the bank, and
by his long experience and extensive knowledge of business, contributed
hugely to promote its welfare and interests. He was ever an active and
efficient member of the board, and his services as such were always duly
appreciated, and will be held in grateful recollection. The vacancy thus
occasioned in the direction remains unfilled, and will probably continue
open until the general election in November next.
All which is respectfully submitted,
A. G. Rosa, President.
Liabilities and Resources of the Bank of Charleston : 1847-1854.
Bnsoumcn.
•Time, 184T.
Junt, 1849.
Jun«, 1860.
June, 1851 JWfis, 1851
BIDS discounted,
(1,207,844
*1,252,440
$1,242,685
$2,017,855
$2,092,814
Bills of exchange, .
939,1*4
1,0*2,770
1,810,987
1,926,919
1,400,277
Sterling bills, . . • .
1,024,425
2,886,85*
781,964
274,600
862,827
French Exchange,
819,812
816J43
268,694
122^27
54,008
Bonds and Mortgages,
421,3*5
251,078
200,880
114,847
1*4,791
Suspended debt, •
88,171
104,887
57,104
20,79*
206,620
Due by banks, .
870,082
240,952
856,970
68S£15
508,970
Due by agencies, .
250,4*2
899,848
287,987
476,789
171,18*
Premium on foreign bills, .
79,064
94,968
...
24,680
$7, *10
Bonus for charter, .
47,000
86,250
80,625
19,876
8,194
Beal and personal estate, .
*9,89*
*8,808
85,994
85,994
85,704
Stocks and bonds, .
854^*4
580,648
580,648
581,248
*57,948
Contingent losses,
249,866
897,607
. . •
. . .
, . .
Notes of other banks, .
44,112
71,04*
110^96
72,954
97,124
295,777
Gold and Silver coin,
428,808
486,225
656,744
588,600
Miscellaneous,
16,792
17,886
41,148
88,498
46£62
Total resources, .
. $6^87,888
$7,612,912
(<I8UI191
$6,045,688
$4,1*9,617
Digitized by
Gck igle
Original from
UNIVERSITY OF CHICAGO
1654.]
Bank* of Virginia.
217
Liamuot.
.fen*, 1847.
June, 1848.
June, 188ft June, 1662. June, 1806.
Coital,
, . $8,160,800
$8,160,800
$8,160,800
$8,160,800
$8,160,800
Circulation,
1,892,298
1,504,850
1,945,064
1,848,002
1^76,094
Individual Deposits, .
471,258
418,930
505,486
516,828
474,845
Doe distant banka, .
624,458
479,708
669,198
521,166
652,148
Doe Charleston banks, .
4,440
8£96
98,455
4,648
• • •
Public Deposits,
9,427
2,870
9^74
9^80
9,458
Dividends unpaid,
. . 8^17
10,007
12£80
18,781
10,587
Undivided profits,
400,015
756,965
481,584
469,678
492,745
Due agencies,
. . 198,245
1,190,756
. . .
9,406
• . .
$6^87,888
$7,612,912
$6,818,191
$6,048,688
$6,169,617
Virginia.
Bank of Virginia, Richmond , and Branches.
jAAmastOL Oct, 194*. Oct, 1847. April, 1800. July, 1858. July, ISM.
Capital,
Circulation, .
Individual Deposits,
Contingent fund.
Profits.. . m
Bank Balances, 7
Jn transitu, .
$2,550,870
2,000,145
940,022
88,053
58,266
188,880
3,604
$2,550,870
2,292,893
1,068,100
130,314
66,465
106,837
27,586
$2,550,870
2,069,868
1,890,93 8
214,228
66,743
154,288
7,926
$2,606,100
2,101,581
1,662,070
800,523
10,064
201,117
697
$2,651,250
1,825,296
1,550,700
304,712
12,176
218,880
Total liabilities,
$5,819,540
$6,242,065
$6,454,846
$6,882,102
$6,557,463
Kmoviob.
Oct, 1844
OdL, 1847.
April, I860.
July, 1858.
sMy 1,1851
Loans, ....
$4,803,018
$4,545,664
$4,582,288
$4,786,680
$5,081,773
Sterling bills, .
43,726
16,385
19,147
1,166
8,684
Stocks, ....
158,140
153,140
143,044
133,868
180,910
Specie, ....
768,225
830,818
815,642
882,488
685,963
Bank balances,
844,166
445,944
684,147
893,620
429,980
Real estate,
206,870
196,817
170,018
165,490
168,048
Defalcation and Robbery,
...
58,797
90,110
18,900
18,900
In transitu,
• . .
. • .
. . .
a • •
43,210
Total resources, .
$5,819,540
$6,242,065
$6,454,846
$6,882,102
$6,557,463
Farmers’ Bank of Virginia, Richmond, and Branches.
Lununa. 0<rf, 1847. July, 184#. My, 186a wfpHl.1868. April, 1844.
Capital, .... $2,978,700 $2,981,800 $8,000,900 $3,100,900 $8,100,900
droalation, . . . 2,943,674 2,240,186 2,543,437 8,269,420 2,686,467
Individual Deposit*, . 1,116,440 1,242,140 1,640,848 2,099,941 1,832,014
8orplua fund, . . . 263,160 808,347 287,120 838,781 837,988
Profit* 90,124 142,735 148,760 106,268 96,618
In transitu, ... 85,688 33,692 43,646 ... ...
Due other Dank*, ... ... ... 380,920
Total liabilities, . $7,426,636 $6,948,860 $7,664,710 $8,904,260 $8,283,902
Rasovscs*. Dot, 1847. July, 1849. July, I860. April, 1856. April, 1854.
Loan*, .... $6,868,086 $5,647,070 $6,825,896 $6,648,793 $6,598,464
Sterling bills, . . 46,100 9,795 15,981 6,500 5,198
Stocks, .... 268,407 168,988 46,012 61,593 41,430
Specie, . 990,388 697,223 886,826 1,021,160 846,467
Notes of other banks, . 231,298 146,990 326,848 648,196 866,566
Bank balances, . . 802,644 43,164 418,666 428,850 239,186
Real estate, . . . 240,718 280,680 202,588 199,668 191,647
Total resources, $7,426,686 $6,948,850 $7,664,710 $8,904,260 $8,888,902
Digitized by Gougle
Original from
UNIVERSITY OF CHICAGO
218
Bank Statistics.
[September,
Exchange Bank of Virginia, Norfolk , and Branches.
lAAMwmm.
Capital, .
Circulation, .
Individual deposits,
Bank balances, . .
Undivided profits, .
0ct,184T.
. $1,808,800
1,088/164
. 601,026
66,964
153, 8S0
Oct, 1846.
$1,826,300
992, S55
722,954
85,010
163,426
OH, 1851.
$1,904,800
1,756,028
845,351
158,772
229,310
April, 1858.
$2,100,000
2,095,422
1,146,890
112,970
254,876
-4pr«,lS64.
$2,595,000
2,031,778
1,126,303
237,146
344,938
Total liabilities, .
$3,778,834
$3,790,545
$4,889,261
$5,709,658
$6,335,164
Bbsocboi*.
Oct,, 1847.
Oct, 1849.
Oct,, 1851.
April, 1853.
April, 1854.
Loans,
. $2,750,716
$3,041,916
$3,802,675
$4,360,300
$5,339,804
Loans to the State,
201,740
111,900
146,400
Bank balances and notes,
252,928
214,390
267,238
546, *480
316,034
Real estate, .
96,223
93,578
92,426
93,177
96,274
Coin,
. 461,324
286,777
494,178
633,895
548,694
Miscellaneous,
15,903
41,984
86,349
55,606
34,858
Total resources, . $3,778,834 $8,790,545
Dividend, July 1854, 4} per cent
$4,889,261
$5,709,658
$6,335,164
Bank of the Valley , Winchester, and Branches.
Liabilito.
Oct, 1846.
Oct, 184T.
July 1, 1952.
July, 1858.
April, 1954.
Capital, .
. $1,079,000
$1,100,000
$1,100,000
$1,202,500
$1,208,500
Circulation, .
919,654
1,364,326
1,263,350
87, #63
2,^13,848
102,272
2,042,708
Bank balances, .
21,946
48,565
50,254
Discounts,
82,664
28,620
6<>, *28
6,546
171,868
49,763
Contingent fund,
Individual deposits,
67,618
69,560
93,871
125,924
256,865
867,618
428,109
692,278
574,860
Total liabilities,
. $2,367,247
$2,968,689
$2,984,021
$4,089,802
$4,047,004
Rsoumoia
OH., 1646.
Oct, 184T.
Soil, 196*.
July, 1858.
AprU, 1804.
Loans,
. $1,759,041
$1,764,807
$1,992,471
$2,398,470
$2,499,825
Stocks and bonds,
83,607
25,064
22,010
15,385
12,372
Real estate,
. 60,366
60,266
55,464
60,295
61,908
Bank balances,
164,425
686,975
810,534
767,348
740,068
Notes of other banks,
. 89,910
2i >6,029
219,290
847,730
227,297
Specie on hand, •
Miscellaneous, .
259,898
285,548
883,248
488,618
601,204
• • • •
. . .
1,004
16,506
4,335
Total resources.
. $2,867,247
$2,968,689
$2,984,021
$4,089,802
$4,047,004
Bank of the Old Dominion, Alexandria , Va.
LxaBxuTin.
.71X1*1863.
&pt,1861
J>een 1851
Oct., 1858. June SO, 1854.
Capital, .
. $219,700
$292,000
$318,900
$877,800
$379,800
Circulation, .
97,830
206,847
255,650
818,672
186,490
Individual deposits, .
61,000
83,252
89,260
187,178
153,776
Bank balances,
12,898
. 7,265
23,800
48,180
27,985
19,950
Miscellaneous! .
28,462
22,256
18,029
33,614
Total liabilities,
. $898,693
$633,861
$728,246
$874,614
$778,630
Bssoubom.
•Km* 1852.
&pt,1862.
Dec, 1819.
Oct, ltss.
July 1, 1854.
Loans.
State bonds, . ...
. $147,697
$252,702
$298,664
$382,680
$311,848
208,800
222,800
274,180
852,540
869,788
8pecie on hand.
. 20,047
42,564
52,445
64,207
38,660
11,511
Bank balances,
3,886
40,840
48,128
28,487
Notes of other banks,
. 16,618
28,631
27,414
20,848
15,580
Miscellaneous,
7,200
46,824
27,420
25,852
26,858
Total resources,
. $398,693
$688,861
$728,246
$874,614
$778,680
Digitized by Gougle
Original from
UNIVERSITY OF CHICAGO
219
1854.] Banks of Virginia.
North- Western Bank of Virginia, Wheeling. Including its branches
at Wellsburg, Parkersburg, and Jeffersonville.
Liabiutos.
Capital paid in,
Circulation, ....
Depositors, ....
Due other banks, .
Profit and loss,
Oe 1,184*.
. $740,800
675,408
171,418
12,856
. 50,054
OcL, I860.
$740,600
815,188
160,186
66,568
52,154
July, 1868.
$820,700
1,577,289
250,028
11,104
188,127
July, 1804.
$874,600
1,208,672
264,821
46,816
148,408
Total liabilities, .
. $1,649,881
$1,834*691
$2,792,248
$2,587,814
Rnsouacas.
Domestic loans,
Bills of exchange, •
Stock of this bank, .
Other stocks, ....
Real estate, ....
Coin,
Notes of other banks,
Due by other banks,
Miscellaneous, ....
OA, 1849.
. $670,882
420,274
87,800
21,728
79,921
208,926
81,706
181,715
2,928
OcL, 1850.
$698,826
586,110
87,800
21,728
75,187
210,490
40,043
162,885
2,672
July, 18581
$1,065,848
795,028
12,000
27,000
49,128
898,886
148,168
828,250
8,450
JWy, 1864.
$1,098,868
768,828
11,500
17,800
51,785
275,144
119,588
185,700
9,156
Total resources, .
. $1,649,881
$1,834,691
$2,792,243
$2,687,814
Making the contingent fund for the bank and branches, after paying the dividend,
bonus, and tax for July, IBM, $98,252.82
North-Western Bank, Wheeling, capital, $507,600; John C. Campbell, President;
Daniel Lamb. Cashier. Branch at Wellsburg, capital 140,000 ; Adam Kuhn, President ;
Samuel Jacob, Cashier. Branch at Parkersburg, capital 100,000 ; James Cook, Presi-
dent; Beverly Smith, Cashier. Branch at Jeffersonville, capital 127,000; John W.
Johnston, President ; Geo. W. G. Browne, Cashier.
The Free Banks of Virginia.
Liab turns.
Capital,
Circulation, ....
Deposits,
Due other banks, .
Miscellaneous, ....
Bank
Whtliny.
. $125,700
100,000
. 14,890
67,880
8,250
Merchant?
Bank,
Lynchburg.
$876,800
276,898
120,281
2,550
29,688
Central
Bank,
Staunton.
$264,900
261,997
85,812
16,140
8,683
Monyore
4b Tn?re^
Wheeling.
$187,200
280,935
72,206
4,220
80,094
Total, ....
$811,220
$804,667
$687,639
$624,666
Bnsouaoca.
Loans,
State bonds and premium,
Bank balances and notes,
Specie on hand, • .
Miscellaneous,
April, 1864.
$164,278
. 107,000
18,214
. 21,276
5,467
July 1, 1854. April 1, 1854. Alyl, 1854.
$868,688 $288,769 $152,228
866,188 289,200 286,087
17,180 47,948 82,280
59,647 68,648 46,541
4,169 7,989 7,619
Total resources, .
$811,220
$804,667
$687,582
$624,655
LiABiurna
Trane.
■“ser
Bank of
Rockingham.
Jtermont
Bank.
Capital,
Circulation, ....
Deposits.
Due banks, ....
Miscellaneous, .
.
$285,000
285,000
190
8,900
1,880
$206,276
220,626
42,860
11,695
44,118
$55,671
60,000
14,061
4,358
8,226
Total liabilities,
.
$480,420
$624,674
$187,486
Digitized by
Gck igle
Original from
UNIVERSITY OF CHICAGO
220
Coins, Coinage, and Bullion.
[September,
Digitized by
Baovim 1,18*4. *4,1,1854. Ap'l 1, 'Si.
Loins,
State bonds and premium.
Bank balances,
Specie on band,
Miscellaneous,
$20,425
286,000
82,968
190,451
1,580
$208,117
258,511
20,198
46,748
1,000
$49,612
64,800
6,560
18,398
8,121
Total resources, ....
. $<80,420
$524,574
$1S7,48S
LiAioims
Capita],
Circulation
Deposits.
Due banks,
Miscellaneous,
MontUMo
Bank.
$150,000
188,620
60,960
25,281
15,505
JBfc. Comm*r<#i
Fredtricktb'g.
$176,600
88,900
42,888
14,878
Bank
W'ckfr.
$100,000
99,985
89,895
2^2*
Total,
$440,866
$817,755
$202,551
Bmoumom
Loans,
State bonds and premium,
Bank balances and notes, ....
Specie on hand,
Miscellaneous,
April 1, 1804.
$111,958
255,928
22,625
42,945
6,915
July 1, 1854.
$91,106
177,510
28,107
21,964
4,068
Ap'l 1, '54.
$128,590
108,000
81.79S
20,955
5,017
Total,
$440,564
$817,755
$292,555
COINS, COINAGE,
AND BULLION
a
Thx San Francisco Mint.
In February, 1848, gold waa discovered at Sutter's Mill. The gold
produce for tbe six following years we have estimated at 8, 25, 40, 56,
63, and 68 millions respectively, amounting in all to $260,000,000, of
which $220,000,000 were coined at United States mints on the Atlantic
before the 1st of January, 1854, leaving $40,000,000 — nearly one sixth
of the whole amount estimated to have been coined here — carried to
foreign lands, or to remain uncoined in the hands of the miners. The
whole amount of money coined at United States mints Bince their estab-
lishment, has been $381,000,000, of which considerably more than one
half was gold from California. More than $60,000,000 have been coined
in this city, but a large amount of it has been re-coined at the United
States mints. The only private coining establishment now in operation
here is that of Kellogg & Richter, which is doing a very heavy business.
The large amount of our gold produce, the distance of California from
the Atlantic mints, and the high cost of making remittances, made it
early a matter of importance to have a mint in San Francisco ; but it
was’ not until the 3d July, 1852, that an act was passed for its establish-
ment. The contract for tbe erection of the building was not taken within
due time, and on the 3d March, 1853, the time for receiving proposals
Gck igle
Original from
UNIVERSITY OF CHICAGO
1664.}
Coins, Coinage, and Bullion.
221
was extended. Finally, during the last summer, arrangements were made,
though the building provided for was far from being such a one as Cali*
fornia deserved. It was commenced last Call, on Commercial street, near
Montgomery, and is sixty feet square and three stories high, of brick, and
fire-proof.
The following is a sketch of the gold-coining process — for the silver
coining, though some of it will be done, is of comparatively little import-
ance. The mint will go into operation on Saturday, and will be prepared
to coin $30,000,000 yearly, or about $93,000 daily.
DEPOSIT ROOM.
The first room in the regular order of the business of the mint is the
Deposit Room. Here the metal is taken and weighed, and a receipt
given. The scales are very large and nice, and cost, in Boston, about
$1000. The gold is then taken to the
MELTING ROOM,
where each deposit is melted separately, in a black-lead crncible, and upon
the melted mass salt-petre ana soda are thrown and stirred round to
oxydize the base metals, and the gold and more sterling metals, thoroughly
mixed, are cast into a bar. After being taken into the Weigh Room
and weighed, it is ready for the
A 88 AT DEPARTMENT.
The Assayer, with a chisel, chips off a corner from the bar, and the
chip is melted and cast into a button, to give a round form, so that it
may be easily rolled out It is rolled into a ribbon and filed down till
it weighs exactly ten grains, weighed by a scale which turns at the thou-
sandth part of a grain. The ribbon is rolled up with sheet-lead, placed
in a little cup called a cupel, made of calcined bone ashes, and placed in
a heat sufficient to melt the gold, and the base metals, copper, tin, eta,
are absorbed by the porous material of the cupel, or carried off in oxyd-
ation. The gold is then pure, except an admixture of silver, and perhaps
a little iridium or platinum. The button is again rolled out into a ribbon
about as thick as ordinary letter paper, and boiled in nitric acid, which
dissolves the silver and leaves the gold pure, which is weighed, and the
amount which it has lost gives an exact measure of the quantity of impurity
in the original bar. Thus, if the piece assayed weighs nine grains, then
nine tenths of the bar is pure gold ; and the clerk in the deposit room can
immediately give a certificate of the amount of coin due the depositor.
GRANULATING MELTING ROOM.
After the bars have been assayed they are, as a general rule, thrown
in together indiscriminately as the property of the mint The first pro-
cess in the granulating room is to melt the gold with twice the weight
of silver, and while melted it is poured into water mixed with a little nitrio
acid, "and the metal falls to the bottom of the tub in fine grains. The
granulated gold is taken out and cast into large stone or porcelain
pots, holdiog about fifteen gallons of nitric acid. These pots sit in hot
Digitized by
Gck igle
Original from
UNIVERSITY OF CHICAGO
222 Coins, Coinage, and Bullion. [September,
water, beated by steam, and the boiling aeid soon leaves tbe gold pure
from all silver, copper, lead, tin, sine, or other base metals.
It is taken out, filtered, washed, dried, and again taken to the melting
room, where it is melted with one ninth its weight of copper, which
makes it the standard alloy of nine hundred thousandths fine. No silver
is used in the alloy. The gold thus alloyed is run into bars a foot long,
an inch thick, and of the proper width for coin, from an inch and a half
for double eagles, down to half an inch for dollars. The bars are
delivered over to the ooiner.
DRAWING- AND CUTTING ROOM.
The coiner's first process is to put the bars through the rolling-mill,
which has two heavy rollers of cast Bteel, ten inches long and eight in
diameter, rolling together. The bars are thus rolled out a number of
times until they are of nearly the proper thickness for the coin. The
rolling-mill is made so that the bars can be rolled out of any thickness.
The bars, when rolled out several times, become somewhat brittle, and
are then taken to the
ANNKALINO ROOM.
This room contains a large furnace of brick work, with long chambers
to receive the bats, which are placed in copper tubes and heated to a
cherry red. The gold is thus made softer and more ductile, and is
again taken to the rolling mill, rolled sufficiently, and again annealed
previous to being drawn. The bars cannot be rolled out to an exactly
equal thickness, and to secure exactness in this respect the bar is drawn
through an orifice in a piece of steel, and this orifice being somewhat
smaller than the bar as rolled, reduces the whole to the same exact width
and thickness. The bar, not quite so thick as the coin, is taken thence
to the cutting-machine, which, by a punch, cuts out from the bar round
pieces, a little longer than the intended coin. These pieces are called
blanks. The blanks are carried to the Annealing Room, and washed
with soap and water. They are then taken to the
ADJUSTING ROOM.
Here each blank is weighed separately, and made the exact weight for
the coin. If too heavy, the blank is filed down ; if too light, it is thrown
into a box to be re-melted. The work in this room is done entirely by
females.
COINING AND MILLING ROOM.
The adjusted blanks are run through the milling-machine, which com-
presses the blank to the exact diameter of the com and raises the edge.
The purpose of making the edge thicker is to make the coin pile neatly,
to protect the figures and to improve the general appearance. About
250 blanks are milled in a minute.
The milled blanks are carried back to the Annealing Room, placed in
an air-tight cast-iron box, and placed in the furnce to be anneajed, so
that they may take the impression well. When they are at a cherry-red,
they are taken out and poured immediately into water with a little sol-
Digitized by
Gck igle
Original from
UNIVERSITY OF CHICAGO
1854.]
Coins, Coinage, and Bullion.
223
phuric acid. This softens and cleans the gold. The blanks are taken
out, washed with cold water, pat into hot water again, taken out, mixed
in with saw-dust, which is then sifted off, and the blanks are dried and
perfectly clean.
They are again taken to the coiniog and milling room and stamped.
The coining machine is elegant and massive. The blanks are placed in
a tube or pipe, and from this the machine takes them one by one, puts
them between the dies, stamps them, throws them out of the die, and
carries them down into a box, and they are then delivered to the trea-
surer and are ready for circulation.
Such are the main features of the process. The treatment of silver is,
of course, somewhat different. The difference between the United States
coin, and the California coin is, that the latter is alloyed with silver, the
former with copper. The California gold contains a good deal of silver,
and it is troublesome and expensive to separate it from the gold ; beside,
it is more difficult to make a copper than a silver alloy. The California
coin being one tenth silver, is worth more than the United States coin,
and a premium is paid for it at the United States mints. There are
about seventy-five cents worth of silver in a hundred dollars of California
coin. The copper is a much better alloy, being harder, more durable,
and more beautiful.
All the machinery is of the best quality, having been manufactured
under the supervision of George Eckfeldt, of the Philadelphia Mint It
has been put up under the direction of John M. Eckfeldt The officers
of the Mint are, Dr. Birdsal, Superintendent ; J acob R. Snyder, Treasurer ;
Col. Harazthy, Assayer ; John Heuston, Melter and Refiner ; and John
M. Eckfeldt, Coiner. About thirty men will be constantly employed.
COINAGE AT PHILADELPHIA.
By the following summary of the coinage for the current year it seems
that the amount is less in 1854 than for the same period last year :
Coinage at the Mint of the United States, Philadelphia, for the seven months
of 1854:
Double eagles,
Eagles, ....
Half do.,
lird 6 months,
... $9,790,920 00
365,640 00
333,585 00
July.
$908,180 00
92,340 00
Total.
$10,699,100 00
457,980 00
333,585 00
939,095 00
347,634 00
783,943 00
Qmurtpr ^aI( , , , t , t T .
939^695 00
Tftrpfl (jnlliur^
347,634 00
TVillarSj
783^943 00
Total Gold,. .
Dollar*.
...$12,661,417 00
33,140 00
$1,000,520 00
$13,561,937 00
. . . . 33,141 00
1.163.000 00
2.160.000 00
Half Dollars,
.. 1,163,000 00
Quarters,
. . 2,068,000 00
182,000 00
92,000 00
Dimes,
.88,000 00
270,000 00
Half Dimes,
212,000 00
■ • a • ••-*.»• •
. 212,000 00
Three Cents,
. .. 12,000 00
12,000 00
Total Silver, .
... $3,660,140 00
$180,000 00
$3,840,140 00
Copper,,...
31,381 88
1,018 16
32,400 04
Digitized by
Gck igle
Original from
UNIVERSITY OF CHICAGO
224
Coins, Coinage, and Bullion.
[September,
Digitized by
First 6 months.
Gold, Silver, & Copper, $16,262,938 88
Gold bars, 9,071,270 U
July.
$1,181,538 16
2,406,011 86
Total
$17,434,477 04
11,477,082 60
TotaL $25,324,209 62 $3,587,350 02 $28,911,559 64
In 1853, 30,707,726 03 5,171,301 56 35,879,027 59
Decrease, 1854,. $5,383,516 41 $1,583,951 54
$6)967,467 96
The following statement will show the coinage and deposits at the
Mint of the United States during the month of July :
GOLD.
DmontinatUm.
No.qfPisoss.
Tains.
Double Eagles
46,400
$908,180 00
Eagles,
9,234
82,340 00
Gold bars,
2,405,811 00
Total,
SILVER.
$3,406,381 00
Quarter Dollars,
368,000
92,000 00
Half Dimes,
880,000
88,000 00
Total,
COPPER.
$180,000,00
Cents,
1,018 16
.
RECAPITULATION.
Gold coinage,
54,643
$3,406,331 86
Silver 44
1,248,000
180,000 00
Copper 44
1,018 16
Total number of pieces, .
1,404,459
$3,687,360 03
GOLD BULLION DEPOSITED.
From California, $3,910,000
From other aouicee, 30,000
Total gold deposited, $3,940,000
Silver bullion deposited, inducting silver purchases, 310,000
Total gold and silver deposits, $4,260,000
Annexed is a comparative statement of the deposits of gold dust for
the first seven months in 1852, 1853, and 1854:
1852.
1858.
1854.
January,
$4,962,097
$4,216,679
February,
3,648,523
2,514,000
March,
7,633,762
3,982,000
April,
4,861,321
3,379,000
May,
4,365,638
3,506,000
June,
4,545,179
4,000,000
July,
3,506,331
3,940,000
Totals,
$33,311,841
$26,636,679
Gck igle
Original from
UNIVERSITY OF CHICAGO
1854.]
Corns, Coinage, and Bullion.
225
THE CANTON MINT AND THE PILLAR DOLLAR.
Those who are beat acquainted with the trade of the Bast, beat know
the singular preference which the Chinese people have always shown,
and continue to the present day to show for the old Carolus pillar dollar.
In this passion they have defied all principle of self-interest and of
intrinsic value. In vain it has been shown that the modern Mexican
dollar is to the full of equal value, that it contains as much pure silver,
that so far as coinage goes, it is a more perfect manufacture — in spite of
all, the Chinese have to this day persisted in receiving the Carolus pillar
dollar at 10, 15, and even 20 per cent higher value than the Mexican
dollar, and in the same proportion, or even greater, than British silver or
Indian rupees. At Shanghai, at one period last year, the Carolus dollar,
the intrinsic value of which is 4s 2d, was worth 7s 8d. This preference
of the Chinese for this special coin has led to its being collected from
every other part of the world for that market The countries in the
Mediterranean where this coin formerly was the chief currency, have
been almost entirely swept of it for the East. The difficulty, therefore,
which has attended the trade of China has been, that with a constantly
increasing demand for this coin, the market of supply was rapidly
becoming exhausted.
At length, however, the ingenuity of the Chinese seems to have dis-
covered a solution to this growing and increasing difficulty. A mint has
been established at Canton for coining Carolus pillar dollars of a date of
1778. And although, no doubt, in one respect it is a fraud to coin a
foreign coin of the last century, and of a king long since gathered to his
fathers, yet in respect to real intrinsic quality were is no fraud. In
every respect the Chinese Carolus pillar dollar is as much like the real
dollar of Carolus IV. as those dollars are like each other. In intrin-
sic quality they are precisely the same. It is true the keen eye of the
China Schroff is alive to the distinction, and we understand they only
take them at 10 per cent discount upon the real ancient dollar. This
difference, however, is likely soon to disappear, and it is probable that
this mint will prove the solution of all the currency difficulties of the
East, and will lead to different coins being accepted at their real intrinsic
value in pure silver, in place of the arbitrary rates which they now com-
mand. If so, the Canton mint will exercise a powerful influence over
the whole financial transactions of the East — London Economist.
AUSTRALIAN MINES.
According to advices from Melbourne by the present mail, it appears
that the miners at the new gold-fields at Tarrengower and Omeo, the
discovery of which was announced by a previous arrival, had not been
able to make such progress as they had hoped, in consequence of the
season. At Tarrengower they had accumulated large heaps of auriferous
earth, but could not wash it, owing to the want of water, while at Omeo,
on the contrary, the country was so wet that they could do but little
before summer. All the old established fields, however, continued their
supplies, and the weekly totals received by escort during the past two
Digitized by
Gck igle
Original from
UNIVERSITY OF CHICAGO
226
Coins > Coinage , and Bullion.
[September,
months had been as follows: March 25, 38,100 oz.; April l, 38,194
oz.; do. 8, 38,072 oz.; do. 15, 35,829 oz.; do. 22, 30,665 oz.; do. 29,
40,047 oz.; May 6, 30,939 oz.; do. 13, 37,179 oz. ; do. 20, 37,309 oz.
This yield was regarded as perfectly satisfactory, and the total for the
last five months of 1854, estimating the increased amounts now brought
in by private hands, from the greater safety of the roads, is believed to
correspond very nearly with that of the same period of last year. The
increase in the population of the colony of Victoria continued at the rate
of about 1000 a week. — London Times, July 28.
CALIFORNIA GOLD.
The San Francisco Herald , in notingUbe falling off in the shipments
of gold dust for the first six months of the year as compared with the
corresponding period last year, amounting to $4,263,971 less, remarks:
44 Our mines have unquestionably yielded more abundantly the present
year than last, and this diminution in the shipment of gold must result
from some other cause than a falling off in the reduction of the precious
metal. A variety of causes have operated to diminish the exports. We
have imported less from abroad, paid much lower prices than ever before,
and the consequence is, have had less to send out of the country to pay
our debts. Leaving out of view the sums transmitted by residents in
California for the support of their families and friends at the East, it is
evident that our citizens would only send abroad snch an amount of gold
as would pay for what they import. If they imported nothing, they
would export no gold, although the mines might be yielding infinitely
better than ever. The shipments of gold dust, therefore, must not be
taken as an unvarying criterion of the product of the mines. We have
now a mint of our own in constant operation, and by means of its agency,
the surplus of gold dust over and above the amount required for export,
is being rapidly converted into coin, and added to the circulation of the
State. We find, therefore, the falling off in the shipments of gold, an
evidence of our prosperity rather than an indication, as several of the
journals at the East are disposed to regard it, of the exhaustion of our
gold-fields.”
COIN IN LONDON AND PARIS.
The Bank of England holds £13,800,000 now in coin against
€21,334,900 in September, 1852. The Bank of France holds 409
millions of francs in coin and bullion, whereas in Jute, 1851, it held 591
million*, and in October of that year it held a larger amount than at
any former or subsequent period, namely, 620 millions of franca.
We shall probably find by critical inquiry that the banks of the
several States hold less coin at present than they did some years since.
The amount held by those of this State for some years past, was as
follows, (fractions omitted :)
August, 1843,
$14,091,000
June,
1849,
$10,571,000
u
1 844,
10,191,000
ii
1850,
11,653,000
it
1845
8,909,000
u
1851
8,978.000
t(
1846, *
u
1852,
13^304,000
(t
1847,.,
Dec.,
1853,
14,149,000
June,
1848,.,
6,881,000
Aug.,
1854,
16,000,000
Digitized by
Gck igle
Original from
UNIVERSITY OF CHICAGO
1854.]
Coins , Coinage,, and Bullion.
227
The amount for August, 1854, is estimated at sixteen millions, namely,
$14,500,000 for the city and $1,500,000 for the interior.
Reducing these several sums to dollars, it would appear that the coin
held by the Bank of England and Bank of France, was as follows
(assuming five francs per dollar and twenty-five francs per pound
sterling :)
July, 1804. StpL, 1892. Dtcrta* «.
Bank of England, $69,000,000 $106,670,000 $37,670,000
Bank of France,
July, 1864. Oct., 185L
$82,000,000 $124,000,000 $42,000,000
THE MINT.
There has been another robbery at the Mint in Philadelphia, of which
the Ledger says :
The alleged culprit is Joseph M. Hall, late a Commissioner of Spring
Garden. He was in the Mexican war, and was appointed to the office
in the Mint on the recommendation of the Collector of the Port, and
other respectable citizens. On or about the 31st of July, he was seen
by Professor Booth, who has charge of the melting and refining depart-
ment, to put in bis pocket a single piece from a parcel of gold coin. The
Professor said nothing, but marked a number of pieces and kept vigilant
watch. The next day he was observed to pocket another piece, when be
was examined, and four dollars of like money was found on his person,
and which he confessed to have been taken from the funds of the Mint.
Information was communicated to Col. Snowden, the Director, who
promptly gave information to the U. S. District Attorney, and to the U.
S. Commissioner. A warrant, we understand, was issued, but up to
yesterday afternoon, we believe had not been served. In an institution
employing the number of persons steadily engaged at the Mint, and
doing the amount of business there done, it is surprising that the weak-
ness of poor human nature has not oftener shown itself. The unfrequency
of the dereliction of duty, however, is no justification for the proper
authorities in permitting detected delinquents to go unpunished. The
fact that robbery can be so soon detected is a proof of the efficiency of the
checks interposed in the management of the institution, and of the
general watchfulness and honesty of its chief officers. In the case of
Hall, the whole amount extracted is believed not to exceed the four
dollars named, and in that of Negus, his illustrious predecessor, though
outside report fixes the loss at $100,000, we are assured from the officers
of the Mint that $10,000 is believed to cover the whole amount taken.
That sum was paid back and returned by the Mint to the depositors
from whose parcels of dust it was stolen. The fault of his escape from
punishment is not ascribable to the officers of the Mint. The authorities
at Washington were early in possession of the facts of the case, and to
them, if any, should censure be directed
ty Google
Original from
UNIVERSITY OF CHICAGO
4
228 Government, State, and City Bonds. [September,
(GOVERNMENT, STATE, CITY, COUNTY, AND RAILROAD STOCKS,
BONDS, etc.
New-Yobk, August 25, 1 864
XAMK8 OF COMPANIES.
AMOUNT.,1 NATtfBB OF BONDS.
IN WHEN PAYABLE,
Alabama * Tenn. River
Baltimore A Ohio
do. do
do. do. • •
Buffalo k State Line • •
do. do. .
Buffalo** New York Cttjr . .
Bellefontaine * Indiana .
Cin.. Wilmington. * Zanesville
Cincinnati, Hamilton, * Dayton
do.
Cincinnati k Marietta .
Cleveland, Paines villc.AAah tabula
Cleveland k Pittsburgh
do. do.
Cleveland * Toledo
do. do. (Ohio June.)
Chicago k Rock -Island, (Illinois)
Chicago * Mississippi . .
do. do. . .
do. do. . • •
Covington * Lexington
do. do. • • •
Dayton * Western • .
Fort Wayne* Chicago .
Galena * Chicago ....
Indianapolis * Bellefontaine .
Indianapolis* Lafayette .
Indiana Central ....
Illinois Central ....
Illinois Great Western
Jeffersonville (Ind. to Louisville)
do. do.
Lake Erie. Wabash, * St. Louis
Lawrenceburgh * Indianapolis
Little Miami
Maysville * Lexington
Madison * Indianapolis
Michigan Central
do. do
do. do. . . . ,
Michigan Southern .
Milwaukee * Mississippi .
do. do.
New-York Central
do. do. (Subscription)
New-York A New-Haven .
New-York * Harlem .
New-Haven * New-London .
New-llaven A Hartford .
New-Albany and Salem
do. do. .
Northern Indiana ....
do. do. Goshen Branch
Northern Cross
Ohio Central *
do
Ohio * Pennsylvania
do. do
Ohio * Indiana ....
Ogdennburgh, (Northern,) .
do. do..
Panama
Pennsylvania ....
Philadelphia A Westchester
Reading .....
Scioto* * Hocking Valley .
Springf., Mt. Vernon, APlttaburgh
Steubenville * Indiana
Tennessee It. R.’s guar, by State
Terre-Haute * Indianapolis
Terre-llaute * Alton
Wilmington A Manchester (N. Ca.)
$ 833,000 1st mort. con. till 1972,
1,000.000 Transferable— taxed
l,mooo Coupons, free of tax
700.000 do. do.
600.000 1st mort., not conv.
300.000 No mort., do.
l,2oo,oo*) 1st mort.
ooo.iski 1st do. convertible,
1.300.000 Ut do. do.
doo.ooo 2d mort., not conv.
l.oun.ooond do. do.
2.600.000 1st do., conv. till 1863
507.000 1st mort., not conv. I
NMl.U00| do. convertible I
1.300.000 do. 3d sec., conv.
7 1 Jan. 1 July
0 Quarterly,
o January, July
6 Half-yearly
7 April, Oct.
7 January, July
7 Divers
7 January, July
7 May, Nov.
525,000
90Q.UU0I
3.000. 000
1.000. 0001
l.ooaood
do.
do.
do.
do.
do.
not conv.
convertible
conv. till 1*58
do. 1855
not conv.
i.5OO.06o|3d mort. con. till 1858,
SOO.OOOi 1st mort., not conv. |
1.000,000 3d mort., convertible!
300,000 1st mort.. do.
1.250.000| do. conv. till 1363
1, SOO.OOOi do.
450.1 100; do.
350,0001 do.
600,00ul do.
17,000.000 Mort.. not conv.
1,000,0001 St mort., do.
not conv.
convertible
do.
do.
300.000
300.000
3.400.000
600.000
1.500.000
500.000
600,000
|,00O,000
1.305.0001
do. 1st sec. do.
do. 2d do. do.
do. conv. till 18591
do. 1867,
not conv. |
conv. till 1860
_ convertible I
No mort., do. j
do. do.
do.
do.
do.
do.
1, l.Vi.oool do. not conv.
l.oou.uoo! 1st mort.. do. I
tioo.uoo; do. 1st sec.con. 1857
K50,00<y do. 24) do. 1858
8.287,000) No mort., not conv.
750,000 do.
750,000 do.
1.800,000 1st mort.,
450,oik do.
l.noi»,(MK>;
500,000
3,325,000;
1,000,000
1,500.000;
1,300,000
450.000!
800,000;
1,750,000:
do.
do.
do.
do.
do.
do.
do. on 1st sec.
do.other do. con/58
do. not conv.
do. do.
do. convertible
do. conv. west sec.
do. do. east do.
do. convertible
600.000 Income, no mor. con.
l.oou.uoo 1st mort., conv, i
1.500.000 do.
1.450.000 2d mort., conv. . [
2,37*.000 No mort. con. 1666^68
6,000,000 1st mort. con. UU 1860
400.000 do. do. .1363,
6.014.000 do. .
3.039.000 2d mort. . . '
300.000 1st mort. 1st div. con.!
600.000 do. convertible
7 May, Nov.
7 January. July
7 Feb., August
7 Feb., August
7 March, Sept.
7 Feb., August
7 Diver*
7 10 Jan., 10 July
7 April, Oct.
7 April, Oct.
7 January, July
6 April. Oct.
7 March, Sept.
7 March, Sept.
7 January, July
7 Feb., August
7 January, July
7 15 Feb., 15 Aug.
7 May. Nov.
. 7 1 Oct., 1 April
|10 April, Oct.
7 March. Sept.
7 April, Oct.
7 Feb., August
7 March, Sept.
6 April, Oct.
6 January. July
7 May. Nov.
8 April, Oct.
x April, Oct.
x Sc mi -annually
7 May, Nov.
x January, July
8 April, Oct
6 May, Nov. ,
6 May, Nov.
7 June, Dec. |
7 May, Nov.
7 lOM’ch, 10 Sep.
6 January, July
110 April, Oct. ,
8 May, Nov. 1
7 Feb., August |
7 Feb., August I
8 January. July
7 Feb., August
7 1 May, Nov.
7 January. July
7i April. Oct. I
7 Feb., August I
7!
"jApril, Oct *
January, July
1 Jan., 1 July iN; *
X
lXl
1863 X 891^
1**MU x W
1*1 X
1W6 iX1
Bost.
I - 1
|N,Y.;
1,600,000!
600.000
1,000,000
000,000
do.
do.
do.
do.
do.
do.
do.
do.
conv. till 1865
convertible
i
61 Jan., 1 July i
7 Jununry, July „h„
6 January, Julyi1
61 April, Get.
7 May, Nov. !v y
7;January, July..
‘ January, July
March, Sept
I Feb., August
jJune, Dec.
1X64 \ 93
1*65-66 \ 100
1*72 ix ^
*67 \
*59 \ 65
1*1 X,
1*66 I I 90
1**0 ,X 96
M Xn stands for Ex-Interest
Digitized by
Gck igle
Original from
UNIVERSITY OF CHICAGO
1854.]
Government, State, and City Bonds.
229
!/• S. Gov, Securit’a.
Loan, 6 per cent 1*56!
do. do 1*631
do. do 1*67
do. do 1868]
do. do Coup. b’s. 1*68
do. 5 per ct. do. 1866!
Mate Securities.
N. Y. 6 per ct. . . . 1866-’61-’W'2
do. do 1864-’65
do. do 1866-’67
do. 6V2 Ptr ct 1860-’61
do. do 1866,
do. 5 per ct 1858->i0!
do. do ]866
do. 41/2 per ct. lK58-’59-*64
Canal Certified, 6 p. ct.,.1861
Ohio, do. 1856
do. do. l*6o
do. do. vm
do. do. 1875
do. 5 per cent 1863
I NT. PATABLK.
Jan. July,
do.
do.
do.
do.
do.
Jan. April.
, July, Oct.
.186b-’67 Jan. July.
Jan. April.
July, Oct.
Jan. July,
do.
do.
do.
do.
n — • .vuv| dO.
Pennsylvania. 5 per ct Feb. August.
do. 5 per ct. coup. .1877. do.
•Massachusetts, 5 perct....!
Kentucky. 6 p. ct.b'd.l8«^?> Jan. July.
Illinois, lot. Imp. 6 p. ct.1847 do.
do. 6 per cent. Interest1
Indiana State. 6 per ct
do. 21 2 per ct.
do. Canal Loan, 6 per ct.i
_ do. Canal Pref. 5 do.
•Maryland, 6 do.)
.do- 6 do.f
Alabama, 5 do.
Tennessee, 5 per ct. bonds. .
do. 6 do. do. longl
do. do.. 1986
do. do.. 1872
do 1873
opt’d,
103
111X
116
116
im
Baltimore A Ohio... .100, [April. Oct.
1 C in.. Ham., k DaytonlUO 10 Feb. Aug.
; Cleveland. Col. k Cln.iool
Virginia,
Missouri, 6
N. Carolina 6
Georgia, 6 do 18721
California, 7 do 187U
do.
do.
do.
do.
Jan. April.
July, Oct.
May, Nov.
Jan. July.
1 do.
do.
do.
do.
do.
do.
Ill
113
114
104
106
103
103
100
101
102
106
111
115
863/i
90
104
83
58
96
60
95
22
102
,113
111 4
116
,105
107
13
ASK’D ■ • ..
,| K. K, LO/H* Dividend I1
|l03H
112
116K
I|.m5 . v.uu^a W1. « V1U«IW
}}SH C eVe. A Pittsburgh.. 50 10
ILK Cleveland A Toledo... 50 10
Erie 100 7
Galena k Chicago. ...100 30
Harlem 60 4
do. preferred 60 8
Hudson River 100
Illinois Central 100 7
Little Miami 50 10
Macon k Western 1Q| 9
Mad. A Indianapolis. .50 9
Jan. July,
do.
h. Sept
April, Oct.
Feb. Aug.
do.
Sin. July.
ay, Nov.
Jan. July.
June. Dec.
Feb. Aug.
I, l-. « 'i * Jan. July.
Michigan Central 1O0 8 [Dec.
103
103
107
112
116
104
8734
92
106
86
61
98
02
!*>
24
103
City SecuritieM*
KewTork 5 j*r Feb. M,y.
do. ...1870- ( Aug. Not.
IrSiFeb. Aug.
do.
•Albany, Bond, 6 p. c.1871-
•Allegheny do. do. 1876-77 jJn JuW
fasti:
Brooklyn do.6do j£i jutS1’
^!^vfI»nddo.W.W7p.c.l879Ja^ do.1**
•Cinciuati do. 6p.c niver*
•Chicago do. do. 1873-77 jin Jnlv
•Detroit W.W. 7p.c.73-’7K’83 p*"’
•Jersey C. do. 6 do 1877 j^ * ji'fc
Uedo. 6 do...l8eO-*83!wveri y*
•Milw’kie do. 7 do 1873 MarchSeDt
VV. OrPna do. 6 do. . .1892-*93 Jan J^yPt*
Philadelp. 6 do...!876-*90l tt y*
•Pi tub gh do. 6 do, ,69-78-,83 Di vera.
•Rochest’rdo. 6 do 68r*-
•St. Louis do. 6 do
•Sacramentol0do....l862-’73( uu
•S.FrancIsco 10 do 1371 May*t Nov^
County Honda*
•St. I^uls, Mo. 6 p. c. ... 1866 Jan. July.
•Fayette, Kv. 6do.con.1881i do.
•Bourbon. Ky. 6do.do.8l ,8l! do.
•Mason, Ky. «do.do.81*83 do.
•Ailcgtiany,Pa.6 do 1378 do.
Kallroud Honda*
7 p. ct... 18*1 May. Not.
..1867 do.
..IK* March, Sept.
..1666! do.
..1855 Feb. Aug.
..1871, do.
.1863 Jan. July.
do.
do.
do.
N. Y. Central
Brie 1st mort. do.
do. 2d do.conv.do.
do. 3d do. do.
do. Income do.
do. Convertiblesdo.
do. do. do, _ , w ,
Hud’o R. 1st mor.do. 1869-70 Feb. Aug.
do. 2<l do. do. ..I860 16 Ju. 16 Dec
_ do. conT. do. . .1*17 May. Not.
Michigan South, do. ..i860' do.
North. Indiana do. .. 1661 1 Feb. Aug,
801^2 84
100 lOi
101 1/2 103
101 1/5 U«3
104
104
81
Am
101
61
993/4|
100
10134
96
92
lUCi
98L2
82 |
831/2
89 1
89
861
99
so
74
102
78V*
78
78
87U
112
96V2
80
M
60
60
101
96
MB
1 (Hi
83
100
102
103
85
101 ,
100 V*
102
10214
96
93
104
99V*
83
851/4
90 i
6684
« I
100
881/2
76
103
. — — ■ v^mra n if/ec.
do. Southern . .100 15 Jan. July,
do. do. con. at. 100 8 do.
New Jersey.. 60,10 Feb. Aug.
Northern Indiana . ..100 15 Ijan. July.
lvT „ do. con. si. 100 8 do.
N. Haven A Hartford. 100 10 Apr. Oct.
New- York Central.... 1°0 5 Feb. Aug.
N- Y A New-HarenlOO 15 Fe 15 At
Ohio A Pennsylvania. 50 7H Jan. July.
Panama 100 10 do.
Pennsylvania 50 i 6 May 15 No.l
Reading 50' 6 J*n. July.
Rome A W atertown . . 100, 10 Feb. Aug.
]7Iiacellnnooua.
N. Y. Life A Trust Co. 100 10
Ohio do. IOOI 8
N. Y. Gas Light Co... .50 10
Manhattan do 50 10
Dels. A Hud. Can. ColOUl 9
Pennsylvania Coal Co.50 10
A7M*
113 !
971/2
82
-2
02
65
102 .
94 Lfc
71
97
97
.100.
BoMon Hanks.
par
Atlantic,... 100
Atlas 100
Rlackstone 100
Boston 50
Boylston 100
Broadway, (S. Boston)... loo
City 100
Columbian loo
Commerce 100
Eagle 100
Eliot, (new) 100
Exchange 100
Faneuil Hall 100
Freeman’s ]00
Globe 100
Granite 100
Grocers’ 100
Hamilton 100
Howard, (new) 100
Market 70
Maas 250
Mechanics', (S. Boston).. 100
Merchants’ 100
National, (new) 100
New-Engtand 100
North . luo
North America 100
Shawmut 100
Shoe and Leather 100
State 60
Suffolk loo
Trailers’ 100
Tradesman’s, (Chel.)... .100
Tremont 100
Union 100
Washington 100
Webster, (new) 100
Exchange*.
London,
Paris
Amsterdam
Frankfort,
Bremen
Hamburg
Antwerp
Feb. Aug.
(Jan. July.
•May Nov.
Jan. July.
June Dec.
Feb. Aug. I
In liqdati’nl
. opt’d
.ask’d
1 62 VS
53
**
*9
Ml
103
49
51
73
74
36
37
MO
102
:*)
31
89
90
42
44
100
104
95
96
99
100
35
87
88
93
94
83
84VS
128
129
90
91
,831/2
83
122
124
| 891/2
90
i 84
85
90
91
88
H
65
9
88
90
NO
150
78
83
132
140
120
123
no
112
99
991/1
11/t
3
106
10634
103
67
111
101
I03i 2i
106 41
1W)
105
9914
110
106
115
113
99
1*4
111
96
85
255
>108
1 1071/aj
M3 41
109
Ml
>104
1**4
110
64
130
102
94
107V*
M9
106
103
103 V*
58
112
IU3
104
106
101
106
100
111
107
116
114
100
96
112
97
258
1081/Si
108
104
110
103
106
106
112
64
132
103
*
109
. J110
M2» 2108
105 10514
1091 r* 10934
6-11*5.13*
41**1 4M/4
41 K | 404
78k , 79
36k 36 k
5.12kj5.1*X
N. B. All Stocks not specified as Bonds are transferable by inscription. All Bond* (except !!ud«on 1st an
2d Mortgage and Erie Convertibles) are payable to bearer. " • " denotes Ex-Interest or Ex-DlridenU.
Digitized by
Go gle
Origins I from
UNIVERSITY OF CHICAGO
230
Foreign Items .
[September,
Digitized by
FOREIGN ITEMS.
Failures in Europe. — The following is a summary of tho failures in England
and the Continent during the past six months, with tho amount of liabilities and
nominal assets, where known:
Liability
Thompson, Brothers k Co., calico printers, Yorkshire, (assets, £84,000,) £120,000
Benj. Elkin k Son, Australian trade, London, (assets, £140,000,) 140,000
P. Monteaux k Co., bankers, Paris and London 100,000
T. McGregor, woollen warehouse, London, (assets, £25,000,) 60,000
Warwick, Harrison k Co., silks, etc., London, ( assets , £20,000,) 37,000
Sir Evan McKenzie k Co., Kast-India trade, London, ....
Salvage k Co., Greek merchants, London, ( assets , £94,000,). 100,000
Dickson k Co., Australian trade, Glasgow, 300,000
Gladstone, Bond k Co., brokers, Manchester, 80,000
Moritz, Bauer A Co., merchants, Hamburg, (Marks,) 400,000
Scaravoglio k Peleso, merchants, Genoa, 00,000
Spiridono Gopcevich, merchant. Odessa and Trieste, 400,000
Read Brothers k Co., provision dealers, London, 40,000
Shuttleworth it Co., auctioneers, London, 25,000
Sanderson & lteed, silks, London ....
Samuel Zagury, foreign merchant, London, 25,000
Davidson k Gordon, colonial brokers, London, 500,000
XL W. Lord k Co., colonial brokers, London,,. 400,000
Mark Gopcevich, London, ....
J. & J. Hall, hosiery, Nottingham, ....
T. Taylor k Sons, woollen manufacturers, Bradford, 100,000
llowarts, Moon k Co., woollen manufacturers, Bradford, (assets,
£12,000,) 18.000
Halstead it Co., woollen manufacturers, Bradford, 12,000
Fearnley, Svvaine k Co., woollen trade, Bradford, ....
Greaves and Ramsden, woollen trade, Bradford, ....
W. Turner, woollen trade, Bradford, ....
Sirgdon it Barstow, woollen trade, ....
Goddard k Co., Birmingham, 13,000
Julius Siedding, merchant, Moscow, 40,000
In addition to the numerous failures announced in London and the interior, there
have been several defalcations. Of these the London Economist says:
Of late we have had several unpleasant matters of a similar description amongst
ourselves, and they have been referred to the pressure in the money market. With-
out assigning them to it as the cause, remembering how often several crimes of the
same or similar kind have happened about the same time, wo must say there is
something more mysterious and more inscrutablo in crime than hasty men, impa-
tient of doubt, assume, concluding that it can be suppressed by the will and tho
exertion of the legislature.
Into the obscure subject, tho causes of crime, particularly crimes against property,
which are now tho plague of society, we do not mean to enter, but tho love we
bear to trade makes us jealous of its reputation. Existing by confidence and
credit, it should be above all suspicion. It cannot thrive unless those engaged in it
are of strict integrity. No information which can be given to it by the best-in-
formed political economists, or travellers, or naturalists, can be half so serviceable to
trade as the recommendation of those principles of high morality which are some-
times and falsely supposed to have no part in its dealings. We refer to these melan-
choly aberrations only to allow the necessity for a complete and strict observance
of the most rigid integrity by all engaged in trade.
Gck igle
Original from
UNIVERSITY OF CHICAGO
1854.]
Foreign Items.
231
Failures in Paris. — A letter from Paris, dated 6th June last, gives the follow-
ing particulars of the recent failure of Messrs. Leroy, Chabrol & Co., bankers in that
city:
uThe financial and commercial situation of our market is very unfavorable. You
have learned the failure of the banking-house, Leroy, Chabrol & Co., and fears are
entertained that several other important firms will soon be obliged to suspend pay-
ment. The liabilities of MM. Leroy, Chabrol & Co. are estimated at £1,640,000,
and their assets at £1.304,000. But they have not more left than £320,000, which
can easily be realized. They possessed three fourths of the shares in the St. Ram-
bert and Grenoble Railway ; £4 have been paid upon these shares, and they were
offered on sale at £3 discount a week ago. Their assets comprised also a great
number of obligations, fonciere and other securities, which find no purchasers in
the market. This failure has produced a sort of panic in our departments, as the
firm discounted a vast quantity of provincial bills. It must increase the present
monetary crisis at the Bourse, and it increased the downward tendency of securi-
ties, as forced sales liad to be made of the rentes and shares which had been pur-
chased for that firm. Some of our banking-houses have adopted habits which must
lead to their ruin, as it caused in 1848 the failure of the firms Gowin and Gan-
nerer. They accept large sums in current account, giving an interest of four per
cent to the lenders, and being obliged to reimburse the loans as soon as an appli-
cation is made for them, they invest that money when the securities are at high
prices, and as soon as a crisis is at hand, and the prices of the securities are declin-
ing there is a run upon them, and they cannot realize their capital.”
M. Schaye, the attorney of the Messrs. Leroy, Chabrol A Co., submitted a state-
ment of their affairs to the Tribunal of Commerce, on the 5th June, by which it
appears that the assets (nominal) of the firm amount to fcs. 39,864,474, (nearly
eight millions of dollars.) and their aggregate liabilities, fcs. 36,352,301.
Bank of England. — On Tuesday, April 4, 1854, came on the election for
Governor and Deputy-Governor of the Bank of England for the year ensuing, when
John Gellibrand Hubbard, Esq., was chosen Governor, and Thomas Matthias
Woguelin, Esq., Deputy-Governor; and on Wednesday came on the election lor
twenty-four directors for the year ensuing, when the following gentlemen were
elected :
Thomas Baring, Esq.,
Henry W. Blake, Esq.,
E. H. Chapman, Esq.,
R. W. Crawford, Esq.,
William Cotton, Esq.,
Benjamin B. Greene, Esq.,
Henry H. Gibbs, Esq.,
T. Hankey, Jr., Esq ,
John O. Hanson, Esq.,
John B. Heath, Esq.,
K. D. Hodgson, Esq.,
H. L. Holland, Esq.,
Thomas N. Hunt, Esq.,
Charles F. Huth, Esq.,
Alfred Latham, Esq.,
George Lyall, Esq.,
Thos. Masterman, Esq.,
Alex. Matheson, Esq.,
James Morris, Esq.,
George W. Norman, Esq.
John H. Palmer, Esq.,
Henry J. Prescott, Esq.,
Thomas C. Smith, Esq.,
Francis Wilson, Esq.
Zinc. — Sir Henry De La Beche has recently published a lecture on Mining
Operations. From his remarks on zinc we extract :
“ With regard to zinc, the chief exhibition at the Crystal Palace was that of the
Yicille Montagne, Belgium, dispersed in the Belgian, French, and English Depart-
ments. This establishment is the most considernblo of its kind in the world. The
illustrations of its produce, sent by the company to whom it belongs, were alike
remarkable for their abundance, variety, and importance. The establishment now
employs 2646 persons, and it produced 11,500 terns of zinc in 1850. With the
exception of some ingots of zinc from the Eschweiler foundries, Stolberg, (Zollverein
Department,) and others from the Sterling-Hill Mine, New- Jersey, there would
appear to have been no other illustrations of zinc-smelting and drawing.”
Trade of Russia. — The stoppage of the foreign maritime trade of Russia is an
euorrnous object ; for the bulky nature of her produce, such as timber, hemp, tal-
low, etc , renders it unfit for land carriage ; and when tho export of it is stopped,
she loses her means of exchange.
On tho other liand, her uugenial climate and soil render her peculiarly dependent
Digitized by
Gck igle
Original from
UNIVERSITY OF CHICAGO
232
Foreign Items.
teptember,
Digitized by
on foreign countries for many of the necessaries, and all the luxuries of existence.
The import of British coal into St. Petersburg exceeds 40r000 tons a year; and as
none of this essential commodity is found in the northern governments of the
empire, or can be procured except by sea, the blockade cuts off in this single article
not only an important commodity for warlike purposes, but the means of giving
light to the streets of the capital and activity to many branches of manufacture.
In like manner, the prevention of the direct importation of cotton-twist, of colonial
produce, and of wino, must enormously increase the price of these commodities.
To relax any of the rights which tend directly to reduce the enemy to terms, would,
in fact, be a mistaken act of humanity, since it would prolong the war. — Edinburgh
fr i inc, July , 1854.
MONET MATTERS IK ENGLAXD.
From a Correspondent of tk f JV. Y. Courier Sr Enquirer.
London, August 3.
The Bank of England this day reduced the minimum of discount to 5 per cent.
As a natural and immediato consequence, the rate of discount for short-dated prime
first-class paper is only 4$ per cent. It is not the difference of a half per cent
which constitutes its importance— the mere fact of the reduction in the rate proves
that the turning point lias been reached and that the bank acknowledges it. On
our London Stock Exchange it had no effect whatever; of course not; the mercan-
tile and manufacturing community must first feel it; to them it is of the highest
consequence, as for twenty long months the rate of interest has been steadily tight-
ening upon them ; and this is its first relaxation. Tho bank must have found itself
very strong to have taken this step : because the harvest generally draws from her
reserves one million sterling for the purpose of paying the harvest wages: never
before lias the bank lowered the rate of discount in August. Perhaps one item in
the calculations of the directors was the sudden turn in the exchangee on Tuesday
last ; particularly that of Holland, which has raised so much that instead of Eng-
land being exporters, it can now import with as much profit The Paris Ex-
change is still against us a trifle, barely sufficient to permit of the export of bullion
at all except upon a scale of charges of tho closest possible character.
Tho vitality of this country is immense. If the drain upon the bonk for bullion
were only stopped in Paris and the East, the amount of gold in the bank would
increase much faster than it decreased. It required twenty-four months to drain
the bank of £10,000,000 of gold: less than six months would restore it, if we con-
tinue to receive it at the rate it has been coming in for some time post, and if tea
do not reexport it There is one item I am anxiously looking for: the bank for
many months lias not had any silver; the advent of oven £100,000 into her vaults,
would be regarded as a great fact, because it would show that the steady drain
of that metal for China and the East-Indies had ceased ; and until such is tho case the
wonderful ebb and flow of the precious metals must be regarded as being in full ope-
ration. It would not surprise mo if in spite of the war, the rise in the bullion in the
bank should exceed all former rises, and we have seen some very remarkable ones.
The winter of 1847-48 brought in £7,000,000, and from tho middle of 1851 to the
middle of 1862, upward of £10,000,000 were collected in tho bank vaults.
London Market in July. — In the London market for tho month of July the
range of consols, although less than in the preceding months, has been considerable^
namely, 3f per cent, and the result of the month’s operations, owing to a partial
renewal of the drain of specie, has been to establish a decline of 1$ per cent In
railway shares, however, the unfavorable influence has not been felt to tho same
extent, a slight rise, as compared with tho opening quotations of the month, being
in a majority of instances observable. On the French Bourse during the same
period, the Three per Cents have fallen, like consols, 1$ per cent. At Amsterdam,
as regards Dutch Stocks, there has been only a trifling decline, and at Vienna a fall
of between 2 and 3 per cent in Austrian stocks has been partly compensated by a
reduction of If per oent in the premium on specie. On the 1st July the price of
consols was 94$, which was tho highest price obtained during the month. The
lowest price at which they sold was 90$, and at the close they were worth 92$.
Gck igle
Original from
UNIVERSITY OF CHICAGO
1654.]
Miscellaneous.
233
Death of James Holford. — Many of our citizens remember James Holford of
London. He was a large holder of Illinois, Indiana, and Arkansas State Bonds at
the time the public credit of those States became impaired by the bursting up of
banks and the stopping of all public works. He had some eccentric ideas upon the
•object of his unfortunate investment. Among other tilings he was unable to dis-
criminate between the publio acts and obligations of the State and the private con-
duct and individual obligations of the people. Consequently, believing that the
States whose bonds he held had swindled him out of so much money, he regarded
every citizen of these States as individually obligated to make him fall and prompt
restitution, and upon their tailing to do so he did not hesitate to denounce the whole
of them as swindlers and repudiators of their honest debta Mr. Holford wrote and
published some letters upon this subject which afforded much amusement to those
on whom they were designed to be severe. One of them, if we mistake not, was
addressed to the Illinois Legislature at its session in 1800, in which that body was
urged to apply the lands donated for the Central Railroad to the liquidation of the
debt due the writer.
The last arrival from England brings intelligence of the death of Mr. Holford.
He had arrived at a good old age and leaves behind him an immense fortune. He
died a bachelor. Those who inherit bis property will find tho bonds of the States
named among the best investments left them. We are sorry Mr. Holford did not
live long enough to realize this fact himself — Chicago Dem. iYe**, May, 1854.
MISCELLANEOUS.
Boors, Shoes, and Leather. — The shoe and leather dealers of Boston, and
manufkcturing towns near it, (Lynn, Natick, etc.,) have adopted a plan for a “ Shoe
and Leather Exchange,” for daily meeting, at the American Hotel, Hanover street,
Boston. Between 12 and 2 o'clock daily the dealers and manufacturers congregate
at that point It is advantageous for all parties. The losses arising within several
months past from the exoessive shipments of boots and shoes to California in 1853,
have induced fewer shipments in 1854. Among the exports of tho past week are
included 794 cases to California.
Mexico. — We understand that ratifications of the Mexican treaty were this day
exchanged between General Almonte, on the pert of Mexico, and the Secretary of
State, on the part of the United States, and that soon after tho exchange, Gen.
Almonte presented himself at the Treasury Department for the purpose of receiving
the amount stipulated by the treaty to be paid on the exchange. The Secretary of
the Treasury was already prepared for the payment, and placed in the minister's
hands a check on the Assistant-Treasurer at New-York for tho sura of seven mil-
lions of dollars. This is probably the largest sum which has ever been paid in this
country by any one check and on any one single depository. It is farther probable
that it will prove the largest payment that has been made at any one time in coin.
— Washington Union, July 1.
It is understood that tho Mexican Minister has given notice to the banks holding
the specie deposits of the Mexican Government, that he will require the funds at
the end of ten days. We have no information yet as to the disposition to be made
of these fands, but the re-payment will cause no uneasiness to the present holders.
The deposits, it will be recollected, were mado in the Bank of Commerce,
$1,600,000; Bank of America, $500,000; Merchants Bank, $500,000; Bank of
New-York, $300,000; and Plienix Bank, $200,000 ; an aggregate of three millions
of dollars. There is a special deposit beside of three and a half millions with tho
first three named banks, which does not form a part of the coin represented as on
hand
Digitized by
Gck igle
Original from
UNIVERSITY OF CHICAGO
234
Bank Items.
[September,
Digitized by
BANK ITEMS.
New- York. — The property heretofore occupied by the Bank of Commerce and
the Bank of the State of Xe\y-York, adjoining the Custom Ilouse in Wall street,
has been purchased by the United States government, as authorized by a recent
act of Congress, lor the sum of live hundred and thirty thousand dollars. This build-
ing, fronting seventy-live feet on Wall street, with the lot having a depth of one
hundred and eighteen feet, is now to be fitted up for the use of the Sub-Treasury,
and for the Assay Office, as provided by the act of 1833.
Yonkers. — The Bank of Yonkers, at the village of Yonkers, Westchester county,
commenced business August 10th, with a capital of $150,000. Tho circulation is
secured by New- York State stocks. President, John Olmstead, Esq. ; Cashier,
Egbert Howland, Esq.
Corning. — The (George Washington Bank, at Coming, commenced business early
in August President, J. N. liungerford, Esq.; Cashier, George W. Patterson,
Esq.
Bu ffalo. — A reorganization of tho New-York and Erie Railroad Bank, at Buffalo,
has taken place, whereby tho bank commences business this week with a capital
of $200,000. President, J. S. Gnnson ; Cashier, T. R. B. Eldridgo. The Directors
are John S. Ganson, C. Tucker, G. B. Rich, A. J. Rich, C. R. Ganson, and E. G.
Spaulding, Buffalo.
Massachusetts. — Tho Receivers of the Cochituato Bank at Boston, made their
Report in ttlT; Supreme Court, in August They have realized in cash one hundred
and sixty-eight thousand dollars. They have good debts to the amount of
$131,000, and must realize $90,000 of tho $305,000 doubtful debts, in order to
pay off all claims except the stock.
Tho Receivers propose to declare a dividend of fifty per cent, but the court post-
poned it to August 22d, in order to allow creditors time to look into the Receivers’
report. A claim of $5000, by the Bank of the Republic, of New-York, was disal-
lowed by the Receivers, on the ground that they refused to give up the collateral
security placed in the hands of tho officers of that bank.
The liabilities of the Cochituato Bank at the time of its failure w’ore, to stockhold-
ers, $275,528; and to the community, $342, 1 GO. The latter consisted of circula-
tion outstanding, $250,514; individual debits, $44,067 ; certificates of deposit,
$3578 ; and special balances, $44,000. They had a deposit of $30,000 in the Bank
of the Republic, which is still held by the latter against certain bills of exchange
discounted for the Cochituato Bank, and which have since been protested.
Country Banks. — The monthly returns of tho country banks of Massachusetts
8how the following details :
Liabilities.
Capita], .
Deposits,
Circulation,
Due other banks, .
Kebo TUCKS.
Loans, . ' .
Specie, .
Due from other banks,
Oct, 1858.
. $20,479,175
5,513,333
. 16,002,053
4sG,166
Oet., 1S58.
. $38,51 S, 302
810,610
. 4,096,025
July 1,1854.
$22,659,760
5,451,106
16,2l5,o«*o
484,138
July 1, 1854.
$41,377,^65
906,560
3,941,912
Aug. 5, 1RS4.
$23,312,750
5,41s, 37 5
16,Os7gM)6
45o,41S
Jlu/r. 5, 1854.
$42,030,582
939, s26
3,889,023
Rhodb-Island. — William Knight, Esq., was, on the 8th of August, elected
Cashier of the Butchers & Drovers’ Bank, Providence, in placo of J. S. Tourteilot,
Esq., resigned.
Providence. — Tho Atlas Bank, at Providence, commenced business in August,
1854. President, Henry J. Angoll, Esq. ; Cashier, Harvey E. Payton, Esq.
The Mercantile Bank, at Providence, commenced business July 3, 1S54. Presi-
dent, Walter W. Updike, Esq.; Cashier, A. Potter, Esq.
Gck igle
Original from
UNIVERSITY OF CHICAGO
1854.]
Bank Items.
X
New- Hampshire. — The Lake Bank, at Wolfbor9\Qommenced business on ti
8th August President, J. M. Brackett, Esq. ; Cashier^bel Haley, Esq.
Connecticut. — The books of subscription to the capital stock qf the Tradesmen’s
Bank, of New- Haven, will be opened at the New-Haven County Bank, on Tuesday,
the 24th inst., at 9 o’clock A.M. Ten per cent of the stock will bej payable at the
time of subscription; twenty per cent additional on the 11th of September,
and twenty per cent on the 11th of October. The remaining installments will be
payable as willed in by the directors. /
New-IIaven . — The stock of the Elm City Bank has b cot subscribed, and the
directors elected for the ensuing year. Lucius R. Finch, Esjp, was chosen President
The bank will commence business in a few weeks.
Danbury. — The Pahquioque Bank, at Danbury, Conn., commenced business a few
weeks since. President, Aaron Seeley, Esq. ; Cashier, Augustus Seeley, Esq.
Danbury. — The Wooster Bank was recently established under the general
banking law of Connecticut E. S. Tweedy, Esq., President ; George W. Ives, Esq.,
Cashier.
Pennsylvania^— The surviving trustees of the Bank of the United States, under
deed of June 8, 1841, give notice that it is their intention to pay a further dividend
out of the assets in their hands, to the creditors of the trust, namely : The holders
of the notes and deposits mentioned and intended by the aforesaid deed, at their
office, No. 70 Walnut street, Philadelphia, between the hours of 10 o’clock A.M.,
and 2 o’clock P.M., on the 31st December, 1854, when and where all persons inter-
ested are requested to appear. They are further notified to come forward and prove
the respective debts or demands before the time thus appointed for making and
declaring said dividend.
* Suppression of Counterfeiting. — Charles B. Ilall, cashier of the National Bank
of Boston, has been chosen Secretary of the “ Association of Banks for the Suppres-
sion of Counterfeiting,” in place of James M. Gordon, Esq., resigned. This Asso-
ciation recoivos an appropriation from the State Treasury in aid of its own funds to
offer rewards and by other means accomplish the purposes indicated in its name.
Philadelphia Dividends.
Dividend of each Bank for the years 1848-53, and their Capital .
HAMM OP BANK.
Capital 1854.
Year.
i84a
Year .
1819.
Year.
1850.
Year.
1851.
Year.
JS52.
Year.
1858.
May
1S54.
Farmers and Mechanics',
. $1,850,000
12X
9
15
10
12
12
7
Girard Bank,
1,250,000
. ,
5
6
6
6
6
Philadelphia Bank,
. 1,150,000
12
15
14
11
11
12
7
Commercial Bank,
1,000,000
8
8
8
8
9
10
5
Mechanics' Bank, .
800,000
10
10
12
12
12
12
8
W estem Bank, .
500,000
10
10
12
12
18
15
5
Bank Northern Liberties,
. 8.V‘,000
10
10
15
10
10
10
6
Manufacturers A Mechanics',
800, 000
TX
8
8
8
8
8
4
Southwark Bank, .
10
10
15
12
10
to
5
Kensington Bank,
250,000
10
10
10
15
12
12
9
Bank of Commerce,
250,000
6
6
10
10
10
10
6
Bank of Penn township, .
. 225,000
10
10
10
10
10
10
5
Tradesmen's Bank,
150,000
New.
8
6
6
7
8
8
$7,725,000
July.
Bank of Pennsylvania,
1, *75,000
S
9
9
8
9
5
Bank of North America,
. 1,000,000
10
15
10
15
15
18
8
The latter two declare their dividends In January and July ; all the others In May and Novem-
ber of each year.
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UNIVERSITY OF CHICAGO
*
Bank Items.
[September,
Bank Diymm New- York — Manhattan Bank 4 per cent, and an extra divi-
dend of 4 per cent Bark of the Republic, 5 per cent Citizens’ Bank 4 per cent
Com Exchange Bank per cent Marino Bank 4 per cent St Nicholas Bank
8$ per cent Suffolk Bank 3 } per cent
South-CUrolina : Farmers and Exchange Bank. — The Farmers and Ex-
change Bank at Charleston have opened their new building upon East Bay, and
commence business there to-day. The style of architecture is new to the people of
oyr city, and will doubtless be the subject of much comment The outline and
decorations are saratenic, and to our taste are very beautiful. Perhaps, if this were
the prevailing style of a whole city, it might cease to be attractive ; but it is cer-
tainly recommended by its novelty for the present at least, and being so well and
thoroughly sustained throughout, will command the admiration of most persons who
look upon it
Indiana. — W. R. McKeen, Esq., has resigned as Cashier of the Terre Haute
Branch Bank, and Curtis Gilbert, Esq., appointed to fill the vacancy for the
present
New Banks established in the State and City of New-York since April, 1854 —
with the dates when the securities were deposited at the Bank Department,
Albany;
Lata.
Lake Mahopac Bank, April 15, 1854,
Bank of Bath, Steuben Co., “ 4, 44
Farmers’ Bank, Lansingburgh, 44 18, 44
Frankfort Bank, Herkimer Co, ...... May 8, 14
Bank of Hornellsville, 44 25, 44
Bank of Fayetteville, June 16, 44
International Bank, Buffalo, 44 30, 44
West-Winfield Bank,. « 30, 44
Onondaga Bank, Syracuse, July 8, “
George Washington Bank, *4 7, 11
Bank of Canandaigua, M 19, M
Bank of Yonkers, 14 22, 44
Bull’s Head Bank, New-York City,. .June 24, 44
Character.
Individual
da
Association.
do.
Individual
Association,
da •
do.
da
Individual.
do.
Association.
do.
Virginia Banks — Recapitulation.
Rnouacn.
Loan*.
Sped*.
Bank
balance*.
Real
eetat*.
Bank of Virginia, . . .
. . . $3,068,437
0685,968
$429,909
$•55,958
Farmers* Bank, ....
6^98,657
845,457
605,700
191,547
Exchange Bank, .
5,889,904
548,094
316,034
96,274
Bank or the Valley, .
. . 2,499,895
501,204
957,365
61,908
North-Western Bank,
. . 1,807,595
275,144
306,235
51,765
Fats Banka
Loan*.
Sped*.
Bank
balance*.
Stal*
bond*.
Merchants9 Bank,
$338,438
$59,547
$17,100
$806,1*
Central Bank,
. . 238,752
58,543
47,948
289,20$
Manufacturers A Farmers*, .
152,228
46,541
32,230
286, on
Monticello Bank, ...
. . . 111,958
42,945
22^25
255,928
Bank of Commerce, .
. . 91,105
91,954
23,107
177,510
Bank of Winchester,
. . 128,500
20,958
31,793
108,000
Bank of Wheeling, . . .
. . 15M?9
21,270
13,214
107,000
Fairmont Bank, .
49,812
13,308
6,560
64,800
Trans- Alleghany Bank,
20,425*
100,451
82,968
235,000
Bank of Rockingham, .
. . 205,117
46,748
20,196
253,511
Bank of Old Dominion,
. . 311,848
38,660
27,041
209,738
Total,
. . . $23,231,476
08,412^98
$3,899,116
• • ■ •
* Including 44 Specie certlfleatat”
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UNIVERSITY OF CHICAGO
1854.] Bank Item * 237
Lu**w**> Capital. Circulation. Dtpooiu.
Bank of Virginia, 2,051,450 1,825,890 1,650,700 213^80
Ittmecs’ Bank, 8,100,900 2^84,467 1,832^14 830,920
Exchange Bank, Va^ 4,505,000 9 081,778 1,196,809 237,140
Bank of the Valtay 1^03,500 9,042.703 074,800 50,554
North-Wee Urn Bank, 874,(00 1,803,078 904^821 40,810
Fan Him
Merchants’ Bank, 376,800 275^98 120,281 2,550
Central Bank 264.900 201,997 85,812 16,140
Manufacturer* A Farmers’, 187,300 230,986 72^00 4^20
Monticello Bank, 150,000 188,020 00,980 25,981
Bank of Commerce, 176,000 88,900 42,883 0,273
Bank of Winchester 100,000 99.935 89,895 . . .
Bank of Wheeling, 125,700 100,000 14,890 67,380
Fairmont Bank, 65,871 60,000 14,081 4,858
Trans- Alleghany Bank, .... 285,000 235,000 190 8,900
Bank of Rockingham, 205,270 290,025 42,800 11,005
Bank of Old Dominion 379,800 180,490 153,776 19,950
Total, $12,081,897 $11,682,316 $0,045,981 $1,045,313
New-Yobe Banes.
The following ia a comparative table of the llablUllea and reaource* of the banka of this State
in 1848,1851-84:
LlABfLTntflL
Dec,, 1848.
Sept^ 1851.
Feb., 1851
June S, ’64.
Capital,
. . $44,330,558
$55,572,025
$07,023,320
$81,689,330
Proflu undivided.
. . 0,685,460
9,409,433
8*873,266
11,324,058
Circulation, ,
. 23,300,200
27,254,458
30,003,014
31,266,903
Dae Slide of New-Tork,
. . 3,002,060
2,184,584
1,703,450
1,280,308
Individual deposits, •
. 20,205,333
48,901,810
81,316,058
82,037,013
Bank balance*, .
13,820,637
17,238,466
30,472,105
22,260,042
Miscellaneous, .
081,727
1,461,047
3,670,108
4,668,704
Total liabilities, .
. $121 ,981,960
$104,022,701
$298,061,898
$284,982,439
Rksouxcks.
1848.
Sept^ 1801.
M.y 1803.
Ju*m8, ’54.
Loans end discounts,
189,733,800
$100,460,600
$185,176,741
$140,068,940
Loans to directors,
. . 6 065,040
6,304,651
0,410,304
0,086,025
Loans to brokers,
. . 2,002,238
1,073,076
6,100,538
4,108,091
Boads and mortgagee, .
. . 2,654,658
4,267,165
5,306,003
7,815,763
8tocks, ....
. 12,476,758
15,333,751
18,084,107
20,041474
Other loans, •
154,680
145,708
....
157,100
Tor ml loans, .
. . . $02,377,142
$128,475,700
$171,717,063
$181,000,408
Baal estate, ....
. . $3,475,068
$3,880,402
$4j583,098
$5*568,571
Loss and expense account.
682,103
033,005
734,744
1,122^02
Overdrafts, ....
. . 108,107
283,712
376,088
420,702
Specie, ....
. . 8,817,814
7,021,6*0
10,880,306
10,799,420
Osah Items, P • •
. . 5, 955,472
12,018,230
16,144,816
20,651,700
Notes of other banks,
. . . 2,608,848
2,006,510
3,670,205
3,601,007
Bank balances, .
0,351,878
8,840,683
10,258,332
10,793^80
Miscellaneous, .
....
107,486
196*639
Total resources, .
$221,281,960
$104,029,702
$923^01,328
i
1
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UNIVERSITY OF CHICAGO
Digitized by
238 Notes on Jt*e Money Market . [September,
Burglar Proof Bank Safe . — We refer our readers to an advertisement on the cover
of this work, of Bacon's Burglar Proof Bank Safe. This safe is constructed of
hardened steel, and can bo made of any required dimensions. We are informed
that the following banks, among others, have tins safe now in use and highly
approve of it as a guarantee in addition to their locks. Bank of the Republic, New-
York; Ocean Bank, N. Y.; No w-Haven County Bank; Mechanics’ Bank, New-
Haven, Conn.; Mechanics’ and Traders’ Bank, Cincinnati; Messrs^ Kllis k Sturges,
bankers, Cincinnati; Messrs. S. S. Rowe A Co., bankers, Cincinnati; Southern Bank
of Ky., Louisville; Messrs. A. D. Hunt * Co., Louisville; Messrs. George Smith 4
Co., and 11. A. Tucker & Co., Chicago; Messrs. Loker, Renick k Co., St Louis;
Messrs. John J. Anderson & Co., bankers, St Louis.
Kotns on t$f JWonej? jwarftet.
New-York, July 26, 1854.
Exchange on London, sixty days' sight, 9| a 9| premium.
Tub money market at the present moment presents features more unfavorable than those recorded
in our last No. The depression in stocks generally is very great, and especially so In all railroad
securities. These latter suffer most severely in the present reaction from high quotations, and this
arises from a want of confidence in their management. Competition has risen to such a pitch that
the revenues of the leading companies are seriously curtailed and do not allow a sufficient margin
for profits and dividends. The financial community is still writhing under the effects of the late
stupendous frauds which were described in our August No. These combined circumstances have
created among capitalists, an aversion to railroad stocks and bonds ; and the disinclination now
manifested, to invest in such securities, will probably continue a few months longer: or until a more
rigid system of economy and more remunerative charges on these roads shall serve to show, as they
unquestionably will, that our railroad investments are in reality among the most substantial in the
country.
To accomplish this end, measures have already been adopted to a considerable extent The
railroad companies that were involved in the recent frauds and several other companies that were
unaffected by any such circumstances, liave modified their management by introducing such new'
officers or new system, as will effectually relieve them from any future liability to similar frauds.
Last week a convention of railroad officers was held in this city, representing nearly all the
important lines of communication from the Atlantic to the West. The interests represented in
this assemblage were the New-York and Erie, New-York Central, Hudson River, Pennsylvania,
Philadelphia and llaltlmore, and Baltimore and Ohio Railroads, and the People's Line of steam-
boats. The heads of the agreements entered Into were briefly as follows :
1. To dispense with the services of soliciting agents and runners from the 1st December next.
2. To employ general agents for the distribution of bills and advertisements for the several com-
panies, dividing the expense thereof between them.
3. To establish at some future time officers in common for the sale of tickets on the four great
lines to the West,
4. Flxiug the compensation for carrying the U. 8. mail at from |200 to $250 per mile for a dally,
and at $800 to $350 for a twice a day mail.
5. Fixing a uniform system of rates for passage and freight by the four lines.
6. Reforming the system of free passe?.
These reformatory measures, if fully carried out, will serve both to curtail expenses and enlarge
the receipts of the respective compauies; so as to allow them all to become dividend-paying
Concerns.
In order to show the serious decline in loans that hitherto have been favorbe ones with the
monied men of W all street, we annex our usual summary of stock values at the close of the last few
weeks*
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Original from
UNIVERSITY OF CHICAGO
1854.]
Notes on the Money Market.
239
July 7. JuZy\i. July 21. July 29. Aug. 4. Awp. 11. Avp. 25.
U. S. 6 per Cent, 18C7-S,
120)4
121
120
116
113
118
116K
Panama R.R. Shares,
10 &H
96
96
94
94
sox
S3X
N. Y. and Erie R.R. Share*. ....
56
55Y
50
4934
49
4$x
35Y
N. T. Central B.R. Shares,
97 Y
96Y
9134
S3
93)4
92)4
67
Mich. Central K.U. Share*,....
95
00
85
SC
85
87)4
87
Mich. Southern R.R. Shares,
95
95
90
9334
94
98)4
93
Nor. and Wor. R.R. Share*.....
54
5034
49
49
4834
48
45
Hudson River R.R. Share*....,
55
55
5034
51
50)4
49 ,
41 K
Reading R.R. Share*.
72Y
68
68*
64Y
MX
04
67
Long-Island R.R. Share*.
23
22)4
22H
2*X
22
28
22
Illinois Central R.R. Share*.
111
t<*
104
105
100
100
102
Illinois Central Bond*
78
1 lx
69Y
«8m
70
6934
61X
N. Y. Central R.R. Bondv
85)4
8534
80
83
85
88
86
Erie Railroad 7* 1559,
99
100
100
99
97
97
95
Erie Income Bond*
97
96
9434
93
88
85
71K
Erie Convertible* 1871,
7934
7734
71
74
70
66
58
Panama Railroad Bond*
95
97
95
98
94
94
83
Pennsylvania Coal Co.,
164
108
108
104
100
100
97
Del. and Hud. Canal Co.,
109
111
111
113
112
118
111
Cumberland Coal Ca,
32
8334
83
8234
82 Y
8034
2734
New-Jer*ey Zinc Co„
5)4
434
434
4*
6
6
5Y
Canton Co
2134
23
2834
22
22)4
22
20 Y
Nicaragua Transit,
2334
21 Y
20 K
2034
1»Y
IS*
19
Hod. Blv. B.R. 1st Mort
103
104
101
10034
9634
100
101
Crystal Palace,
—
5
5
5
3
—
Daring the present week Erie R.R. shares have sold as low as 84K bat have now Improved a little
and are quoted at 33 'A a 86.
The demand for money is increasing, while capitalists are more disinclined to Invest in commer-
cial hills or In stocks. The Southern and Western trade is exceedingly backward, and payments
from those quarters not so prompt as in previous years. It will be found that purchasers laid in
too heavily last full and last spring, and they are somewhat embarrassed in consequence. Our own
Jobbers and importers are thereby subjected to serious inconvenience through the want of prompt
payments from the Interior. We regret to announce the failure of Messrs Alfred Edwards <& Co.,
of this city, silk merchants, who, In consequence of the fall in goods, and other causes, have made
an assignment of their property.
The fuilnre of Messrs, Henry Sheldon A Co. was announced on the 15th inst, at Ncw-York.
They have been Under heavy acceptances for account of cotton planters and shippers in Texas, who
have not met their engagements. In the South and West, the policy adoptod by solid and sub-
stantial firm* of granting acceptances on cotton planted or to be jdanted, has been fostered In con-
sequence of the general facilities of the money market ; but in the course of a series of years it has
been found that this species of overtrading has led to great extravagance on the part of cotton
planters, and to immense losses on the part of acceptors. New-Orleans annually contribute* to the
history of such embarrassment*.
The deposit of coin at Interest by the Mexican agent with the banks of this city has been withdrawn.
It is understood that drafts upon the Mexican government agent to the extent of $1,500,000 are
held In this city, and that this amount will he paid out of the special deposits of coin held by tho
banks, and which do not form a part of tho specie funds represented in the weekly bank reports.
The funds of the Sub-Treasury arc rapidly accumulating, and now exceed six millions of dollars.
This abstraction of coin from the community, where it is available and profitable, to the government
Sub-Treasury, where it can do no possible good, is further proof (if any were wanting) of the con-
tinued extravagance of the times in the excessive Importations from abroad.
At Philadelphia the money market is more stringent, and several new failures havo occurred.
The Ledger reports : *
u With money at one to two per cent a month, and capitalists slow at famishing it at that, from
fear of its entire loss by failure of tho borrower, It is only surprising that stock prices, and especially
of tho many unproductive securities, are as well sustained ns they are. One per cent is the best
rate at which A No. 1 paper can be placed. Much higher rate* of course, are paid, both on call and
on time, by less known parties, with fluctuating securities and second or third-class notes. The
losses in California and Australia, the continued call for railroad purposes, and the dullness of busl-
ness in all the Atlantic cities, w hich compels heavy sacrifices for money from many who look to
Digitized by
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UNIVERSITY OF CHICAGO
240
Notes on the Money Market. [September, 1854.
dally sales aa their only resource* against enormous stocks and as enormous store expenses, are tha
present unfavorable home items of the money market These facts, backed by the anticipated
want of specie by the continental powers at any price, and for an unlimited time, have scared a&
vitality from our stocks, all confidence from our money markets. These fears are not well defined,
but a bluer time for stocks than the last fortnight has rarely been witnessed, and what is worse, tha
immediate futnre shows no brighter prospect®, especially for unproductive stock®"
New banks have been recently established in Massachusetts, namely, at Lowell, Conway, Towns-
end, East-Boston. The annexed statement exhibits the average condition of the leading depart-
ment of the banka of Boston during the past eleven weeks :
Ijoan*,
Specie,
Depot it*.
Circulation*.
June 5, .
. $48,369,492
$2,860,277
$18,270,002
$8,277,019
June 12, .
48,536,008
2,988,521
18.129.602
8,400,280
June 10, .
. 49,110,478
2,929,756
18.29\887
8,221,887
June 28, .
49,248,099
2,796,914
18,015,916
8,058,265
July 8, .
. 49,220.099
2,644,588
18,188,106
8,099,089
July 10, .
49,116,057
2,830.025
12,788.605
9,158,459
July 17, .
. 49,452,549
2,807,705
12.917,429
3,562,122
July 2® . . .
49,814,787
2,934.940
12,672,918
8,541,494
July 81, .
. 49,625.045
2. *92.740
18,159,032
7,8 '9,255
Aug. 7,.
50,83 \806
2,904,012
18,507,-54
8,207,597
Aug. 14, .
. 50,907.742
9,873.398
18, 04,750
8.184,32$
Aug. 21, ,
51,885,489
2,353,634
18,867,561
8,087,003
The Indiana banks have been largely drawn upon for specie, and their circulation returns rapidly
upon their hands. At Cincinnati the brokers will not receive the paper of the most remote of these
institutions. In consequence of the large absorption of Indiana State stock for banking purposes,
the market prices have advanced beyond the intrinsic value. The five per cent State bonds are
quoted at 97 a 93, and the two-and-a-half per cents, 60 a 02. The canal preferred five per cents are
held at 24.
The Treasurer and Auditor of the State of Indiana have issued the following circular :
M India napoli® August 14,
“The report in your citv regarding the failures of the Slate Stock Bank at Peru, Kensselaer Bank,
New- York and Virginia State Stock Bank, and Elkhart Bank, are entirely false. They have not
failed, nor suspended, and there has been no run on them. No notes of any bank have been pre-
sented that have not been promptly redeemed. The notes of these banks and all the free banks in
tills State are amply secured, and the securities at their present market value, are worth a quarter
of a million of dollars over and above the amount Issued. Holders of the notes of any of the Free
Banks of this State should not part with them at a discount
44 E. Nkwlan, Treasurer of State,
“John P. Dunn, Auditor of State."
Attempts have been made to give a currency to the Indiana bank paper in this State and vicinity,
but there is an obvious disinclination on the part of the community to receive it, especially as H
displaces that issued by the banks near u®
In Wall street the supply of money for first-class paper is equal to the demand ; but for second-
rate and more Inferior paper, the rates are very severe. We quote prime bUl® 60 days to 4 months,
9 a 10 per cent Secured class bill® 12 a 15 per cent
The rate for sterling bills has advanced to 9M per cent premium. The exports of ootn for the
year from this port, have been as follows :
January, 1854, $1,345,682 May, 1854, $8,651,626
February, 44 .... 579,724 June, 44 5,163,188
March, • 1,466,127 July, 44 2,922,452
April, “ .... 8,474,525 August, 19 day® .... 8,173.570
A total of $22,281,88$
For the same period in 1858, they were $18,418,588, and in 1852, $16,755,072.
The following banks have been compelled to suspend specie payments in consequence of the
rapid return of their circulation : I. The Bank of Carthage, at Carthage, N. Y. II. The Drover's
Bank at Ogdensburg. III. The Farmer's and Merchant^ Bank at Memphis. IV. The Bank of
Milford, Delaware. These were banks of circulation, without adequate capital to sustain them in
a period of pressure like the present
DEATHS.
At Horicnno!® Mam., Friday, August 11, Joseph Whitman, Esq., Cuhier of the ITopkfnton
Bank.
At Burlington, N. Jm on Wednesday, August 9, William McDvaine, Esq., formerly one of the
cashiers of the Bank U. 8.
At Gbnsva, N. Y., on Monday, August 21st, C. A Cook, Esq., aged fifty-three year® and, for
many years part, President of the Bank of Geneva.
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Original from
UNIVERSITY OF CHICAGO
THE
BANKEKS’ MAGAZINE,
AND
0tatistical fttgtsUr.
Vol. TV. New Series. OCTOBER, 1854. No. IV,
OPERATION OP THE USURY LAWS.
We have addressed circulars to various parties throughout the Union,
with a view to ascertain
1st The legal rate of interest in each State.
2d. Penalties for violation of the usury laws.
3d. Statute law of damages on protested bills of exchange.
These particulars we hope to furnish, in reference to every State in
the Union, in an early No. The information will be valuable to every
banker.
The operation of the usury laws in the State of New-York has had for
many years a prejudicial effect upon its commercial movements. . They
restrict the free use of capital by preventing loans by capitalists when
risks are, as at present, extra hazardous. There are certain times in com-
mercial history when the loan of money is accompanied with a greater
risk than under ordinary circumstances, and the premium for rate of
interest) on loans, during a period of financial difficulty, should be com-
mensurate with such extra hazard.
In nearly all the States of the Union there are statutes against usury,
but the penalties in each State vary, and are not generally so severe as to
interfere with loans at rates beyond those provided by law. Our own
State, New-York, exhibits the most severe laws on this subject. Various
16
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UNIVERSITY OF CHICAGO
242
[October,
Operation of the Usury Laws .
efforts have been made by enlightened citizens, by our beat merchants,
by our own board of trade, to obtain a modification of the usury laws,
but so far without avail. According to existing statutes of New-York, a
violation of these laws involves a loss of all the money loaned — a forfeit-
ure of the contract In criminal actions it further involves a fine not
exceeding one thousand dollars, or imprisonment not exceeding six
months, or both.
In New-Jersey also the usurious contract is void, and the whole sum
may be forfeited.
In Massachusetts and in New-Hampshire the penalty is the loss of
three times the interest taken.
In South-Carolina and Georgia the penalty is the loss of all the interest
taken. The same law prevails in Florida, Indiana, Louisiana, and Mis-
sissippi ; while in Iowa, Ohio, Kentucky, and Missouri, the lender is liable
only to the loss of the excess of interest paid.
In Great Britain a more liberal view has been taken of the question
within the past twenty years. In August, 1833, the British parliament
abolished the usury laws so far as they applied to bills of exchange not
having more than three months to mature, namely :
44 No bill of exchange or promissory note, payable at or within three
* months after date, or not having more than three months to run shall,
by reason of any interest taken or secured, or any agreement to receive
or allow interest, be void ; nor shall the liability of any party to any bill
be affected by reason of any statute of usury; nor snail any person
taking more than the present rate of legal interest on such bill or note be
subject to any penalty or forfeiture — any thing in any law or statute
relating to usury to the contrary notwithstanding.”
This was the opening wedge to a thorough modification throughout
England, Scotland, and Ireland, of the old and restricted system of
money lending ; whereby capitalists would lend if money were plenty ;
and refuse if money were scarce.
The operation of the usury laws in England, was by act of July, 1837,
removed from all bills of exchange and notes having less than twelve
months to run ; but the old laws still applied to bonds, mortgages, and
open accounts. Recently, these restrictions have been effectually removed,
and England now presents to the world a commercial community untram-
melled by the odious laws known for centuries as the usury laws. En-
lightened legislation, in the year 1854, has demonstrated, what was in
fact well known before to practical men, that capital should be set free
between the borrower and the lender ; and if the former can afford to
pay fifty per cent per annum, for money, the law now says let him
pay it.
On the 28th June last, a bill for the entire abolition of the usury laws
was introduced into the House of Commons, by the chancellor of the exche-
quer. In his remarks on the subject, he said that the usury laws were
already repealed, except in a single instance, and the measure was chiefly
intended to sweep away a mass of useless legislation. Tracing the history
of the subject, he observed that the great offender against the usury laws
had, been the State. The superstitious notions on the subject, partly
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Judaic, partly Mohammedan, had disappeared, and parliament had dis-
posed of the restrictions one by one, until the only one whi<cta remained was
that affecting loans of money secured on real estate. Explaining $e great
inconvenience which had been occasioned hr; $cqtjaud.b]f tlu& existing
restrictions in regard to mortgages on land, and in England in regard to
railway debentures, he observed the usury laws TJB5T driven men to an
enormous system of evasion of the law. Let us, he urged, fully recog-
nize free trade in seference to money, and let those who desired to borrow,
obtain money at the current price of the day.
In moving its second reading, the Marquis of Lansdowne said :
It might be in the recollection of their lordships that great incon-
veniences had been experienced from the effect of the laws of usury ;
inconveniences which had presented themselves in so many shapes that,
notwithstanding the prejudice which existed upon this subject, notwith-
standing the reputation of the words 44 usury and usurer,” it became a
matter of absolute necessity to relax those laws in some degree from time
to time. At a time when commercial failures to a great extent had
taken place, it had been found that one of the greatest reliefs which were
then experienced was experienced in consequence of some clauses having
been inserted in the last renewal of the bank charter bill, by which the
bank was enabled to dispense with these laws and to accommodate per-
sons with money at a higher than the existing rate of interest. In conse-
quence of this, he had proposed to their lordships a bill with respect to
bills of exchange, by which the amount of interest allowed to be taken
was indefinitely extended ; but he had been induced to make that, in the
first instance, a temporary law, and it was only to remain in force for
two or three years. At the end of that period, as no inconvenience or
difficulty had been experienced from the measure, he had again proposed
that it should be made a permanent law ; but, although it was admitted
that no inconvenience had resulted from it, apprehensions still existed
with regard to it, as some persons never could be brought to consider
that money was as much a commodity as corn or any other produce, and
that it was just as impossible to regulate it by law as it was to regulate
the supply of corn or any other produce. The greatest inconvenience
had been experienced during the last five or six years from the operation
of the present law. Persons had not been deterred from raising money
at a higher rate of interest than could lawfully be taken, but because
they were debarred from lawfully raising money on real estate, at a
higher rate of interest than 5 per cent, they had been obliged to pay 7,
8, 9, and even 11 percent (Ilear.) If that had been true with respect
to England, it was still more true in respect to Ireland, where a great
number of persons during the last few years had been compelled to raise
money on the security of their estates. In order to evade the law*, par-
ties had been driven to every kind of subterfuge. Any amount of
interest could be raised by means of annuity or the promise of an annuity,
and in this mode the law had been extensively evaded in the sister
country. The time had now arrived for doing away with this law,
which had been condemned by many eminent persons. Calvin, whose
authority might be considered greater as a theologian than as a political
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Operation of the Usury Laws.
economist, had been one of the first who doubted the policy of the usury
laws, and among later authorities they had been condemned by Adam
Smith and Jeremy Bentbam. He trusted that their lordships would
give a second reading to this bill, and that it would pass through parlia-
ment during the present session. (Hear, hear.)
Lord Campbell wished to express his high satisfaction that he had
lived to see the day when the usury laws were to be entirely swept away.
During his long experience in the courts of justice, he had seen the most
mischievous results from the operation of these laws, which were not only
contrary to principle, but in practice had produced the most vicious
effects. In many cases the usury laws had caused the ruin of those
whom they were intended to protect A few years ago the laws relating
to usury were swept away, except in cases of real security. The excep-
tion had caused a great deal of litigation, and had been extremely disas-
trous to many proprietors of land, especially in Ireland, where it had sent
many proprietors before the Incumbent Estates Court. He believed the
bill met with the unanimous support of their lordships, and in a very
few days he hoped to Bee it the law of the land. (Hear, hear.)
Lord Brougham rose to express his entire concurrence in the remarks
of his noble and learned friend, and bis joy that the usury laws were now
about to be abolished. Upon moral grounds nothing could be worse
than the effects of the usury laws.
The Lord Chancellor said that there could be no doubt that the
present laws were enable of being evaded, if a person were guilty of
something approaching to fraud. He had been engaged during the last
week in hearing a case in the Court of Chancery which forcibly showed
the impolicy of the laws, and the means which were found of evading
their operation through the instrumentality of building societies.
Lord Itedesdale wished that this measure had been brought in at an
earlier period of the session, when it could have been more adequately
discussed.
The following is a copy of the recent memorial of the New- York
Chamber of Commerce to the Legislature of this State, in reference to
the existing usury laws. The memorial was duly presented, but no mea-
sures were adopted by that body toward the relief desired.
Chamber of Commerce, New-York, Jan. 6, 1854.
To the Honorable the Legislature of the State of New-York , in Senate
and Assembly convened :
The memorial of the Chamber of Commerce of the State of New-York,
respectfully represents,
That the present law of this State, regulating the rate of interest, is
more stringent and severe than any other usury law in the United States
or in Europe.
That in the ratio of this increased severity has been the tendency of
said law to disturb and agitate the price for the use of money, when
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Operation of the Usury Laws.
any circumstance has arisen to carry the price pf money the smallest
fraction above the legal rate, and this, because of the increased compen-
sation consequent upon the risk of illegality, also caused, in part, by the
driving away of law-abiding competitors.
That it can be shown, by historic facts from the earliest ages, that
wherever the usury laws have been the most lenient, other things being
equal, the rate of interest has been lowest.
That the impression which has sometimes prevailed as to the move-
ments for a modification coming from money-lenders in Wall street, is
entirely erroneous ; much the greater portion of the parties now asking a
relaxation borrow more money than they lend.
That your memorialists are confident in the opinion that the law rela-
tive to the interest of money should merely fix a rate to govern in the
absence of a written contract between the parties, and leave borrowers
and lenders free to contract upon any terms they themselves may deem
advisable.
That, notwithstanding this opinion, your memorialists, with all deference
to certain hereditary or other feelings cherished by portions of their fellow-
citizens in regard to usury, would, in the spirit of compromise, recog-
nize the principle of some penalty for infractions of the usury law.
Pursuant to this, your memorialists, in conclusion, would most respect-
fully ask that the penalty may be changed from fine and imprisonment
and loss of the entire sum loaned, to a loss of the interest only.
Ed. C. Bogert, Secretary. P. Perit, President
At the monthly meeting of the N. Y. Chamber of Commerce, on Thurs-
day, September 7,
Mr. Caleb Barstow remarked that he desired to say a few words
relative to the subject of the usury law ; and in this connection he desired
to offer a series of resolutions, which embodied his views on the subject,
and which he proceeded to read, as follows :
Whereas , it is especially within the province of this Chamber to express
an opinion as to the laws of our country relating to currency; and
whereas, the present disturbed and greatly embarrassed state of our
money market renders the duty particularly imperative upon business
men to seek some means of alleviation ; be it, therefore,
Resolved , as the sense of this Chamber, That the usury laws of this
State greatly aggravate our present financial difficulties, and on that
account, and for many other good and substantial reasons, need a radical
reform. By the usury law of 1837, and which law still exists, the lender
who receives any thing over seven per cent per annum for the use of
money, forfeits the whole amount lent ; is liable also to fine, not exceeding
one thousand dollars, and to imprisonment not exceeding six months.
Both borrower and lender may be made witnesses on the civil trial — the
criminal process being subject to the same rules of evidence kb govern in
other criminal trials.
The law also contains a specific clause, declaring it to be the duty of
all courts of justice to charge the Grand Jury especially to inquire into
any violation of the act.
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Operation of the Usury Laws.
Resolved , That the faults of this law are too plainly manifest to need
any extended argument, every reason assigned, and every declaration
that has been made to sustain the law in its present form, having been
repeatedly overthrown and refuted.
The present usury law has been most truthfully pronounced, not only
by intelligent and standard writers upon political economy, but by our
courts and grand juries, to be “ futile in attaining the end proposed, inex-
pedient relative to public prosperity, unjust toward holders of capital,
and oppressive toward the needy borrower.”
The law referred to is stigmatized in a public document of one of our
grand juries, as “highly injurious to public morals, as well as to the law-
ful business of the people,” also as being flagrantly unjust in its opera-
tion, is used to defraud honest creditors, and, in short, has become so
utterly odious as to weaken the general respect for law, and almost
make a virtue of disobedience. The law was thus presented, and
denounced as a public evil.
The principal reasons urged for sustaining these laws are only two :
First. It is said that money is the creation of government, and
deserves, some say, all its intrinsic value — others say its chief element
of value — from legislative action, and that this imposes upon our civil
rulers the duty to determine what compensation the people may agree
to allo w each other for the use of it.
Secondly. The advocates of restrictive usury laws declare that borrow-
ers, especially farmers who borrow upon mortgage, ask for, and need the
severity in this law, to shield them from the oppressive exactions of
lendere. *
To note these points in their order, it may, in the first place, be said
that money is not formed by legislation. As a mere matter of conve-
nience, and as the better mode of the two, the people have invested the
government of the United States (not any of our State governments ) with
authority to stamp certain pieces of gold and silver, carried to them by
the people as their own, the people’s property, with a device and lettering
indicating their value. This is a mere certificate of a fact existing before
such certificate was affixed, but of course adds no intrinsic value to the
metal : indeed, were Congress now to repeal all laws relating to the mint,
business men would immediately assemble and agree upon some con-
venient mode of certifying to the value of the precious metalst Govern-
mental action in coinage is the most convenient mode of the two, but is
not indispensable.
The position that the incorporating of institutions for dealing in money
invests the giver of such act with a right to govern the price of money,
is, in the opinion of this Chamber, entirely wrong.
A society of men applying for such act, ask for no favor beyond what
each individual, standing alone, already possesses.
In regard to our currency, the only legitimate concern of the govern-
ment is to prepare the substance previously determined upon by the people
as the one most suitable for a circulating medium.
Government is also under obligation to afford every possible aid
required by their constituency, in securing the utmost useful efficiency of
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Operation of the Usury Laws.
such circulating medium. But when our public functionaries suppose
that all this gives them the right to fix the prices that one neighbor may
charge another for lending him some money, they err as much as they
would were they to insist upon arranging the prices on the fabrics made
at an incorporated cotton-mill, or the rates of premium on an incorporated
fire and marine insurance company.
What is said about the wishes of borrowers is summarily overthrown
by the plain fact, that thousands upon thousands of borrowers are pouring
in their names to memorials in favor of free laws as to the interest of
money, and borrowers upon bond and mortgage can bear testimony, by
hundreds, that such extortions were never before known as have been
practised since the enactment of this most extraordinary law of 1837.
From 1837 to 1854 we have witnessed, in the most prominent avenues
of the money market, the most shameful and remorseless extortions that
have ever been heard of since the earliest history of commercial civiliza-
tion.
It is well urged by a recent writer, “ as a sound principle of juris-
prudence, that when the reasons for a law, or its usefulness, cease, the
law should cease, and this ought to be absolute and imperative in those
cases where a regulation is found not only to fail of the purpose for which
it was designed, but is found to produce, in its operation, the very evil it
was intended to remedy.”
In view of this state of the question, be it further
Resolved , That a committee of five be appointed, with instructions to
prepare a suitable memorial for circulation among our citizens, praying our
legislature, at the earliest moment of the next session, to remove all
restrictions in our usury laws, except establishing a rate to govern in
the absence of a bargain, also a rate to accrue upon an unsatisfied judg-
ment in law.
Resolved , That the aforesaid committee be further instructed to pre-
pare and report, at a special meeting of this Chamber, a tract or a circular
embracing such arguments and facts as will tend to remove all false
impressions now entertained by portions of our fellow citizens in the
interior of onr State. The committee also to open a correspondence with
any and all Boards of Trade or Chambers of Commerce in the cities of
our State, invoking their hearty aid and support in bringing about the
much-desired reform.
Mr. Bars tow said that they contained the substance of what he wished
to 6ay upon the subject, and ne would like to see them published. It was
decided that they should be published, and that a committee of five be
appointed to take into consideration the whole subject, draw up memo-
rials, and report to the next meeting of the Chamber. The committee
appointed consists of the following gentlemen :
Caleb Barstow, George Curtis, J. De Peyster Ogden, Robert Kelley,
Henry K. Bogart.
Mr. Ogden remarked that one of the most important facts relative to
this subject of a reform in our usury laws, was to find how far the reform
shall go. Shall it extend to banks and corporations, as well as to private
individuals?
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Operation of the Usury Laws.
Mr. Barstow observed that be had found by experience and observa-
tion that there is no sense in trying to compromise the matter. He was
in favor of making the law cover every thing. Corporations, banks, and
every similar institution should be as free as the butchers in Fulton
Market.
Mr. Ogden again remarked, that as regards bonds and mortgages, he
was perfectly willing to have the restriction removed; but to give that
power to our corporations and banks, standing as they do, was a step
which, he thought, should be thoughtfully considered before its adoption.
Mr. Barstow replied, that in regard to banks, a great change has taken
place since the establishment of free banking associations. The character
of the banks is now very much altered ; and he thought we should have
banks as perfectly free as individuals, or as bonds and mortgages.
The resolutions were received with approbation, and were unanimously
adopted.
After the non\ination and election of two new members, Mr. John O.
Baker and Mr. Samuel Glidden, the meeting adjourned.
Mr. McCulloch’s article on the subject of Usury, in the Encyclopedia
Britannica, was republished in New-York in the year 182G. From the
preface to that article (attributed to the pen of Professor McVickar of
Columbia College) we copy as follows :
It is indeed time for a revision of our legislative enactments on this
subject; they have too long continued in open defiance both of reason
and experience, grounded upon fallacies which are now exposed and a
bigotry which no longer subsists. On this point, namely : the justice,
the mefficacy, and the inexpediency of all penal laws regulating interest,
there may be said to be but one opinion. All scientific men are opposed
to them — all practical men contemn them. Society, in all its branches,
suffers from them ; and most of all, in that class of needy and ignorant
borrowers upon whom these laws, professedly framed for their protection,
operate as an engine of grinding exaction.
Laws which are thus inefficacious ought to be repealed — laws which
are thus injurious must be repealed ! — the public voice demands it, and
wise legislatures will hear it. Some falsely imagine that the evil is con-
fined to the monied transactions of the city, while to countrymen they
suppose the law serves as a security against exaction ; the reverse of this
position would come nearer to the truth. In a commercial city these
laws are set at defiance. As a regulator of interest they have not the slight-
est influence — they are altogether a dead letter. All that they actually
do is, in times of scarcity, or in case of distress, to add a new premium
of risk to the heavy rate at which the necessitous must borrow7, while the
penalties annexed to such contracts are generally voided by the distinc-
tion recognized in our courts between business and usurious paper, by
means of wdiich an almost perfect freedom is given to such transactions.
Not so in the country : there the laws are not inoperative, and it is the
farmer who pays the penalty. When money is worth more than legal
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L; BOSTON. :v]
interest, the law is no benefit to byp, for he cannot borrow except by
paying a commission or bonus upon bhe whic^, tr$»g/equivalent in
the eye of the law to a usurious premium* isiiiftcta* jppportionably great
in order to cover the risk of the legal penalty."'
Again, when money falls below the prescribed rate, as it has been for
several years past, the law is a disservice to him, for he still continues to
pay the legal premium, the authority of the law naturally deciding the
question of rate, which would otherwise be determined by a reference to
the money market of the city — by turning to the regular price-current in
which money would form an item, and which consequently no man would
buy above the market price.
A reference to the Btate of the money-market in this and other great
commercial cities during the past year, will be found to support these
two fundamental principles,
1st. That laws cannot regulate the price of money ; and,
2dly. That all penalties attached to such laws tend to raise the price
of it in periods of scarcity.
Thus, while the scale of variation will be found to have been great in
every part of the commercial world, it will also be found to have been
greater by several per cent in places where usury laws exist — as, for
instance, in London and New-York, than in those countries where money
is free — as in Holland or Hamburg; and that for a plain reason,
because the risk of the legal penalties demands a new and additional
premium. Thus in London the scale of variation will appear to have
been from about 8 to 13 per cent, in New-York from about to 15 or
20 per cent, while in Hamburg and Amsterdam it has probably never
risen above 10 per cent, the extent of the variation of price being there
limited, as in the case of all other commodities, by the competition in open
market between demand and supply.”
On the 11th February, 1834, a public meeting of merchants was held
at the Merchants’ Exchange in New-York city, when a committee was
appointed to make “ an inquiry into the causes of the public distress,”
and to memorialize Congress on the subject This period, it will be recol-
lected by many, was immediately following the removal of the public
deposits from the Bank of the U. S. by President Jackson. The sub-
stance of the report was published in the American Quarterly Review
for June, 1834, and afterwards (July of the same year) republished in a
pamphlet of fifty-two octavo pages. In that report a survey was made
of commercial affairs during the preceding thirty years ; and the causes
of the distress of 1834 were alluded to or pointed out. Among these
numerous causes, the committee placed the then existing usury laws,
their remarks on which we now copy.
“ It may also be observed, in noticing the causes of the present diffi-
culties, that they have been aggravated by certain legal regulations, not
ascribable strictly to any recent action on the currency, and the removal
of which rests with the State legislatures. We refer particularly to the
usury laws, which, in spite of the conclusive arguments of all moralists
and economists, from Calvin to Bentham, exist in several States of the
Union.
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250 Operation of the Usury Laws. [October,
Interest is, at no time, a true criterion of the rate of profit where the
amount of the currency fluctuates, either by the greater or less supply of
ordinary currency, or by the expansion or contraction of commercial
cred it->, though it is the consideration by which it is ultimately regu-
lated. The depreciation or appreciation of the currency has, of course,
no permanent effect on interest, as it is capital, not currency, which i» lent
or borrowed ; but if a large amount of bank-notes be suddenly added to
the circulating medium, through the operation of discounts or other loans,
there would be an increased supply of capital to be lent, and of course
the rate of interest would momentarily fall, according to the principle
of supply and demand. So in case of a contraction, there must neces-
sarily be a rise in the rate of interest till prices adjust themselves to the
new medium in which they are to be estimated. The increase of cur-
rency primarily affects the rate of interest, and at all times diminishes
the value of money. In like manner, the fall of prices, and the tempo-
rary rise of interest, is the consequence of a contraction. Banks, by
increasing currency, may rise prices, but they cannot permanently lower
interest They can have no effect on interest, except during the period
that the prices are accommodating themselves to the new order of
things.”
As a matter of history, we have undertaken to furnish, in the following
pages, some facts as to the laws relating to usury in the early periods of
commerce, and thence down to the end of the eighteenth century. From
all these it will be seen that the ancients were prone to charge the fluc-
tuations in the value of money to the usurers and money changers : and,
during the eighteen centuries, all sorts of measures were adopted to com-
pel, by law, a uniform rate for loans. It seems that these laws were of
very little avail, and only trammeled, instead of encouraging, commote.
In the year 550 b.c., we find that the interest of money was reduced
to 12 per cent Athens was sorely troubled with usurers, who, by exist-
ing laws, were entitled to the services of their debtors and those of their
children. Solon remedied these evils by reducing the rate of interest to
12 per cent
In 324 b.c., interest was regulated by law in India, and also the rate
or premium for advances on bottomry. These and other circumstances
show that commerce had long flourished and was well understood.
In the year 29 b.o., the rate of interest at Rome was reduced by law
from 10 to 4 per cent, in conBequenoe of the great influx of money from
the conquered provinces.
In the year 30 a.d., interest was allowed on loans by the bankers of
Judea, who made a trade of receiving money on deposit and paying
interest thereon, (Matthew, c. 25.) Such instances were not known in
Greece or Rome at that period. The Roman nummularii were the only
exchangers of money then known.
A.Dt 230, by law the rate of interest was reduced by Alexander
Severus to 4 per cent, in order to induce foreign merchants to resort to
Rome.
a.d. 527-567, the rate was settled at 6 per cent by the Code of
Justinian. Persons of rank were not permitted to take more than four
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Operation of the Usury Laws.
per cent ; while eight was allowed between merchants and manufacturers,
and twelve per cent upon bottomry.*
a.d. 800, the taking of interest was by the clergy denounced as sin-
ful, during the time of Charlemagne. The fairs at Aix-la-Chapelle and
Troy were frequented by traders from most parts of Europe.
a3>. 950, the taking of interest was by the Basilics, or laws of Con-
stantine, denounced as sinful. The clothing trade was then mostly in the
hands of the Flemings. Fairs or weekly markets for manufactures were
established at Bruges, Torhout, Mount Case!, etc.
a.d. 1120-1138, the Popes were eager to suppress the practice of
lending money at interest In a council held at Westminster, all clergy-
men were ordered to abstain from interest and base lucre.
aj>. 1171, at Venice the rate of interest was fixed at 4 per cent for
the Chamber of Loans. This latter was the origin of the Bank of •
Venice, as the contributors to the State loan were made creditors of the
“ chamber.” The rate of interest and the loan itself were considered
compulsory.
1197. Richard L of England passed a law for the uniformity of
weights and measures. Christians were not allowed to take any interest
for the use of money, and secret bargains between Jews and Christians
were prohibited.
1198. By law in England this year the rate of interest upon mort-
gages was limited at 10 per cent. The canons against taking interest
did not then extend to the Jews.
1215. After the time of King John, Magna Charts provided that the
debts of a minor should bear no interest during his minority, whether they
be owing to a Jew, to the king, or to any other pereon.f
1231. The law of interest, (Henry HI.) as applicable to minors, was
now revived and sanctioned by a special act.
1251. In Italy, at this period, the borrowing and lending of money on
interest was an established trade. The business of trading in money
became more general, and was followed by the merchants of Milan, Pla-
centia, Sienna, Lucca, and other cities in the north of Italy.J
1270. At Modena, the legal rate of interest was four pence per month
for every pound lent, (or twenty per cent per year.)
1274. Interest was avowedly paid by King Edward L, for money
borrowed by him while in the Holy Land, and this is believed to be the
first instance of payment of interest by express contract Every Jew lend-
* MacPherson’s Annals.
f This scorns to authorize interest, although repeatedly forbidden by ecclesiasti-
cal canons.
$It became general in France and Britain to givo the appliouti on of Lombard and
Tuscan merchants to all who were engaged in money transactions. As early as
the year 1318, (and perhaps before,) Lombard street in London had its present
name, which was probably derived from its being the residence of Lombard mer-
chants or bankers, as it is still tho chief residence of London bankers. These Italian
merchants becamo dispersed throughout Europe in the thirteenth and fourteenth
centuries, and becamo very convenient agents for tho popes, who employed them
to receive and remit tho largo revenues that were drawn from every country which
acknowledged their ecclesiastical supremacy. [See MacPhcr son's Annals, etc.]
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252 Operation of the Usury Laws . [October,
ing money on interest was compelled to wear a plate on his breast, sig-
nifying that be was a usurer, or to quit England.
1277. The Jews in England were hanged and quartered for clipping
coin.
1281. A marriage contract entered into between Scotland and Norway,
provided for the payment of interest.
1487. By act of parliament (Henry VII.) interest in England was pro-
hibited, and “ all dampnable bargayns grounded in usury , however dis-
guised,” were annulled; and a fine of £100 for any violation of the
statute.
1546. By act of parliament (37 Henry VIIL) the rate of interest was
fixed at 10 per cent. This was the first time that the rate was established
by law in England. All former acts concerning usury, shifts, forfeitures,
etc., were declared void.
1552. Parliament again took the subject in hand (Edward VL) and
repealed the act of 37 Henry VIIL At that period the monarch could
not borrow without the collateral security of the metropolis. All loans
at usury were declared illegal, and might be forfeited.
1558. In the reign of Queen Mary, interest was paid by the govern-
ment at the rate of 12 per cent on a loan, by the citizens of London, of
£20,000. For this sum the queen bound (mortgaged) certain lands.
1560. The ordinary rate of interest at Antwerp was 12 per cent, and
fixed at the same rate in Spain, Germany, and Flanders, by Charles V.
A Bourse had been established at Antwerp, which was attended, morn-
ings and evenings, by merchants, interpreters, etc., for sale of merchan-
dize, bills of exchange, etc.
1571. By act of parliament (Elizabeth, queen) the rate wss limited to
10 per cent, being a restoration of the policy adopted by Henry VIIL
Large accumulations of gold from America, and the increase of wealth,
led to the more general adoption of deposits with bankers.
1587. The Scottish parliament (James VI.) adopted 10 per cent as the
maximum rate, “or an equivalent to five bolls of victual for £100 by the
year.”
1601. In France (Henry IV. and Sully) the rate of interest was fixed
at 6£ per cent: and high rates of interest were declared as having
“ ruined many good and antient houses,” as well as obstructed commerce,
tillage, etc.
1620. King James, of England, borrowed 100,000 dollars of the
government of Denmark, at six per cent.
1624. By act of parliament (21 James I.) the rate was reduced to 8
per cent, under a penalty of three times the money lent, and the word
interest substituted for that of usury ; and in 1625, King Charles L
acknowledged a debt of £27,000 at 8 per cent.
1632. The rate of interest was reduced in Scotland from 10 to 8 per
cent, being nine years after it was so reduced in England.
1651. In England (Cromwell) the rate was further reduced to 6 per
cent, by the Rump parliament, and confirmed at the Restoration. (12
Charles II.)
1655. In Holland the rate was reduced from 5 to 4 per cent, whereby
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1854.]
The English Law of Bills of Exchange.
253
the State saved 1,400,000 guilders per annum. This was about the first
time that the “ sinking fund” became a principle of government.
1660. In Turkey, interest was 20 per cent. In Spain, the usual inte-
rest was 10 or 12 per cent; “and there, notwithstanding they have the
only trade in the world for gold and silver, money is nowhere more
scarce ; the people poor, despicable, and void of commerce, other than what
the English, Dutch, Italians, Jews, and other foreigners bring to them ;
who are to them, in effect, as leeches who suck their blood and vital
spirits from them.” [Sir Josiah Child.]
1661. In Scotland, the rate was reduced to 6 per cent, “free of all
retention or other public burthens whatsoever.” In England, the melting
of silver coins was prohibited by statute of 9th Edward IU.
1685. The Pope of Rome, by compulsory process, reduced the rate on
his public debt from 4 to 3 per cent.
1714. The rate in England was further reduced to 5 per cent, and all
contracts at a higher rate were declared void.
1773. By law (14 George III.) the interest of money in the British
provinces in India was fixed at 12 per cent
1776. In Scotland money was loaned as low as three per cent to the
bankers. 0
No material modifications of the English laws in reference to usury
were made till the year 1833, when the restrictions were removed from
all commercial paper having less than three months to mature. In the
year 1837 this was further modified so as to apply to commercial paper
having twelve months, or less, to mature.
THE ENGLISH LAW OF BILLS OF EXCHANGE.
Remarks of Lord Brougham in the House of Lords , August 7, 1854.
Lord Brougham presented a petition from merchants of the city of
London, praying the House to take up the consideration of this measure
early next session. lie said, a conference was held in the month of
Nov., 1852, composed of delegates from all parts of the country, and
from all the great trading towns in England, Ireland, and Scotland, and
which led to the appointment of a committee, and there was no subject
which more occupied the attention of the members of the conference and
the committee than the assimilation of the law of England to that of
Scotland, with regard to the summary process on bills of exchange and
promissory notes. That had been the law and practice in Scotland for
120 years, and under it the mercantile community of that country had
greatly progressed. It was at the request of these respectable men, and
he might say, as their organ, that he presented a bill to their lordships
which they favorably received, read a second time, and which they after-
ward referred to a select committee, there being some doubt at one time
whether it should form part of the common-law procedure bill. It was
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254
The English Lato of Bills of Exchange. [October,
sent to tbe House of Commons on the 2d of June, but he lamented that
after the principle of the bill had been affirmed in that house by a
majority of 50 to 30 on Friday night, the course was taken of not pur-
suing the bill on account of tbe late period of the session, and the state
of public business. He had no complaint to make, however much he
might lament the result *, but the ground of its being postponed was said
to be that they had in the nouse of Lords adopted a rule that none of
the bills which were sent up to them should be read after a given day,
namely, the 25th July, and in consequence a bill which did not reach
their lordships till tbe 4th of August could not pass this session. There-
fore they would not pass this bill which was sent down to them on the
2d of June, because their lordships would not pass a bill which did not
come to their lordships’ house till the 4th of August. They had given
the House of Commons two months to consider a bill, but the House of
Commons would not allow them a single day. (Hear.). The bill in
question made considerable changes in the law, and could not be passed
without due consideration. But there was another interest opposed to
this, (the exchange bill,) and that was the interest of persons, who having
accepted bills, or indorsed them, had rather not pay them when they
became due, and tfcey said, “ What a horrid thing it is to compel a poor
man who has only put his name to a bill at three months, not to allow
him three or four months longer before he is made to pay.” Tbe law
applicable to bills of exchange in Scotland was not confined- to that
country ; it was the law of the whole mercantile world except England ;
and in Holland the law went further still ; for in that country the moment
a bill became due, the person, goods, and lands of the acceptor were
liable to be taken in execution by the holder. And that was the law of
this country 600 years ago. Notwithstanding, however, there were some
persons who labored under what he would venture to call a monomania
on the subject of currency, and they were called the Brummagem school.
They considered that any thing that tended to diminish the amount of
currency was an evil ; they did not care about the value of it. This bill
increased the value of every bill and promissory tote in the market.
“ Oh !” said these currency doctors, “ that does not much signify ; the
strong point is to have an immense mass of currency.” And accord-
ingly he found that one of these worthy persons who was laboring under
a delusion, and who was an object of compassion, discovered that the
reason for this bill was, not to carry out the opinion of the great mer-
cantile community of the delegates from all England, Scotland, and Ire-
land. No such thing ; but they said the bill was to create a job — not
tbe job of making debtors pay their debts to their lawful creditors, but
some body, they said, wanted to appoint a registrar.
A noble lord — Who said that ?
Lord Brougham — The currency doctors in the other house, and if his
noble friend looked at Saturday’s journals he would find who it was that
made this charge. Who wanted this bill, and who asked for it ? His
noble friend the member for the city of London presented a petition in
favor of it, signed by 309 of the first houses in the city of London.
There was no attempt to palm it upon the public. What if there was
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255
1854.] The English Law of Bills of Exchange.
nothing thought of in respect to the office, what if it was not only
true, but it was impossible it should be true that this bill originated
in any such desire, or any conceivable or imaginary interest connected
with the desire to appoint such an officer ? This bill was presented by
him to that house, and read a first and second time, and referred to a
select committee without any thing in it respecting a registrar. It was
intended that the three courts, the Common Pleas, the Queen’s Bench,
and the Exchequer should appoint each a master in each court for the
purpose of registering the protested bills. But when the bill was in
select committee it was found it would not do to have an officer of each
of the three courts acting as registrar, but that it was necessary to have
one officer who could be at his office all day to register these bills,
and the committee made the alteration. In the various measures that
he had had the honor of proposing for the amendment of the law, he,
with his colleagues, had been exposed to no inconsiderable obloquy.
By one class they had been charged with going too slow, and it had been
said they were mock reformers ; and by another class they were charged
with carrying all before them, with endeavoring to sweep away all land-
marks by wholesale changes of the law. By some they were said to be
acting as slumbering volcanoes, sending out nothing but smoke and
noise ; but, nevertheless, as long as they were favored by Divine Provi-
dence with the means of rendering some help to the cause of improve-
ment, they must continue in their course ; but their lordships might be
perfectly assured that no charge was more groundless than that of being
too rash and too headlong. But when they were charged with such an
odious job as altering the law for the purpose of creating a place to be
given to some favored individual, all he could say was, that without
blaming the individuals, who, no doubt, believed what they said, but
had been imposed upon by others who know the truth ; but to suppose
that this charge should operate upon them, that they should feel any
thing but contempt for it, that it should in the slightest degree abate or
accelerate their progress, or cause them to deviate one hair’s breadth
to the right or the left was absurd.
“ Falsus honor juvet et — ”
but he begged pardon for speaking to these doctors in what was an
unknown language to them. He would speak to them in English.
“ Folse honor charms and lying slander scares
Whom, but the false and cowardly?”
Lord Campbell said he would not allude particularly to currency doc-
tors, or any other class of the community, who stood in the way of
improvement, but experience taught them that there were always
obstacles to improvement. There was no doubt that it would be an
improvement that the commercial law of the three United Kingdoms
should be the same. Having the honor of presiding over the Queen’s
Bench, he had frequent opportunities of knowing that men who had
accepted bills did not pay them, but when they were sued, pleaded a
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256
The Iron Trade.
[October,
number of pretenses, and when the day of trial came there was no
attempt at defence. At the last Quildhall sittings there were sixteen unde-
fended causes of this character. There was no reason why the commer-
cial law should not be the same in England as in Scotland, and as it was
in every other commercial country in tne time of Edward the First He
hoped that the bill would become law.
The Lord Chancellor assured his noble and learned friend (Lord
Brougham) that, as far as they were individually concerned, the govern-
ment gave all the support in their power to this bill, and it was only in
consequence of the gentleman who had charge of the bill — in concur-
rence with a mercantile gentleman — thinking it would be better to with-
draw it, that it was withdrawn. He could only say that he hoped it
would be introduced again, and that it would be carried. With regard
to the common-law procedure bill, he hoped that it would be in that
house either that night or to-morrow, and that they would be ready to
give it a favorable reception.
The petition was then ordered to lie on the table.
The Iron Trade. — The iron interest is one of tlio most important in this country.
Missouri, Pennsylvania, and Tennessee will reap rich harvests from this source
alone. Ilitherto the policy of this country has tended to encourage the impor-
tation of iron from England and Wales, while our own capitalists, who were
engaged in the same trade, wero sacrificed. The enormous emigration from
England and Ireland during the past throe years has served to make laboring hands
more scarce in the iron districts of England, and wages have consequently risen.
Railroad iron and other manufactured iron has risen rapidly, and the exports from
Great Britain have increased in the same ratio— the low prices prevailing two or
three years since having given a stimulus here to the demand.
During the four monthsending May 5, 1853 and 1854, the export of metals from
Great Britain was os follows :
1S58. 1S54.
Ton*. Value. Ton a. Value.
Iron, pig 83,760 £254,190 100,958 £421,608
do. bar, etc., 212,831 1,827,081 207,417 1,919.893
do. wire, 3,083 65,768 2,813 56.618
do. cast, 18,752 161,078 25,151 243,381
do. wrought, 60,944 768,895 64,442 1,011,395
Totals, 369,370 £3,066,994 400,771 £3,652,895
That England relies upon this country largely as a market for her iron and other
metals, may be seen from the following extract from tho Derbyshire Advertiser:
There is not tho least indication of any depression in the iron trade — on the con-
trary, fresh orders arrive daily, and the Indian and American demand for railways
is very great. The inquiry for Scotch pig iron is as active as ever, and there is
no probability of any diminution in price so long as stocks continue to be kept
down. The demand for Derbyshire pigs is unprecedented, and much greater than
the make. Wo have many furnaces erecting in the neighborhood of Middlesborough
and ip the Cleveland district, and when their make is brought into the market it
may probably have some influence on prices. The steel trade is exceedingly active,
and orders are plentiful. The demand from America and Germany Ibr manufactured
articles is good.
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Debt of Sacramento City.
257
DEBT OF SACRAMENTO CITY.
From a Circular issued bt Authority of the Fund Commissioners of
Sacramento City, California.
Circular showing the indebtedness of the City of Sacramento , (Cal.)
and the years in which such indebtedness will mature ; with the Acts
of the Legislature and the City Council creating them.
Old bonds and scrip issued prior to June, 1851, subject to funding, $16,603 00
Funded Debt, (Loan Bonds,) issued for indebtedness prior to July 15,
1851. Interest payable quarterly at Sacramento at 12 percent,
or New-York at 10 per cent, 235,178 30
Loan for building I-street Levee, payable in New-York, 1863. In-
terest 8 per cent, payable semi-annually in New-York, 84,484 00
Funded loan bonds, issued to pay indebtedness matured July 1,
1853, payable in New-York July 1, 1873. Interest at 10 per tent,
payable semi-annually in New-York, 140,760 00
Funded Loan Bonds, issued to Page, Bacon k Co., John Kirk, Law
k Judd, and R. Ramsey, maturing in New-York, July 1, 1868.
Interest 10 per cent, payable semi-annually in New-York, 110,231 01
Water Loan Bonds, (for the Construction of Sacramento Water
Works,) to mature between 1859 and 1866. Interest at 10 per
cent, payable in New-York, 228,000 00
City Hall and Prison Bonds, (for the purchase of City Hall lots,)
payable in New-York, January, 1865. Interest at 8 per cent,
payable in New-York, 11,800 00
Bonds issued for the construction of the R-street Levee, payable in
New-York, January 1, 1869. Interest at 10 per cent, payable
semi-annually in New-York, 98,113 24
Fire Department Bonds, (for the purchase of lots, buildings, engines,
etc.,) to mature in New-York, January 1, 1866. Interest at 10
per cent, payable semi-annually in New-York, 56,000 00
Funded Loan Bonds, issued 1854, to pay scrip and other indebted-
ness, to mature in New-York, in 1874. Interest at 10 per cent,
payable semi-annually in New-York, 120,000 00
Funded Loan Bonds, issued to pay the indebtedness matured July 1,
1854, redeemable in New-York, July 1, 1874. Interest at 10 per
cent, payable semi-annually in New-York, 173,000 00
Total indebtedness July 1, 1854, $1,283,159 55
This aggregate indebtedness of $1,283,159.55 will mature in the fol-
lowing years :
1855,. . . .$114,063 15 1863,. . . .$84,484 00 1868, $110,231 01
1856, 121,115 15 1864, 67,000 00 1869,.... 98,113 24
1859, 67,000 00 1865, 11,800 00 1873, 149,750 00
1861, 67,000 00 1866, 113,000 00 1874, 293,000 00
Add old Scrip subject to fhnding, 16,603 00
Total, $1,283,159 65
The issue of the funded debt of $235,178.30, was authorized by section
20 of the charter of the City of Sacramento, passed by the legislature in
17
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258 Debt of Sacramento City. [October,
1851, and city ordinances Nos 2, 13, and 140. The charter provided
as follows :
The Commpn Council shall, within sixty days from and after the passage of this
act, ascertain the eatire amount of the city debt, both principal and interest, and in
tbeir discretion shall have power to fund any or all such indebtedness, by effecting
a loan or loans fer that purpose ; and the annual revenues of the city, (except such
revenues as may bo necessary for the current expenses of the city government)
may be pledged for the payment of the interest and the redemption of the principal
of such loan or loons ; but the loan or loans so made shall be applied to no other
purpose, and no indebtedness of the city shall be so funded unless it can bo done
on a less rate of interest than the city is now paying on its respective loans.
The loan of $84,484, for the construction of the I -street Levee, was
authorized by the provisions of the charter aforesaid and city ordinance
No. 87, passed March 10, 1853.
The loan of $140,750, was created under authority of the city ordi-
nances Nos. 64, 69, and 00, of 1858, as authorized by an act of the legis-
lature, passed April 25, 1853.
The Water Works and Fire Department loans were specially author-
ized by the qualified electors of the City of Sacramento, January 13,
1853, and by ordinances Nos. 100, 114, 115, 123 of that year.
The bonds issued for the construction of the R-street Levee were
under ordinance of the city, No. 112, of 1853, and by vote of the
people.
The loan of $120,000 was authorized by an act of the legislature,
approved April 10, 1854, namely:
AN ACT authorizing the Mayor and Common Council of the City of
Sacramento, to issue city bonds for certain purposes.
The People of the State of California , repreeented in Senate and
Aeeembly do enact ae follow :
Sec. 1. That the Mayor and Common Council of the City of Sacra-
mento be and are hereby authorized to issue city bonds, in a sum not
exceeding one hundred and twenty thousand dollars in the aggregate,
payable twenty years from the first day of July A.D. eighteen hundred
and fifty-four, and drawing interest at ten per centum per annum, the
interest payable semi-annually, on the first days of January and July, in
the city of New-York.
Sec. 2. That when issued, the said Mayor and Common Council are
authorized to sell said bonds at such prices and apply the prooeeds
thereof, in such proportions as they may deem proper, to the payment
of the outstanding warrant supon the city treasury, and for the use of the
fire department of said city ; provided, however, that said bonds shall not
be sold at a discount of more than twenty-five per centum.
Approved April 10, 1854. John Bigler, Governor.
J. W. Denver, Secretary of State.
[This loan was negotiated in Sacramento, at the average rate of 87£
per cent]
The funded loans of 1854, amounting to $173,000, redeemable in
twenty years, and that of $149,750, were created by virtue of an act
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shall hereafter be made by the ‘said City Council, or any part thereof,
shall be about to become due and payable, and the financial condition of
the city at the time shall be such, in the opinion of the City Council, as
to render it expedient to create a further loan or loans, for the purpose of
paying such principal sum about coming due, the City Council shall be
authorized, by ordinance or otherwise, to create from time to time, and
as often as may be necessary, a further loan or loans upon the faith and
credit of the city, and upon the pledges and securities authorized by law to
be given; which loan or loans snail be for such amount as may be
required for the purpose aforesaid. The loans last aforesaid shall be for
a period not less than five years, nor more than twenty years, and shall
in all respects conform to, and be subject to the conditions, restrictions,
and provisions o£ the city charter; provided the loan or loans hereby
authorized shall be made at a rate of interest not to exceed twelve per
cent per annum.”
In order to show the full authority under which the last loan of
$173,000 was created, the following ordinance of the City of Sacramento
is furnished :
An ordinance creating a loan under the provisions of the fourth section
of the Act of the Legislature entitled “ Act to extend and to better define
the powers and duties of the City Council of the City of Sacramento, and
to authorize the establishment of free schools in said city,” approved
April 26, 1853.
Whereas, in pursuance of the resolution adopted by the Common
Council, April 17, 1854, the Board of Fund Commissioners and Com-
mittee of Ways and Means did advertise for and receive proposals for
the new loan to cancel the debt heretofore created, falling due and pay-
able in the cities of New-York and Sacramento on the first day of July,
1854, and Messrs. Stanford <fc Brothers being the highest and best
bidders for the loans of $40,000, to pay the indebtedness maturing in
the City of New-York, and Messrs. D. O. Mills & Co. being the highest
and best bidders for the loan of $80,000, to pay the indebtedness
maturing in Sacramento, the Board and Committee aforesaid accept the
bids as aforesaid, which was duly ratified and confirmed by the Mayor
and Common Conncil, as per resolution passed June 22d, 1854 ;
therefore,
Be it ordained by the Mayor and Common Council of the City of
Sacramento :
Section 1. It shall be the duty of the Mayor of this city to receive
the loans of one hundred and twenty thousand dollars, of Messrs. Stan-
ford <k Bros, and D. O. Mills dr Co., to be used exclusively in liquidating
the principal of the city debt maturing in the cities of New-York and
Sacramento, July 1, 1854, and created under the provisions of the ordi-
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260 Debt of Sacramento City. [October,
nance, entitled “ An Ordinance for funding the public debt of the City of
Sacramento,” approved June 12, 1861.
Skc. 2. For the purpose of creating and perfecting said loans “ Funded
Loan” bonds shall be issued, not to exceed the sum of one hundred and
seventy-five thousand dollars, payable to bearer in sums of not less than
five hundred dollars each, bearing interest of twelve per cent per annum,
when payable at the office of the treasurer of this city, or ten per cent
per annum when payable at the office of the agent of this city in the city
of New -York ; the interest payable semi-annually, on the first days of
January and July of each year — and which said bonds shall be due and
payable twenty years from the first day of July A.D. 1854; provided,
however, that the city reserves to itself the right to call in the said bonds
at any time, after giving notice for ninety days in one of the public jour-
nals published in the city where such principal and interest may be made
payable, and at the expiration of such notice, said bonds shall cease to
draw interest.
Sec. 3. Coupons, payable to bearer, and signed by the City Treasurer,
8b all be attached to the bonds so issued, indicating the amount of inter-
est due on each, the time when due, and in what place payable.
Sec. 4. The bonds thus issued shall be properly numbered, and the
coupons shall also be marked with the corresponding number of the bond
to which they are attached ; and the bonds shall be signed by the Mayor,
attested by the Secretary, who shall affix thereto the corporate seal of the
city ; and countersigned by the Treasurer. It shall be the duty of the
Treasurer to make a proper entry and register of the dates, numbers,
amounts, and otherwise a particular description of such bonds, in a book
to be kept for that purpose.
Sec. 5. The Board of Fund Commissioners heretofore elected under
the provisions of the ordinance mentioned in the first section of this ordi-
nance, are empowered to carry out the provisions of this ordinance, so
far as relates to the duties of said commissioners.
Approved June 23d, 1854. R. B. Johnson, Mayor.
The Board of Fund Commissioners for the City of Sacramento was
created by virtue of City Ordinance No. 2, approved June 12, 1851,
entitled u An ordinance providing for the funding of the public debt of
the City of Sacramento,” the seventh and eighth sections of which are as
follows :
Sec. 7. There shall be elected by the Common Council of said city, two proper
persona who shall be residents of said city and qualified voters thereof, who, together
with the Mayor ex-officio of said city, shall bo and aro hereby constituted “ Fund
Commissioners ,” to cany out the provisions of this ordinance. Said “ Fund Com-
missioners” shall receive from the City Treasurer, and hold and properly direct the
payment of such sums of money aa shall be collected from harbor-dues, taxes,
licenses, tinea, penalties, or revenue of any kind whatsoever, in accordance with the
charter and ordinances of said city, and for the benefit of such person or persons as
shall avail themselves of the provisions of this ordinance ; likewise to take and hold,
aa such “Fund Commissioners, ” all deeds or other evidences of ownership or title
or claim to such real estate as may bo purchased on bohalf of tho city aforesaid for
taxes due, or to become due or owing, and to sell or dispose of tho samo in such
manner as may be directed by the Common Council of said city, and to appropriate
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261
Debt of Sacramento City.
the proceeds arising from the same, in any wise for the benefit of such persons
availing themselves of the provisions of this ordinance. The treasurer of said city
shall be ex-officio the secretary of such Board of “Fund Commissioners.1*
Sec. 8. For the payment of the principal and interest of the bonds so issued, there
shall be and is hereby irrevocably set apart and appropriated, the entire revenue of
said city of every kind whatsoever, including the ordinary assessments of taxes,
harbor-dues, licenses, fines, and penalties from the recorder’s court, now author-
ised or which may hereafter be authorized to be collected, except so much of the
aforesaid revenues as may be necessary for the payment of the current expenses of
the City of Sacramento not exceeding one hundred thousand dollars. The reve-
nues hereby set apart for such purposes shall not be construed to embrace such
additional appropriations for a special object as may hereafter be authorized to be
collected by a direct vote of the people ; and the Common Council of said city may,
likewise, in their discretion, from time to time alter or change the rates of harbor
dues, licenses, fines, or penalties, which are or may be authorized by the charter or
ordinances of said city to be collected.
In order to show the ability of the City of Sacramento to liquidate the
indebtedness now existing, the legislature passed an act in May, 1854,
authorizing the city to levy a tax annually of one half of one per cent
upon all taxable property within its limits ; this tax to form a sinking
fund to be set apart for the exclusive liquidation of the bonds.
The present taxable property of Sacramento is, in round numbers,
nearly nine million of dollars. The half-per cent tax will thus create an
annual fund of $45,000 in addition to the ordinary income of the city.
The following is a summary statement of the current revenue and
expenditure of the City of Sacramento for the year 1854, taken from the
message of the mayor of the city dated April 10, 1854 :
REVENUE.
From Taxes, $180,000
44 Licenses, 60,000
41 Harbor-Master, for dues. 24,000
u Recorder’s court, 20,000
44 City Hall property rents, 16,000
41 Steamboats, 30,000
44 School tax, 22,500
$352,500
To which we may add the estimated receipts from Water
Works,.. - 20,000
And half per cent tax on $9,000,000, 45,000
Total receipts for the fiscal year 1854, $411,500
EXPENDITURES.
For Police, $30,000
44 Salaries of city officers, 21,000
41 Levee improvements, 20,000
44 Fire department, 30,000
44 Hospital and sick, ... 3,000
44 Streets, 20,000
44 Contingencies, 35,000
44 Public Schools, 20,000
4 Interest on funded debt, 125,000
Total expenditures for the year, $304,000
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262
Statistics of Russia.
[October,
There are no further public improvements in Sacramento contem-
plated that will require the aid of additional loans on the part of the
city. The mayor, in his message of April, 1854, to the oouncil, says :
“ Most of the expensive improvements necessary to the stability and
permanent prosperity of Sacramento are nearly or quite completed,
through the energy of those who have preceded us. It remains for you,
gentlemen, to preserve the faith of the city inviolate, and to establish her
credit upon a firm and substantial basis.”
The bonds now offered are a portion of the loan authorized, of
$178,000, issued for the payment of bonds falling due 1st of July, 1854,
which have been paid, principal and interest.
D. O. Mills,
One of the ''Fund Commissioners ” of the City of Sacramento.
New-York, August 1, 1854.
STATISTICS OF RUSSIA.
The Journal de la Statistique Universelle publishes the following
table of the successive encroachments of Russia, from the 14tb century
up to the year 1832. It is drawn from communications by MM. Schmitz-
ler, Maltebrun, General Bern, and other statisticians :
GRAND DUCHY OF MOSCOW.
1323. at the accession of T van, (Kaleta,)
1402. at the accession of Y van I..
1 503, at tho death of Yvan IM
1584. at the death of Yvan II.,
1645, at the death of Michel I.,
1689, at the accession of Peter I.f
EMPIRE OF RUSSIA.
1725, at the accession of Catherine I.
1762, at the accession of Catherine II.,
1796, at the death of Catherine II.,
1825, at the death of Alexander I
1831, at the taking of Warsaw,
Extent m
gtofraphi-
Papula-
cal miles.
tion.
4,656
6,290,000
18.474
....
37,137
....
125.465
....
254,361
....
263,900
16,000,000
273,815
20,000,000
319,533
25,000,000
334.850
33.000.000
367,494
56,000,000
369,764
60,000,000
That is to say, that during the last two centuries, Russia ha* doubled her
territory, and during the last 100 years has tripled her population ; her
conquests during 60 years, are equal to all she possessed m Europe before
that period; her conquests from Sweden are greater than wliat remains
of that kingdom ; she has taken from the Tartars an extent equal to
that of Turkey in Europe, with Greece, Italy, and Spain; her conquests
from Turkey in Europe are more in extent than the kingdom of Prussia,
without the Rhenish provinces ; she has taken from Turkey in Asia an
extent of territory equal to all the Bmall states of Germany ; from Persia,
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Statistics of Russia.
263
equal to the whole of England, (U. Kingdom ;) from Poland equal to the
whole Austrian Empire. A division of the population gives
2.000. 000 for the tribes of the Caucasus.
4.000. 000 for the Cossacks, the Georgians, and the Khirgniz.
6.000. 000 for the Turks, the Mongols and the Tartars.
6,000,000 for the Ouralians, the Finlanders, and the Swedes.
20.000. 000 for the Muscovites, (of the Greek Church.)
23.000. 000 for the Poles, (Roman and Greek Church United.)
60.000. 000
The population of undent Poland counts for two fifths of the total popu-
lation over an eighth part of the territory, and the Muscovite population
for one third of the total number over a tenth of the territory ; in other
words, even at the present time the Polish element is in a great majority
as compared to all the others. »
According to the last official documents published in Russia, the gene-
ral total of the home and foreign debt of that empire amounted, on the
1st January, 1853, to 401 millions of silver roubles, (1604 millions of
francs,) namely :
Quota of Russia in the old Dutch Loan, 33,100,000
Second Dutch Loan, 24,049,000
Home debt <1 terme, 110,867,055
Perpetual Home and Foreign Rentes, 223,861,476
Other sundry debts, 9,674,580
401,662,111
Russia has also at her change other obligations, namely :
1. The reimbursement of what are called credit notes, payable on pre-
sentation, circulating without interest, guaranteed by the reserve of pre-
cious metals deposited in the fortress of St Petersburg, and which mhy
be considered as a kind of paper money.
2. The reimbursement of what are called series bills, issued successively
according to the necessities of the Treasury, payable at eight years’- date,
and producing during that interval an interest of 4£ per cent
3. The guarantee given by the government to all establishments, of
public credit, such as the Lombards of Moscow and St Petersburg, the
Loan Banks and Commercial Banks of St Petersburg, Moscow, Riga,
Odessa, Kharkhoff, and other places, a guarantee which establishes a
complete joint responsibility between the credit of thoee establishments
and that of the state.
The service of the debt in perpetual rentes constitutes an insignificant
charge for the Treasury, as the capital of that debt never reaches a higher
sum than 223,000,000 of silver rubles, (892,000,000f ;) but the import-
ance and particularly the nature of other debts appears to create for Rus-
sian finances a certain danger under existing circumstances.
Thus the issue of credit bills amounted, on the 13th January, 1853, to
311 millions of silver roubles, (1244 millions of francs,) the reimburse-
ment of which was guaranteed by a deposit in the fortress of 146 millions
of roubles, (584 millions of francs,) which is a sufficient proportion. In
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Statistics of Russia.
[October,
March, 1854, this metallic reserve was only 116 millions of roubles, (464
millions of francs,) and since that period it must have been reduced ; but
it is difficult to determine the amount of that diminution, as well as the
increase which may have taken place during the last eighteen months in
the circulation of credit bills.
The series bills, a kind of treasury bills, are issued by series of three
millions of silver roubles. On the 1st January, 1853, there were 19
series of them in circulation, or 57 millions of roubles, (228 millions of
francs.) Since that date there have been issued eight fresh series, which,
added to the previous ones, makes a total sum of 81 millions of roubles,
(324 millions of francs,) under the form of bills reimbursable at fixed
dates. The issue of these bills takes place by public ukases, whilst that
of the credit bills increases or diminishes without its being made known
by official notification.
The most perilous eventuality results, without contradiction, from the
guarantee given to the establishments of public credit. These important
and numerous concerns, which are carried on under the surveillance of
the State, receive deposits, the reimbursement of which may be demanded
within a short delay. The amount of these deposits was, on the 1st of
January, 1854, 806 millions of silver roubles, (3224 millions of francs.)
The danger of this state of things arises not only from the mass of capital
which may be called for, but in consequence of a great part of this capital
being, as it were, locked up in investments made under the form of loans
on landed property, reimbursable by annuities. The Lombards, the
mechanism of which has been at work for the last 125 years in Russia,
and takes the place of the Mont de Pi6t6 Savings Banks and Credit
Fonder, have thus lent 463 millions of silver roubles, (1872 millions of
francs,) by way of mortgage on 5,200,000 heads of peasants and on a
certain number of houses.
In order to sum up the financial situation, as far as regards the three
categories of obligations in question, we will mention — 1st. That on the
1st of January, last year, the credit bills in circulation amounted to 311
miUiops of silver roubles, (1244 millions of francs,) guaranteed by a
metallic reserve of 146 millions of silver roubles, (584 millions of francs.)
2. That the series bills formed at the same date a total of 57 millions of
silver roubles, (228 millions of francs.) 3. That the deposits confided to
the different establishments of public credit constituted an ensemble of
806 millions of roubles, (3224 millions of franca,) the reimbursement of
which may be demanded at any period.
On the other hand, the budget of receipts is estimated in Russia at
200 millions of roubles, (800 millions of francs,) the half of which is
furnished by the customs duties and the monoply of the brandy manu-
facture.
On the most moderate calculation, the deficit in these two branches
of the revenue, caused by existing circumstances, will amount to 50 mil-
lions of roubles. It is, therefore, with a revenue reduced to 1 50 millions
of roubles, (600 millions of francs,) that the Russian treasury is compelled
to meet its expenses, necessarily increased by the state of war. Com-
merce, agriculture, and manufactures, are now suffering in Russia, as well
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Statistics of Russia.
265
from the difficulty of exporting, both by sea and land, as from the refusal
of foreign merchants to grant the facilities for payment which they have
hitherto given. This must have for effect to multiply the calls on the pub-
lic establishments for the reimbursement of deposits. If the credit of the
state and of those establishments has not yet been directly attacked, it is
only a question of time. The day on which the state shall cease to
exchange its paper against the precious metals will be the signal for a
tremendous crisis ; and if the war should be prolonged, this is a fact
which must inevitably take place. — [London Banker f Circular.']
A French journal publishes an interesting article on the financial situ-
ation of Russia. The following are the most salient points of it :
At the news of the declaration of war by France and England, the
exchange on Paris fell at St. Petersburg from 890 to 308 — that is to say,
the rouble, which at its ordinary rate was worth 4f, was no longer worth
more than 3f 8c. It was in order to ward off the danger which would
result from such a state of things, that the Russian government prohibited
the export of gold; but this measure took from commerce the only
means of mitigating the injury to which it was exposed by the loss in
the exchange, and trade was thus thrown into complete confusion.
This disturbance is the greater, inasmuch as in Russia the banks do
not in any way resemble analogous institutions, which we see in ope-
ration with us. The Russian government, in fact, being inspired, doubt-
less without being aware of it, with the most exaggerated principles of
communism, has not confined itself to facilitating the creation of free
industry. It has wished to substitute itself in its place for the institution
of private credit ; it has made it its own ; and it may be said that in the
interior its principal resources arise from the double monopoly which it
has attributed to itself, and which consists, 1st, in manufacturing and
issuing for its profit the financial money which independent banks issue
in other countries ; 2d, in founding and working, also for its own benefit,
all the great commercial, industrial, and financial credit establishments.
It results from this that all the fortune of the country is in the hands
of the state, and that on the day when the state is embarrassed, the
country is ruined, and then, by a natural consequence, private catas-
trophes re&ct in a frightful manner on the public finances.
The last report made to the Czar by the Minister of Finance states that
on the 1st of January, 1853, the sums confided by private individuals to
the credit establishments of the empire, exceeded the sum of three mil-
liards, divided as follows:
To the Loan Bank,
To the two Lombards of St Petersburg and Moscow, ....
To the Commercial Bank,
To the charitable establishments, .'
Total of deposits, 3,221,598,420f
These accounts concern Russia alone. Poland has its special estab-
lishment, (the Bank of Warsaw,) the deposits in which amounted, accord-
ing to the last return, to 138,000,000^ which, added to the above-men-
tioned amount, form a total of three millards, 860,000,000f, payable on
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1,663, 373, 916f
760,680,696f
276,889, 968f
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266
Statistics of Rtusia.
[October,
the demand of the depositors, within a delay which, according to the
importance of the sums, varies from eight days to three months.
The Russian government, if kept for any time in check, will be very
shortly placed in the alternative either of becoming bankrupt or of bear*
ing the weight of all the individual disasters which its policy shall have
provoked. And let it be well remarked that the question is not of a
temporary embarrassment for Russia ; the question is of a war unpre-
cedented for her with two great mantime powers— of a war which, from
the commencement, obliges her to keep up from seven to eight corps
d'armee, at 300 or 400 leagues’ distance from each other, and to make an
extraordinary levy of 600,000 men, all serfs who have become free with-
out any indemnity to their lords — of a war, in short, which deprives those
same lords, the proprietors of the soil, not only of their instruments of
labor, but of the produoe of their work, in oorn, flax, hemp, wool, tallow,
timber, metals, etc.
The serf is estimated at an average value of lOOOf. The levy of
500,000 serfs for the war is therefore equivalent to a tax of 500,000,000f
laid on landed capital. The serf must, moreover, be completely equipped
by his lord. Calculate the cost of this equipment at only 200f each, and
you have a further tax of 100,000,000f.
The returns of the customs for 1842 state that the exports of Rassia
by the Baltic and the Black Sea amounted to more than 325,000,000t
The presence of the combined fleets in these seas, therefore, without
striking a blow, inflicts a loss on the fortune of Russia of 325,000,000f.
What a want of money will be, therefore, caused by such a state of
things in every family ; what perturbations in every interest, and what a
perspective for the imperial establishments in which are concentrated, in
the shape of deposits payable on demand, the greater part of the savings
of the country !
The imperial establishments of credit, which are in Russia public
ones, since the Czar may not only say, with Louis Quatorze, “ Htat ieti
mot,” but also “ la banque c'est mot,” are, at this moment, under the
weight of a demand for reimbursement of three milliards, (358,000,000f,)
which no longer exist, since the state has applied them either to its per-
sonal wants, or to unproductive expenses, or on mortgage loans, repay-
able at long dates.
All transactions are thus deranged, and all fortunes compromised, by
the fact of the immense reduction of the rate of exchange on Paris, which
causes the rouble to lose a fourth of its value, and by the prohibition of
the export of gold.
Landed property has to pay a tax of 6,000,000f, in consequence of
the extraordinary levy of 500,000 serfs, whom their enrolment raises to
the dignity of freemen, as much as men can be free in such a country.
The occupation of the Baltic and of the Black Sea by the combined
fleets deprives Russia of 825,000,000 francs, being the amount of her
exports by these two seas during the year 1852. A sole resource conse-
quently remains to Russia in order to avoid bankruptcy, and that is the
system of assignats, one being about equal to the other. According to
the last statement of the minister of fibance, a statement from which all
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Statistic* of Russia.
267
these figures are borrowed, there existed already on January 1, 1863,
1,245,000,000 of notes of credit in circulation, divided into sums of 100,
50, 25, 10, 5, 3, and even 1 rouble. Since then, the ukase of the 28th
of December has ordered an emission of 200,000,000 francs, which
carries the circulation of such notes, without reckoning what may have
been issued during 1853, to 1,469,000,000 francs.
But these notes are not the only paper money of Russia. The treasury
likewise issued notes in series of 200f each, not payable in specie, but
bearing interest at 18 kopecks per month, and they are generally pre-
ferred to notes of credit. Well, then, on the 1st of January, 1853, there
existed in circulation 240,000,000 of these notes in series. A ukase of
the 30th of January last has authorized the creation of six new series
representing 72,000,000f, or in all 312,000,000f ; which sum, joined to
the 1,469,000,000 of notes of credit, gives a total of l,784,000,000f in
paper money. Never certainly at any time had that figure been attained,
and according to the declaration of the most experienced Russians, not
only can it not be exceeded, but it cannot be maintained without a cer-
tain depreciation. And it is that which will inevitably arrive, if only the
present situation be prolonged, as soon as smuggling shall have lessened
the circulation of gold, the presence of which is indispensable in Russia,
even in time of peace and prosperity, to preserve to her paper money its
nominal value.
If any one considers the contrast which exists, in a financial and econo-
mical point of view, between the government of St. Petersburg and those
of France and England, the difference is a marked one. How light in
comparison is the charge which would weigh on these latter in case the
war should continue 1 In Russia all the productive resources have been
paralyzed, whereas they have remained intact with the Czar’s adversaries.
The capital absorbed in the struggle will be reproduced, and more than
reproduced by the incessant activity of business in France and England.
Here the ploughs turn up the soil as usual, while in Russia they remain
inactive. Raw materials arrive from abroad to our manufactories and
feed the public treasury ; goods are exported with the same facility ;
institutions of credit are in mil operation ; railways are being completed ;
all the works of public utility follow their course without impediment ; it
depends even on the confidence of capitalists and on the initiative of the
fmblic authorities both in London and at Paris to give them a more
ively impulse ; whereas, in Russia, neither the government, absolute as
it is, nor public confidence, nor the fanaticism of the population, can
diminish the absolute ruin of all men’s fortunes or ward off the crisis.
Does not this contrast suffice to show under a new light the excellence
and strength of the position which the western powers have assumed f
The Czar has been caught in his own snare. Let us then persevere*;
and, independently of the military glory which we ought to be eager to
pursue, after having been so long deprived of it, perseverance alone will
insure to us considerable advantages over the common enemy. He who
pretended at the commencement to wear out our patience by his diplo-
matic combinations, will before long feel the full weight of so unequal
a struggle.
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Operations of the Bank of England.
[October,
0?" NATIONS OF THE BANK OF ENGLAND
FOR THE YEAK8 1845-1854.
From the London Bankers' Circidar, July 22, 1854.
We briefly referred last week to a parliamentary paper lately published
on the discounts of the Bank of England. We shall now lay before
our readers an analysis of this document, because it contains some facts
that illustrate very clearly the influence which the rates charged for these
discounts has upon the commerce of the country. The date of the return
commences in January, 1848, the year subsequent to the monetary panic
of 1847, or rather it may be considered the winding up of the panic
itself, as far as the rate of interest is concerned. In 1848, as may be
expected, the total amount of discounts after the panic, and during a year
of continental revolutions, would be necessarily of a limited character.
The total amount for the year was £8,513,026. The rates at which they
were charged ranged from 3 to 6 per cent, as follows, to which we have
added the bank profits thereon in each year.
Discounts in 1845.
t 3 per cent,
3J 44
£
589,888
At 4J per cent,
£
1,745,925
5 “
713,189
3| 44
1,289,121
6* “
200,533
3 j 44
663,017
5| 44
250,251
4 41
2,185,458
6 44
27,099
4£ 44
737,959
Total,
Bank Profits, £349,167
During the first five months of the above year no amounts were dis-
counted under 4 to 5 per cent. .
In 1849, the discounts were reduced to about half the amount of the
preceding year, or to £4,519,348, at the following rates varying from 2£
to 5 per cent.
Discounts in 1849.
At 4 per cent, 91,555
4± “ 1,196
4* “ 442,108
5 “ 104,810
At 2| per cent, 361,770
2$ " 112,101
3 “ 2,462,431
3J “ 547,414
3i “ 295,963
Total, 4,619,348
Bank Profits, £147,489
In 1850, the total amount was £7,723,479, at rates varying from 2£
to 5 per cent, as follows :
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Operations of the Bank of England.
269
Discounts in 1850.
£
At 2| per cent, 5,656,535 At 3 4 per cent, 42,076
2} “ 955,874 4 “ 12,879
3 “ 955,457 5 “ 60,000
3i “ 40,658 -
Total, 7,723,479
Bank profits, £202,670
In 1851, the total amount was £15,295,325, at rates varying from 3
to 4 per cent, as follows :
Discounts in 1851.
£
At 3 per cent, 13,308,128 At 3} per cent, 7,420
3± “ 1,221,072 4 44 171,647
3| 44 587,0^8
Total, 15,295,325
Bank profits, £466,617
In 1852, the total amount fell to £8,249,750, and the rates of discount
varied from 2 per cent to 34> for the following sums :
Discounts in 1852.
£
At 2 per cent, 5,315,583 At 2J per cent, .
2± 44 479,571 3 44
2* 44 2,041,024 3* 44
£
272,592
139,586
1,394
Total, 8,249,750
Bank profits, £179,857
In 1853, the total discounts amounted to the extraordinary sum of
£25,182,547, at rate's varying from 2 to 6 per cent, as follows:
Discounts in 1853.
£
At 2 per cent, 116,846 At 4 per cent,
24 44 2,389 4± 44
24 44 1,537,573 4* 44
24 44 20,277 4* 44
3 44 849,267 5 ± 44
3* 44 294,279 5* 44
3* 44 4,099,500 6 44
3f 44 140.827 6 44
£
2,343,931
44,562
1,264,908
84,225
6,391,533
296,345
110,018
6,077
Total,
Bank profits,
25,182,547
£956,614
The above amount of discounts demands very particular notice. It
appears from the return, that of the amount discounted at 3 per cent,
nearly the whole was effected from January to May ; after that period
the minimum rate of the bank was advanced to 34- per cent. During July
and August, upward of £4,000,000 were discounted. In September, the
bank again raised the minimum rate to 4 and 44 per cent, when
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Operations of the Bank of England. [October,
£2,234,348 were discounted at the former rate, and £1,260,603 at the
latter rate. During the next three months, £6,301,533 were discounted
at 5 per cent
During the first five months of 1854, the total amount discounted was
£9,568,745, at the following rates :
Discounts in 1854, five months ending 31st May.
£ £
At 6 percent, 7,347,389 At 5} per cent, 42,897
6J “ 281,518 6 “ 11,713
“ 1,885,118
Total, 9,568,745
Bank profits, £489,002
The summary of the bank profits comprised in the above returns will
stands as below :
Bane Profits.
£ £
1848, 347,702 1852, 179,857
1849, 147,489 1853, 956,614
1850, 202,670 1854, Five months, 489,002
1861, 460,617
Total, 2,791,951
The amount advanced on Exchequer bills, bills of exchange, India
bonds, etc., during the same period was as under :
Advances.
£ £
1848, 2,900,599 1852, 6,805,713
1849, 6,197,449 1853, 11,430,900
1850, 12,750,779 1854, to April 6th, 1,756,300
1851, 9,880,365
Total, 51,722,105
The remaining part of the return relates to the rates of interest
charged on loans or discounts, and the sale and purchase of gold and
silver, which have already been given in our pages.
Iron in England. — It Is a feature of the news by the Africa which we hail with
great satisfaction, that Iron has experienced a considerable advance, and manufac-
turers have orders months ahead of their ability to supply. The effect of the
advance will more than compensate for the decline in breadstuff's announced by the
same arrival.
War or no war, England will tako our breadstuff's of the present and growing
crop. We are sure of a market there. It is a distinct good, that the state and
value of labor in England shall so keep up the value of iron on our side, that our iron
interests will bo kept active and flourishing, and our iron workers ftxlly and profit-
ably employed. With merchant bars at £8 Is. on tho other side, we need not
anathematize tho tariff of 1846, which, but for the accident of high prices in Eng-
land, would crush us pitifhlly, with all the elements of ease, prosperity, and j lenty
abounding in our midst But for the good we have, let us be grateffil.
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Legal Miscellany.
271
•'
LEGAL MISCELLANY.
Vk
I. Before Judges Starkweather andFoOtR, of %cS
Common Pleas, of Ohio.
KnA . p N^ociAt^t
Notice of Protest.
Morrison <fc Morrison against Bailet & Burgess. — This suit was
against Bailey, as drawer, and Burgess, as payee and indorser, of the
following paper:
. Cleveland, June 30, 1843.
Wicks, Otis <t Browell,
Pag to L. F. Burgess , or order, on the 13 th day of July , 1853, Three
Hundred Dollars. •
(Signed,) R. B. Bailey.
Indorsed by Burgess.
Demand and notice were made on the 16th of July, instead of the
13th, the holders treating it as an inland draft or bill of exchange, and
allowing the three days of grace.
It was set up in defence, in behalf of the indorser, that the paper in
question was a bank check, and not a draft, and therefore not entitled to
days of grace, and that demand and notice should have been made on
the 13th instead of the 16th.
On the trial before Judge Starkweather, testimony was received, sub-
ject to exception, to show that Wicks, Otis <fc Brownell were bankers,
and that it was the custom of banks and bankers in Cleveland to pay
and present paper of this kind on the day named, without grace.
Nearly all the cashiers of the banks, and most of the bankers testified
to this usage. W. H. Stanley, however, and T. C. Severance, testified to
occasional exceptions, and George Mygatt, of the banking-house of
Mygatt & BrowD, testified to his uniform habit of treating such paper as
entitled to grace.
The paper appeared to have been filled up on a blank form of a check
on the Bank of Commerce.
Willey & Carey, on arguments for plaintiffs, cited Ohio Laws, 588, to
show that days of grace were allowed in this State to bills of exchange,
by positive statute, as confirmatory of the general law pertaining to com-
mercial paper ; and in support of the positions that the paper in question
was an inland bill and not a bank check, referred to the definitions and
distinguishing qualities of each species of paper, as laid down in Chitty
on Bills, 1-511; Byles on Bills, 1-71; Bayley, 1; Story on Prom.
Notes, sec. 487 ; and other elementary authors.
They also cited New-York decisions, in Wendell’s Reports, as confirmed
in 6th Hill, 174, and a case not yet in print, lately decided by the Court
of Appeals, N. Y., of Bowen against Newell, which cases hold that evi-
dence of local custom is inadmissible to control the established character
and incidents of commercial paper, and that a draft on a bank, payable
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Legal Miscellany.
[October,
at a future day named, is entitled to grace, and cannot by any evidence
of usage of tre&tiog it as a check, payable on demand, or on the day
named, be deprived of grace, so as to affect the rights of a holder against
indorsers.
S. B. & F. J. Prentiss for defendants, cited authorities on the subject
of usage, and (2 Story, Circuit Re.) as followed by Story on Promissory
Notes to the point that such a paper, owing to the supposed general
custom of banks of paying it without grace, was not entitled to it.
Judge Starkweather, delivering the opinion of the court, after review-
ing the case and authorities.
Htldy 1st That the only question to be determined was, whether the
instrument in question was a bill of exchange or a bank check eo nomine.
If a bill of exchange, then it was entitled to grace, not only by the
general rule governing commercial paper, but by positive statute enact-
ment, which no evidence of local usage could be permitted to control.
2d. That even if local usage could be admitted, it was shown in this
case that there was no uniform usage with the banks of Cleveland upon
the subject
3d. That whether the paper in suit was an inland draft or a bank
check, sui generis , was to be determined by inspection of the instrument
itself, applying to it those tests which commercial law has established for
distinguishing the one class of paper from the other.
4th. That on examination of the paper itself, it appeared to lack some
of the ordinary qualities of a bank check, being payable to order instead
of to bearer, and at a future time, instead of immediately or on demand,
whereas it was found to possess all the requisites, and to answer precisely
to the definition, of a bill of exchange, as recognized in the boolm, and
by the commercial world, and must therefore be declared to be a draft,
and entitled to grace under the statute.
Judgment for plaintiffs.
II. Before the Superior Court of Ohio, June, 1854.
Agency.
Administrator of Easton against Ellis <fe Morton. — In the Su-
perior Court, before Judge Gholson, an interesting case, involving the
authority of an agent to act for a principal' after the death of the latter,
was argued and decided. It was an action to recover money deposited
by the plaintiff’s intestate, (B. G. Easton,) and remaining on deposit at
the time of his death. The affairs of the Easton property have been
made quite public by a lecture delivered at Smith A Nixon’s Hall last
winter, by Mrs. Martin, (widow of B. G. Easton,) in which that lady
detailed at some length, “ the manner in which the estate of her former
husband had been plundered by agents and attorneys.” In this instance,
however, the lady has gained her point, though the right as the court
remarked, was on the other side.
B. G. Easton died June 10th, 1849, leaving a bank account of over
$1000 with the defendants. On the 11th of June, E. Easton presented
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checks for $800, signed “ E. Easton for B. G. Easton,” which were paid.
An order purporting to be signed by B. G. Easton, was produced, which
authorized E. Easton to draw money on account of B. G. Easton, and
authorizing the defendants to deal with him as agent of B. G. Easton.
The defendants plead payment under this authority, in bar of a reco-
very ; to which the plaintiff replies that the order was a forgery, and, if
not, that it was vacated by the death of the principal, B. G. Easton, and
that E. Easton, as an agent under it, could do no act to bind the
plaintiff.
The case was heard on submission, and upon the question of fact, the
court found from the testimony of the paper purporting to create an
agency in E. Easton, to manage the account at Ellis A Morton’s was not
a forgery, but was genuine.
Upon the question of an agent’s authority to act after the death of his
principal, the court reviewed the authorities at length, and held that the
rule of the common law was inflexible, that the death of the principal
revoked the authority of the agent, and that this rule was not affected
by the want of notice or knowledge on the part of the agent, or parties
with whom he dealt, of the death of the principal.
The equitable doctrine of the civil law, that acts done bona fide by the
agent after the death of his principal, without notice, were valid and
binding, bad not been adopted into the common law, although it was
established by express statutes in some of the States.
This rule was, however, subject to a single exception only. Where a
power was coupled with an interest, the power survived the death of the
principal. But this interest, to protect the power, must be an interest in
the thing itself, and not an interest in the proceeds or products merely.
In this case the money itself was the subject matter of the power, in
which the agent had no interest, although the use of it might have been
beneficial to him.
The case made out so far did not come within the exception to the
rule. The court had no doubt of the defendants’ ignorance of the death
of B. G. Easton, and the case might be one of hardship to them ; but an
inflexible rule of law could not be modified to suit the emergencies of a
single case. Judgment would therefore be entered for the amount
claimed with interest.
III. The Bank of St. Mary’s, Montgomery, Ala, July 10.
Bank-note $ — Insolvency.
The Supreme Court of Alabama has just affirmed the decree of the
Chancery Court of Mobile, in the case of St. John, Powers A Co., against
the Bank of St Mary’s, John G. Winter, et als., and in affirming it,
decided that John G. A Joseph Winter are liable individually for the full
amount of the notes of the Bank which they issued and put in circulation
in Alabama; that the firm of James S. Winter A Co. is equally liable;
and the extension by the Bank, on the eve of its insolvency, of the indebt-
edness of James S. Winter to it was a fraud on its creditors.
18
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The decree of the chancellor in Mobile established the claim of St.
John, Powers & Co. against the Winters and the Bank of St. Mary's for
$20,000, the amount of a draft drawn by the Bank in favor of St. John,
Powers <fc Co., and ordered that John G. Winter, James S. Winter &
Co. and the Bank should pay the same.
IV. Before the Supreme Judicial Court or Massachusetts, March
Term, 1854.
Promissory Notes.
Aaron W. Rockwood against Joseph B. Brown. — This was an
action on an attested promissory note dated Oct. 22, 1844. The writ
was dated Feb. 6, 1852, and the action being brought for the benefit of
a purchaser of the note, although in the name of the original payee, the
defendant contended that it was barred by the Statute of Limitations,
Rev. St. c. 120, § 1, and not within the exceptions of section 4, which
provides that “None of the foregoing provisions shall apply to any action
Drought upon a promissory note which is signed in the presence of an
attesting witness, provided the action be brought by the original payee or
by his executor or administrator ,” and that there was no assent by the
payee to an action in his name. The action was brought in the name
of the payee, without any authority from him except that implied by the
sale of the note, and without any knowledge on his part that it was to
be 60 brought, and on learning that it had been, he demanded of the
purchaser a bond of indemnity, which was given and accepted.
The opinion of the court was delivered by Merrick, J. It is objected
that there was no assent by the payee to an action in his name ; but the
sale alone of the note, for a valid consideration, authorized the use of his
name for the recovery of its contents. Such sale and delivery author-
izes the assignee to sue in the name of the assignor. Jones against
Witter, 13 Mass. 304. Beside this implied authority, the payee clearly
assented to the bringing of the action in his name, by demanding and
accepting the bond of indemnity.
It was further objected, that no action would lie after six years,
although the note is attested, because in the true construction of the
statute the saving clause only applied to an action in the name of the
payee for his own benefit. This point has been so often determined that
it is only necessary to affirm the former decisions upon it. Hodges
against Holland, 19 Pick. 43. It was said that this was a decision upon
the statute in force prior to the enactment of the Revised Statutes, and is
not applicable to them. But the Bame point has been since decided in
Sigourney against Severy, 4 Cush. 176, where the court said they saw
no difference in the phraseology of the statute of 1786 and the Revised
Statutes.
Exceptions overruled.
SL D. Parker for the plaintiff, Wm. Rogers for defendant.
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V. Before the Court of Common Pleas at Cincinnati.
The Law of Set-off.
Wm. B. Lacet against W. W. Cones <fc Co. — The defendants were
and still are bankers in Cincinnati. Butler <fe Brother, wholesale mer-
chants in said city, were depositors with defendants, with whom they had
$525.56 on the 24th of February last, previous to which Butler &
Brother, upon their indorsement, procured to be discounted by the
defendants a promissory note dated Nov. 21st, 1853, for $366.50, made
by W. B. Shattuck, and made payable to the order of Butler & Brother,
four months after date. On the 24th of February, one month before
said note became due, B. is B. made a general assignment of all their
effects to the plaintiff in trust for the use of the creditors, and on the 28th
following, they drew and delivered to the plaintiff, as assignee, their check
upon the defendants for $525.56, the same being the amount of their
deposit with them at that time.
This check was duly presented by the plaintiff to the defendants, and
payment demanded, which was refused, whereupon this suit was instituted
on the 11th of March.
In answer to the plaintiff’s petition, the defendants admit the $525.56
on deposit, but claim the right to set off in this action, said note of
$366.50, upon the ground : 1st. That a party has the right to set off his
individual claim, even before due, against the claim of an insolvent. 2d.
That the discount of said note was procured by fraud in the concealment
of material facts known to Butler <fe Brother at that time. 3d. That
under the code, it is legal and proper that the note in question should be
received as a set-off to the plaintiff’s demand.
To this answer the plaintiff demurs, as being insufficient to establish a
right of set-off.
By the court :
The right of set-off is purely statutory, being unknown to the common
law; hence for any thing beyond a general rule in this case we must be
governed by the statute of our own State and the decisions passed
thereon.
The first proposition of the defendant is founded upon the English
statute (6 Geo. 2d) and to our mind finds no analogy in the decisions of
this State. So far as the authorities go they assert a contrary doctrine,
as in the case of Granger, Administrator against Granger, 6th Ohio 35,
where it was held that in a suit by an administrator, the defendant can-
not set off money paid by him since the death of the intestate on liabili-
ties incurred as security for him during his lifetime. So also in Mc-
Donald against Blacks, Administrator, 20 Ohio, 185, it was held that
the defendant could not set off a debt due him from the intestate before
his decease in an action by his administrator, for a portion of the assets.
These authorities though not directly in point, are deemed sufficiently
analogous to settle the principle in its application to the present case.
Even the authorities relied upon by the defendants do not generally bub*
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tain the extent of their proposition. The case of Biglow, Administrator
against Tolgar, 2d Metcalfe, 255, is in conflict with the decisions in
Ohio above cited, and can leave no weight in this State.
The second proposition of the defendant presents a question more
difficult to determine, in that said Butler & Brother are charged with
concealing such material facts from the defendants in relation to the
solvency of the maker and indorsers of said note, as to amount to a
fraud upon them, and therefore, that defendants’ claim upon Butler &
Brother did not depend upon the rule of indorsers in ordinary cases, but
existed from the day of discount and was due at the time of said discount,
in consequence of which it can now be set oft'. Sections 330 and 331 of
the code make provision for the collection of a fraudulently-contracted
debt before due, but we do not understand from this that where a party
neglects to avail himself of this law before such debt becomes due, he can
claim any benefit from it afterward.
Again, it is not contended that any degree of fraud extends to the
maker of this note, so that no proceeding could, in any event, have been
had against him until after its maturity, and the defendant having failed
to proceed against the indorsers under the code before due, their liability
being contingent did not attach until after demand upon the maker and
notice to them of his refusal to pay. Neither can the second proposition
be sustained by any rule of equity, for courts of equity almost uniformly
follow the statute in determining the right of set-off.
The third and last proposition of the defendant is founded upon the
f revision of the code regulating set-off. By the statute of 2d George
I. upon this subjects, debts in order to be set-off “ muBt be mutual and
due in the same right between the plaintiff and defendant,” and so far as
we are able to say, this principle has always prevailed in our laws. In
Ohio, before the adoption of the code, a chose in action acquired by the
defendant after suit brought, could not be set off against the plaintiff,
nor do we understand that the code has changed this rule. Nearly all
the authorities concur in this, that there must be a present subsisting
right in the hands of the defendant against the plaintiff at the time suit
is brought ; it must be a debt due inpresenti. This is the rule in Beck-
with against Union Bank, 4 Sandford, s. c. 605. Wolf against Wash-
bum, 6 Cowen, 26. John against Pearson, 7 Dana, 374.
In the latter case it was held that if a party take a note for a set-off
due at a future day, the right of set-off is suspended, and if while so sus-
pended a cross demand be assigned, the set-off cannot be revived.
The object of the 26th section of the code evidently is to prevent a
party from cutting out a set-off by transferring a chose in action to a
third party.
Sections 97 and 99 do not change the general rule of long standing
upon this subject, and if we apply the rule of the code to the present case,
it becomes evident that at the time the assignment of Butler & Brother
was made, the defendants had no right of action against them which
could have been set off in an action again by B. & B. for the amount of
their deposit; neither could B. <fe B. have set off said deposit in an action
by the defendants against them at the maturity of the note, under the
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99th section of the code, they having previously assigned the same to the
plaintiff.
A banker acquires no lien upon the money of a depositor, not even for
discounting his paper. The notes or bills discounted are the banker's sole
security and is of a personal character.
In the present case, Butler & Brother had full right to draw their
deposit out of defendants’ hands at any time previous to the maturity of
said note, and by their assignment this right was transferred to the plain-
tiff, together with all the property and interest of B. & B. therein.
In Howe et al ., against Sheppard, ?d Sumner, 439, an authority
relied upon by defendants, the court said, “ Where there are mutual
debts which may be set off in law or equity, I take it to be clear that
the right of set-off is extinguished by a bona-fide assignment of one of
the debts.”
In Demmon against Roylston Bank, 5 Cushing, 194, the case being
similar to the present one, the court held that a debt in order to be set off
against an insolvent must exist absolutely , which is not the case here.
In Johns against Johns, 6 Ohio, 271, it was held that the assignment
of an insolvent debtor vests the legal title in all property assigned, in the
commissioner of insolvents, and he alone can maintain a suit on the
cboses in action of the insolvent.
Although before the adoption of the code, the assignee of a bank check
would have been compelled to sue in the name of drawer, we do not see
that this case is any wise affected by the change of rule in this respect,
inasmuch as the 26th section of the code saves all the rights of a party
in case of assignment of a chose in action.
In view of the law and the facts in this case, we feel constrained to
sustain the demurrer.
Mills & Hoadly appeared for plaintiffs ; Collins & Heron for defendants.
VI. Court of Common Pleas — Special Term, City of New-York,
Before Judge Woodruff.
Redemption of Bank-bills.
Louis D. Touseley against Selah Van Duser and William A. Van
Duser.— On a motion for a new trial. The action was originally brought
for false imprisonment and an assault and battery. In November, 1851,
plaintiff called at the New-York Exchange Bank, to see whether the
Franklin, Empire State, and Hartford Bank bills were redeemed there;
and this being the case, he presented a bundle of notes (between seven
and eight hundred dollars) of said banks, indiscriminately mixed
together. The clerk of the bank requested him to sort them ; but the
plaintiff insisted on their being redeemed as they were, which the clerk
refused to do. Plaintiff then offered $6 in notes, but the clerk answered
that to redeem them uote by note would occupy too much of his time.
However, plaintiff got some of his money redeemed, went awav ; but
coming back again the same day, an altercation arose between the par-
ties. On being desired to leave the bank, and on refusing to do so,
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defendants (employes in the bank) caused his arrest. The plaintiff then
brought his action and the jury rendered a verdict of $500. The follow-
ing opinion of Judge Woodruff was on a motion for a new trial :
Woodruff, J. I have reconsidered the rulings made herein, and per-
ceive no sufficient reason to change the opinions expressed on the trial.
Although the questions raised by the defendants’ exceptions are numer-
ous, the two points upon which reliance is chiefly placed appear to be :
first, that it was erroneous to admit evidence that the plaintiff was sick
when he left the prison and so continued for some time. And secondly,
that the Judge erred in refusing to charge that if the conduct of the
plaintiff was 6uch as tended to * a breach of the peace, the defendants
were justified in directing his arrest. 1. As to the evidence claimed to
have been improper, I think there was no error. If the plaintiff was
entitled to recover at all it was upon the ground that by the wrongful
act of these defendants he had been arrested and confined in prison for
several days, and the immediate and direct consequences of that imprison-
ment were fitting matters of consideration when the jury came to deter-
mine the amount of damages. It is true that the evidence is confined to
the fact of illness immediately ensuing the imprisonment. I was inclined
at first to think the evidence improper unless followed by the testimony
of a physician, who should testify that the imprisonment caused the
illness; but, upon reflection, I think that, though not a very satisfactory
mode of obtaining the ends of justice, since the jury in such case were in
some degree left to speculate or conjecture, it was yet competent to leave
all the facts in their hands. Although, in reference to this evidence, as
also in regard to the case upon the whole of the evidence, there is some
reason to believe that the jury were not wholly free from bias ; and
although it appeared to me at the time the verdict was rendered that
they were giving a premium to conduct which deserved their severe
reprehension; yet I am of opinion that the evidence laid before them1
was legal evidence, and if so, it presented a case in which it was pecu-
liarly their province to determine its weight and influence upon their
verdict, and where the conflict of testimony was not slight, and the cir-
cumstances to be taken into view as the subject of inference were various
and minute, I think I ought not to set aside the verdict even if I thought
I should have found differently myself. 2. In regard to the second point
above named, I am not satisfied that there was any error. A police
officer is justified in making an arrest if a breach of the peace is com-
mitted in his view, and so the jury were instructed, and a very liberal
explanation, as it appears to me, was given to them of what constituted
a breach of the peace. Indeed, it seemed to me then, and does now,
that the jury would have been warranted, under the instructions given,
in finding an actual breach of the peace by the plaintiff, and so have
justified the defendants, but the jury thought otherwise. I must then
assume, in accordance with the verdict, that the plaintiff did not, in
fact, commit a breach of the peace; and counsel, although they insist
that the preventive power of an officer goes so far that he may arrest
when he has reason to apprehend a breach of the peace, no case nor
commentary is cited as authority in support of the claim. That an
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officer may restrain the commission of a felony, or any act dangerous to
life, limb, or person, and may interfere in an actual affray, or to prevent
fighting, and remain long enough to stay the parties, is undoubtedly
true. But that because he judges the conduct of a party, (not itself con-
stituting a breach of the peace,) to tend to a breach of the peace, he
may arrest and take to prison, I apprehend cannot be sustained. Our
statute, which does provide for such a case, requires that a warrant shall
issue; and, as I thought upon the trial, so I now think, that no arrest can
lawfully be had for this cause without the warrant which the statute
prescribes. I am constrained to deny the motion for a new trial with
costs.
LABOR AND CAPITAL.
Selections from the Edinburgh Review, July, 1854.
[Th* following quotations are from an able article “ On the Relations between Labor
ana Capital. Bv C. Morrison,” in the Edinburgh Review for July, 1854. Those who
wish to pursue tne inquiry still further, will find the whole article worth a perusal. —
Ed. B. M.]
I. Jealousy of Capital. II. Poverty vereus Wealth. III. Capital and
Savings. IV. Annual Savings of the Laboring Classes. V. Sav-
ings Banks — their Utility. VI. Community of Property. VII.
Redress far the Evils of Poverty. VIII. Waste of Capital. IX.
Instruction of the Working Classes. X. The Future.
Jealousy of Capital. — There is and has long been a deep-rooted and
wide-spread dissatisfaction among the operative classes with the actual
state of the relation between themselves and their employers — sometimes
with the relation itself — more commonly with one feature of that relation,
namely, the portion assigned to themselves in the division of the profits
of production. They believe that, in the distribution of that wealth
which their labor and the capital of their masters combine to create, they
receive an unfair and insufficient share. The opinion is natural, bean a
primdfacie appearance of probability, and has been sedulously inculcated
at various times by three distinct sets of misleaders — their own chiefs, who
either share in their delusions, or seek to make pecuniary profit by foster-
ing them ; public men, who do not scruple to make “ political capital’1
out of popular discontents; and benevolent men, with hearts full of
tender sympathy for social suffering, and heads full of wild schemes for
its extinction. The conviction on the part of the working class is, there-
fore, not at all to be wondered at ; nor in itself is it to be regretted, since
it is the first step toward the amelioration of evils and defects which
unquestionably call for, and will admit of amelioration : it is only
when erroneous theories of the cause of these evils begin to be formed,
and unwise plans for their removal begin to be mooted, that delusion
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and danger creep in. Those, therefore, are at once the most serviceable
abettors of social order, and the best friends of the laboring poor, who,
agreeing that the relation between them and their employers admits of
improvement, and that their share of profit admits of augmentation, point
out to them at the same time the futile and suicidal character of all their
own pet schemes for effecting those desired objects, and by whipping
them off all false scents, drive them at last upon the true one.
Poverty versus Wealth . — The English manufacturing operative —
shrewd and observant, but with an intelligence naturally quick rather
than trained or cultured by regular instruction, by no means accustomed
to consider that w whatever is, is right,” nor to regard his master as a
being of higher nature or of claims superior to his own — sees the few
broad facts that lie upon the surface and are forced upon his attention
every hour ; he sees that he lives in an unsatisfactory, cramped, often
ill-drained and ill-ventilated cottage or cellar ; that he fares hardly, has
few holidays, rare luxuries, and scarcely any recreation ; that his children
run about in the dirt, or that he is pinched to pay for their schooling;
that when times of depressed trade come, he is either put upon short
time, or thrown out of work altogether, and reduced with his family to
short commons, or to absolute distress, or to parish aid ; and all this,
though he works twelve hours a day, and is willing to do so, and has
done so ever since he can remember. He sees again, on the other hand,
that his employer — who perhaps only works six hours a day, and whose
work, to all appearance, consists in watching others work, or in writing
letters, or in drawing plans, or in buying cotton and selling goods (and
that often by deputy) — lives in a grand house, beautifully furnished and
advantageously situated ; fares sumptuously every day ; takes pleasure
trips whenever he pleases ; sometimes goes the sea-side, sometimes to
the Continent ; has ample leisure for the cultivation of his mind ; and
when bad times come bears them without any apparent privation, lives
as before, or at most lays down a carriage or postpones a journey. He
knows, too, that his master and himself, whose fates seem so different,
are yet joint laborers in the production of an article out of the net pro-
ceeds of the sale of which both are maintained — he in penury, his master
in opulence ; and he naturally jumps to the conclusion that there must
be something awry , (and here he is quite right,) and something unfair
(and here he is quite wrong) in the mode and principle of distribution
which assigns such unequal portions in the thing produced to the two
collaborating producers, in the relation which admits such inequality, and
in the social and political arrangements which sanction and enforce that
relation. Sometimes he wishes to abolish the relation of capitalist and
workman altogether, and becomes a theorist, a communist, a “coope-
rator;” more commonly he desires only a different distribution of profits,
some regulation which shall secure to him that larger share which he
imagines he deserves, and then he becomes a trades’ unionist, or a cla-
morer for government interference either with the hours of labor or with
the remuneration of labor. And it is at this point that his most serious
mistake, and the peril to social peace arising from it, commence : that
change in the position of matters which he feels, and we admit to be
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desirable, he wonld seek by artificial instead of by natural means, and at
the expense of others instead of by his own industry and virtue — by med-
dling with effects instead of rectifying causes — by quarrelling with, carv-
ing and paring the matured but bitter and unsound fruit, instead of
remounting to the source of what is wrong and setting it right there.
Capital and Savings. — Now, the annual increase of this fund obviously
is to be measured by, and indeed consists of, the annual savings or accu-
mulated wealth of the country — the yearly surplus of production over
expenditure. The chapter in which this point is treated is one of the
most valuable in Mr. Morrison’s book, and compels attention to a branch
of the subject which has not yet obtained adequate consideration. Since,
in a land like ours, of unbounded energy and numberless outlets, capital
never lies long or absolutely idle, whatever increases the annual savings
of the nation increases the fund by which labor is employed and remu-
nerated, and, consequently, the amount received by every individual
laborer ; and it admits of indisputable proof that the existing relation
between ' labor and capital, if not the precise distribution of created
wealth actually existing, has a greater tendency to increase these annual
savings than any other arrangement which could be devised or conceived
-—human nature and English nature remaining what they are ; and that
all the various schemes propounded by the working classes and their
friends for bettering their condition would tend to diminish these annual
savings, and consequently to reduce the remuneration of labor by lessen-
ing the fund available for its employment
Annual Savings of the Laboring Classes. — The net annual addition
to the capital of the community bv savings out of income, is estimated
by the best authorities at not less than £50,000,000 — an enormous sum,
which goes to augment the earnings of working men as an aggregate
class, which would greatly augment their individual earnings were their
numbers not permitted to increase so rapidly, and which does actually
augment these earnings in no inconsiderable degree. Now by whom is
this saving effected ? out of the incomes of what class ? Clearly out of the
incomes of the middle class — the industrious tradesman, the enterprising
merchant, the manufacturing capitalist — the great employers of labor, in
short, against whom especially the clamor and envy of the operative are
directed. The upper classes, the nobles, the landed gentry, we know are
rarely economisers or accumulators ; their system, as a rule, is to spend
their whole income ; few among them leave their families richer than
they found them — many poorer ; often their land passes by sale into the
hands of thriving individuals of the middle class. The laboring class,
those who work for wages, are, with honorable exceptions, by no means
given to saving — that is, to accumulation. They subscribe indeed largely
to friendly societies, sick clubs, and the like ; but these subscriptions are
only meritorious insurances against a rainy day, a provision against slack
work, a mode of equalizing the earnings of a life. It is rare indeed for
workmen to leave property behind them ; it is considered enough if they
support their family decently while they live, without providing for them
after death. As a rule, they, like their superiors at the other extremity
of the sooial scale, spend their entire inoome within the year.
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Savings Banks. — The Savings Banks offer no contradiction to this
statement ; for, in the first place, the increase of deposits does not exceed
a million a year, and in the second place, not above half this sum belongs
to individuals properly describable as belonging to the working classes.
That these classes do not save, and would not' save were a different
division of profits between them and their employers greatly to increase
their earnings, is plainly obvious from many facts most ably brought to
bear by Mr. Morrison in his fourth chapter. Periods of prosperity, of
brisk trade, of general employment, and high wages, are invariably
marked by a signal increase in the consumption of imported and excise*
able articles — an increase which takes place almost wholly among the
laboring poor. This feature of good times is so constant and certain
that it is counted upon by the Chancellor of the Exchequer with at
least as much confidence as the proceeds of the income-tax ; and it is one
which never deceives him. The two years ending with the summer of
1853, were marked by unexampled earnings on the part of the ope-
rative classes ; work was never so universal or so well paid ; and accord-
ingly we do not find that the accumulated property of those classes hae
increased, but we do find that the consumption of bread, beer, spirits,
tobacco, tea, coffee, and sugar, has been beyond all precedent. Again,
wages were so high that colliers found they could earn as much in four
days as formerly in six ; the result was, not that they laid by two days*
earnings, but that they took two days’ holiday ; and the supply of coal
accordingly fell off, though the demand for it increased.
“The very limited possession of reserved funds among tho manufacturing ope-
ratives, which tho recent strikes have brought to light, are unfavorable to the idea
that the habit of saving has been carried to any great extent. The chance of suc-
cess of these strikes depended upon the ability of the operatives to maintain them-
selves without wages for a considerable time. If they possessed this power, tho
injury to their employers from a prolonged inaction would probably compel them
for a time to compliance with the demands of the men, whatever might bo the ulti-
mate effect on tho condition of the latter, and on the prosperity of the trade, of such
an interference with the natural laws by which wages are regulated. But tho
operatives appear to have been dependent, from the first weeks of tho strike, upon
subscriptions for their support from tho operatives of their own and other trades.”
Community of Property. — The third principle of division — that
wages ought to be regulated by men’s wants — is seriously held by com-
munists alone. Indeed, the mere statement of the formula is its own
sufficient condemnation. Men’s wants are not a fixed quantity, but vaiy
indefinitely and incessantly according to the habits, means, and disposi-
tion of individuals and the example of those around them. The wants
of a cultivated laborer are greater than those of a more uncivilized
though possibly more productive one. The wants of a married laborer
are greater than those of the single man. Is he, therefore, to have higher
wages ? But this is the very obsolete monstrosity of the old poor-law
administration. Again, when the condition of a class is improving, their
wants are constantly on the increase. If they have any aspirations after
improvement, the only real measure of their wants, in their own minds,
is the condition of the class immediately above them. As soon as this
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Waste of Capital.
283
is attained their standard is again raised a step higher. This indefinite
elevation of man's standard of requirements is in truth the origin of
human progress. The day on which his wants should become a fixed
and measurable quantity, the advance and the life of the world would
be at an end.
Measures of Redress. — “ If all that political economy could do for the
working classes,” says Mr. Morrison, “ were to demonstrate the impossi-
bility of elevating their condition hy attacks upon the property or inter-
ference with the free action of other classes, such a negative result, though
very necessary to be established, could not be a satisfactory resting-place
to the mind.”
But happily, it does much more than this ; it points out to him how
he may attain all his righteous and rational desires; it displays to him
all within his reach ; it indicates the solution of the great social problem.
It proves to him with irresistible clearness, that all he needs in order to
become as prosperous and comfortable in his sphere as the employers and
merchants whom he assails and envies are in theirs, is that he should
imitate their prudence, their abstinence, their sense, their habit of always
living within their income, their customary postponement of marriage
till marriage becomes safe and wise. It says to him, “ Wouldst thou be
as these are — live as they.”
Waste of Capital — A few obvious considerations will show that this
position is strictly true, and not one iota overstated. In the first place,
if the £50,000,000 now annually expended by the operative classes in
drink and tobacco, were — we do not say saved, but — spent in adding to
the comforts of their home, in procuring for their children a good edu-
cation, in getting their wives and sisters instructed in domestic economy
and enabling them to stay at home to practise it, in obtaining for them-
selves an hour or two of daily leisure for recreation or for books — what a
vast, immediate, and blessed metamorphosis would come over nearly
every humble household — a change amounting in itself to a complete
social revolution. No one can deny this; no one conversant with facts
will doubt it for a moment. In the second place, suppose that only half
this sum were saved — accumulated for future use — as it is notorious that
it easily and advantageously might be, (not by any sacrifice of comfort,
but by simple abstinence from impairing their health and lowering their
character by intemperance,) the hoarded capital of the working classes
would in ten years amount to £250,000,000, even allowing them to
spend every year the interest of their previous savings. “ Now , a capital
of this amount would be sufficient to effect the universal substitution of
cooperative associations of working men for the existing system of em-
ployers and employed , to make the working population their own masters
and managers, and thus to set at rest all questions about the rights of
labor and capital for ever." Whether this would be the wisest mode of
applying their capital is another question ; it is enough to show how
entirely their own objects are within their own power, if they will only
take the right way to reach them.
Lastly, consider what would be the effect (combined with or inde-
pendent of such an augmentation of the labor-fund as we have just sup-
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284
Labor and Capital.
[October,
posed and shown to be feasible) of such a reduction of numbers as would
result from the establishment among the poor of the same views with
regard to marriage as prevail among the easy and the rich. If every
workman did what every tradesman, merchant, gentleman, and every
younger branch of the aristocracy does now — postponed marriage till he
has saved enough for the wedding outlay, and till he sees a clear pros-
pect of being able to support a family according to his own standard of
decency and comfort — in a single generation the operative classes would be
able to command the very highest rate of remuneration which the produc-
tiveness of industry could afford them. They would have the control of the
labor market, and no body could gainsay them. Whereas, at present it h
notorious that the poorest and least provident are always the first to marry,
and the quickest to multiply; that the agricultural peasant marries
earlier than the artisan,* the artisan than the tradesman, the tradesman
than the noble or gentleman. The self-denial involved in the voluntary
postponement of marriage is no doubt great ; but it it the price which
nature has fired for the object desired ; it is tbe condition of the blessing;
it is the price which every other class has to pay — the condition which
every other class has to fulfill : and why should the workman only be
exempt from the common lot — be exonerated from the exercise of those
virtues which are imperative upon all other ranks? Nay, in his case
the self-restraint now needed is less than in the case of his superiors, for
emigration has opened a new resource which removes nearly all the
hardship of the demanded effort. If, when he has laid by a sum suffi-
cient for his wedding outfit, he sees no prospect of being able to main-
tain a family at home, the same sum will carry him to the new world,
where industry and prudence will always secure him a sustenance and a
future. Therefore we are amply warranted in saying that the working
classes of this country — the operative portion of them at least — have
their fate in their own hands ; they command their own condition ; they
make their own bed ; and all their complaints and demands, When
rigidly analyzed, resolve themselves into a claim to have their object given
them instead of paying for it — to obtain it in defiance of the rights of
others, and in spite of economic laws, which are the laws of nature.
Instruction of the Working Classes. — Let the simple principles of
political economy be an indispensable portion of that popular education
which is every day extending and improving. “Instill into them a
knowledge of the real laws on which their condition depends. Let them
clearly apprehend that the increase of capital is necessarily the increase
of the fund to be distributed as wages, and that its decay is necessarily the
diminution of that fund. Let them understand that capitalists cannot, if
they would, depress the aggregate remuneration of labor below the amount
of the capital available for that purpose ; that the working classes cannot,
if all the powers of government were at their disposal, permanently elevate
that remuneration above the same limit” Such instruction is not only
* See the Eighth Annual Report of the Registrar General — from which we
gather that in the manufacturing districts about 10 per cent of persons married are
under twenty-one yoars of ago, and in the agricultural about 14 per cent
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1854.]
The Future.
285
not unsuitable for tbem ; it is of all kinds the most suitable and most
necessary. Considering their present temper and the prospect of their
future power, it is far more important, both for their own happiness and
the well-being and peace of the community, that the rising generation
should be made to understand “ what gives them higb wages, what would
make their wages low, and what would prevent them from getting any
wages at all, than that they should be able to pass the most satisfactory
examination in geography or astronomy.” Science is to them of far
more consequence than literature, and no science is so essential as that
which bears upon their home interests and their daily life.
The Future. — To grant political power only to such among them as
have attained this fit condition — to extend it gradually, and only as this
condition is approached, to withhold it from the great mass till this con-
dition has become general or universal — two postulates alone are needed.
First , That no party iu the state shall be so short-sighted, factious, and
immoral, as to make political capital out of popular discontent, or to
propose a large extension of the electoral suffrage to the masses, in order
to defeat or supplant their rivals ; and secondly , that every party in its
turn of power, and all parties combined, shall conscientiously and dili-
gently use that legislative supremacy which the Constitution gives them,
for the purpose of conferring on the people every benefit and removing
from them every grievance which wisdom and justice can suggest, and
which parliamentary omnipotence can reach. By such courses steadily
pursued— by educating the working classes sedulously and governing
tbem righteously — we shall disarm those dangers which now look so
formidable in the distance; because when the day of their complete
political emancipation, and their consequent political supremacy, shall
have arrived, they will have learned to desire nothing that parliament
ought not to grant, and parliament will already have granted all they
ought to desire. They will have attained political power only to discover
that it can bestow upon them no blessing which they do not already
possess, or cannot already command.
But, if we neglect the warnings of the past, and make no provision
for an inevitable and an obvious future ; if we continue to allow religi.ous
dissensions and religious prejudices to impede and cripple the education
of the strengthening and multiplying masses ; if, either from bigotry or
fear, or a cowardly truckling to either, we exclude from that education its
most practical and imperative elements ; if our statesmen do not honor-
ably use their exclusive power for the benefit of the excluded millions,
and as honorably abstain from calling in the passions and hopes of those
millions to further their own miserable aims, or to secure their own tran-
sient victories ; then assuredly our sin will be as great, and our punish-
ment as certain, as will be those of the laboring class themselves, if
they in their turn do not abstain from seeking unrighteous objects by
unsuitable and suicidal means ; if they do not learn that in temperance,
in economy, in docility, in self-restraint, and not in combinations, strikes,
communism, or the Charter, they must seek their elevation and their
welfare — their true dignity and their real mission.
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UNIVERSITY OF CHICAGO
288
U. S. Assay Office, New -York.
[October,
THE U. S. ASSAY OFFICE, NEW-YORK.
The act of Congress establishing the Assay Office in the city of New-
York was passed at the second session of the thirty -second Congress,
(1853.)
In September, 1853, the treasury department took from the “Bank of
the State of New-York,” and from the “ Bank of Commerce in New-
York,” a lease of the property in Wall street then occupied by those
institutions. The terms were a yearly rent of fifty -three thousand dollars,
(being ten per cent of the price of the property,) or the government
might purchase the property at that value, namely, $530, 000.
In July, 1854, Congress provided in the general appropriation bill, for
the purchase of the building and lot, and further authorizing the Secre-
tary of the Treasury, at his discretion, to purchase the adjoining property
on Pine street, namely :
For the purchase of the lots or parcels of land, with the appurtenances
and the buildings thereon, belonging the one thereof to the Bank of
Commerce, and the other thereof to the Bank of the State of New-York,
and particularly referred to and described in two contracts, one with
each of said banks, for the leasing and right to purchase the same, bear-
ing date the nineteenth of August, one thousand eight hundred and
fifty-three, five hundred and thirty thousand dollars, with interest thereon,
at the rate of six per centum per annum, from the fifteenth day of Sep-
tember, eighteen hundred and fifty-three, until said purchases shall be
completed : Provided, that the same be so completed within one year
from the day such interest is hereby authorized to be paid.
And the Secretary of the Treasury, at his discretion, is hereby further
authorized to purchase, for the use of the United States, such property
adjoining thereto, situated on Pine street, on which the United States
now hold a mortgage, as may be sold to satisfy the same, at a price not
exceeding the amount of said lien.
Congress at the same time made liberal appropriations for the salaries
of the officers of the Mint, Assay Office, and Sub-Treasury, namely :
Mint of the United States at Philadelphia. — For salaries of the
director, treasurer, assayer, melter and refiner, chief coiner, and engraver,
assistant assayer, assistant melter and refiner, and seven clerks, twenty-
four thousand nine hundred dollars.
For wages for workmen, seventy-two thousand dollars.
For specimens of ores and coins to be reserved at the mint, three
hundred dollars.
For transportation of bullion from New-York assay office to the United
States mint for coinage, eighteen thousand seven hundred and fifty
dollars.
* For incidental and contingent expenses, including acids, copper, zinc,
salt, fuel, melting-pots, and other materials, and wastage of gold and
silver, being in addition to other available funds, fifty-six thousand
dollars.
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UNIVERSITY OF CHICAGO
1854.]
U. S. Assay Office, New- York.
289
Independent Treasury . — For salaries of assistant treasurers of the
United States, at New-York, Boston, Charleston, and St Louis, eleven
thousand five hundred dollars.
For additional salaries of the treasurer of the mint at Philadelphia of
one thousand dollars, and of the treasurer of the branch mint at New-
Orleans of five hundred dollars, one thousand five hundred dollars.
For salaries of six of the additional clerks authorized by the acts of
August sixth, one thousand eight hundred and forty-six, August twelfth,
one thousand eight hundred and forty-eight, March third, one thousand
eight hundred and fifty-one, and August thirty-first, one thousand eight
hundred and fifty-two, six thousand dollars.
For one additional clerk in the office of the assistant treasurer at Bos-
ton, Massachusetts, one thousand two hundred dollars.
For clerks, messenger, and watchmen in the office of the assistant
treasurer at New-York, thirteen thousand nine hundred dollars.
For salary of a clerk for the treasurer of the branch mint at San Fran-
cisco, California, two thousand five hundred dollars.
Assay Office, New- York. — For salaries of officers and clerks, twenty-
five thousand five hundred dollars.
For wages of workmen, thirty thousand dollars.
For incidental and contingent expenses, fifty-nine thousand three
hundred dollars.
Sec. 11. And be it further enacted, That from and after the thirteenth
of June, eighteen hundred and fifty-four, in lieu of the clerks heretofore
authorized by law for the office of the assistant treasurer at New-York,
he be authorized to appoint, with the approbation of the President of
the United States, one chief clerk at a salary of two thousand one
hundred dollars, one clerk at two thousand dollars, two clerks at eighteen
hundred dollare each, two clerks at fifteen hundred dollars each, one
clerk at twelve hundred dollars, one messenger at nine hundred dollars,
and two watchmen at five hundred and fifty dollars each, per annum.
In case of sickness or unavoidable absence from his office of the assistant
treasurer, he may in his discretion authorize the said chief clerk to act in
his place, and to discharge all the duties required by law of the assistant
treasurer.
The lot thus authorized to be purchased is situated on Wall street,
adjoining the Custom House on the east, and contains a frontage on
Wall street of about 75 feet, and a depth of about 118 feet, and is now
occupied by two distinct buildings.
The building fronting on Wall street is the one formerly occupied by
the Branch Bank of the United States, and more recently by the Bank
of Commerce and the Bank of the State of New-York. Its dimensions
are about 75 feet front by 66 feet deep. This building is principally
occupied by offices connected with the business of the Custom-House —
the eastern half of the lower floor being appropriated to the assistant
treasurer of the United States, and the entire upper floor (with the
exception of two small rooms,) to the surveyor of the port and the liqui-
dating department of the Custom-House.
The rooms in this building appropriated to the assay office are the two
19
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UNIVERSITY OF CHICAGO
290 U. S. Assay Office, New -York. [October,
south-west front rooms in the second story, occupied by the superintendent
and his clerk, and the western half of the lower door, where are arranged
the offices of the assayer, and the melter and refiner, the treasurer’s chief
clerk, and the weigh-room.
Upon the rear of the lot has been erected a brick building, six stories
high, 75 feet long by 34 feet wide. This building is separated from the
front building by a court 16 feet wide, and both are separated from the
custom-house by a 10-feet alley.
The rear building, or more properly the assay office, is an exceedingly
substantial structure, and has been made absolutely fire-proof. The
walls are carried up two feet thick, and are all laid in cement. The
floors consist of wrought-iron beams and girders, filled in with brick
arches covered with concrete and cement. Heavy cast-iron columns
support the floors at proper intervals. The doors, window-frames, sashes,
and shutters, stairs and gratings, are all of iron. The whole is covered
with a corrugated galvanized iron roof.
The basement story contains the boilers and a steam-engine of about
35 horse power, the crushing mill and other apparatus for washing sweep,
the zinc granulating furnace.
The second or principal story is divided into two equal parts. The
western half is occupied by the assayer’s laboratory ; and the eastern by
the depositors’ melting room, and the treasurer’s vault.
The third, fourth, and fifth stories are occupied by the melter and
refiner, and are fitted up with the furnaces for melting, the parting houses
in which the separation of gold and silver is effected by the nitric acid
process, the precipitating tubs, filters, drying-pans, hydraulic press, etc.
The sixth story is used for storing acids and other materials employed
in the operations of the office.
A chimney, 135 feet in height, affords a strong draft to the furnaces
and also carries up the nitrous fumes occasioned by the operations of the
melter and refiner.
The following is a list of the officers and their clerks appointed to the
New-York assay office :
1. Superintendent's Office :
Samuel F. Butterworth, Superintendent.
Geo. F. Dunning, SupCs. Clerk.
2. Treasurer's Office:
John J. Cisco, Treasurer.
George W. Edelman, Chief Clerk.
Joseph M. Floyd, Accountant.
James B. Hunt, Weigh Clerk.
J. R. St. John, Assistant do.
3. Assayer' s Office :
John Torrey, Assayer.
Andrew Mason, Assistant do.
4. Melter and Refiner's Office :
Edward N. Kent, Melter and Refiner.
Clarence Morfit, Assistant do.
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UNIVERSITY OF CHICAGO
( v‘: ■ ’ •
1854.] U. S. Assay Office , jVfetfT- York.
About fifty workmen will be employed in
beside watchmen, messenger, etc. The appropriation for erecting and
finishing the assay office was $100,000. It is impossible to state at
this time what will be the precise cost of the establishment The appro-
priation is not yet expended, even though about $10,000 of it has been
spent in fitting up the bank-building for the use of the Custom-House.
With this and the unexpended balance of the appropriation, it is believed
that the entire cost of the assay office will be covered.
No day has yet been fixed for opening the office for business. Al-
though the buildings are completed, some time must necessarily be
devoted to the arrangement and adjustment of machinery and apparatus
before attempting to commence a business of such magnitude and
responsibility. It is expected, however, that every thing will be in
readiness early in October.
LAW OF TIIE U. a ESTABLISHING AN ASSAY OFFICE IN NEW-YQEK.
Section 10.
And be it further enacted, That the Secretary of the Treasury is hereby authorized
and required to establish in tho city of New- York an office for the receipt; and for
the melting, refining, parting, and assaying of gold and silver bullion and foreign
coins, and for casting the same into bars, ingots, or disks. The Assistant-Treasurer
of the United States in New- York shall be treasurer of the said assay office, and
the Secretary of the Treasury shall, with the approbation and consent of the Presi-
dent of the United States, appoint such other officers and clerks, and authorize the
employment of such assistants, workmen, and servants, as shall be necessary for tho
proper conduct and management of the said office, and of the business pertaining
thereto, at such compensation as shall be approved by the President : Provided,
That tho samo shall not exceed that allowed for corresponding services under exist-
ing laws relating to the Mint of the United States and its Branches.
Section 11.
And be it further enacted, That the owner or owners of any gold or silver bullion,
in dust or otherwise, or of any foreign coin, shall be entitled to deposit tho same in
the said office, and the Treasurer thereof shall give a receipt, stating the weight and
description thereof, in the manner and under tho regulations that are or may be
provided in like cases of deposits at the Mint of the United States, with the Trea-
surer thereof. And such bullion shall without delay bo melted, parted, refined,
and assayed, and tho net|value thereof, and of all foreign coins deposited in said office,
shall be ascertained, and the Treasurer shall thereupon forthwith issue his certificate
of tho net value thereof, payable in coins of tho samo metal as that deposited, either
at the office of the Assistant-Treasurer of the United States in Now- York, or at the
Mint of the United States, at tho option of the depositor, to bo expressed in tho
certificate, which certificates shall bo receivable at any time within sixty days from
the date thereof in payment of all debts due to the United Suites at the port of
New- Y ork for tho full sum therein certified. All gold or silver bullion and foreign coin
deposited, melted, parted, refined, or assayed, as aforesaid, shall, at t he option of the
depositor, bo cast in the said office into bars, ingots, or disks, either of pure metal or
of standard fineness, (as the owner may prefer,) with a stamp thereon of such form
and device as shall be prescribed by the Secretary of the Treasury, accurately
designating its weight and fineness : Providod, That no ingot, bar, or disk, shall bo
east of less weight than five ounces, unless tho same be of standard fineness, and of
either one, two, or three ounces in weight And all gold or silver bullion, and
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292
U. S. Assay Office, New -York.
[October,
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foreign coin, intended by the debitor to he converted into the coins of the United
States, shall as soon as assayed and its net value certified as above provided, be
transferred to the Mint of the United States, under such directions as shall be made
by the Secretary of the Treasury, and at the expense of the contingent fund of the
Mint, and shall there be coined. And the Secretary of the Treasury is hereby
authorized, with the approval of the President of the United States, to make the
necessary regulations for the adjustment of the accounts between the respective
officers, upon the transfer of any bullion or coin between the assay office, the Mint
and Assistant -Treasurer in Xew-York.
Section 12.
And be it further enacted, That the operations of melting, parting, refining, and
assaying in the said office, shall 1 >e under the general directions of the Director of
the Mint, in subordination to the Secretary of the Treasury; and it shall be the
duty of the said Director to prescribe such regulations, and to order such tests as
shall be requisite to insure faithfulness, accuracy, and uniformity in the operations
of the said office.
Section 13.
And be it further enacted, That the laws of tho United States for the government
of the Mint and its officers in relation to the receipt payment, custody of deposits,
and settlement of accounts, the duties and responsibilities of officers and others
employed therein, the oath to be taken and the bond and sureties to be given by
them (as far as the same may be applicable) shall extend to tho assay offico hereby
established and to its officers, assistants, clerks, workmen, and others employed
therein.
Section 14.
And be it further enacted, That the same charges shall bo made and demanded
at the said assay office for refining, parting, casting into bars, ingots, or disks, and
fur alloy, as are, or shall l>e, made and demanded at tho Mint; and no other
charges* shall be made to depositors than by law are authorized to be made at the
Mint ; and the amount received from the charges thereby authorized shall be
accounted for and appropriated for defraying tho contingent expenses of the said
office.
Section 15.
And be it further enacted, That the Secretary of the Treasury is authorized to pro-
cure by rent, lease, or otherwise, a building or apartment in the city of New-York,
suitable for tho operations of said office, unless he shall be of opinion that suitable
apartments in tho custom house in that city may be assigned for this purpose.
And ho is also hereby authorized and directed to procure the necessary machinery
and implements for the carrying on the operations and business of the said office.
Section 16.
And be it fUrther enacted, That the salary of the Assistant-Treasurer of the
United States in New-York, from and after tho time that the said office shall be
opened and in operation, shall be six thousand dollars per annum, instead of the
sum now allowed.— (Act of March 4, 1853, c. 97, § 10 to 16.)
Section 17.
* * * * For carrying into effect the provisions of this act establishing an
assay office in the city of New-York, in addition to the charges authorized to be
received, one hundred thousand dollars is hereby appropriated, out of any money
in the Treasury not otherwise appropriated. ****** (Act of March
4, 1853, c. 97.)
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1854.] Foreign Bills of Exchange in England.
293
FOREIGN BILLS OF EXCHANGE IN ENGLAND.
The new stamp act of Great Britain requires that all foreign (as well
as domestic) bills of exchange negotiated in that country shall be stamped,
according to their amount, before they can be legally passed. Heretofore,
in order to avoid the duty on British bills, the law has been evaded by
fraudulently creating bills of exchange dated nominally in foreign places,
but actually executed in London and other cities. Bills of £100 to
£200 paid before a duty of 4s 6d. to 5s., £1000 to £2000 paid 12s. 6d.
to 15s., £2000 to £3000 paid 15s. to 25s., and over £3000 a duty of
25 to 30 shillings sterling, according to the period of maturity.
By the following letters to and from the Bank of England’s counsel, it
appears that the new law will apply to all foreign bills negotiated after
the 10th of October next This will apply to bankers’ checks drawn in
this and other countries as well as to ordinary bills of exchange.
From the Deputy- Cashier to Thomas Keogh , Esq.
Bank op England, 25th August, 1854.
Sul, — I am desired by the Governors of the Bank of England to submit the fol-
lowing points on the new stamp act, which are of serious importance, and have
excited great interest in the city of London among the mercantile community.
By the 1st section it is enacted that from the 10th October certain stamp duties
shall be repealed, and in lieu thereof shall bo granted, charged, and paid, certain
duties specified in the schedule. Some of the duties specified in the schedule are
altogether new, and not substitutes for any existing duties. I refer to the duties
on foreign bills. The question is, if the new duties imposed on foreign bills are to
take effect from the 10th October, or whether they take effect immediately, under
the general operation of the act, for want of any date being fixed.
Secondly. Supposing such duties to take effect on the 10th October, will they
apply to all bills at that date, or only to bills drawn after that day ? The latter was
obviously intended by the proviso in sec. 1, but that proviso appears only in
terms to save from repeal or alteration any “stamp duties then payable in relation
to any bill of exchange, dated before the 10th October.’7 There were not, however,
any stamp duties then payable in relation to foreign bills which could be the sub-
ject of repeal or alteration, and the question is, if the proviso will prevent the new
duty from attaching on such bills ?
Thirdly. With respect to foreign bills drawn in sets — does clause 6 apply to lulls
drawn abroad and payable here, as well as to bills drawn hero and payable abroad ?
As respects bills drawn abroad, all the parts of a bill do not ordinarily arrive
together, and where there are three or more, it is not unusual to keep back one or
more parts. Further, it is usual to send one part of a bill to the drawers agent for
acceptance, and to negotiate the other parts ; but section 6 appears to restrain the
negotiability of one part of a bill in England without all the others.
1s it intended absolutely to prohibit the negotiability of one part of a bill unless
all parts are transferred, or to require that each of the parts negotiated, where they
are not all transferred at the same time, shall be stamped with full duty as a single
bill in such case ?
Fourthly. In reference to the provision in section 5, will it suffice, on endorsing
a foreign bill, that the date be stamped or written by a clerk, or must it be written
by the person who endorses it ? This, though it may appear a small matter, is
really a serious consideration in the conduct of business.
I have tee honor to be, sir, your obedient servant,
J. R. Elsky, Dtputy- Cashier.
Thos. Keogh, Esq., etc., etc.
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294 Foreign Bills of Exchange in England. [October,
From Thomas Keogh, Esq., to the Deputy- Cashier of the Bank of
England.
Inland Revenue, Somerset-house, London, 29th August.
I haw 1 : i i • 1 before the Boanl of Inland Revenue your communication, putting
f jur questions with regard to the operation of the stamp act of the last session, 17
and 18 Vie., cap. 83.
I am directed to state in reply, that all the duties contained in the schedule of
the stamp act alluded to, (including the duties on foreign bills,) take effect from the
10th October. 1854, that is. on the 11th of that month and not before.
Secondly. The new stamp duties will apply to all bills and notes drawn in the
United Kingdom on and after the lltli October, 1854, and to all foreign bills drawn
out of the United Kingdom which shall be presented for payment, paid, endorsed,
transferred, or negotiated in the United Kingdom, on or after lltli October, 1854,
without regard to the date ot such foreign bills, or the time when they were drawn.
The proviso in sec. 1. does not apply to the last-mentioned foreign bills, and it was
not intended that it should do so.
Thirdly. Section 6 applies to foreign bills drawn and payable abroad, if nego-
tiated in tiiis kingdom, as well as to foreign bills drawn in this kingdom payable
abroad, such bills respectively purporting to be drawn in sets; but it does not
apply to bills drawn abroad and payable here. The effect of this section, in regard
to all the bills to which it applies, is to prohibit the negotiation of one part of a bill,
unless all the parts are duly stamped and transferred.
Fourthly. The object to be effected by the writing of the name and date on the
stamp is (as expressed in the act) to cancel it, and the Board think it will be a
sufficient compliance with the law if this be done by a clerk.
I have the honor to be, sir, your olxft. serv’t,
Thomas Keogh.
J. R. El soy, Esq.
A meeting of bankers, merchants, and others took place recently at
the London Tavern, Mr. J. Masterman presiding, to resist the proposal of
the Chancellor of the Exchequer for levying a stamp on foreign bills of
exchange. The speakers were, Baron L. Rothschild, Mr. J. G. Hubbard,
Mr. J. Bates, Mr. M. T. Smith, Mr. K. Hodgson, Mr. Travers, and Mr.
Thomson Hankey, jun., and the following petition to parliament was
adopted :
“To the Hon. the Commons op the United Kingdom of Great
Britain and Ireland in Parliament Assembled.
“ The petition of the undersigned merchants, bankers, and traders of
the city of London humbly showeth, —
“ That a chief characteristic of recent legislation has been its solicitude
to restore and preserve to the exercise of labor and the application of
capital, perfect freedom and security, and that, in harmony with the
policy which has mitigated or removed the duties on articles of first
necessity, and on commodities which are the materials for manufacturing
industry, it is essential that the use and transfer of capital and credit —
the motive powers of all industry — be not trammelled nor obstructed by
fiscal regulations, imposts, and penalties.
“ That the proposition for taxing bills of exchange by the application
of adhesive stamps, varying with reference to amount, is inconsistent with
the principles referred to, and would, if realized, involve a wasteful
expenditure of time, and impose a gratuitous risk, through the penalty
which must attach to the incautious use of the wrong stamp.
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The New Stamp Duties Act.
295
“ That the proposed tax would seriously injure the very important
business which, through the free negotiation of foreign bills of exchange,
drawn as the media of credits, or for the international transfer of capital,
has made the city of London the centre of exchange for the commercial
world, and that the maintenance of this business is of very great import-
ance to the general trade of the country.
“ That neither the partial correction of the evil, which may now result
from the occasional fabrication of falsely-dated bills, nor the revenue
which might be derived from the proposed tax, can be adequate reasons
for the imposition of difficulties in the way of trade, or for the readoption
of an anti-commercial policy.
“ That your petitioners are convinced that, while the revenue expected
to be raised by the proposed tax is too trifling to be of any national
importance, its collection in the way proposed would both discourage
the banking and exchange business, which they now carry on with every
country of the globe, and would expose them to serious inconvenience
and loss of time in the transaction of their affairs.
“They therefore humbly pray that your hon. House may be pleased
not to adopt any measure for imposing duties upon foreign bills of
exchange.”
The importance of the stamp duties to the British exchequer, may be
seen in the fact, that during the year ending 5th July, 1854, the revenue
from stamps was £6,986,600 ; this includes stamps on newspapers, bills of
exchange, insurance policies, legacies, gold and siver plate, deeds, adver-
tisements. The stamp duty for the year 1850, on bills of exchange and
bankers’ notes, was £592,000.
The amount of bills of exchange afloat in that country, on an average,
is estimated at two hundred millions sterling, while the bank-note circu-
lation has not exceeded forty millions for some years.
THE NEW STAMP DUTIE8 ACT.
The act containing the New Stamp Duties on Bills of Exchange, etc.,
has received the royal assent, and will come into operation on the 10th
day of October next. The bill contains 27 clauses ; and although it is a
question that admits of some doubt, whether any portion of our foreign
trade will be lost by the imposition of a stamp duty upon foreign bills of
exchange, there cannot be a doubt that the new rate of charges upon
inland bills is a very great improvement upon the old law, not only as
regards the proportionate rates charged, but also in the simplicity of
the act. One of the arguments used against a light tax upon bills for
small amounts, has been that Buch bills ought not to be encouraged :
though we have never been able to discover what business government
can nave to direct the course of business transactions of this nature.
There can be little doubt that our limited circulation of bank notes has
tended greatly to increase the circulation of bills of exchange ; for it will
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296
The New Stamp Duties Act.
[October,
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be found by a reference to the stamp duties paid on these bills, that they
have materially increased in amount whenever there has been a pressure
in the money market, or when prices have advanced beyond the expan-
sive power of the currency. It will also be found that a very large pro-
portion of this increase is paid on bills under £100. To deprive any
part of the public of this means of extending their credit , when they are
at the same time compelled to submit to the inconvenience of a restricted
currency , which means dear money accommodation, would be to exercise
a power that no prudent government ought to put in force. The pre-
sent bill is a step in the right direction. — Bankers1 Circular , AugutX 26.
Schedule.
Inland Bill op Exchange, Draft or Order, for the Payment to the Bearer, or to
Order, at any time otherwise than on demand, of any sum of money
Duty.
Duty.
£
A
d.
Exceeding
and not exceeding SL i.
d.
Not exceeding
0
1
£300 ..
0
Exceeding
and not exceeding
400 ..
0
£5
0
2
500 ..
6
10
0
3
750 ..
O
25
50 0
0
6
1000 ..
1600 .... 0 15
0
50
16 .... 0
0
9
1500 ..
0
75
1
0
2000 ..
0
100
2
0
3000 ..
0
200
3
0
4000 and upwards, 2 5
0
Foreign Bill of Exchange drawn in, but payable out ofj the United Kingdom,
If drawn singly or otherwise than in a Set of Three or more, the same Duty as
on an Inland Bill of the same amount and tenor.
If drawn in Sets of Three or more, for every Bill of each Set,
Duty.
Dale.
4
«.
d.
Exceeding
and not exceeding
4 i.
d.
Where the sum payable thereby
£400 ...
0 1
8
shall not exceed.. £25 .... 0
0
1
600 ...
0 2
6
Exceeding
and not exceeding
160 ...
0 3
4
25 ...
0
2
1000 ...
0 6
0
60 ...
0
3
1600 ...
2000
0 6
8
75 ...
100 .... 0
0
4
2000 ...
0 10
0
100 ...
0
8
3000 ...
4000
0 13
4
200 ...
1
0
4000 and upwards,
0 15
0
300 ...
400 .... 0
1
4
Foreign Bill of Exchange drawn out of the United Kingdom, and payable within
the United Kingdom, the same Duty as on an Inland Bill of the same amount
and tenor.
Foreign Bill of Exchange drawn out of tho United Kingdom, and payable out of
the United Kingdom, but indorsed or negotiated within the United Kingdom, tho
same Duty as on a Foreign Bill drawn within the United Kingdom, and payable
out of tho United Kingdom.
Promissory Note for the Payment in any other manner than to the Bearer on
Demand, of any sum of money,
Not exceeding £5 . . . .
Exceeding and not exceeding
6 10 ....
10 25 ....
4 a d.
0 0 1
0 0 2
0 0 3
Exceeding and not exceeding £.«.<*.
£25 £50 .... 0 0 6
50 75 0 0 9
75 100 .... 0 1 0
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Relative Value of Coins.
297
Promissory Note for the Payment, either to the Bearer on Demand, or in any
other manner than to the Bearer on demand, of any sum of money. *
Exceeding
Duty.
and not excluding £, t, d.
Rtcoeding
and not emcooding
Duty.
£. id.
£100 ...
£200 0 2 0
£1000 ...
0 15 0
200 ...
1500 ...
10 0
300 ...
2000 ...
1 10 0
400 ...
3000 ...
4000
2 0 0
500 ...
760 ...
1000 .... 0 10 0
4000 and upwards,
2 5 0
RELATIVE VALUE OF COINS.
Communicated to the New - York Courier and Enquirer.
The ignorance which pervades the public mind on the subject of
finance and currency is daily exhibited, but we rarely have so striking an
exhibition of the total want of any comprehension of obvious truth and
of all historic knowledge on the subject, as is exhibited in a letter written
bv William Brown, Esq., M.P., of Liverpool, and re-published in the
Honkers' Magazine of New-York. How any one occupying the position
of Mr. Brown, after a life spent in immediate connection with the subject,
and after years of experience in the British Parliament, could publish to
the world a paragraph so imbued with ignorance, and so full of false
positions, is amazing.
The paragraph to which we allude may be found in the article, u Deci-
mal Coinage,” at p. 196 of the September number of the magazine, as
follows : “ Some gentlemen think it might be a great advantage if our
coins were the same as those used in France or the United States ; or if
there were a universal coinage of the same intrinsic value in all civilized
nations. There are two fatal objections to this — it would be imprac-
ticable to get all to agree, and all history shows that despotic monarch a,
to meet the exigency of the moment, have depreciated the value of their
coins ; and within my recollection the United States, to get more gold
into the country and prevent their own from leaving them, increased the
value of the sovereign from $4.44 to $4.84 ; and I believe it is now under
consideration, if not actually done, to depreciate the value of their silver
seven per cent, so that if all the coins were made every where of the same
weight and fineness at once, although we would be right to-day, there is
nothing to prevent our being wrong to-morrow.”
The first statement of Mr. Brown, that despotic monarchs were in the
habit of depreciating the value of their coins is true ; but he is the last
man who should complain of such a procedure ; he is, however, probably
ignorant of the fact that his own government are guilty of the practice.
The British Mint charge ten per cent seignorage for the coining of
silver — that is, they abstract ten per cent from all silver left for coinage,
and the government make these light shillings a, legal tender for all sums
less than a pound, all which we deem perfectly right and proper, a wise
regulation for Great Britain, and no wrong to other nations, as she
adopts gold alone as her standard and measure of value.
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Relative Value of Coins.
[October,
HiB next statement, that the United States have increased the value of
the sovereign from $4.44 to $4.84, contains two positions which are not
true. In the first place, the sovereign never was $4.44, and of course the
United States cannot have changed it. From the earliest moment of
the coinage of sovereigns they have been worth $4.84, and no power of
any government on earth can make them otherwise between its own
citizens and those of other countries. The pound sterling of Great
Britain, when it was the depreciated paper of the Bank of England during
its legalized suspension for twenty-five years, and when guineas were
worth in London from twenty-four to twenty-eight shillings in that
depreciated paper instead of twenty-one shillings, their value in gold ; and
when bills of exchange on London were the common mode of payment
by West-India planters for American products, payable in this depreciated
K, which was the legal money of Great Britain ; was by some singu-
illuci nation fixed at $4.44, with an eternal remainder. Why this
precise amount was fixed upon it would probably puzzle Mr. Brown to
determine. It was no doubt near the value of tne depreciated paper
pound sterling in which the bill was payable, as compared with silver
dollars of the United States. The very general prevalence of the
opinion that $4.44 is a pound sterling in some unaccountable way ; the
fact that it is so taught our children at school, and in their elementary
books ; that for a long time the United States so reckoned it in their
collection of duties on imports, giving to British merchants an advantage
of 9 or 10 per cent over those of other nations ; and the fact that in the
arguments of the advocates of protection in the olden times, the 10 per
cent difference of exchange in favor of England was deemed a conclusive
argument for the necessity of their policy, are, together, a singular
exemplification of our mode of taking things for granted, and our
unreasoning habit of adhering doggedly to old ideas, notwithstanding
their obvious absurdity. There are multitudes of people who still believe,
with Mr. Brown, that $4.44 is a pound sterling.
In the next place the government of the United States never legislated
in relation to the pound sterling or sovereign as Mr. Brown alleges, nor
did anything to justify the charge of depreciating the value of their coins.
They did legislate as to the relation of the two metals, gold and silver ;
and at the organization of the Mint, adopted the relation of one to fifteen.
However correct that may have been at the time, it soon ceased to be
the true relation, and consequently, as an ounce of gold in the United
States was equal to only fifteen ounces of silver, the gold was sent to
Europe where it was worth fifteen and a half ounces of silver, and silver
became the only metal in use among us. At the period to which Mr.
Brown alludes, the adoption of General Jackson’s gold bill, when the gold
was to shine through the interstices of American purses according to
Colonel Benton, the sages of that day, as wise as Mr. Brown, adopted
the Spanish relation of one to sixteen. This was about as far to the
right as we had formerly been to the left of the true position, and so, as
by that law we declared that an ounce of gold should be equal to sixteen
ounces of silver, all our exports of metal were silver. Our government
would coin without charge, and our law made sixteen ounces of silver
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Relative Value of Coins.
299
the equivalent of an ounce of gold, which' silver, transferred to Europe,
gave a profit of half an ounce of silver for every ounce of gold exchanged.
This swept all our silver out of use, and people wondered what was the
matter ; they supposed gold was getting cheap and silver dear, a perfectly
ridiculous idea ; till at length the last Mint regulation was adopted, which
is as near the true position as we can probably get, till the generation of
the Mr. Browns has passed away, when we shall probably be wise
enough to have but one standard, — gold, if we have any at all.
Terrible was the hue and cry which the late regulation occasioned ;
many maintained and probably still maintain that the regulation was
a public robbery of all annuitants of seven per cent of their capital, and
endeavored to persuade the public that silver was the only true standard
of value ; but as silver has become plenty, and as nobody has yet been
able to discover any loss of capital, the uproar is passing away.
How are we to account for the fact that a gentleman connected as Mr.
Brown is with America, should, at the same time that he is advertising
the world of his ignorance, accuse the government of the United States
of doing that which he alleges to be the common fraud of despotic
monarchs, of depreciating the value of its coins ? — only by the hypothesis
that men, on an intricate and scientific subject, will accept ideas and
opinions as true without study and investigation, and finding them
generally accepted by the public, never for a moment doubt their correct-
ness, or inquire further into the subject. Par.
This Standard op the Coinage. — As an instance of the extraordi-
nary depreciation in the intrinsic value of European government monies,
we annex a table showing the average value of the French livre at differ-
ent periods between the year 800 and the French Revolution :
Reign*.
From the 32d year of Charlemagne,
Reign of Philip I., Louis VI., and VII., . .
Philip II. and Louis VIII.,
Louis IX. and Philip IV.,
Louis X. and Philip V.,
Charles IV. and Philip VI.,
John,
Charles V.,
Cliarles VI.,
Charles VII.,
Louis XI.,
Charles VIIL,
Louis XII.,
Francis I.,
Henry II. and Francis II.,
Charles IX.,.
Henry III.,
Henry IV.,
Louis XIII.,
Louis XIV.,...
Louis XV.,
Louis XV. and XVI.,
Value of the Livre in the
F Mr*.
Current Money qf IT
Liv. Bob. Den.
800 to 1103
78
17
0
1103 to 1180
18
13
8
1180 to 1226
19
18
4 4—5
1226 to 1314
18
3
5
1314 to 1322
17
3
5
1322 to 1360
14
11
10
1360 to 1364
9
19
2 2-5
1364 to 1380
9
9
8
1380 to 1422
7
2
3
1422 to 1461
5
13
9
1461 to 1483
4
19
7
1483 to 1498
4
10
7
1498 to 1615
3
19
8
1615 to 1547
3
11
2
1547 to 1560
3
6
4 4-5
1560 to 1574
2
18
7
1674 to 1689
2
12
11
1589 to 1610
0
8
0
1610 to 1643
1
15
3
1643 to 1715
1
4
11
1715 to 1720
0
8
0
1720 to 1789
1
0
0
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The Foreign Trade of the United States. [October,
Mr. McCulloch, in his treatise on “ Money,” relates that from about
the year 1 S00, in the reign of Charlemagne, to the year 1103, in that of
Philip I., the French livre , or money unit, oontained exactly a pound
weight or twelve ounces (poids de marc) of pure silver. It was divided
into twenty sols, each of which, of course, weighed l-20th part of a
pound. This ancient standard was first violated by Philip I., who
diminished considerably the quantity of pure silver contained in the sols.
The example once set was so well followed up, that in 1180, the livre
was reduced to less than a fourth part of its original weight of pure
silver. In almost every succeeding reign there was a fresh diminution.
u La Monnaie," says Le Blanc, “ qui est la plus prideuse et la plus
importante des mesures, a change en France presque aussi souvent qme
nos habits ont change de mode .” And to such an extent had the process
of degradation been carried, that, at the epoch of the Revolution, the
livre did not contain a seventy-eighth part of the silver contained in the
livre of Charlemagoe. It would then have required 7,685 livres really
to extinguish a debt of 100 livres contracted in the ninth or tenth centu-
ries; and an individual who, in that remote period, had an annual
income of 1000 livres, was as rich, in respect to money, as those who, at
the Revolution, enjoyed a revenue of 78,850 livres.
THE FOREIGN TRADE OF THE UNITED STATES.
Much of the stringency in the Money Market of New-York arises from
the excessive quantities of Dry Goods thrown upon this market, and
hence to the interior of the whole country. The official tables which we
now furnish, showing the importations at this port for the past eight
months, are sufficient in themselves to account for the depressed condi-
tion of the dry goods trade, and the large failures that have recently
occurred in it. Notwithstanding the lessons which the year 1853 tanght
our merchants, it seems that they have gone on importing still larger
supplies from Europe and China — the market is glutted — prices have
fallen — and sales are effected at a severe loss.
The quantities thrown upon the market during the month of August
of the past four years, were as follows :
August. light Month*.
1851, $6,7*3,216 $48,383,480
1852, 9,684,591 45,485,284
1853, 11,668,781 68,277,502
1854, 14,194,646 65,552,357
In other words, the month of August, 1852, brought 42 per cent
beyond that of 1851. That of 1853 brought 70 per cent beyond 1851 ;
and we now, in 1854, for the short space of one month, exhibit an
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1854.] The Foreign Trade of the United States.
imported stock of $14,194,646, or above one hundred per cent beyond
that of 1851.
It must be manifest to every rational mind that the increasing popu-
lation and wants, wealth and ability, of the country, do not require any
such rapid increase in the supply of foreign goods.
If we look at the supply for the eight months, we perceive that the
present season shows nearly fifty per cent in the supply beyond that of
1852, although a slight diminution as compared with 1853. We
have used fourteen millions of foreign cotton goods this year, when
in 1851 only nine millions were required. The most remarkable feature
in the present exhibit, is that ten millions of dry goods have been ware-
housed, against five millions in 1851.
We submit the tables to our readers for their examination, as a prac-
tical commentary on the extravagance of the times, and to show that
there are abundant causes, besides the railway extensions, for the exist-
ing difficulties in the money market
A Comparative Table showing the Importations of Dry Goods at the
Port of New- York for the month of August, in each of the last four
years :
ENTERED FOR CONSUMPTION.
Manufacture* of
1851.
1852.
1858.
1864.
Wool,
. 1,786,282
8,083,350
4,259,594
8,926,657
Cottoo, ....
870,116
1,464,404
1,752,967
1,916,210
Silk, . . .
. 2,582,029
8,181,783
8,511,612
4,577,665
Flax, ....
530,816
729,895
805,959
901,802
Miscellaneous, .
862,781
640,124
648,819
817,154
Total Ent. Cons.,
. 6,057,974
9,049,056
10,978,951
12,139,488
WITHDRAWN FROM WAREHOUSE.
Manufacture* of
1851.
1859.
1858.
1854.
Wool,
897,124
273,947
421,541
1,007,852
Cotton, ....
121,812
113,491
105,585
880,229
Silk, . . . .
121,689
163,608
129,077
518,922
Flax, ....
65,350
53,256
19,233
97,933
Miscellaneous, .
19,767
31,238
14,889
60,222
Total withdrawn,
725,242
635,535
069,780
2,055,158
Add Ent. Cons., .
6,057,974
9,049,056
10,978,951
12,189,488
Total on Market,
. 6,788,216
9,684,591
11,668,731
14,194,646
ENTERED FOR
WABEHOUSntQ.
Manufactures of
1851.
1859.
1858.
1854.
Wool,
495,957
108,057
808,196
882,959
Cotton, ....
148,970
50,971
141,504
846,875
Silk, . . . .
871,652
82,493
116,921
612,382
Flax, ....
92,297
26,120
53,379
182,850
Miscellaneous, .
88,698
80,868
14,258
51,262
Total Warehoused
, 1,142,569
298,004
684,253
2,075,828
Digitized by
Gck igle
Original from
UNIVERSITY OF CHICAGO
302
The Foreign Trade of the United States. [October,
Digitized by
A Comparative Table showing the Importation of Dry Goods at the
Port of New- York during the first Eight Months of each Year ,
1851-’52-’53-’54.
ENTERED
FOR CONSUMPTION.
Manufacture* of
1 S51.
1852.
1S58.
1854.
Wool, .
10,0:2,753
10,548,191
19,172,81 C
ir> 5°7
Cotton,
7*s4s,294
7,1 *U92
11.221.9S4
12,4979 '->4
Silk, .
18,274,013
15,374,514
24,1 91, "66
21, 147, "61
Flax, ....
4,084,1 *<3
4,153,3s.)
5,7 24, "26
5,01**1,213
Miscellaneous,
2,755, vj$
3,132,379
4,«A»5,330
3,631,784
Total Ent. Cons.
44,‘JS.V>71
40,0ns,s61
64,3 1G, "23
57*58 4,6 19
WITHDRAWN
FROM WAREHOUSE DURING THE SAME PERIOD.
Manufactures <f
1*51.
1852.
1853.
1854.
Wool, .
1,203,671
1,353,085
1,586,195
2 680 322
Cotton,
1,13", WJ
1,23'.*, 277
8"7,075
2*U>t[o44
Silk, .
9 "",01 5
1,564,7 S4
1,137,449
2,217,7"3
Flax, ....
402,699
66s, 779
16", ^79
634,541
Miscellaneous,
‘>0,588
270,498
201,882
300,748
Total withdrawn,
4,1 47,7 .">9
5,096,423
8,961,480
7,967,738
Add Eut. Con 8.
44,235,071
4u,3.ss,s^i
64,316,022
57,584,019
Total on Market,
48,083,430
45,485,284
08,277,502
05,552,357
ENTERED FOR WAREHOUSING DURING THE
SAME PERIOD.
Manufactures of
1851.
1S52.
1S53.
1854.
Wool, . . . .
1, GO 1,246
l,023,24o
1,902,447
4,014,670
Cotton,
1,1.^2,207
691,835
1,002,596
2,178,637
Silk, .
1,01", "1*2
1,734,611
1,232,469
2,854,010
Flax, ....
4 s 2, 901
249, s'99
244,124
7 57,466
Miscellaneous,
208,583
252,908
277,170
329,089
Total warehoused,
fi, 205,089
3,952,493
4,718, S06
10,133,872
There is an ancient fable, entitled The Boys and the Frogs , which
could be pertinently applied to the present condition of trade between
this country and England. While the United States government is
encumbered with an overflowing Treasury, and the community is saddled
with foreign imports to the extent of two hundred and eighty mil-
lions of dollars for the last fiscal year, our merchants, and traders, and
manufacturers, find it difficult to procure money under 1 to per cent
per month.
The cause of this financial distress lies among ourselves. The remedy
lies equally with ourselves. We have imported too largely. The import-
ations for this port alone, for the last fiscal year, were one hundred and
ninety-one millions of dollars. The policy of England is to faster this
trade. The United States forms the great market for her go .<ls. A
recent official report of the British Board of Trade exhibits the extraordi-
nary increase in their exports to this country as follows, for the y ars
1847-1863 :
Gck igle
Original from
UNIVERSITY OF CHICAGO
1854.]
The Foreign Trade of the United States.
303
Your.
1847, .
Amount.
. £10,974,101
Year.
1851,
1848, .
• •
9,564,909
1852,
1849, .
, , ,
. 11,971,0*28
1853,
1850, .
.
14,891,961
Amount.
£14,302,976
16,507,737
23, CSS, 427
The English manufacturers, not contented with this immense trade,
are now flattering themselves that President Pierce’s and Secretary
Guthrie’s Tariff1 policy will create a much larger export, and that “no
bounds can be set to its development /”
Truly we may say to our English friends, “ It is fun for you, but it is
death to us,” as the frogs said to the boys who were stoning them. To
prove that this is not mere talk or vapor on the other side, we annex a
paragraph in reference to this enlarged trade with the United States,
from a Liverpool paper of the 8th August last :
“ Not the least interesting intelligence which has come to hand recently
from the United States, is the introduction into Congress of a bill for
revising the present tariff of that country. The new measure, supposing
it to be adopted by the representatives of the people, will come in oper-
ation on the 1st of January next, and as it is decidedly in the direction
of free-trade, and proposes to reduce to twenty per cent articles which
constitute three fourths of our exports to America, that have hitherto paid
duties varying from fifty to sixty per cent, this large concession must
necessarily have the effect of vastly expanding our trade with the Great
Republic. Indeed , the expansion of this trade, of recent years, has been
perfectly marvellous, and under the more liberal tariff of General Pierce
no bounds can be set to its development.
“ Between the last year and the year previous we find an increase of
forty-two per cent, and between the year 1847 and the year 1853 an
increase of one hundred and fifteen per cent, which we believe has no
parallel in the commercial history of the two countries .”
The export of specie and bullion from this port alone to Europe, for the
past nine months, exceeded twenty-nine millions of dollars. Our money
market is in a most restricted condition. Our solid and dividend paying
stocks and bonds are depressed below precedent Our dry goods jobbers
are straightened beyond any former period. Of those who weathered the
severe crisis of 1836-7, several are now compelled to go to protest Our
warehouses are lined with foreign goods — the government bonded ware-
houses are equally crammed with merchandize m its various forms, which
will still further demand specie duties — and money at the same time
cheap at two per cent fir month. In the face of all this, we are told at
Liverpool, that for this export trade from Great Britain to this country,
“ no bounds can be set to its development.”
We can only say to our commercial friends, that if they will saddle
themselves and the country with ninety-three millions of dollars in dry
goods annually, they and their friends must suffer. In this crisis of
affairs, it is not, unfortunately, those who have overtraded that alone
suffer. A contraction follows, and the prudent man, as well as all others,
is equally shut out from banking facilities.
This free-trade policy is a very good one on paper. The theory looks
well to the abstractionist, the cosmopolitan, ana the legislator ; but its
Digitized by
Gck igle
Original fro-m
UNIVERSITY OF CHICAGO
304
Bank Statistics.
[October,
workings are far from satisfactory. To a country super-abounding with
capital as Great Britain, and having the command almost of the markets
of the world, it is very easy to adopt a free-trade system. But in a young
country like this, its manufacturers require the fostering care of Govern-
ment to sustain them against foreign cheap labor and cheap capital.
BANK STATISTICS.
Statement showing Names, Location, Capital, Stocks deposited, Notes issued,
and Description or State Stocks, Filed by the Free Banks or Indiana.
Names of Banks. Location, Capital. CircuTn, Description qfStks,
Bank of Connersville, . Connersville, $1,000,000 $517,681 Indiana, Ohio.
State Stock Bank, . Peru, 300,000 1*9,119 Ind. 5 A 2| per cents.
Government Stock Bank, Lafayette, 800,000 £7,210 I nd. 6 per cents. Mo.
Merchants* Bank, . . do. 20»V>00 30,000 Indiana 5 per cents.
Prairie City Bank, . Terre Haute, 300,000 110, 9S3 Ind. 5 A 2|, Va. 6.
Southern Bank, . . do. 200,000 77,337 Va. Mich. Ind. Mo.
Wabash Valley Bank, Logansport, 300,000 208, 0o0 La. Ind. Va. Tenn.
8tate Stock Bank, . . do. 7>oo,oo0 177,739 Ind. Mich. Penn. 5s.
Gramercy Bank, . . La&yette, 200, 000 71,320 Ind. Va. La. 6s.
Indiana Stock Bank, . Laporte, 250, 00O 100,154 Mich. 6s, Ind. 5a.
Plymouth Bank, . . Plymouth, 1 00,000 5o,5o0 Ind. 6s, Va. 6s.
Drovers* Bank, . . Rome, 250,000 49,798 Indiana 5a.
Public Stock Bank, . Newport, 200,000 109,314 Indiana 5 A 2§a.
Bank of North America, do. 100,000 60,000 Indiana 5s.
State Stock Security BlL do. 250,000 lOn,O00 Ind. Penn. Va. 6s.
Traders’ Bank, . . Indianapolis, 300,000 62,566 Ind. 6 A 2Js, Ga. 6s.
Western Bank, . . Plymouth, 2oo,o00 100,o00 Ind. 5s, Va. 6s.
Canal Bank, . . . Evansville, 500, on0 70,ono Ind. 5s, Mo. 6s.
Fayette Co. Bank, . . Connersville, 500,000 81,250 Va. Ky. Ind. 5 A 2Js.
Northern Indiana Bank, logansport, 2“0,“00 100, o00 Ind. 5*8, Mo. 6s.
New- York Stock Bank, Vincennes, 500,000 119,000 Virginia 6s.
The Bank of Indiana, . Mich, city, 5o,000 50,ix>0 Ind. 5s, Mo. 6s.
Elkhart Co. Bank, . Goshen, 500,000 320,000 N. C. 6s. La. 6s.
Steuben Co. Bank, . .Angola, 500,000 150, 000 Ind. and La. 6s.
Crescent Citv Bank, . Evansville, 250, “00 72,098 Ind. 6s, Ky. 6s.
Indiana Bank, . . Madison, 50o,000 6*, 400 Ind. 2& A 6s, Mo. 6.
Central Bank, . . Indianapolis, 5Oo,0O0 189,600 Virginia 6s.
Bank of Albany, . . New-Albany, 250, 0(*0 63,512 Ind. 5 A 2|s, Va. 6s.
State Stock Bank, . Jamestown, 600,000 837,000 Va. A Ohio 6s.
Bank of Covington, . Covington, 500,000 155,000 Ind. Va. La. 6s.
Great Western Bank, . Terre Haute, 500,000 189,000 Virginia 8s.
Bank of Rochester, . . Rochester, 200,000 170,000 Mo. Va. La. Tenn.
N. Y. A Va. S. Stock Bk. Evansville, 1,000,000 236,000 Va. Ga. and Ky. 6s.
Bank of Rensselaer, . Rensselaer, 500,000 114,000 Penn. 5s, La. 6s.
Wayne Bank, , . Logansport, 500,000 120,000 Va. and Ohio 6s.
Bank of Attica, . • Attica, 300,000 144,479 Ind. 5s, Va. 6s.
Delaware Co. Bank, . Muncic, 500,000 90,000 Indiana 2J A 5s.
Bank of Goshen, . Goshen, 200,000 110,000 Ind. Penn. Tenn. La.
Lagrange Bank, . . Lima, 500,000 51,628 La. Ind. N. C. Tenn.
Hoosier Bank, . . Logansport, 200,000 49,985 Mo. and La. 6.
Upper Wabash Bank, . Wabasn, 300,000 195,000 Virginia 6s.
Perry County Bank, . Cannelton, 500,000 78,000 Penn. 6s, Ind. 5s.
Wayne Bank, . . Richmond, 5o0,000 100,000 Virginia 6s.
Farmers* Bank, . • Westfield, 200,000 87,152 Ind. Mo. A Va. 6s.
Traders* Bank, . . Terre Haute, 100,000 49,998 Indiana 5s.
Kentucky Stock Bank, Columbus. 50,000 85,496 Mo. Ky. La. Ga. Ind.
Farmer* A Mechanics’ Indianapolis, 500,000 86,000 Louisiana 6s.
Digitized by Gougle
Original from
UNIVERSITY OF CHICAGO
305
1854.]
'V\
:N
^apntics.
Names of Banks. Location. Capital .
State Stock Bank, , . Marion, $600,000
Laurel Bank, . . Laurel, 150,000
Bank of Salem, . . Salem, 250,000
Kalamazoo Bank, . Albion, 50,000
Farmers* Bank, . . Jasper, 100,000
Bank of Albion, . . Albion, 50,000
Bank of South Bend, . South Bend, 350,000
Wabash River Bank, Jasper. 600,000
Traders’ Bank, . . Nashville, 100,000
Merchants’ A Mechanics’, New- Albany, 500,000
Bank of Mount Vernon, Mt. Vernon, 400,000
Bank of Fort Wayne, . Fort Wayne, 300,000
North Western Bank, . Bloomfield, 600,000
Bank of America, . Morocco, 500,000
Wabash River Bank, . Newville, 500,000
Bank of Rockville, . Rockville, 300,000
Indiana Reserve Bank, Kokomo, 300,000
Farmers and Mechanics’, Rensselaer, 250,000
Huntington County Bk. Huntington, 300,000
Brookville Bank, . . Brookville,, 100,000
CircuTn . Description of St'ks.
$75,000 La. and Va. 6s.
57.000 Indiana 5s.
100,000 Louisiana 6s.
50.000 Carolina A Va. 6s.
42,500 Pennsylvania 5s.
41,200 Pennsylvania 5s.
100.000 N. C. and Va. 6s.
800.000 Virginia 6s.
75,400 Indiana 2$s.
50,000 Ky. Tenn. Ind. Ss.
97,414 Ga. 7s, Carolina 6s.
124,995 Ind. 5 A 21s, Va. 6s.
800.000 Virginia 6s.
49,218 Penn. 5s. Ind. 5s.
105.000 Virginia 6s.
50.000 Louisiana 6s.
47,996 Virginia 6s.
52.000 Louisiana 6s.
50.000 Virginia 6s.
85.000 Va. 6s, Ind. 5s.
Total*, $32,900,000 $7,426,067
John P. Dunn, A uditor of Stale.
Noth— The Pennsylvania 5 per cents are received for a basis at 88 to 85 per cent
Indiana 2j*s at 50 to 55 per cent The State has and will he purchasing this class of Stocks at
82 tor liquidation. We have also paid off over $100,000 of the principal of our State dobt, and will
soon return a larger amount
Many of the banka are retiring their circulation, and sinoe this was made out $100,000 circulation
has been returned and bonds taken up, Every day this is going on. — J. P. Dunn.
The following is a list of some of the Free Banks of Indiana, not
enumerated in Auditor Dunn’s 44 statement
Atlantic Bank, Jackson; Bank of Auburn, Auburn ; Bank of Bloom-
ington, Bloomington ; Bank of the Capitol, Indianapolis ; Bank of Elk-
hart, Elkhart ; Bank of Perrysville, Perrysville ; Bank of Syracuse, Sy-
racuse; Bank of Warsaw, Warsaw; Brookville Bank, Brookville; Ex-
change Bank, Greencastle; Farmers’ Bank, Jasper; Hoosier Bank,
Logansport; Kentucky Stock Bank ; North-Western Bank, Bloomfield ;
Producers’ Bank of Napierville ; Salem Bank, Salem ; Shawnee Bank,
Attica.
Philadelphia Finance — The recent consolidation of the city and precincts ot
Philadelphia provides for a modification of the indebtedness of the several districts.
Of this the Ledger says:
“The debts of the old city of Philadelphia and those of the several districts,
have been consolidated, and henceforth will be known only as city loans. A bond
of the District of Moyamensing, or Penn, or Richmond, or any other, is now
equal in value, dollar for dollar, with the bonds of the old city, or the boat of
the districts. In all transfers of loans, of whatever district, the City Treasurer gives
a receipt for so much of city loan, and in the course of two or throe weeks, the
new bonds, which are now being engraved, will be ready and issued to those hav-
ing right to claim them. The interest on all the new bonds will be payable in
January and July. Wo have several times called the attention of our readers to
the fact of the unreasonable difference in the market price of the loans of our
several municipal corporations. There has been no reason, since the passage of
the Consolidation Act, ai id the action of Councils on the subject, why there should
be * shilling’s difference in the per diem price of any of them.”
Digitized by
Gck igle
Original from
UNIVERSITY OF CHICAGO
306
'Government, State, and City Bonds
[October,
GOVERNMENT, STATE, CITY, COUNTY, AND RAILROAD STOCKS,
BONDS, etc.
New-York, September 2 5, 1 8 54.
N A MRS OF CO HP AM IBS.
! AMOr?rr. MATURE Of BONDS. |lM WHEN PAT ABLrI AT P0B.I ^Orr%D.'ASR*D
Alabama A Tenn. River
Baltimore A Ohio
do. do. ....
do. do. . .
Buffalo k State Line
do. do,
Buffalo k New-York City
Belk-fontaloe A Indiana .
Cin.. Wilmington, A Zanesville
Cincinnati, Hamilton. A Dayton
do,
Cincinnati A Marietta .
Cleveland. Paine*vilJe.A Ashtabula
Cleveland A Pittsburgh
do. do.
Cleveland A Toledo
do. do. (Ohio June.)
Chicago A Rook Island. (Illinois)
Chicago A Mississippi
do. do. ...
do. do.
Covington A Lexington
do. do. . . •
Dayton A Western
Port Wayne A Chicago .
Galena A Chicago ....
Indianapolis A Bellefontalne .
Indianapolis A Lafayette .
Indiana Control ....
Illinois Central ....
Illinois Great Western
Jeffersonville (Ind. to Louisville)
do. do.
Lake Erie. Wabash, A 9L Louis
Lawrenceburgh A Indianapolis
MaysvHlel Lexington
Madison A IndUtnapoUs . ,
Michigan Control
do. do
M do. do
Michigan Southern
Milwaukee A Mississippi .
do. do. . .
New-York Central
v (Subscription)
New \ork A New Haveu
New-York A Harlem .
New llAven A New London .
New-Havcn A Hartford .
New Albany and Salem
do. do. .
Northern Indiana ....
do. do. Goshen Branch
Northern Cross
Ohio Central * .
do
Ohio A Pennsylvania
io do
Ohio A Indiana . ...
Panama
Pennsylvania ....
Reading
do
ftcioto A Hocking Valley .
Springf., Ml. Vernon. A Pittsburgh
Steubenville A Indiana
Tennessee R. R.’s guar, by 8tate
Terre-Haute A Indianapolis
Terre Haute A Alton . . ,
\\ Hmlugton A Manchester (N. Ca.)
convertible 7 I eb.. August
2d sec., coiiv. 7 March. Sept,
not conv. 7 Feb., August
convertible 7 Divers
conv. till 1*58 7 10 Jan., 10 July
do. 1055 7 April, Oct.
not conv. liApdL Oct.
mort. con. till 1858 7 January. July
jt mort., not conv. igApriLOct. I
1,000,000, 2d mort., convertible 7 March.
300,000 1st mort.. do.
X
■MX
ISPMSjfl
im x
> 833JW0 1st mort. con. till 18721 7 1 Jan. 1 July N.Y.isn X
L000.000 Transferable— taxed H Quarterly. Balt, i wvT I
1,138.0*) Coupons, free of tax G January. July . 18T6
700,000) do. do. 6 Half-yearly 1*0 1
600.000 1st mort.. not conv. ! 7 April, Oct. N. Y. |*»>
300.000 No mort., do. 7 January. July * 1361
1.200.000 1st mort. . . 7 Divers
000,000 1st do. convertible 7 January, July
1.300.000 1st do. do. | 7 May, Nov.
500.000 2d mort., not conv. TL.
1,000,000 3d do. do. 7 May, Not.
2^00.000 1st do., conv. till 10G2 7 January, July
667.000 1st mort., not conv. 7 Feb., August
8lW *2
l*tt
ISOS
1**0
1808
1861
- m
US0.0M
Law.'*"
do. conv. till 18G3
do. not conv.
ao. convertible
— . do. do.
600.0W do. do.
17.000.uuo Mort., not conv.
1,000,000; 1st mort.. do.
~ ~~ do. 1st sec. do.
do. 2d do. do.
. Kept.
7 March, Sept.
7 January, July,
7 Feb., August {
7 January. Julyl
7 15 Feb., 15 Aug.
7 May, Nov.
7 1 Oct.. 1 April
10 April. Oct.
7 March, Sept.
7 April, Oct.
do. conv. till 1850 7 Feb., August
do. do. 1867 7 March. Sept,
do. not conv. 6 April, Oct.
do. conv. till 1850 6 January. July
‘7 Mayt Nov.
do. convertible
1.000. 000 No mort., do.
1.305.000, do. do.
1.163.000 do. not conv.
1.000. 000; 1st mort., do.
000,000; do. 1st sec .con. 1857
«5n,oi>0< do. 2d do. 185*
8.67.000 No mort., not conv.
750,00ft do. do.
750,000 do. do.
1,800.0001st mort.. do.
do. do.
do. do.
do. on 1st sec.
sA^sioa: |bo.i
0 April, Oct. ..
8 Semi-annually M
7 May. Nov. |*JM
8 January, July
8 April, Oct.
6 May. Nov.
6 May. Nov.
7 June, Dec.
18G3
1883-72 X
1870 ,X|
X
|s
XI
X
9Mam h
so
X
X
X _
X 80
§
1868
1874
1*12
\m
1881
1863 x;
1*JM1 * 1*4
I
7 May, Nov.
6 January, July
6 January, Ji
10 April, Oct.
1,000.1
1,500,1
L200.<
450,1 —
300,000.
do.otherdo. con/58 0 May, Nov.
do. not conv. ; 7 Feb., August
do. do. 6 Feb., August
do. convertible I 7 January, July
do. conv. west sec. 8 Feb., August
do. do. east do. 7 May, Nov.
. I . CM* UV. . . rHfP
L750,000l do. convertible 7 January. July
600,000 Income, no mor. con. 7 April, Get.
1.000.000' li —
,6'ApriLOctc w.
JW.OOO! a . „ I 7 May, Nov. v v
500.00(1 1st mort. 1st div. con. 7 Jauuary, July
■ I TJanuary, July,
i 7 March. Sept.
- 7 Feb., August
conv. till 1065, 7 June. Dec.
* X” stand* for Lx-lMcrvsl.
1061
1866
l "75
In*
In. I
1873
1075
1866
1883
1873
1861
1060
1855-56 X
1867-68
1060
m |x
\
X IPO
I UVx 76
X 7« 80
i >
X 09 1*0
IX 1 Hi
X, »Va, 87
lx
X
X 100
971^100
H5 100
2
87Vfc
W
■
H
■
■
-7
90
85
■
H5
IX)
■
96
96
90
93 ,
g.;
94
1*3
1*83
1803
I8fl-Vx
1836 x
1073 x'
1858-62 X 99
(1864-75 x **
IMl H3
6 Is,
3804 i *x H3 1
1065-66 \ 100
m ix 84
100
92
85
85M*
1**;7
1866
UM
IN.)
1870
M
IN^
1865
1866
l-u,
1366
, rv
X 96
* , 81
, 761*
X
X W
X 84
IX »
Xiw
\x 2
X 92
IPS
ifi
I 87
I H5
87 Mr
93
95111
, 91
102
85
100
93
97
7GVR
90
1100
101
88
93
Digitized by Google
Original from
UNIVERSITY OF CHICAGO
Digitized by
Gck igle
Original from
UNIVERSITY OF CHICAGO
308
Bank Statistics.
[October,
List of Banks in the State of Sew- York that have given notice of closing their affairs ;
with the amount of their outstanding circulation, July, 1854, and the dates up to which
their circulation will be redeemed at the Bank Department, Albany.
yame.
Location.
Circulation.
Time of
Redemption.
Merchants’ Bank of Ontario Co., .
s
#
Feb. 22, ISM
Adams Bank,
. Adams,
MI
Juno 2, *
Oswego County Bank, . .
•
• Meridian,
1,145
July T, -
Sullivan County Bank,
. Montlcello,
683
Aug. 17, -
Commercial Bank, ....
. Lockport,
1,075
Oct. 80, -
Northern Bank of New- York, .
. Madrid,
5,669
44 80, -
Prattsvlllo Bank, ....
. Pratts ville.
2,641
Nov. 30, -
McIntyre Bank,
. Adirondack,
1,800
Jan. 26,185$.
Astor Bank,
. New-York City,
682
May 11, •
Franklin Bank of Chatanquo Co., .
. French Crook,
4,251
July 28, -
Freemen's Bank of W ashlngton, .
. Hebron,
1,888
Sept, 9, 44
Lumbermen's Bank, . . • •
. Wllmurt,
1,808
44 19, 44
Amenta Bank, . . . .
. Leodsvillc,
5,128
44 9, **
Bank of Lake Erie, . , . ,
• Frankfort,
1,299
44 23, 44
Merchants' Bank of Chatauque Co.,
. Union Ellery,
7,459
Oct. 17, 44
Champlain Bank, • . • •
• Ellenburg,
5,487
Nor. 29, “
American Bank, ....
. Mayville,
2,943
44 29, 44
Merchants' Bank of Washington Co., .
•
1,7M
Dec. 5, -
Knickerbocker Bank, . . .
. Genoa,
8.96S
Nov. 29, 44
Excelsior Bank,
. Meridian,
2,318
lYb. •>, w*;.
Northern Exchange Bank, .
. Brasher Falls,
6,802
44 20, 44
Patchin Bank,
• Buffalo,
10,529
■ 20, 44
N. Y. Bank of Saratoga Co., .
. Hadley,
5,466
April 5, 44
Merchants and Farmers' Bank of Putnam Co., Carmel,
10,642
44 5, M
Hartford Bank, ....
• Hartford,
3,645
July 6, 44
New York Stock Bank, .
• Durham,
4,875
44 17, 44
Mechanics' Bank, . .
, Watertown,
11,686
Aug. 26. ■
Bank of the Empire State, .
• Burton,
6,090
Not advertised.
Bank of the People, . .
#
6,504
m
Commercial Bank of Allegany, .
• Friendship,
49,991
M
Farmers' Bank of Hamilton Co., •
. Arietta,
47,133
M
Farmers' Bank,
• Mina,
24,935
a
Lcland Bank,
• New-Lebanon,
6^43
M
New-York Traders' Bank, .
. North-Gran ville.
5,711
«
Northern Canal Bank, . ,
. Fort Ann,
6,802
u
Phenlx Bank,
• Bainbridge,
29,872
M
Putnam Valley Bank, .
• Putnam Valley,
51,207
w
State Bank, .•••*.
• Saugertiea,
64,599
Western Bank of Suffolk Co^
•
•
10,799
M
White Plains Bank, ....
• Naples
45,623
M
Total circulation, •
•
$504,972
Tho creditors of Mr. C. R. Moatc, a metal broker, have boon called together ; his
liabilities amount to £56,000, of which £20,000 are secured. Another Russian
house, that of M. Iwan Shaposhnikoff, of St Petersburgb, has failed for £85,000.
The creditors of Messrs. Leroy, Chabrol & Co. have consented to allow them to
discharge their liabilities by four quarterly paymonts, with interest, to the extent of
£520,000.
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Foreign Items .
309
FOREIGN ITEMS.
Frankfort. — The Times announces that the statutes of the new Frankfort Bank
have recently been published- From these it appears that the establishment is
bound to commence business on or before the sixth of next September. Its capi-
tal is to consist of about £1,700,000, in 40,000 shares of 500 guidon (£41 13s. 4d.)
each, of which one half only are put forth in the 'first instance. It will be a bank
of issue, discount, and deposit, and is empowered to lend money to the extent of
two-thirds or four-fifths of their current value on gold and silver bars, foreign bills,
real estate in Frankfort, dock warrants, and all stocks and shares which enjoy a
concession from a German Government. It may deal in bullion and foreign bills,
but not in stocks, shares, or estates, and its note circulation is to be regulated by
the amount of its paid-up capital Upon the first £400,000 being paid up, paper
may be issued to the amount of £800,000, and the subsequent issues are to be equal
to any additional payments that may be made. Against all its notes the bank must
hold one-third in bullion and the rest in bills or stocks. It will transact, likewise,
every ordinary kind of banking business, but for the Frankfort Government it is to
make all payments and receipts free of charge.
Exchequer Bonds. — Of the proposed loan of £6,000,000 in England, the Lon-
don Morning Chronicle says:
The new financial measure of the Chancellor of the Exchequer is a subject oi
great interest to the monetary world, and the advantages and disadvantages of the
new security to be created have been carefully and narrowly scrutinized, as usual
on such occasions. The exchequer bonds are an entirely new security, brought out
at a period somewhat adverse to their introduction to the public stock market ; but
they offer various advantages to certain classes of capitalists, and are, therefore,
considered likely to be taken up by parties to whom they will be an advantageous
medium for the deposit of certain trust money, and other aapital not otherwise
required for immediate employment The peculiar features of the exchequer bonds
are first, that they are a government security ; secondly, that they bear a fixed rate
of interest, without reference to the fluctuating character of the money market;
thirdly, that they aro redeemable at par ; fourthly, that thoy are not subject to
violent fluctuation in their intrinsic value ; and, fifthly, that thoy are transferable
from hand to hand without the intervention of any third party. To all classes of
capitalists seeking to invest small sums of money for certain fixed periods of four,
five, or six years, thoy will prove a desirable and advantageous medium for the
secure deposit of cash. But they will not displace exchequer bills, nor be preferred
by other classes of capitalists to consolidated stock, as the latter securities have
hitherto been the two prominent government securities, and meet the requirements
of the large investors.
A meeting of the creditors of Messrs. Elkin & Sons, who recently failed, was held
recently, when it was agreed to wind up the affairs under inspection. The
balance-sheet presented gave the liabilities at £133,433 10s. 6<L, and the assets
£96,628 12s. 3d. ; deficiency £36,904 18s. 2d.
English Capital. — The policy of English capitalists for twelve months past has
been to encourage no new enterprise of a speculative character. Upon this point,
the Economist says :
11 For many years, in fact, so complete a stagnation of business on the stock
exchange has not been known. Under present circumstances, there are no new
companies forming , and no railways coming forward, such as have been continually
projected for many years past. Of late years the stock exchange had been the
market for something else than the l\inds* and stocks already existing. At present
government is likely to make a great demand on the labor and the capital of the
country, enhancing wages for a time, and enhancing the rate at which capital can
be obtained.”
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Foreign Hems .
[October,
1 London Banks. — The half-yearly meetings of the several joint-stock banks in
London being now completed,* the subjoined table has been made up, showing their
relative capitals and extent of transactions, as well as the respective periods at
which they were opened, and the number of branches belonging to each establishment.
The growth of business exhibited by these returns continues to be very great, the
aggregate deposits held by the six banks having increased more than 21 per cent
during the year, their amount now being £25,434,700, or nearly double the
present deposits held by the Bank of England, including those of the government
Looking at this augmentation, together with the fact that there is full reason to
believe the business of the private banking firms has been upon a scale equally
satisfactoiy, another confirmation is obtained of the indications afforded by the
monthly returns of the Board of Trade of the rapid progress the country has con-
tinued to make during a war which the Emperor of Russia persuaded himself would
be avoided on our parts solely from a dread of commercial ruin : —
Banks. Paid-up CspiUL
London and West- £.
minster — esta-
blished 1834. 6
Deposit*.
£»
OMTMU.rw *£?{£££*
£.
branches,. .......
London Joint-Stock
— established 18-
1,000,000
6,892,470
125,307
6 per oent per an-
num, leaving sur-
plus for six months
of £13,900.
36. 1 branch, . • .
Union of London-*
established 1839.
600,000
5,837,900
153,549
10 per oent per an-
num, leaving sur-
plus for six months
of £24,695.
2 branches,
London and County
—established 18-
422,900
7,031,477
60,000
16 per oent per an-
num, leaving sur-
plus for six months
of £20,696.
39. 58 branches,
Commercial — esta-
blished 1840. 1
399,625
3,606,660
60,759
6 per cent per an-
num, leaving sur-
plus for six months
of £12,946.
branch,
Royal British-esta-
blished 1849. 4
300,000
1,265,903
64,012
10 per cent per an-
num, namely, divi-
dend at rate of 6
per cent and bonus
of 16s. per share.
branches,
60,000
900,390
12,416
6 per cent per an-
num, leaving sur-
plus for six months
of £869.
British Railroads. — According to the returns made by the companies of Great
Britain, it seems that the aggregate receipts of all the railroad companies during the
past year, in that country, were about eighteen millions sterling, or nearly ninety
millions of dollars. The returns from the three divisions of the United Kingdom
present a singular difference as to the revenue from passengers and that from
transportation of goods, namely :
fWn Passengers. From Omds.
In England, 47.45 per cent. 52.55 per cent
In Scotland, 29.52 per cent 60.48 per cent
In Ireland, 64.62 per cont S5.38 per cent
Ireland is fast becoming a manufacturing country, the goods traffic having
in the past four years increased about 130 per cent.
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Foreign Item*.
311
Bank of England. — The Bank of England rate of discount has fluctuated
between 2 and 5J- per cent since January, 1853. The dates of advance were as
folio wb:
1863,
u
44
44
<4
(4
44
1854,
44
January 1, rate.
“ 6, advanced to
“ 20, «
June 2, 44
Sept 1,
44 15,
a 29,
May 11, 44
August 3, reduced to .
2
H
3
3*
4
4*
5
6
per cent
Some doubts exist as to the propriety of lessening the rate of discount by the
Bank of England, pending the expensive war between the eastern and western
powers of the Continent The money article of the London Morning Chronicle, of
Thursday, 4th August, says :
The directors of the Bank of England, at their usual weekly board meeting this
afternoon, resolved upon reducing the rate of interest for the diaoount of commer-
cial bills from to 5 per cent This measure appears to have been very unex-
pected ; but, although it may call forth some disapprobation, there can be no doubt
that it will be generally approved. There may be some difference of opinion as to
the safety of the course adopted ; but the future state of the weather will chiefly
resolve this question. The directors have acted upon certain existing facts, such as
the easier state of the money market during the last fortnight, the course of the
foreign exchanges, the state of the bullion in the bank vaults, the probable supply
and demand of the precious metals, the state of the commercial interests, the pros-
Kof the harvest, and the character of the weather for the last week or two.
i the two latter considerations all the former necessarily depend, and their
importance, therefore, oannot be estimated. If the weather, which has undergone
a change within the last four and twenty hours, should again become favorable, as
is partially indicated by the barometer, there is reason to hope that the excessive
fail of rain last night and this morning will not be attended with very serious
results to the standing ootzl What the final result of the entire harvest of the
United Kingdom will be remains, of course, to be seen ; but as it is highly import-
ant to obtain some reliable data for the present consideration, much time and trouble
have been devoted to the subject. Generally, the yield is expected to be large,
and beyond an average ; and if the result of the harvest confirms this view, there
can be little question that the decision of the Bank directors in lowering the rate
of discount has been prudent — London Morning Chronicle, Aug. 4, 1854.
Exchequer Bonds. — In the House of Commons, on Monday, 22d July, a debate
occurred in reference to the new measures of the Exchequer. In this debate Mr.
T. Baring, Mr. Wilson, (editor of the Economist,) Mr. D’lsraeii, and Mr. Gladstone,
and others took port
Mr. Malms urged at considerable length the imprudence, in spite of warnings, of
the measure of last year for converting the 3 per cent stocks ; and, in connection
with that operation, he condemned the scheme of exchequer bonds, which, he
insisted, constituted a loon, as at variance with principles laid down by the Chan-
cellor of the Exchequer himself He could not put the loss to the country from his
false step, he said, at less than £800,000. The proposal to raise a loan of
£6,000,000 at 4 per cent to pay off a 3 per cent stock, would occasion a loss of
£60,000 a year. On the subject of bank accommodation, Mr. Malins argued
against what he considered to be fallacies in the views taken by the Chancellor of
the Exchequer and Mr. Wilson, and, in conclusion, he predicted the probability that
the scheme now proposed might entail hereafter a further loss of £60,000.
Calcutta. — A notice appears in the London Gazette, that the London and
Eastern Bank have made application for a charter for establishing a banking oom-
pany, to cany on the business of banking at Calcutta and other places in the Bast-
Indies, in the Eastern Archipelago and China.
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Foreign Items.
[October,
French Tariff. — The Paris Presse of Tuesday, the 22dult, publishes a petition,
very numerously signed, to the Minister of the Interior, praying that the petitioners
may be permitted to form themselves into a society, whose object is to enlighten
the country as to the benefits which would result to the population in general by
an extensive reduction of tho Customs Tariffs. Among the signatures for Paris are
those of M. Carlier, ex-prefect of police, M. Michael Chevalier, M. Horace Say,
several deputies, members of the Chamber of Commerce, judges of the tribunals,
the two Pereires, and other capitalists, and many of the leading merchants and
manufacturers. For Lyons the signatures are equally numerous and important
This is also the case for Limoges and Alsace ; the principal manufacturers there are
among tho petitioners. For Havre there are very few signatures. Boulogne-sur-
Mer is represented by M. Adam, the President of the Chamber of Commerce, and
some of the principal manufacturers. Other petitions to the same effect have been
drawn up at Marseilles, Bordeaux, and many of the great trading towns in France.
Financial Effects of the War. — It was recently pointed out in the Times
that tho Russian war, so far from having been a cause of financial damage to
England, had operated as a check to a new spirit of inflation which had just begun
to manifest itself and which, if allowed to pursue its course, would have ended in
loss far greater than tho expenditure now in progress. To complete the view of
tho satisfactory course of events, and of tho solid prospects of the national credit,
somo other considerations must be added. When war was first declared it was
considered that in any case one of its evils would bo a serious increase of the public
debt, and the fact that, notwithstanding the partial clamor which was raised for an
immediate creation of fresh consols after a heavy fall had already occurred, the
necessity for tins step has been wholly avoided, seems a point of congratulation for
which tho most sanguine could scarcely havo hoped But it remains to be also
shown that the circumstances under which this result has been realized are of a
character generally more gratifying than tho world has generally supposed The
possibility that, through the sacrifices to which they now cheerfully submit, the war
may be carried to an end without the burden of debt being augmented, would
be a sufficient reward for the people of England to contemplate. They are able,
however, to recall that their present efforts were not needed to avert an increase of
the national liabilities, but simply to prevent the prospect being destroyed of an
early and large diminution of them. The annual charge for tho funded debt at this
time is £27,443,611, but at periods between now and the 5th of Jannary, 1860 —
that is to say, in little moro than five years — it will undergo a reduction to
£24,236,211. In tho course of six weeks the stock known as three and a
quarter per cents will become converted into “ new throe per cents,” guaranteed
for 20 years, by which an annual saving will bo effected of £600,000. In
October, 1859, annuities expire to tho amount of £306,000, and in January*
1860, the extinction of the long annuities, etc., will involve a saving of £1,599,500,
while meanwhile there are sundry smaller claims of tontine and other life
annuities, which it is estimated will fall in to the extent of £702,000. A total
reduction is thus arrived at of £3,207,500, and consequently a result which, in its
effects on the yearly taxation, will be the same as if £107,000,000 of the three per
cent debt had been paid off. In 1867, moreover, a further relief will take place iu
the expiration of the annuity held by the Bank of England, and usually termed the
“dead weight,” amounting to £585,700, or tho equivalent of an annual payment on
£19,520,000 three per cents. H?nce it will be seen that, notwithstanding the
predictions of some foreign writers as to the ruin that was to fall upon Great
Britain whenover she should find herself compelled to resort to hostilities, she is in
a position that would enable her during the next thirteen years to borrow nearly
£130,000,000, or at the rate of £10,000,000 per annum, without placing herself as
far as annual taxation is concerned, in less favorable circumstances than she occu-
pies at this moment It must be remarked, too, that although it is a common
impression that the present generation have failed to avail themselves sufficiently
of the advantages of a long peace in reducing the national obligations, a reference
to the statistics of the subject for the past thirty years will show that, while more
might undoubtedly havo been done, there is no ground for heavy reproach. The
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313
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principal of the debt, it is true, has been reduced only to the extent of about
per cent, but the annual amount payable for interest has been reduced nearly 8
per cent, notwithstanding the emancipation loan of £15,000,000 in 1835, and the
Irish famine loan of £8,000,000 in 1847. Under these circumstances there soems
nothing more than is natural in the prices which the British funds are now found
to maintain, or in the fulfilment of the opinion ventured upon in March last, that
the range of consols through the worst periods of the coming struggle might be such
as to excite congratutotaon-and surprise. — London Times .
MISCELLANEOUS.
Government Finances. — The Treasury Department continues the purchases of
government six per cents of 1867-8, at 16 premium. The circular of the 26th August,
is annexed. The purchase of Mexican barren territory has interfered somewhat
with the Treasury operations. The sum of seven millions of dollars has been
absorbed to create more territory, when we have too much already.
Notice is hereby given to the holders of the following described stocks of the
United States, that this department is prepared to purchase, at any time between
the date hereof and the 20th day of November next, portions of those stocks,
amounting in the aggregate to $3,840,000, in the manner and on tho terms herein-
after mentioned, to wit :
In case of any contingent competition, within the amount stated, preference wfll
be given in the order of time in which said stocks may be offered. The certificates,
duly assigned to the United States, by the parties who are to receive the amount
thereof; must bo transmitted to this department ; upon the receipt whereof a price
will be paid compounded of tho following particulars:
1. The par value, or amount specified in each certificate.
2. A premium on tho stock of the loan authorized by the act of July, 1846,
redeemable November 12, 1856, of 3 per cent ; on the stock of the loan authorized
by the act of 1842, redeemable 31st December, 1862, of 11 per cent; on the stock
of the loans authorized by tho acts of 1847 and 1848, and redeemable, the former
on the 31st December, 1867, and tho latter on the 30th June, 1868, of 16 per cent;
and on the stock of the loan authorized by the act of 1850, and redeemable on tho
3l8t of December, 1864, (commonly called the Texan indemnity,) 6 per cent
3. Interest on the par of each certificate from the 1st of July 1854, to the date
of receipt and settlement at the Treasury, with tho allowance (for the money to
roach the owner) of one day’s interest in addition.
Payment for said stock will be made in drafts of the Treasury of the United States,
on the Assistant-Treasurer at Boston, New- York, or Philadelphia, as the parties
may direct.
But no certificate will bo entitled to the benefit of this notice which shall not be
actually received at the Treasury, on or before the said 20th day of December next
James Guthrie,
Secretary of the Treasury .
Expenses op the Independent Treasury. — Congress has appropriated as fol-
lows: For salaries of tho assistant-treasurers of the United States at New-York,
Boston, Charleston, and St. Louis, eleven thousand five hundred dollars ;
For additional salaries of tho treasurer of tho mint at Philadelphia of one thou-
sand dollars, and of the treasurer of tho branch mint at Now-Orlenns of five hun-
dred dollars, one thousand five hundred dollars ;
For salaries of six of tho additional clerks, authorized by the acts of August sixth,
one thousand eight hundred and forty-six, August twelfth, one thousand eight hun-
dred and forty-eight, March third, ono thousand oight hundred and fifty-one, and
August thirty-first, one thousand eight hundred and fifty-two, six thousand dollars;
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314 Miscellatuous. [October,
Far one additional clerk in the office of the assistant-treasurer at Boston, Massa-
chusetts, one thousand two hundred dollars ;
For clerks, messenger, and watchmen, in the office of the assistant-treasurer at
Hew- York, tliirteen thousand nine hundred dollars;
For salary of a clerk for the treasurer of the branch mint at San Francisco, Cali-
fornia, two thousand five hundred dollars ;
For contingent expenses under the act for the safe keeping, collecting, transfer,
and disbursement of the public revenue of August sixth, one thousand eight hun-
dred and forty-six, sixteen thousand five hundred dollars : Provided, That ho part
of said sum of sixteen thousand five hundred dollars shall be expended for clerical
services ;
For compensation to special agents to examine the books, accounts, and money
on hand, of the several depositories, under the act of August sixth, one thousand
eight hundred and forty-six, five thousand dollars ;
For tho discharge of such miscellaneous claims not otherwise provided for, as
shall bo admitted in due course of settlement at tho treasury, five thousand dollars:
Provided, That no part of the appropriation shall be drawn from the treasury except
in pursuance of some law or resolution of Congress authorizing the expenditure.
New Cotton. — Two bales of new-crop cotton, being the first of the season, were
received at New-Orieans on the 25th July, from Port Lavaca, Texas. The follow^
ing are tho dates of the first receipts for the past six years: 1848,1 August 6;
1849, August 7; 1850, August 11 ; 1851, July 25; 1852, August 2 ; 1853, August
9; 1854, July 25.
As to tho prospects of the new crop in Texas, the N 0, Commercial contains the
annexed letter, dated Kaloolah Plantation, Gonzales Co., Texas, 18th July, 1854:
“ I will send you a bale of new cotton by the next steamer, and oould send one
bj the steamer that carries this letter by hard driving.
“The result of the crop in Westera-Texas is by no means decided or sufficiently
oertain to base a calculation upon. The plant is large — in many situations too
large— and tho season having thus far been too wet, and dry weather for any length
of time succeeding would cause the forms to shed and seriously affect the result
The corn crop is very good and already made. We are eating hominy and bread
from the present crop.”
Of tho present year’s cotton crop, the New-Orleans Picayune says :
“ Reports from North-Mississippi and Alabama represent the cotton crop as better
than usual and as decidedly promising. The West-Tcnnessoo cotton crop will pro-
bably go beyond an average. In that section the crops are unusually good. The
crops of hay and oats have already yielded a plentiful harvest.”
On the same subject, the Tuscumbia North- Alabamian, of the 7th, says:
“ Crops look gencraly well Cotton is rather small, and in some instances the
stand appears bad in the vicinity of the railroad between here and Decatur. Com
looks very well, and the earlier planted will make full crops, with a good rain or
two within the next week.”
Tho Memphis Eagle learns from a gentleman who has just returned from Arkan-
sas, that the crops along White River, and in the counties of White, Jackson, etc.,
are better than an average. Com is excellent and cotton fair.
Cotton foe 1853-4. — The receipts of cotton this year at New-Orleans and other
ports, are about 333,000 bales short of last year. The exports to Europe are below
those of 1852 and 1853. To England, the exports of the current year are 145,000
bales short of last season ; to France, 60,000 bales less, and to other foreign parts
nearly ten per cent less. This, in itself; should be an abundant cause of stringency
in tho money markets of the principal cities : as the same influences existing at
New- York likewise affect Philadelphia, Boston, Baltimore, New-Orleans, etc. But
in addition to this disturbing cause, we have short crops of grain, enormous imports
from abroad, aud an almost lotal loss of confidence in railroad securities, and dimin-
ished confidence in tho stability of our merchants.
This is not the first season that our cotton and grain have failed to supply the
means for liquidation of our foreign indebtedness ; and the results of the frequent
failures are most disastrous upon the fanner, the merchant, the mechanic, and the
manufacturer.
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Miscellaneous.
315
Ingenious Fraud upon the Chemical Bank, N. Y. — The N. Y. Courier gives
the following account of the recent fraud on one of the banks of that city :
One of the most ingenious frauds that we have heard of for some time, was
perpetrated upon the Chemical Bank. It appears that a man of genteel and
business appearance called upon a prominent firm down town, and presented a
letter of introduction from an extensive house in the West, stating that the bearer
was a merchant of high standing, etc. The down-town firm received him well, and
gave all the information he inquired about He talked largely of his means, his
business, etc., and intimated that he was afraid of being robbed before he left this
vile city. After becoming somewhat familiar with the members of the firm, be
remarked that he wished to make a deposit in the Chemical Bank, and asked his
friend to accompany him, so as to make him acquainted with the bank. This was
done. A member of the firm in question took the stranger and introduced him at
the Chemical Bank as a Western merchant, who had come to his concern well
recommended, and who wanted to make a deposit. The bank officers did not doubt
for a moment that the business-like stranger was anything but a wealthy merchant,
and cheerftilly took his deposit, which was a check purporting to be of an exten-
sive house in Wall street, for $12,000 on the American Exchange Bank, and cer-
tified by the Teller of the latter institution. The deposit having been made, the
reputed Western merchant drew out of the Chemical Bank $9000 in cash, and left
before any suspicion was created. It was, however, soon ascertained, to the cha-
S in of all concerned, except the successful one, that the whole thing was a forgery,
e signature to tho check and also the certificate by the Teller. A search was
made for the Western confidence merchant, but all efforts to secure him were in
vain. Up to last evening no further traces had been discovered of him. Yet the
bank officers have some hope of securing tho rogue. The letter to the down-town
firm, we need not say, was also a forgery.
The Commercial of Saturday makes mention of an additional attempted fraud :
A check for $6000, falsely purporting to be certified by the teller of tho Conti-
nental Bank, is said to have been deposited in the Chemical Bank, probably by the
same individual who obtained $9,000 from the same institution, upon the security
of a forged check for $12,000, wliich falsely purported to bo certified by tho Ameri-
can Exchange Bank.
Stock Frauds. — The Pennsylvania Railroad Company have adopted and toned
a new form of Stock Certificates to guard against fraud. The Ledger says:
u Cash certificates require four signatures, with at least three of whom there
must be collusion, if any false stock gets upon the market The warding of the old
certificates contemplates the payment of instalments, with printed receipts on their
back, and wero designed for use only until full payment was made. . The new cer-
tifleates express the fact of frill payment on their face. As the old certificates are
returned they are cancelled, and pasted in the book from which they were cut,
opposite their respective numbers, so that a reference to the book will at any time
show what stock has been returned, and what is outstanding, and in whose name
it is held. The new certificates first pass through tho hands of the Transfer Clerk,
then the Registrar's, then those of the Treasurer’s, and lastly the President’s— all
of whose signatures, and the seal of the Company, each bears.”
The Supply op Iron. — Sir H. De La Beche says :
44 Tho Exhibition may be said to have given rise to the most complete view of
the iron produce of this country which we possess. Mr. Samuel Blackwell, himself
an iron-master, accompanied tho collection of iron ores previously mentioned by a
statement of great value. He estimates the gross annual production of iron in
Great Britain to be now upward of 2, 6 00, 000 tons. Of this quantity, South-
Wales furnishes 700,000 tons, Soutli-Staffordsliire, (including Worcestershire,)
600,000 tons, and Scotland 600,000 tons. The remainder is divided among the
various smaller districts. Tho iron of England and Wales was produced by 336
fUrnaces in blast in 1850. Though a considerable quantity of British iron is
exported, a very large proportion remain [to be variously employed in our own
industry.”
Digitized
bv Google
Original from
UNIVERSITY OF CHICAGO
Digitized by
«
316 Bank Items. [October,
*
Ohio Public Debt. — The Acting Commissioner of the State of Ohio has issued
the following notice of proposed redemption of Ohio State Stock :
Redemption of Ohio Stocks. — Six per Cent Loan, redeemable after 1856. — The
Commissioners of the Sinking Fund of the State of Ohio will redeem, in each of the
months, August, September, and October, one hundred thousand dollars of Ohio six
per cent stocks, duo alter the 31st day of December, 185G, and will pay thereon a
premium of 2 per cent, together with the interest accrued at the day of purchase.
Bonds to be presented at the office of the Transfer Agent, No. Gi Beaver street,
Now York.
Insurance. — The Protection Insurance Company at Hartford has failed and
made an assignment of its property. The Hartford Courant says:
“The condition of the Hartford Insurance Company, notwithstanding the loroes
of the last two months, is sound. The capital is whole, with a respectable surplus.
The company do not owe a dollar to any individual, banking, or other institute, for
money borrowed ; it has neither notes nor acceptances outstanding in the hands of
any individual or institution, with a large balance in cash to their credit at the bank.
And every claim for losses not outstanding will bo promptly paid at maturity or
before. Their investments, principally in bank stocks, exceed four hundred thou-
sand dollars, and for over forty years that this company has been doing business, it
has been the endeavor of its officers and Board of Directors to transact it in an
honorable way, and in no instance can it be shown that they have sought to increase
it by detracting from the good name of any other insurance company in this city.”
BANK ITEMS.
New- York. — T1iq National Exchange Bank will common co business on 15th
October, at the corner of I)uano and Greenwich streets. The capital proposed
is $500,000. President, Frederick Leake, Esq., formerly cashier of the Commercial
Bank, Troy, and recently assistant cashier of the American Exchange Bank. The
directors havo selected Robert T. Creamer, Esq., as Cashier of the new bank.
Brooklyn. — William C. Rush more, Esq., has been eloctod Cashier of the Atlantic
4 Bank, Brooklyn.
Geneva. — William E. Sill, Esq., has been elected President of the Bank of Ge-
neva, in place of Charles A. Cook, Esq. deceased.
Massachusetts. — Wm. n. Foster, Esq., has resigned the Cashierehip of the
Bank of Commerce, at Boston. He will bo succeeded by Mr. C. H. Warner, now
the principal book-keeper of the same institution. Attended by the full confidence
and the best wishes of its directors, Mr. Foster retires from the bank, of which he
was the originator, to engage in private banking, with an adequate capital and a
general reputation for business activity and energy. Under his administration the
bank has netted a considerable surplus in the four years of its existence, besides
paying to its stockholders the handsome dividend of 33 per cent.
HoUiston. — The Holliston Bank, at Holliston, Mass., will commence business
on 1st October, 1854, with a capital of $100,000. President, William S. Batchelder,
Esq.; Cashier, Rufus F. Brewer, Esq.
Hopkinton. — James & Tileston, Esq., has been elected Cashier of the Hopkinton
Bank, in place of Mr. Brewer, who accepts the Cashiership of the Holliston Bank.
Brighton. — The Brighton Market Bank commenced business on the 18th Sep-
tember, with a capital of $100,000. Life Baldwin, Esq., President; R. E. Graves,
Esq., Cashier.
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1854.]
Bank Items.
317
Digitized by
Bridgewater. — The North Bridgewater Bank, chartered by the last legislature,
having called in 50 per cent of its capital, the usual preliminary examination was
made on Thursday, 31st August, by Hon. Jacob H. Loud, State Treasurer, James
James H. Wilder, Esq., of Hingham, and Seth Turner, Cashier of the Randolph
Bank, commissioners appointed by the governor for that purpose, after which
operations will be commenced. The bills are executed in good style by the New-
Kngland Bank Note Company, the smaller denominations bearing a view of the
main street, and a faithful likeness of the President of the Bank, Martin Wales,
Esq., of Stoughton. The banking rooms are located in the Brett & Kingmftp
block, and its Cashier is Rufus P. Kingman, Esq., late of that firm.
Maryland. — N. Hammond, Esq., formerly of Annapolis, but now a member of
the Baltimore bar, has been elected Cashier of the Farmers’ Bank of Maryland, at
Annapolis.
Wisconsin. — The following is a summary statement of the condition of the banka
of Wisconsin, on the 3d July, 1854, as made to the Bank Comptroller of the State :
RESOURCES.
Loans and discounts not to directors and brokers, $1,755,079 11
Due fh>m directors of banks, 49,770 79
Due from brokers, 42,613 92
Over-drafis, 18,967 48
Promissory notes not for loans, 31,12*4 26
Specie, 240,909 73
Cash items, 95,459 07
Loss and expense account, 21,727 88
Bills of solvent Banks, 283,634 50
Sills of suspended banks, 283 00
Due fh)m banks, 268,308 01
Total resources, $3,782,456 08
LIABILITIES.
Capital, $1,250,000 00
Registered notes in circulation, 786,216 00
Due depositors on demand, 1,211,111 33
Duo to others not included in either of the above heads, 535,128 75
Total liabilities, $3,782,456 08
The discounts, deposits, and capital of the Milwaukee banks were as follows:
Discounts.
Deposits.
Capital.
Wia. M. and F. Ins. Co., ....
...$288,986 26
$223,717 66
$100,000
State Bank of Wisconsin, . . .
... 370,886 66
162,367 72
260,000
Farmer's and Miller’s Bank,.
... 63,836 06
30,671 69
50,000
Exchange Bank,
... 97,222 70
86,915 38
50,000
Bank of Commerce,
... 51,030 23
7,602 64
100,000
LsAamxe to Wim ▲ Bcsixras ILajtd. — 7b Bankers and Bankers* Clerks : — A new method
of teaching to write has been devised by Mr. MacLanrln, an old teacher of this city, which xnakea
learning to write a nr id business hand a matter of cmltaixtt for all who go through tbo coarse,
without reference to their different degrees of the power of Imitation or natural capacity, In the same
manner as walking, and oven running, are learned by all children not absolutely idiots or deformed.
It consists of taking the pupil through a course of manual gymnastics, by which the chain is taken
off tbo hands, arms, and Ungers, the stiffness taken out of them, the hand made entirely at home on
the paper, and the most magnificent freedom of movement given, coupled with a surprising accu-
racy, before the learner begins writing from copy, or forming his final hand-writing. This last la
then reduced to a mere trifle, and he may, In (act, choose his own styta,
Bankers and Bankers* Clerks are presumed to be alwaya excellent writers and book-keepers, and
Gck igle
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UNIVERSITY OF CHICAGO
Digitized by
318 Notes on ' the Money Market. [October,
not to need Instruction. They frequently hive, however, brothers, sons, (or daughters at home,)
and friends, whom tliey would desire to fit for similar positions, or at least for good writers, and
they have all experienced the difficulty of doing so— the hand-writing taught by masters generally,
not serving any good purpose In the counting-houses or even for rapid corr«q>ondenc«. They may
he assured that MacLaurin's system, called the Currents Calamo , or Raj^d-Pen System, answers
precisely this want, and that it is the only system that daea. It Is published by Cbakus B.
Nortox, 71 CfiAMUKKS Struct, N. Y. It CAW b4 learned by any enterprizin g young person, by
the Exercise Books and explanation t, entirety without a tkachrr. The Indispensable ooorse
of books and accompanying stationery cost $L Full course, $2. Small books explaining the sys-
tem, 12 H cents, Books sent by mail, postage paid, at these prices.
Notes on t$t 5Kome$ Jttarftet.
New- York, September 25, 1854.
Exchange on London^ sixty days' sights a 10 premium.
Tat money market at present shows no material change in the rates on loans. There is an active
demand for capital among manufacturers, merchants, and mechanics, at 9 a 12 per cent Where
first class paper is offered there is no difficulty in gettiug discounts at 9 or 10 per cent The hanks
are discounting liberally for their customers : the aggregate loans being $92,095,000 against $90,092,000
at the same period last year. But for second and third rate paper, the rates vary from 12 to 18 per
cent according to the wants of the borrower and the ability of the lender.
This condition of things must continue a few weeks longer, or until the foreign imports shah be
largely reduced. Cotton must be more fully our reliance as a medium of payment to Europe during
the next six or twelve months. It is ascertained that the crops of wheat, corn, and grain generally,
will fall far below the average. At the same time, the harvests In England, France, and Western
Europe generally, are very favorable, showing that they will not require breadstuff* from us during
the coming year. Our exports of breadstuff's will therefore be very limited for the year 1855,
It cannot be concealed that the large orders which went out last season for foreign goods were
based upon the calculations then made that the crops would be bountiful— that our exports of bread-
stuffs would continue — that cotton would maintain its value abroad, and that our Southern and
Western merchants would pay punctually during the present season.
These results have not been realised. Our merchants complain (hat the payments from the
South and West are unusually backward, while their indebtedness to New-York is greater than at
any former period.
Notice has been given by the Secretary of the Treasury, that he will purchase up to the 20th
November next, to the amount of $3,840,000 of IT. 8. Stocks, at a premium *of 3 per cent for the 6
per cents due in 1850, 1 1 per cent for those due in 1802, and 10 per cent for those due in 1807-81 For
the 5 per cent stock of 1804, he offers 0 per cent premium— the accrued interest to be added in
each case. The publication of this offer having been made previously to the opening of the pro-
posals for the new issue of New-York State 6 per cent stock, the premium obtained thereon was
higher than anticipated. It is probable a large portion of this stock will bo deposited In the Banking
Department, in place of U. S. loans, which will be presented for redemption.
The Treasurer of North Carolina calls for proposals for $130,000 six per cent bonds of that State,
30 years to run, and $152,000 do., ten years to run, interest payable in New-York. There to no
higher class of securities in the United States.than these bonds ; they are exempt from taxation, and
have pledged fbr their redemption other security In addition to the fklth of a State whose credit
was never impeached. The proposals will be opened at Raleigh, on the 20th October.
We do not hear of any other new loans being brought forward on account of any of the States.
State loans have depreciated in valne within the last six months, in common with all kinds of
securities In this market, but not to the same extent as those of railroad companies, cities, and coun-
ties. The North Carolina six per cent loan of March last, $500,000, was taken at an average of
104.25. The present quotations in this market are 108 a 104 for the same loan.
Maryland six per cents have receded to 108 a 104 ; Kentucky, 105 a 1Q5K ; Tennessee, 100 a 101 ;
Virginia, 93 a 99; Missouri, 100 a 101K; Georgia, 104 a 10T K
Gck igle
Original from
UNIVERSITY OF CHICAGO
319
f r,
k; i
1854.]
Notes on the Mon&k Market
, , M ■- S DOT
The Commissioners of the Sinking filTiil nr iTiii Bwir'iif Ohio will redeem, in each of the months
August, September, and October, one hundred thousand dollars of Ohio six per oent stocks, due
after the 81st day of December, 1856, and will pay thereon a premium of two per cent, together
with the Interest accrued at the day of purchase. Bonds to be presented at the office of the Trans-
fer Agent, No. 64 Beaver street, New- York.
The proposals for a loan to the State of $1,850,000, at six per cent interest, to be applied to the
completion of the Public Canals, were opened on the 81st ult, «t the Canal Department in Albany.
The amount offered was $8,690,000, and at rates varying from 5 to 18 80-100 per cent premium.
The following is a list of tho awards made by the Commissioners of the Canal Fond, the rates being
from 12 66-100 to 16 S0-100 per cent. :
Barnes qf Bidders.
Johnson A Atwood .
T. E. Hart .
E. H. King.
State of N. Y. Bank.
State of N. Y.Bank.
State of N. Y. Bank.
James L. Leonard,. .
8. Van Deusen. .
H. W. Howard .
R. H. King.
R. H. King.
Amount.
Premium .
Barnes of Bidders.
Amount.
Premium
...$25,000
16H
H. H. Martin
... 50,000
18
10-100
... 25,000
1$ 25-100
M. P. Lampson
... 12,000
18
05-100
... 25,000
16
John Sill
... 10,000
18
5S-100
... 5,000
16 874-1000
John Sill
... 10,000
18
08-160
... 15,000
15M
J. R. Noyas
... 10,000
18
... 25,000
15 78-100
J. R, Noyes
... 10,000
J*X
... 10,000
15X
George W. Cuylor..
... 10,000
18
... 10,000
15
George W. Cuyler . .
... 10,000
18
07-100
... 6,000
15 06-100
A. White
... 1(U)00
18
80-100
... 10,000
15
A. White
... 10,000
18
70-100
... 5,000
15
A. White
... 10,000
18
60-100
.... 5,000
14 05-100
A. White
... 10,000
18
50-100
...100,000
14 06-100
A. White
... 10,000
18
4T-100
... 15,000
14X
A. White
... 10,000
18
80-100
. . . 5,000
14 26-100
A. White
... 10/100
18
20-100
. . . 5,000
14 56-100
A. White
... 10,000
18
10-100
. . . 5,000
14 79-100
A. White
... 10,000
18
... 10,000
14
A. White
... 10,000
18
10-100
... 25,000
14
A. White
... 10,000
18
... 10,000
14*
Daniel Cady
... 5,000
18
78-100
... 10,000
14 60-100
Daniel Cady
... 5,000
18
55-100
... 6,000
14 52-160
Thomas Olcott
... 25,000
18
06-100
... 5,000
18
Thomas Olcott
... 25,000
18
40-100
... 5,000
18 05-100
Thomas Olcott
. . . 35,000
18
61-100
... 95,000
18 40-100
Eagle Bank
. . . 10,000
18
89-100
... 6,000
18 492-1000
A. White
... 10,000
12
90-100
... 10,000
18 07-190
A. White
... 10,000
12
80-100
. . . 5,000
18
A. White
... 10,000
12
70-00
. . . 8,000
18
A. J. Rich.
... 4,000
12
76-100
... 5.000
18X
George W. Cuyler. .
. . . 15,000
i2
76-100
... 10,000
18
R. H. King
. . . 100,000
12
80-100
. . . 5,000
18 01-100
H. H. Martin
... 50,000
12
96-100
...100.000
18 56-100
John L. Ganson, —
... 3,000
12
75-100
... 50,000
12 81-100
R. H. King
... 27,000
12
66-100
...100,000
13 08-100
—
... 10,000
18 X
Total
.$1,240,000
*d was three millions six hundred and ninety thousand, dollars, and at rates
varying from 5 to 16 80-100 per cent premium.
The shipments of coin to Liverpool, Havre, eUx, for the past week were $1,696,656, and for the
month $5,450,115, making the aggregate from this port, since 1st January last, $89,106,754, namely :
January, $1,845,682
February,. 579,784
March, 1,466,187
April, 8,474,525
May, 8,651,626
June, $5,168,188
July 2,922,462
August, 4^48,820
September, 5,450,115
Total for nine months, $29,106,754
Nine months 1858, 14,194,141
" •* 1852, 19,570,498
Digitized by
Gck igle
Original from
UNIVERSITY OF CHICAGO
Digitized by
320 Deaths. [October, 1854.
The following la a careful summary of price® for the past six weeks, in the leading •hares at
the New- York Stock Board :
Aug. 18.
Aug. 25.
Sept 1.
Sept a
Sept 15.
Sept 22.
U. 8. 6 per Cent, 1867-8,
...117
116*
116*
116*
117
117
Panama B.R. Shares,
... 90
88*
85
as
as
85
N. Y. and Erie R.R. Shares .
....
35*
82*
8s*
44
44*
N. Y. Central R.R. Share*,-.
... 90*
S7
S6
89
92
96*
Mich. Central R.R. Share** .
... 87
86H
82*
86
90
Mich. Southern R.R. Shares,.,
... 98*
98
90
89*
93
90
Nor. and Wor. R.R. Shares*.
... 47
45
48
44
46
46
Hudson River R.R. Shares,. .
... 46
«X
84
45
48
4SX
Beading R.R. Shares*
.... 68*
67
«7*
69
70
74
Long-Island R.R. Shares,
... 28
22
22*
30*
25
27*
Illinois Centra] R.R. Shares*.
. ... 101
102
98
100
100*
99*
Illinois Central Bonds,
.... 68*
61
70*
78*
74*
N. Y. Central B.R. Bonils^. .
.... k88
85*
85*
86
87*
87
Erie Railroad 7*, 1859,
.... 97
95
98
92
98
94
Erie Income Bonds,
.... 82*
71*
70
72
77
81
Erie Convertibles, 1871,. . .. . ,
.... 64*
58
58
63
72
72*
Panama Railroad Bonds,. . .
.... 91
88
87
87
90
67
Pennsylvania Coal C<l,
... 99*
97
98
96
98
101*
Del. and Hud. Canal Co.,. .
... 112
111
110
m
112*
116
Cumberland Coal Co.,
... 29*
27*
*7*
81*
82
30*
New-Jeraey Zinc Co,
.... 3*
5*
5*
5*
5*
5*
Canton Co.,
.... 21*
20*
18
20*
21
20*
Nicaragua Transit,
... 19
19
21*
22*
24*
28*
Had. Rtr. B.R. let Moitr . .
.... 100
101
90
102
101
101*
Crystal Palace,
a... —
—
—
—
5*
3
New- York and Harlem,
.... —
82*
80
81*
88*
88*
The general downward tendency at this time may be attributed to the difficulty of borrowing
on railroad securities. Several failures have occurred among Wall-street operators, mainly caused
by the rapid rise in Erie shares from 29* to 44, in ten days of this month. Holden of ftacy shares
have, in many cases, been compelled to sell at depreciated prices.
The shipping interest is unusually dull. There Is a larger number of vessels in port than at any
period during the last four yean. At the same time there is a large number of vessels on the stocks
at this port, and at the various ports in Maine and Massachusetts. When we come to add the losses
arising from short crops at home, an excess of foreign goods on the hands of our merchants, and a
depredated stock market, it will be seen that there is no probability that money will be much
easier for several months to come.
DEATHS.
At Albany, Saturday, August 28, in the 72d year of his age, John Townsend, Esq., President
of the Commercial Bank of Albany.
He was Mayor of the city of Albany In the years 1829, 1880, and 1882 ; during the last of which
yean, his duties were rendered specially arduous by the first visitation wo experienced of that fear-
fill scourge, the cholera. His mercantile career was eminently honorable, as well as successful ; and
while he has accumulated a princely estate, no blot rests upon his character in respect to integrity
and fair dealing. He wis connected with various business institutions, and was President of the
Commercial Bank of Albany at the time of his death. He was the generous friend of the children
of want and wo. To all great objects involving the general improvement of society, he contributed
largely and cbeerfolly.
At Savannah, Gio., Friday, September 15th, Jonathan Ouotead, Esq., Cashier of the
Marine Bank at that city.
Gck igle
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UNIVERSITY OF CHICAGO
THE
BANKERS’ MAGAZINE,
AND
0tciti0tical Hegister.
Vol. IV. New Series. NOVEMBER, 1854.
No. V.
#
THE TRUST COMPANIES OF NEW-YORK.
I. The New- York Life Insurance <k Trust Co. II. The United
States Trust Co. III. Life Insurance Companies.
The Trust Companies of New-York City are among the most useful
and reliable institutions fostered by the community. They are the
recipients and trustees of funds in large and small sums, held for account
of widows, minors, and others ; and are safe depositories for those who
wish to avoid the risks arising from investments in the public securities
of the times. More or less risk is involved in the purchase of State, city,
country, railroad, and other bonds. Experience has shown that no class
of public loanB in this country (those of the general government only
excepted) is free from loss by depreciation, fraud, or, finally, repudiation.
The events of the current year more especially show the uncertainty
and the fluctuations, the depreciation and the absolute losses, arising
from investments in the ordinary shares of the stock-market
These ordinary and extraordinary risks may be fully obviated by the
deposit of funds in either of the Trust Companies of this city. The law
of the State has constituted them legal depositories for funds in dispute
in the several courts.
21
Digitized by
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322
The Trust Companies of New * York. [November,
Digitized by
I. The New- York Life Insurance dc Trust Co.
The report for the present year shows an accumulation of profits to the
extent of $422, 000, or forty-two per cent. The stock is, accordingly,
worth, in the market, 40 per cent premium. The details of their state-
ment are as follows :
ASSETS.
Bonds and mortgage?
To deduct tor proi»ui»lc loss, $15,550 00
Bills receivable, 1 f TOG, 7 25 42
.stock loans 920,810 96
Certificate of the Comptroller of the Slate of Xew-York, for $100,000
IT. S. 6 per cent, 1856, deposited with him, under the net of legis-
lature, passed April 8, 1851, in reference to life insurance, amount
tv> the debit of that account,
Country banks,
Insurance account on bond and mortgage,
Receivership account,
Matheson it Co.,
Suspense account,
Real estate owned by the company,
Letters of credit,
Cash in the Bank of the Stato of New-York,
The committee further report there was due and accrued, on the
31st of July, 1854, as interest on various accounts,
Deduct depreciation.
Value of assets. July 31, 1854,
$3,187,073 51
2,687,536 38
73,468 52
51 14
938 47
34,12S 76
21,983 15
20 00
82,838 33
10,271 00
77,322 71
50,715 43
$6,226,347 90
15,550 00
$6,210,797 90
LIABILITIES.
Capital, $1 ,000, 000
Deposits in trust, 2,80o,114
Trust accumulation, 1,039,019
Life insurance, 356, 5 1 9
Annuity granted, 119,766
Premium account,
Unclaimed dividends,
Guardianship account,
Contingent account, 15,079 07
There was due by the company as interest accrued on
tne 31st of July, 1854:
Interest on deposits
Interest on trust of accumulation,
Interest on guardianship account,
Interest,
Taxes for 7 months, estimated,
$1,000,000
00
2,800,114
12
1,039,619
87
356,519
00
119, 7G6
84
49,729
21
225
00
46,343
93
15,079
i
07
$350,742
42
2,543
92
7,700
00
-$5,788,383 38
Leaving a surplus of profits on the 31st of July, 1854, of) $422,414 52
Google
Original from
UNIVERSITY OF CHICAGO
1851]
The U. S. Trust Company of New - York .
323
II. The United States Trust Company of Nets- York.
This company have been in operation since August 3, 1853. Their
statement is as follows for July 20th, 1854 :
AS8ETS.
Bonds and Mortgages,
Stocks owned,
Cash,
Loans on personal securities,
Bills purchased,
Interest accrued —
On Bond and Mortgages,
On Stocks owned,
On Loans on personal securities,
LIABILITIES.
Capital stock,
Deposits,
Iuterest accrued on deposits,
Rebate of interest on bills purchased,
Taxes for seven months,
Salaries,
Rent,
Expenses (estimated,)
Balance,
$744,241 00
310,505 00
13,068 48
356,200 00
86,485 53
$8,663 15
1,758 33
5,122 66
16,544 14
$1,526,044 15
$1,000,000 00
463,622 18
7,849 92
372 64
6,168 75
776 67
625 00
600 00
-$1,479,916 16
. 46,128 99
Total,
$1,526,044 15
This company transacts no life insurance business, its operations being
confined to receiving monies on deposit, and executing trusts.
The charter of this company requires, that when its capital shall be
invested in bonds and mortgages, the same shall be on unincumbered
real estate within the State of New-York, worth at least double the
amount loaned thereon, and when a material part of the value of property
is created by buildings thereon, a further condition of the loan inva-
riably has been, that the mortgagor shall keep the buildings insured, and
make the loss, if any, payable to the company.
The loans on bonds and mortgages are invariably on property largely
exceeding the amount loaned. In a large number of cases the property
is improved. These improvements are subject to losses by fire, and are
of course secured against such contingency by fire policies which are
assigned to the companies respectively.
There are other companies in the city which, if not strictly termed
Trust Companies, are yet so in fact, as they are the depositories of funds
that will not be demanded for a long series of years ; and on the solvency
and stability of whose affairs much depends. We allude to the Life
Insurance Companies, the most important of which is the “ Mutual Life
Insurance Company of New-York.”
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The Trust Companies of New - York. [November,
It is in effect, and substantially so, a Trust Company ; and a very
important trust, too. It embodies the savings of at least 7834 persons,
to whom (or for whom) policies have been issued and are now in force,
of which 0720 are for life, 946 for the term of seven years, and 168 for
shorter periods.
These policies will involve the payment eventually of over twenty
millions of dollars, provided the parties fulfill their present contracts. To
meet these large liabilities, the company have on hand $2,619,346, and
will realize, in due course of years, from premiums and compound inter-
est, a sufficient sum to discharge the balance, and pay a large addition
to the amount of the policies. These are trust funds that will run into
ten, twenty, thirty, or more years. Hence the necessity of faithful vigi-
lance and constant judgment in the management of their affairs. Their
assets at present are as follows :
Cosli on lmml in Bunk and in Trust Co., $15,447 11
Advanced on policies, 4,950 00
Bonds and Mortgages, 2,487,114 72
Fire Insurance? Account, 354 75
Deferred Premium Account, 25,502 25
Deposit'd to moot Taxes, 4,187 41
Interest due, unpaid and accrued, 32,140 37
Due from Agents 40,550 73
$2, G 19,340 34
Too much caution can scarcely be used in the creation of new obliga-
tions and in the investment of funds realized.
These companies (before named) have now large funds in trust They
are accumulating rapidly, and in the course of a few years will probably
arrive at eighteen instead of nine millions. They are all managed by
gentlemen of well-known integrity and business character ; and we feel
confident will confer a vast benefit upon the community for years to come,
as they have for years past. They are institutions that require men of
the first talent, as managers, and are closely indentified with the interests
and character of our city.
There are other and influential institutions of a similar character
in New-York : among these The Farmers* Loan <fe Trust Co. II.
The Mutual Benefit Life Insurance Co. III. The New-York Life Insur-
ance Company. IY, The Howard Life Insurance Co. V. The Man-
hattan Life Insurance Co.
The funds actually held by these, various companies and invested for
the benefit of parties who will sooner or later claim such funds, may be
set down as follows, including their cash capital :
I. The New-Yo k Life Insurance & Trust Co., $5,700,000
II. The U. S. Trust Company of New-York, 1,500.000
III. The Farmers’ Loan &. Trust Co., 2,000,000
TV. The Mutual Life Insurance Co. of N. Y 2,G20,000
V. The New-York Life Insurance Co , 500,000
VI. T:ic Mutual Benefit Life Insurance Co, 950.000
VI L The Manhattan Life Insurance Co 140,000
VIIL The United Suites Life Insurance Co, 150,000
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The Trust Companies of N6ah York,
A very large amount of these funds is invested in bond and mortgage
on property within the State of New- York. The property when
improved is invariably secured by a policy to cover the risk of fire.
We suggest that there should always be an agreement between the fire-
office and the company to whom the policy may be assigned, that in case of
loss, the policy shall be payable at all events and without regard to any
change of occupancy or possible fraud on the part of the occupant of the
premises, as the holders of such mortgages are innocent parties and can-
not be presumed to be cognizant of any change or fraud on the part of
such occupant. This would obviate any litigation or dispute between the
fire insurance office and the motgagee of the property. The policies in
all such cases, as between the fire-office and the trust company, should
be indisputable , as they are held as securities for trust-funds, and as we
learn they are required to be by one or more of these companies.
It has long been the custom in various States for executors, adminis-
trators, and trustees to invest trust funds, under their charge, in bank stocks .
For many years the policy was considered a sound one, ami holders of trust
funds considered themselves fully authorized to make such investments
for the benefit of minors and others. The courts have, however, repeatedly
denied this, and, in case of loss, have thrown the deficit upon the trustee.
In a recent case decided in Pennsylvania (see Bankers' Magazine , pp.
398-400, November, 1853,) the Supreme Court held that an investment
in bank stock by a trustee is not valid, and is made at his own risk.
The case arose from a suit by Hemphill against the trustees under
Stephen Girard’s will, for investment of $4000 in Bank U. S. stock at
22 per cent premium, and which stock fell afterward to a nominal value.
The defendant urged that Mr. Girard himself had invested a part of his
own funds in this same stock in 1831 ; but the court decided that this
furnishes no reason for supposing that he would not have sold out if he
had lived to the year 1837, when the disputed investment was made.
Nor does the acceptance by the plaintiff of dividends made on the stock
in question preclude her from recovery from the trustee.
In New-York the statu to and the courts have defined the duties of
trustees and executors upon this point, by constituting certain companies
as depositories for trust funds. And in other States the law is clearly
laid down that 14 a trustee can only protect himself from risk when he
invests the trust funds in real estate or government securities, or invests
by order of the court.” Vice-Chancellor Parker, of the Third Circuit, in
a case before him on the 28th of Feb., 1845, remarks, “That a Trustee
cannot be protected against a loss in investing trust funds, unless he
loans on real security ; or invests in some fund approved by the court.
Investments, he adds, can be readily made in either of the securities
specified, and the court approves of a deposit in the New-York Life
Insurance <fe Trust Company.” Or such funds may be legally deposited
with the U. S. Trust Company of New-York.
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32G
The Usury Laics in Nnc-York.
[November,
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THE USURY LAWS IN NEW-YORK.
Report of a Committee of the Chamber of Commerce of the City of New
York , on the Usury Laws of this State.
At a meeting of tho Chamber of Commerce, held October 6, the committee
appointed to preparo an argument in favor of a repeal or radical change iu the
Usury Laws of this State, made the following
Report.
The committee appointed at a meeting of the Chamber of Commerce
of 7th September, to prepare an argument in favor of a repeal or radical
change in our usury laws, beg leave to submit the following report. That
they have bestowed upon the subject such thought and research as were
found practicable. Disclaiming all attempts at presenting any original
views, your committee will adduce simply such obvious facts and reasons
as will, in their opinion, show the pressing need of reform in the laws
referred to.
In the beginning of 1837 our legislature was strongly disposed to
repeal the usury laws. A committee, to whom the subject had been
referred, embodied Jeremy Bentham’s “ Defence of Usury” in their report,
and it was printed as a legislative document
Before the close of the session, however, the great panic of that year
commenced, resulting in the general suspension of specie payments by
the banks of the United States, and the same legislature, instead of
repealing the usury laws, passed enactments greatly increasing their
severity.
The provisions of this law of 1837, still in force, are these :
The lender who receives more than Beven per cent per annum, forfeits
the whole sum lent; is also liable to a fine of one thousand dollars, and
six months’ imprisonment. Both borrower and lender may be made
witnesses in the civil trial.
Under the criminal part of the process, however, the defendant, it
would seem, is technically shielded from the harm of any confessions that
may have been forced from him on the civil trial. The law also declares
it to be the duty of all courts of justice to charge the grand juries espe-
cially to inquire into any violations of the act To this point, it may be
mentioned in passing, no grand jury has ever paid any attention what-
ever.
The act was hurried through under the great excitement of that ever-
memorable year of commercial distress. It was so done, under the
honest hope that it might benefit borrowers in their hour of need. The
result has been diametrically the opposite of what was intended. There
perhaps was never a more signal failure under a good intent.
Whenever the unavoidable vicissitudes of trade carry the rates of
interest the smallest fraction above the legal rate, the law comes up in
a meddlesome and oppressive way to complicate and confuse all finan-
cial movements, so that, under the delusive notion that usurers were
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The Usury Laws in New - York .
327
cunning enough to evade the penalties with impunity, we have witnessed
the most shameful and remorseless extortions that have been heard of in a
century past. Hei# has stood this law upon our statute-books for seven-
teen years, and every man who has resorted to its pecuniary features has
fastened upon himself a brand of infamy that he can never get clear of, and
as regards the criminal part, no one has as yet had the folly and wicked-
ness to think of touching it. Grand juries, unmindful of their oaths, turn
leaden ears and blind eyes to its constant infractions, because its penalties
war with their sense of what is honorable among men.
The humiliating conviction can no longer be resisted, that this law has
been continued for reasons utterly at variance with the honorable feelings
which prompted its enactment. Sharp-sighted Shylocks soon saw that
they could profit by the manoeuvres and devices into which they could
draw their customers.
Your committee will now endeavor to present a fair digest of the rea-
sons that have generally been assigned for these stringent measures.
First: It is claimed by the friends of restriction that government
originates money; that it is u the creature of the law,” deriving its value
and powers from legislation— is the only article that is made a legal ten-
der in the payment of debts ; that citizens have neither the legal nor the
moral right to use money or coin for any other purpose than as a circu-
lating medium whereby to measure value; that the money of the people
does not stand in the same relation to them that their other property
does.
These considerations, they urge, impose upon government not only the
right but the duty to dictate what may be paid by citizens, to each other,
for the use of their own money.
Our opposing friends also insist that the power of incorporating banks
gives government the right, and imposes upon them the duty, to regulate
the prices for the use of money in which the banks deal, and that, too,
after such money has passed into individual hands.
They assign some other minor reasons for their partiality to restrictive
usury laws, which your committee will notice in their order. But the
pointB here stated, form the main foundation of their claim, so that if we
refute and dispel this foundation, their whole structure will, of course,
fall to the ground.
As we have, upon our side, all historic facts, from the earliest records
of civilization, also all the experience of modem times, together with all
the prominent political economists for a century past, it will be strange
if we cannot ultimately convince our opponents of the falsity of their
views.
Were we, however, to fail in establishing our own opinions, and be
compelled to admit all the rights claimed for our State government, still
the restrictionists will, in time, see the great inexpediency, as well as the
utter impossibility of using such right in the way they propose. A very ✓
great mistake is committed whenever the power of a state is exercised to
E revent a needy yet useful and enterprising man from borrowing, merely
ecause he cannot find a party willing to tend for the maximum rate c
interest fixed by law.
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328 The Usury Laws in New- York . [November,
Your Committee are, however, very far indeed from making any such
admission. They most positively deny that the State government has
any such right ; nor is any such duty incumbent upon them. Money is
not formed by legislation, nor does it derive any of its intrinsic value from
governmental action.
The only legitimate province of any government is to do what their con-
stituency require of them, in preparing the material that the public may
have previously found, by experience, to be the most suitable for a circu-
lating medium. It is also the province of government to take all need-
ful action toward securing the safety of whatever may be used for
currency.
In regard to the coinage of money, it has been found that, of the two
modes, the better was, and is, to invest the government of the United
States, ( but no State government) with authority to stamp certain pieces
of gold and silver, carried to a mint that had been previously established
under authority, originally derived from the people, and thus carried to
them as the people’s own property — such stamp to be with a device and
lettering indicating the value of each piece of gold and silver.
This stamp is only a certificate of a fact existing before the certificate
was attached, but, of course, adds no intrinsic value to the metal. Govern-
mental action in coinage is the most convenient mode of the two, but is
not indispensable. If Congress were, at any moment, to repeal all laws
in regard to the mint, business men would immediately assemble and
adopt the same or some other mode of certifying to the value of the
precious metals.
The views here presented in regard to the origin of coinage are strik-
ingly illustrated by an extract from the writings of one of our first literary
men, Dr. Dewey. He says : “Suppose a community of a hundred fami-
lies cut off from the rest of the world, engaged in the various callings of
life, accustomed to barter, but not accustomed to the use of money.
Suppose, now, that a gold mine were discovered. The metal is found to
be very valuable for various purposes, and, like every thing else, it takes its
value in the market ; an ounce of it is exchanged for so many bushels of
corn or yards of cloth. But the permanent and universal value of this
metal, and its being so portable and indestructible, would, ere long, very
naturally bring it into use as a circulating medium ; the farmer would
know, if he sold corn for it, that he could buy cloth for it in another part
of the district, and would be glad thus to be saved the trouble and
expense of transporting the produce of his farm to the distant manufac-
tory. In this exchange, the lumps of gold, of course, would be weighed,
and it would be natural to stamp the weight of each lump. But another
step would follow from all this. As there would be the trouble of con-
stantly weighing this circulating medium, and the danger of mistake and
deception, the community would appoint a committee, or depute its
government, if it had one, to do this very thing ; and the metal would
be cast into various quantities, bearing distinct denominations to answer
more fully the purposes of a convenient circulating medium.” “ Here,
hen we have a mint, and here we have money. No body will deny that
as a commodity when each man dug it from the earth, and exchanged
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The Usury Laws in New- York .
329
it at his pleasure. The action of the government confers no peculiar
character on it. The government simply weighs the metal and affixes,
as it were, a label to it — that is, stamps it as coin, to tell what it is
worth.1’ “It does not create this value but simply indicates it.” ( See
Detoey upon the Moral Law of Contracts.) w It is only from the habit of
considering money not as a commodity, but as a possession of some pecu-
liar and magical value, that any prejudice can exist against what is called
usurious interest. * * * The practice of usury has acquired a bad
name from former and still occasional abuses of it But the princi-
ple must still be a just one, that money, in common with every thing else,
is worth what it will fetch.” (Ibid.) t 1
The coining of money, and the making our metallic currency a legal
tender in the payment of debts, are exclusively the attributes of our
general government The Constitution of the United States, in express
terms, prohibits the individual States from coining money ; also from
making any thing but gold and silver a tender in payment of debts.
When we look at these monetary powers that, for public convenience,
have been conferred upon a great central point, it is no easy matter to
see how the notion of States “creating money” could ever have found a
place in the mind of any one.
If there is any force at all in the idea that this coining and this mak-
ing such coin a legal tender, carries with it the right and the duty to
dictate the price that shall be received for the use of it, such right ought
surely to be accorded to the same general head.
But there is no force at all in the idea. The theory is altogether
fanciful and visionary. The United States do not claim or hint at any
such preposterous right.
The same general head — namely, the government of the United States
— has been invested with the duty to determine a uniform standard of
weights and measures for our whole country, and yet we never hear of
this most useful arrangement, carrying with it a right to regulate the
prices of commodities that are weighed and measured.
Our public functionaries would certainly labor under a most egregious
mistake were they to fancy themselves clothed with power to arrange the
prices of fabrics in an incorporated cotton-mill, or the rates of premiums
in an incorporated Fire and Marine Insurance Company, merely because
those institutions bad originated in legislative action.
The principle that the incorporating any bank, or institution for deal-
ing in money, invests the giver of any such act with a right to govern the
prices of money, is, in the opinion of your committee, entirely wrong.
It has been rightly argued by our best writers upon political economy,
that the man who reaps the benefit of success, or suffers the evils of fail-
ure, is certainly more capable of governing his own nets in regard to
what concerns his own pecuniary interests, than any legislator can govern
for him. Certain indications may, it is true, deceive any man sometimes
in deciding what may most conduce to his interest. A member of the
legislature runs the same risk of being led astray by these indications;
he also encounters many other influences to which the man in managing
his own concerns is not exposed. Hence the inexpediency if not gra*
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330 The Usury Laws in New- York . [November,
tons oppression of any legislative body assuming a sort of fatherly care
that has never been asked of them by their constituency.
All the tendencies of the present day require freedom in our currency
movements. Our title to our money is as perfect and absolute ns is our
title to any other item of our property. In regard, then, to the rate of
interest on loans of capital, we need only to ask government to determine
some proper or suitable maximum rate to govern in the absence of any
contract, also a maximum rate to accrue upon a deferred judgment in
law, after its rendition ; and then leave individuals and banks and other
incorporations entirely free to make any bargains they please, upon every
description of loan or credit that can be conceived of, subordinate only
to the same rules and principles that govern in all other human cove-
nants and obligations.
More than two thirds of the States of our Union have made honorable
progress toward the full consummation at which your committee are
aiming. Some twenty-two of our States have now usury laws so lenient
as merely to forfeit the interest upon usurious transactions, and this relax-
ation has in all cases been found satisfactory.
It certainly would redound to the honor of this great State, to take
forthwith one step ahead of all her compeers, and stand on the proud
eminence of entire freedom in so important an element in our social com-
pact as is the “ Medium of Exchange.”
It remains now for your committee to allude to some other of the
minor arguments of our opponents. It occurs, first, to notice their long-
continued and pertinacious allegations that lenders and usurers are the
only party asking a relaxation in our usury laws. This is summarily met
and overthrown by our having proof that almost every one of the very
numerous signers to our memorials for relief, are borrowers for the “legi-
timate purposes of useful business they having also the right to borrow
for any purpose seeming to themselves proper, and to lend when they
choose. It is to be hoped that a proper regard for fairness will induce
our opposing friends to drop entirely that feature in their remarks, and
meet us honestly and candidly upon the common-sense aspects of the
subject
Another point touched by the friends of restriction is, that rigid
usury laws help to check wild speculation in our new StatCB. Much is
said about Wisconsin, because that State was named in a sort of text
pamphlet for the restrictionists, which was republished in 1850. It is
said that some of the farmers became so discouraged there, as to go to
California, where, by the by, they never had, and probably never will
have, any restrictive usury laws. No proof has ever been shown that
speculation was ever aggravated in new countries for want of legislative
tinkering. Wild speculation will occasionally find its way into all new
Slates, whether they do or do not have usury laws. No matter what
human laws are enacted, we have always had, and shall always continue
to have, occasional indiscretions in trade as well in new as in old States.
It is the most fanciful absurdity to suppose we can prevent this by now
qpd then turning a legislative screw. All experience, from the earliest
qrd6 of history shows the futility of such hopes.
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It is also said, by opposing friends, that the farmers in the interior,
who owe on bond and mortgage, are fearful that a relaxation or repeal
of our usury laws might induce lenders to call in their money, and thus
disturb mortgages, to the great detriment of the agricultural districts of
our State.
In answer to this, we would say to the farmers, that good influences,
drawn to a focus at any great commercial mart, radiate immediately
therefrom in every point of compass. The benefits of city and country
are always reciprocal ; neither the one nor the other can thrive without
entire sympathy of feeling. Any measures that clog the free action of
our currency injure farmers and manufacturers quite as much as they
do merchants. The new state of things we are seeking would greatly
increase the facilities of farmers and other enterprising busihess men in
the interior. It would most effectually put a stop to all oppressive
stratagems that have been and are still resorted to, as well in country
as in city, in the vain belief of thereby countervailing the penalties of the
usury statute.
There would be no temptation to such wicked nonsense under the new
state of matters. The freedom would tend to an immediate amelioration
in currency movements, all over our State. In all their explorations into
Wisconsin our opponents did not find half so high rates of “ shaving ” as
we can cite, not only in this city, but in and about the interior towns and
cities, right under the very guns of our usury laws. Our opponents also
aim to sustain themselves, in some measure, by referring to feelings that
were cherished against usurers in ancient times. We might, upon that
principle, justify infringements upon our religious rights, by citing
instances of ecclesiastical severity in former ages, or we might even deny
the present theory of our planetary system, merely by referring to what
was said and thought about it before the times of Copernicus. Innu-
merable theories, long since exploded, might in this fallacious manner
be reestablished.
Instead of yielding to an erroneous doctrine, for no other reason than
because it is old, we must look upon modern progress, and be governed
by what the experiences of the present day show to be most conducive to
our substantial good.
Before concluding this report, your committee would add some farther
comments upon the subject of banks being considered the w creatures of
legislation"
It should be borne in mind that our free banking law, or general laws
of the State, in relation to banking associations, have placed our banks
in a more dignified and every way useful attitude than they formerly
enjoyed. When an association of individuals, possessing the requisite
means, wish to establish a bank, under our present general banking laws,
they can legally claim it as a positive right. Such right, too, is to be
extended to our citizens in as simple a form, and as free from all complica-
tion and trammel, as any association of individuals for manufacturing or
for charitable or religious purposes.
Banks are used for deposit, and for loan, and tor circulation, and are
capable of rendering the aggregate capital of a country much more
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The Usury Laws in New- York.
[November,
efficacious and productive. Wben properly conducted, and when not
deprived of any of their natural rights, they are very serviceable in the
encouragement of credit, and in the promotion of all the useful enter-
prises of the day.
They draw out into channels of efficient action many small sums that
would otherwise remain idle in hahds not qualified to put their money
into active use.
In allowing banks to follow the natural current of the market, up or
down, in charging for the use of money, precisely as we allow insurance
companies to follow the market rates as to premiums of insurance, we
but follow the example of the two great money markets of the world,
London and Amsterdam, the Bank of England and the Bank of
Amsterdam being entirely free from all usury restrictions. The public
here would be subjected to no inconvenience in the practical movements
of these liberal measures. It Would not be necessary to bargain at the
counter for each note discounted, but the banks would, of course, watch
all tho indications of supply and demand, and be governed thereby in
issuing their notices as to the rates of discount.
It would immediately be seen, as it was seen in London, that the price,
during a money pressure, would gradually rise by gentle degrees, and
not by nervous jumps, as we have it in Wall street. It would thus rise
as it always does in the European money markets, until the rate checks the
export of bullion, and then the pressure would subside, and the bank
rates would of necessity, and by wholesome competition, immediately
begin to decline.
In the two great money markets of the world to which reference has
already been made, as being free from restrictive usury laws, we witness
a vast deal more of that stability of action so useful in commercial busi-
ness ; also a great deal lower rates of interest than are current at any
other place whatever.
There never yet has been an exception to the fact, that interest has
always been lowered by a relaxation in interest laws.
We may not, in this country, for many years to come, see the rate of
interest so low as it is in England and Holland, and yet, inasmuch
as the same governmental action here and in Europe are precisely alike
in their tendency, we may, by a discreet change in our laws, secure tho
same relative stability which they enjoy.
A word may also be appropriately added, at this stage of our remarks,
as to the general character of our bank directors in this country. They
are, in this city, for instance, from among our most active, practical mer-
chants, whose interests, in all conceivable respects, harmonize with all the
pecuniary interests of the community at large, so that nothing can be
more unjust than to impute to them any improper purpose ot injuring
the money market by combined action. We hear it said occasionally
that “ the banksv are doing this or that, to accomplish some improper
ends of their own, when, in truth, they do not confer together so much
as they ought.
In drawing this report to a close, your committee will briefly speak of
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333
one or two more of the beneficial influences that would result from the
freedom now sought
The sluggish capital of Holland and England and other places, would
derive a greatly increased tendency toward New-York by the liberal-
izing of our financial laws. Foreign capital now shrinks back from our
every-day business channels. The money-holders of Holland particularly,
naturally suppose we mean something by the formidable aspect of our
u misdemeanor” and our forfeiture threats. They fear that, in working
here with their money through agents, they might not be able to com-
pete fairly with capitalists on the spot, who know, or think they know,
how to discriminate between those who will stand faithfully to their
engagements to pay the market rate, and those who will not
At the present moment, competition among the capitalists of the world
would quickly reduce the rate of interest in Wall street, if competition
were not hindered by our laws. The change we seek would also bring
into our very midst a most active and efficient accession to our home
competition, to avail of^our present enormous rates, and this too, would
tend to an immediate decline in the price for money.
Our 44 Empire State” of New-York has for its commercial metropolis a
city that is destined to continue the great exchange adjusting point for
all the Western Continent and Islands, from the Pole to the South Sea —
indeed, is even now second only to London, as the great financial focus
of the world. The preeminent importance of such position naturally jus-
tifies all commercial nations in expecting from us an intelligent example
in all our currency measures. We owe it to ourselves, as well as to the
rising generation of business men, to see that this expectation is not dis-
appointed. C. Barstow, Chairman .
REMARKS.
When the foregoing report was under discussion, upon the question
of its adoption by the N. Y. Chamber of Commerce, some objections
were urged to the embracing of banks in the freedom sought for. The
example of England in justification of that feature in the report, having
been referred to, it was urged that the paper circulation of England
differed essentially from ours ; that the BanK of England notes are a
lawful tender in the payment of debts ; that their circulation is constantly
under the eye and control of their government It was also suggested
that England is more thoroughly a manufacturing nation than we are.
Upon the other hand it was urged that, even if the foregoing points
are admitted, still the governmental action upon the currency in the two
countries is precisely alike in its tendency. The Bank of England notes
are a lawful tender as between two persons in paying debts to each
other ; but they are not a tender by the bank, nor at the bank.
The Bank is compelled to pay specie when asked. The Bank of
England is allowed to issue fourteen millions of pounds sterling, upon
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334 The Usury Laws in New- York. [November,
that amount loaned by them to the government ; also may issue pound
for pound for the specie in vault
The other banks of issue in Great Britain cannot make their bills a
lawful tender, and yet they are all, including the National Bank, entirely
free from usury law restriction.
In the State of New- York, under our general banking law, our banks
can issue notes only to amount of securities deposited. They can, how-
ever, if they choose, increase the amount of their deposit of securities and
thereupon increase their issues. But they cannot, as they can in England,
increase their issues upon any average balance of specie in vault, so that
it may thus be seen that, in so far as our circulation is based upon good
stocks, our bank paper circulation is in quite as conservative a position as
it is in England.
Circumstances may, in some degree, occasion a difference in the practi-
cal movements of the currency of the two countries, and yet their relation
to governmental action continue the same.
This will be sufficiently obvious to any one who will attentively think
upon the subject, without our using farther time or space in detailed
arguments.
The fact that one country is more or less manufacturing or more or
less agricultural than the other, has no relevancy whatever to govern-
mental interference with the currency of either country.
To such as are in favor of commencing our usury reform by merely a
reduction in the penalty, it may be said that this would be a virtual
admission that we don’t regard violation of law, provided the penalty is
light. This surely would not redound much to our credit as good law-
abiding citizens.
Great Britain. — The repeal of the usury laws in Great Britain works
well for both borrowers and lenders. Mr. Sugden, who is known as a
solicitor largely concerned in the management of landed estate, testified
that, “ when the market rate of interest rose above the legal rate, the
landed proprietor was compelled to resort to some shift to evade the
usury laws.” The shift referred to was a contract, in consideration of
the sum loaned, to charge the estate with an annual payment for several
lives. He said he had Known these annuities to be granted for four lives.
On being asked whether, if there were no laws limiting the rate of
interest, better terms could or could not have been procured, he
answered :
“ I am decidedly of opinion that better terms could have been obtained;
for there is a stigma which attaches to men who lend upon annuities,
that drives all respectable men out of the market. Some leading men
did latterly embark in such transactions, but I never knew a man of
reputation in my own profession lend money in such a manner, although
we have the best means of ascertaining the safest securities and obtaining
the best terms. In all loins, two solicitors are invariably concerneJ, one
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European Finances .
335
for the borrower and one for the lender ; and although the borrower
always pays the expenses of the securities, yet a regular professional bill
is invariably made out; whereas, in the case of an annuity , although it
is in strictness a loan, only one solicitor is employed, and he never makes
out a regular bill, but charges what is termed a lumping sura for all his
expenses and trouble in the transaction.” The temptation on the part of
the solicitor to lend money upon annuities is very strong, because, without
any check upon his charges, he demands whatever sum he pleases, and
takes care that it is instantly paid ; for in no instance is the borrower
allowed to leave the room until he has paid the solicitor’s charge ; and
he properly adds, “ Nothing short of a repeal of the usury laws can put
a stop to the abuses which attend the grants of annuities.”
Note. — The following papers have been published in the prior volumes of the
Bankers' Magazine, and may be referred to with advantage by those who wish
to pursue their inquiries into the effect of the Usury Laws. — [Ed. B. M.
VoL II., pp. 521-525. Life of an Usurer. (By Disraeli.)
44 III., 44 175, 179. Decisions in Usury Casea
44 IV., 44 114,117. On the Origin of Usury. (Standard Cyclopedia.)
44 “ 44 517,536. J. R. McCulloch on Usury, etc. (Encyclopedia Britannica.)
44 44 44 581, 586. Memorial to the New-York Legislature on the subject of
the Usury Laws.
44 4‘ 44 677-705. Importaneo of the Usury Laws. By John Whipple, of
Providence.
44 44 43, 46, 107, 466, 512, 596, Decisions in Usury Cases.
V., “ 186, 501, 685, 1020. Usury Laws in England.
44 44 535. On the Operation of the Usury Laws. {Edinburgh Review.)
44 44 712-716. The Origin of Usury. By Professor Do Morgan.
44 44 781-842. Statute Laws of all the States in reference to Usury.
VI. , [1851-1852] pp. 559, 732, 991. Decisions in Usury Cases.
44 pp. 102-103. Usury Laws in England in former times.
VII. , 1852—3,1 pp. 11, 12, 288, 299, 624, 732. Recent Decisions in Usury.
VHL, 1853-4, J 44 212, 401, 461, 857. Usury Decisions in New-York.
44 pp. 845-849. Remarks on the proposed Repeal of the Usury Laws.
IX., [1854-6.] Remarks on the proposed Repeal of the Usury La ws, with a
chronology of changes in such laws from 500 B.C. to the
year 1800.
EUROPEAN FINANCES.
Th* Turkish Loam. — London, August 20. — The proposals for the
Turkish loan have been brought out under the wing of Sir J. Goldsmid
and M. J. Horsley Palmer, and the subscription list is closed. The
terms are, that subscriptions are to be received in London and Paris, and
redeemed at par in equal annual instalments of one per cent per annum,
the first drawing to be made on March 1st, 1856. The loan is charged
on the general revenue of Turkey, but is specially secured, both principal
and interest, by the assignment of thirty millions of piastres (111, 410, 000)
annual tribute payable by the Pasha of Egypt to his Majesty the Sultan,
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in virtue of the treaty of 1841, under the sanction of the great powers of
Europe. The tribute is remitted half-yearly from the Pasha of Egypt,
direct to agents in London. The contract is to be executed in duplicate,
and a copy to be deposited in the Bank of England and the Bank of
France in the names of the representatives of the Sublime Porte in Lon-
don^md Paris respectively, and Sir J. Goldsmid and Mr. J. Horsely
Palmer. Applications were to be received for $10,000,000 at 80 per
cent, on the following conditions ; 15 per cent on the 22d of this month ;
15 per cent on the 22d September ; 20 per cent, 20th October ; 15 per
cent/ 21st November; and 15 per cent on the 19th December. In
default of payment of any of the instalments on the day fixed, the pre-
vious instalments would be forfeited. A discount of 5 per cent per
annum on instalments for prompt payment. Holders of scrip have the
option of taking at the same price, and on terms of the present issue, a
further amount equal to half the present subscription, within one month
from the 17th, (yesterday,) upon notice hereafter given. The remainder
of the loan is not to be issued at an earlier period than five months from
the 17th inst, or below 85 per cent. The loan is to be redeemed by
equal annual instalments of 1 per cent per annum, applied by paying off
at par bonds drawn by lot in the usual manner. The Turkish govern-
ment reserve to themselves the right of paying off the whole or any part
of the loan at par at the expiration of 15 years from the 15 th January
next, giving six months9 notice. This loan is negotiated with the
“ knowledge” of the English government ; and the Earl of Clarendon, in
the name of the government, certifies that the loan and the appropriation
of the tribute are duly authorized by the Sultan, and the representatives
of the Sublime Porte are empowered to ratify the contract in the name
of His Majesty the Sultan, and Lord Clarendon relies on the Turkish
government fulfilling honorably its engagements. The amount of the
loan altogether is $25,000,000. The subscription lists closed yesterday,
and there were responsible applications for the portion now to be issued,
exceeding the total of the whole loan. The transactions in the Scrip
were numerous. The Scrip was quoted at 4f to 4-J premium imme-
diately the terms were issued, and since have reached as high as 7,
leaving off yesterday at 5^ to 6 premium. The English money market
is steady still with an upward tendency. Consols yesterday touched
94£, but receded to 93£ a 93f . The price is not likely at present to
meet with much alteration, although later in the autumn they may be
expected to be lower. Money is growing easier, and on the Continent
the rates are reducing. The National Bank of Belgium have reduced
their rate of discount from 3 per cent to 2£. There has also been a
remarkable improvement in the Austrian funds and in their money
market, but this probably arises from the suocess of the new loan. There
has also been considerable improvement on the French Bourse.
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New Banking Laws, Passed 1854.
337
NEW BANKING LAWS, PASSED 1 854.
I. Connecticut.
CHAPTER VL — AN ACT RELATING TO BANKS.
Be it enacted by the Senate 'and Haase of Representatives in General
Assembly convened :
Sec. 1. That no incorporated bank or banking association whatever, in
this State, shall, after the first day of October next, directly or indirectly,
pay or agree to pay, a greater rate of interest for the loan of money
borrowed in this State, or on deposits, than four per cent per annum, and
at the same rate for a longer or shorter time.
Sec. 2. No banking association formed under the act to authorize the
business of banking, approved June 25th, 1852, shall take, directly or
indirectly, a greater rate of interest or discount than incorporated banks
of this State are now, or may be hereafter, authorized by law to take and
receive for the use of money loaned.
Sec. 3. That no incorporated bank or banking associations of this
State, shall take or receive, directly or indirectly, on any note, bill, draft,
or bill of exchange, a greater rate of discount, or interest, than at the rate
of six per cent per annum, to be calculated according to the standard
laid down in Rowlett’s tables.
Sec. 4. That the loans and discounts of any bank, or banking associa-
ciation, located in this State, to individuals or corporations out of this
State, shall not, at any time, exceed one-fourth part of the total amount
of the capital stock of such bank, or banking association, actually paid in,
and moneys on deposit in such bank at the time.
Sec. 5. No incorporated bank, or banking association whatever, in
this State, shall, directly or indirectly, loan its bills or notes for circula-
tion, to any other bank, banking association, corporation, or individual in
this State, or elsewhere, under any contract, or agreement that such
bank, banking association, corporation or individual shall protect and
guard the circulation of such bills and notes, so loaned, or redeem the
same; provided, that this act shall not affect any existing contract with
any bank, banking association, or individual out of this State.
Sec. 6. Any bank or banking association, whose officers or directors
shall knowingly violate, or permit to be violated, either or any of the
provisions of either section of this act, shall forfeit and pay to the
Treasurer of this State a sum not less than five hundred dollars for each
and every violation thereof ; and it shall be the duty of the attorney for
the State, in each of the several counties of the State, to prosecute every
violation of this act in their respective counties, and any person, residing
in this State, may prosecute any such violation in his own name, one
half of which forfeiture shall be for the U9e of this State, and the other
half for the prosecutor.
22
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338 New Banking Laws, Passed 1854. [November,
Sec. 7. The provisions of this act shall not apply to Savings Banks, or
Savings and Building Associations.
Passed, June 29th, 1854.
CHAPTER VH. — AN ACT IN ADDITION TO AN ACT RELATINO TO RANKS.
Be it enacted by the Senate and House of Representatives , in General
Assembly convened, That an act passed by this assembly, in relation to
banks, shall not be so construed as to prevent any portion of one fourth
part of the capital stock of the bank, authorized to be loaned out of the
State, from being under the form of protected circulation.
Approved June 30th, 1854.
CHAPTER VIIL — AN ACT IN RELATION TO BANKS.
Be it enacted by the Senate and House of Representatives, in General
Assembly convened, That the banks of this State be and they are hereby
empowered and authorized to establish in the State of Connecticut or
elsewhere, a bank, banking association, or agency, for the redemption of
the bills or notes issued by any bank in this State, with power to sub-
scribe for and hold stock in said institution, and to transact all business
incident thereto, and each bank in this State shall have liberty to sub-
scribe for and hold stock in said institution to an amount not exceeding
five per cent of its capital actually paid in.
All acts or parts of acts inconsistent herewith are hereby repealed.
Approved June 30, 1854.
II. Georgia.
An act, to alter and change the corporate name and style of the Marine
and Fire Insurance Bank of the State of Georgia, to the corporate
name and style of the Marine Bank of Georgia, etc., etc., etc., — and to
authorize a change of the name of the Bank of Brunswick , to extend
its Charter under the new name, to determine certain liabilities of
Stockholders, and to make valid certain contracts and regulate proceed-
ings thereon.
[Sections 1, 2, '3, 4, 6 and 6, relate exclusively to the Marine Bank of Georgia.]
Sec. 7. And be it further enacted, That from and after the first day
of September next, the name of the Bank of Brunswick, located at
Augusta, if the stockholders therein so determine, shall be and is hereby
changed to tljat of the Union Bank, under which new name said Bank
shall be authorized to exercise all corporate powers and privileges, and be
subject to all the liabilities and restrictions specified in its existing
charter.
Sec. 8. And be it further enacted, That all contracts of any kind,
heretofore, or prior to the first day of September next, made by or
with said Bank, shall be good and valid, and may be, sued on, in favor of
or against the said Bank, by its said new name ; and that in all the suits
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Ohio.
339
brought in favor of or against it, by its present name, and which may
be undetermined on the said first day of September next, it shall be
sufficient to suggest upon the record the change of name made by this
act, and said suits shall be proceeded in accordingly.
Sac. 9. And he it further enacted , That said Bank, by its new name,
shall be and is hereby authorized, to continue in the exercise of its cor*
porate powers and privileges, until the first day of January, one thousand
eight hundred and eighty ; and no transfer of stock made by any stock*
holder shall exempt him from liability, if said Bank should fail within
six months after such transfer.
Sec. 10. And be it further enacted , by the authority aforesaid , That
all laws and parts of laws militating against this act, be and the same are
hereby repealed.
Approved February 13, 1854.
EL Ohio.
An Act to prohibit the Circulation of Foreign Bank-Bills of a less
denomination than Ten Dollars.
Sec. 1. Be it enacted by the General Assembly of the State of Ohio,
that from and after the first day of October, in the year of our Lord
one thousand eight hundred and fifty-four, it shall be unlawful for any
perron or persons, firm, or body corporate, to pass, transfer, or circulate,
either directly or indirectly, or offer to pass, transfer, or circulate, or cause
to be passed, transferred, or circulated, or to receive or cause to be
received any bank bill, or note, of a less denomination than ten dollars,
unless said bank bill, or note, shall have been issued by and made pay*
able at one of the banks of this State, in accordance with the laws of this
State : Provided, however, that the mere transfer or receiving of such
unlawful paper bona fide for the purpose of sending the same directly out
of this State for redemption, shall not be deemed a violation of the pro-
visions of this act.
Sec. 2. That all bank bills of a less denomination than ten dollars,
unless issued by and made payable at one of the banks of this State in
.accordance with the laws of this State, shall not directly, or indirectly, be
paid out or received in payment of any tax, debt, judgment, decree, fine,
or amercement, or other demand whatever; and all such unlawful paper
shall be held in this State to be worthless, and all contracts in relation
thereto, null and void ; and any disbursements, or payments, or exchange
for other property of value made or attempted to be made therewith, of
no effect whatever.
Sec. 3. That any bank or bankers, broker or brokers, or body corpo-
rate, or public officer or officers, knowingly violating the provisions of
this act, shall forfeit and pay for every such violation the sum of one
hundred dollars, and any other person or persons, the Bum of ten dollars,
to be recovered in a civil action in the name of the State of Ohio, upon
complaint in writing, on oath, in the same manner that debts of like
amount are by law recoverable, and under the same limitations and pro-
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New Banking Laws , Passed 1854. [November,
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visions, one half of which shall go to the person complaining, and the
other half to the treasurer of the township in which the offence was com-
mitted, and for the ose of common schools in said township ; and the
}>erson so complaining shall not, after the filing of such complaint, be
iahle to a forfeiture in the same case although a party to the same
offence.
Sec. 4. The following shall be the form of the complaint in suits for
forfeitures under the provisions of this act, so far as the same be appli-
cable, but may he varied to suit the nature of the particular case, namely :
State of Ohio, County, ss. Before me, A. B., one of the justices of
the peace for said county, personally came C. D., who being duly sworn,
deposeth and saith, that on or about the day of , in the
year , in the township of at the county of aforesaid,
E. F. (if a hank, body corporate, broker or public officer, describe them
accordingly,) did knowingly pass, (or transfer, or caused to be passed or
transferred, etc., as the case may be,) to one G. H., a certain bank bill,
(or note,) of the denomination of dollars, not issued by and made
payable at one of the banks of the State of Ohio, in accordance with the
existing laws of said State, and this deponent verily believes the foregoing
complaint to be true, and further said not. (Signed) C. G. Sworn to
and subscribed before me, at the township and county aforesaid, this
day of ,B. B., justice of the peace. Upon such complaint
being filed, the justice shall issue a summons thereon, (or capias, or other
civil process, upon the proper affidavit being made, as the case may be,)
stating briefly therein the substance of such complaint, and make such
writ returnable, as in other cases.
Sec. 6. That the members of every firm, and stockholders of every
incorporated company, and every bank or banker, broker, public officer,
or other persons shall, in addition to the forfeiture specified in the third
section of this act, be individually liable for the redemption in gold or
silver coin, of all such unlawful paper put in circulation, paid out or
transferred by them or such firm, incorporated company, or bank of
which they are members or stockholders ; and every bank or other incor-
porated company, who shall knowingly violate any of the provisions of
this act, shall thereby forfeit its charter or corporate privileges ; and all
notes and other securities or obligations, discounted in whole or in part
by any bank, banker or bankers, broker or brokers, with, or by paying
out the unlawful paper, the circulation of which is, by this act, prohibited,
shall be void, and no action shall be maintained to enforce the collection
thereof.
Sec. 7. That all laws and parts of laws inconsistent with the provisions
of this act be, and the same are hereby repealed.
F. C. LeBlond,
Speaker of the House of Representatives.
Robert Lee,
May 1st, 1854. President of the Senate, pro tem.
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The Small-Note Law in Ohio.
341
THE SMALL-NOTE LAW IN OHIO.
From the Cincinnati Gazette.
On the 1st of October the small-note law goes into operation, and as
the time approaches, people inquire with some interest as to the proba-
bility of its being executed. Nothing is more detrimental to the charac-
ter and authority of a State than to have “ dead-letter” laws upon the
statute-books. A parent that will undertake to show his authority by
laying down rules for his children, and threatening punishment for diso-
bedience, without paying particular attention to the execution of his
orders, will lose rapidly, in point of influence and respect, in the house-
hold. Precisely similar must be the result of a corresponding course on
the part of a State or any other government. It is, therefore, to be
regretted that injudicious legislation should have placed so many laws
upon our statute-books which were either uncalled for by public interest,
or the observance of which would involve inconvenience and loss to the
community at large. It is this kind of legislation that swells the number
of inoperative enactments. There are some principles connected with
legislation that modern law-makers, either from ignorance or for party
purposes, have not regarded.
In the first place, public opinion should always be in advance of legis-
lation. Laws passed in accordance with public sentiment will rarely, if
ever, fail to be observed and respected. Law is a terror only to the
evil-doer. It was never intended that it should oppress the masses. In
the State of Ohio, however, this principle has been reversed ; for it is a
notorious fact, that the principal laws passed by our recent legislatures
are of an oppressive character, and have worked immense injury to the
vital interests of the State ; while rascality, either on the part of public
plunderers, or a lower of grade of society, goes to a great extent
** un whipped of justice.”
In the next place, legislators should act in their official capacity for the
people at large, and not for a party merely. The course pursued of late
years has been in a great measure the reverse of this. The aim has been
to preserve unbroken party platforms. The latter have been regarded
as of more importance than the interests of the public.
For all this, however, the people are to blame. Instead of returning
men of honesty, industry, and capacity, to represent their interests, they
hare voted for and elected individuals of neither honesty, capacity,
nor industry, except as the latter feature was displayed in movements
looking to personal advancement. We do not pretend to say that all
the men elected have been of this stamp, but it is unquestionably true
that our legislature has been ruled by men of the character indicated.
But when we commenced this article our intention was to speak
with particular reference to the small-note law. That law itself iB a good
one. The State of Ohio has been supplied with a currency from almost
every State in the Union, and this was composed chiefly of notes of
the denominations of 5s, 3s, 2s, and Is. Few men could distinguish
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Indiana Banks.
[November,
between tbe genuine and tbe counterfeit, or the notes of tbe banks that
might be classed as good, bad, or indifferent. To exclude this class of
currency the law was chiefly intended, and we believe the great majority
of the people of the State are in favor of such a law, and would gladly
observe it if its observance were either possible or convenient Here lies
the difficulty. Our State legislature has for several years been aiming its
official shafts at the banking interests of the State, and so hot and con-
stant has been its fire, that the banking capital of Ohio has been reduced
to a mere cipher comparatively. Having in a measure exterminated our
home currency, they then go to work to drive out foreign paper, under the
impression that gold and silver would supply the place of both. Will
this hope be realized, or can it be realized ? It is not in the power of
the State of Ohio to enact laws that will keep up a circulation of gold and
silver, or exclude foreign paper, unless we have a sound legitimate sys-
tem of banking at home. Put half a million of gold and silver in circu-
lation in Cincinnati to-day, and how long will it remain while exchange
is 1^ premium ? Seventy-five per cent of it would be in New-York in
less than a week. It would be bought up with foreign bank paper. If,
then, we cannot have a circulation of gold and silver on the 1st of Octo-
ber, what will supply the wants of the community if the small notes of
foreign banks are excluded ? The small notes of the Ohio banks, it is
said, will be sufficient to meet the wants of the trade. Well, let us see.
The amount of Ohio paper in circulation on the 1st of August was
$11,242,437. This was chiefly made up by the State Bank of Ohio
and branches. The latter are restricted by their charter to an issue
of fifty per cent of their circulation, in denominations less than ten
dollars. This would afford a circulation of— say five million dollars, to
supply a population of two million people.
Then, again, the taxes will have to be paid in gold or silver or Ohio
paper, and it will require nearly the whole of the latter that can be
issued to pay our taxes for State, county, and township purposes. If it
will require eleven million dollare to pay taxes, how many millions will it
require for purposes of trade ? And while eleven million dollars will be
in the course of payment into the county treasuries, by our tax-ridden
people, what will the public do for a circulating medium ? Here are two
problems worthy of solution.
We. repeat, that the law, with slight exceptions, is a good one, and if
we were properly supplied with home currency, our citizens generally
would be glad to have its provisions strictly complied with ; but the
probability now is that in consequence of tbe evils which have resulted
from antecedent enactments, it will prove inoperative — a dead letter, even
should the courts decide it constitutional. Our readers are aware that it
is the opinion of some legal gentlemen that the law is unconstitutional.
This we suppose will at once be tested. .
Indiana Banks. — At a meeting of bankers and broken, held in Cin-
cinnati on the 21st August, the following resolutions were unanimously
adopted, and ordered to be printed in cireulan for distribution :
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Indiana Banks .
343
Resolved , That to meet the provisions of “ An act to prohibit the cir-
culation of bank-bills of a less denomination than ten dollars/’ passed
May 1st, 1854, we, the undersigned, hereby engage to treat as uncurrent
all such bank-bills in the order following :
First Class — Comprising all the notes less than $10 of the following
named banks, shall be uncurrent on and after the first of September next,
namely : Bank of Albany, at New- Albany ; Bank of Albion, at Albion ;
Bank of America, at Morocco ; Bank of Attica ; Bank of Bloomington ;
Bank of Elkhart ; Bank of North- America; Bank of Perrysville; Bank
of Rensselaer ; Bank of Rochester ; Bank of Syracuse ; Bank of War-
saw; Delaware County Bank; Tippecanoe Bank; Drovers’ Bank, at
Rome; Exchange Bank, Greencastle; Farmers’ Bank, Jasper; Kalama-
zoo Bank, Albion ; Kentucky Stock Bank ; Lagrange Bank ; Laurel
Bank; Plymouth Bank; Public Stock Bank; Salem Bank; Shawnee
Bank, Attica; Traders’ Bank, at Nashvilee; Wabash Bank, at New-
ville ; Wabash Bank, at Jasper.
Second Class — Comprising all Virginia notes less than $10, shall be
uncurrent on and after the 11th day of September next.
Third Class — Comprising all Indiana State stock notes less than $10,
not enumerated in the first class, shall be uncurrent on and after the
20th day of September next
Fourth Class — Comprising all foreign bank-notes other than above
named, of a less denomination than $10, shall be uncurrent on and after
the 1st day of October next
Resolved , That in adopting this course, it is our object to render
' gradual the operation of the new law, and thus to avoid, as far as possible,
the inconvenience which the public might otherwise experience by a too
sudden enforcement of its provisions.
Resolved , That in thus rejecting the notes of foreign banks, we do not
design to reflect unfavorably upon the credit of their issues, but simply
to obey a law, the infringement of which involves such severe conse-
quences.
Railroad Bonds — “ Observer,” of The Commercial Advertiser , (Sampson, of the
London Times ,) writes from London:
u It was mentioned some time back that the defalcations of Mr. Schuyler were
not likely to produce on this side the effects apprehended with regard to stocks
being sent back for sale to New-York. Notwithstanding the scale of that lament-
able affair, there were not those features of deliberate villainy about it which have
characterized other cases that have produced, and still produce, an injurious influ-
ence on the estimate of American securities. Mr. Schuyler, in ruining others, ruined
himself; but in the affairs of the Dry Dock Bank, and the North American Life k
Trust Company, the damage was all on one side and fortunes were made on the
other. It may, therefore, be safely affirmed that with regard to their evil influ-
ence, these cases operate even at this moment far more powerfully than all the
recent developments. Indeed, it is known that since the report of the late panic
there has been a disposition on the part of capitalists here to recommence making
purchases of American securities, and that many orders have already gono out and
that more will follow, unless, os seems likely to be the case, they should be
checked by the occurrences at San Juan.”
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LEGAL MISCELLANY.
Decisions of the New-York Court of Appeals, 1853-54.
I. Notice of Protest — Agency. II. Notice of Protest — Admission of
Stockholder's Evidence. III. Bill of Exchange — Defective Notice.
IV. Circulation of small Notes of Foreign Banks. V. Mortgage —
Insolvency. VI. Application of Deposit to Protested Paper. VII.
Promissory Notes — Defective Notice. VIII. Promissory Notes —
Agency. IX. Trust Funds.
I. Notice of Protest — Agency.
The President, Directors, and Company of the Montgomery
County Bank against The Albany City Bank and the Bank of
the State of New-York. Selden's Reports of N. Y. Court of
Appeals , April , 1854. — The plaintiff, Montgomery Co. Bank, being the
owner of a draft drawn by Laucks & Gray upon Morgan Gray, of the
city of New-York, indorsed by L. Jones and Jones <fc Hart, transmitted
it to the Albany City Bank, its correspondent and agent in the city of
Albany, for collection. That bank received it on the 8th of July, and
immediately transmitted it to the Bank of the State of New-York, its
correspondent and agent in the city of New-York, for the same purpose.
It was received by the latter bank on the 10th of July, (the day of its
maturity,) and sent immediately to the drawee and left with him until the
next day, (July 11th,) when payment was for the first time demanded,
which was refused, and notice of non-payment was given to the drawers
and indorsers on the same day. The drawers were insolvent The
indorsers were responsible, but refused to pay, because payment was not
demanded of the drawee on the 11th of July, and notice of non-payment
then given.
Held, that the indorsers were discharged, and that the plaintiffs were
injured to the amount of the draft, by the neglect of the bauk in New-
York to present it and demand payment in season.
That the Albany City Bank was responsible to the plaintiffs for the
negligence of the bank in New-York.
That the latter bank was responsible to the Albany City Bank alone
for its acts and omissions, and was not liable to the Montgomery County
Bank, as it had made no contract with that bank, express or implied, and
owed it no duty.
That the objection to the recovery against the bank in New-York was
not waived by the neglect of that bank to demur to the complaint, but
was properly taken on the trial, as neither the complaint nor the proof
presented a cause of action against that bank.
The Supreme Court having rendered judgment against both defend-
ants jointly, for the amount of the draft and interest, the judgment was
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affirmed as against the Albany City Bank, with costs; and reversed and
the complaint dismissed, with costs, as against the Bank of the State of
New-York.
The defendants joined in the answer, and in bringing the appeal.
(See 8 Barbour, 396.)
II. Promissory Notes — Notice of Protest — Stockholder.
President, etc., of the Montgomery County Bank agst. Seymour
N. Marsh and others. — When the indorser of a note resides in one
town and has an office or place of business in another, in each of
which there is a post-office, to which he is in the habit of resorting to
deposit and receive letters, a notice of protest, addressed to him at either-
place, when he has not designated his address in the indorsement, and
does not reside in the town where the note is payable, will be good.
A stockholder of a bank is a competent witness for the bank, notwith-
standing his interest He is not a party to the action, nor a person for
whose immediate benefit it is prosecuted, within the meaning of the sec-
tion 399 of the Code of Procedure.
III. Bill of Exchange — Defective Notice.
Kobbe agst. Clark and others. Selden's Cases in N. Y. Court
of Appeals, October , 1853. — On the 15th May, 1845, the defendants,
at Philadelphia, drew a sight-draft upon John T. Smith & Co., of New-
York, for $918.75, payable to the order of J. Kerr <fe Son. The payees
indorsed the draft, and remitted it, the same day, to the plaintiff, at
New-York, in payment of a debt due to him. The plaintiff received it
on the morning of the 15th May, and immediately presented it to John
T. Smith A Co. for payment, and instead of taking payment in cash,
accepted their check on the Merchants’ Bank, in New-York, for the
amount, and gave them the draft. The plaintiff deposited the check in
the Bank of America for collection, by which bank it was presented to
the Merchants’ Bank on the 16th May, for payment, and dishonored,
Smith & Co. having failed on the 15tb. The plaintiff, on the 16th of
May, wrote to Kerr & Son informing them of the receipt of the draft,
and that it was presented to Smith & Co., who gave their check for it
on the Merchants’ Bank, which was not paid ; that he had the check
protested, and he requested Kerr «fc Son to retain settlement from the
defendants, if not already made. Kerr, immediately on receiving the
letter, showed it to one of the defendants, who promised to pay the draft
when returned to them.
Held, that a charge to the jury, in an action against Clark <fc Co. to
recover the amount of the draft, that if they should find that Smith & Co.
would have paid cash for the draft when presented, if their check have
been refused r or if the check would have been paid if presented to the
bank on the 15th, that then thev ought to find for the defendants, was
correct
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That the defendants were not liable on their subsequent promise to pay
the draft when returned ; because, at the time of the promise, they were
ignorant of the laches which had occurred in the presentation and demand
of payment of the draft and of the check.
IV. Circulation of Foreign Bank-Notes.
The Merchants’ Bank of New-York agst. Spaulding. Selden's
Cases tn the N. Y. Court of Appeals , 1853. — The circulation of the
bills or notes of the banks of other States, of a less denomination than
five dollars, is illegal in this State.
A note was made by a citizen of New- Jersey, payable at a bank in
that State, discounted by such bank for the maker, the amount paid to
him in notes of the bank of a less denomination than five dollars, and
sent by him to the indorser of the note residing in this State, to be used,
and actually used here in the purchase of wheat ; the officers of the bank,
at the tame of making the discount, were informed of the use intended to
be made of the notes, but there was no agreement that they should be
used ; nor did it appear that the maker of the note, or the officers of the
bank were informed that the circulation of such notes was prohibited by
our laws. It was held, that in an action against the indorser of the note,
brought for the benefit of the foreign bank, that those facts constituted no
defence, and that it was proper for the judge on the trial so to instruct
the jury. Citizens of another State, making contracts in that State, to be
performed there, are not chargeable with a knowledge of our laws.
(See 12 Barb, 302.)
V. Mortgage — Insolvency.
Benjamin Cahoon and others agst. The Bank of Utica. Selden's
Cases in the N. Y. Court of Appeals , 1852. — Brown <fc Rossiter, as
co-partners, and Brown individually, were indebted to the Bank of Utica
to the amount of $3000, for $1000 of which the bank held their co-part-
nership note, and for the residue the individual notes of Brown. Brown
assigned to the bank a mortgage of his private property, as security for
the payment of the notes. The bank collected the full amount of the
mortgage, which paid the notes, leaving a surplus in money in possession
of the bank. The plaintiffs, general assignees of Brown, filed their com-
plaint against the bank, demanding the excess of money, and return of the
notes. The defendant demurred, on the ground that the plaintifis could
not have judgment for the excess in money and a return of the notes in
one action.
Held, that the complaint was good.
VI. Batik Balance — Protested Note.
Beckwith agst. Union Bank of New-York. Selden's Cases in the
Court of Appeals, December, 1853. — An insolvent firm, on the 24th of
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August, 1850, having ou deposit in the Union Bank $3600, made a
general assignment of their property to the plaintiff, as trustee, for the
benefit of their creditors. No notice of the assignment was given to the
bank until the 28th August. On the 27th of August a bill exceeding
in amount the sum on deposit, indorsed by the insolvent firm, and which
had been discounted by the bank for the mdorsere, became due, and was
charged by the bank in their account The assignee, after demand of
the sum in deposit brought this action to recover it which was defended
by the bank, on the ground that they had a right to apply, and had
applied, the sum in deposit toward the payment of the bill.
Held, that the plaintiff was entitled to recover ; that his right to the
money wa9 complete, without giving notice of the assignment, and that
the bank could not, as against him, apply the deposit in payment of the
bill ; that section 112 of the Code did not change the former rule in this
respect, as to the substantial right of the parties. (See 4 Sanford, 604.)
VII. Promissory Notes — Defective Notice of Protest.
Cook agst. Litchfield. Selden'a Cases in the Court of Appeals,
December, 1853. — Where four notes, all bearing the same date, and
alike in all respects, except in the times of payment, which were nine,
ten, eleven, and twelve months respectively, were severally protested on
the days when they became due, and notice of protest in each case, dated
on the day of protest, was duly mailed, addressed to the indorser at his
place of residence, the notices being in each in the following words, with
the difference of date, except that in two of them the amount of interest
was stated in the margin :
“New-Yobk, Jan. 5, 1850.
“ $740 and interest
“ Ploase take notice, that a promissory note, made by J. L. Carew, for $740, with
interest, dated April 2d, 1849, indorsed by you, was, on the day that the Bamo
became due, duly protested for non-payment, and that the holders look to you for
the payment thereof Signed by the Notabt.”
Held, that the notice of protest of the first note was sufficient, no other
note to which the notice could be applicable having at that time become
due ; but t&at the notice was insufficient to charge the indorser as to the
other notes, there being, at the time when each became due, two or more
notes in existence to which the terms of the notice would equally apply.
It appeared that the notes, although dated in Michigan, were first
negotiated by the maker in New-York, (where they were payable,) with
the defendant’s indorsement upon them.
It was held, therefore, that the defendant must be regarded as an
accommodation indorser, and the contract of indorsement as made in
New-York, and governed by the laws of that State. (See 5 Sand-
ford, 330.)
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VIII. Promissory Notes — Agency.
De Wirr agst. Walton. Selden's N. Y. Reports. — Action upon a
note, of which the following is a copy :
“New-York, June 20, 1852.
“ Three months after date, I promise to pay to the order of W. H. B. Smith,
three hundred twenty-four 59-100 dollars, value received.
“David Hubble Horr,
“Agent for The Churchman .”
The defendant, by answer, denied his liability, and on the trial in the
Superior Court of the city of New-York, it was proved that the defendant
was editor and sole proprietor of a newspaper called The Churchman , and
evidence was given tending to prove that he had recognized the words,
The Churchman , as a business name by which he was personally bound,
and that Hoyt had authority to bind him by that name.
The plaintiff was non-suited on the ground that, conceding that Hoyt
had power to bind the defendant by the name of The Churchman, the
note in question did not purport to be the note of The Churchman, but
of Hoyt, and that the words “ agent of The Churchman,” were mere
words of description. The Court of Appeals affirmed the judgment on
the same grounds.
IX. Trust Funds.
Cruokr agst. Jones. Supreme Court of New-York, Special Term,
before Judge Roosevelt. — Where a trust, says the statute, shall be expressed
in the instrument creating the estate — which is the case in the present
instance — every sale, conveyance, or other act of the trustees in contra-
vention of the trust, shall be absolutely void. And is not a mortgage,
attended as it must be with a power of sale, an act contravening a trust to
hold the estate and receive its rents and profits, and pay them over, from
time to time, to the designated beneficiary ?
True, it is proposed to invest the mortgage money in buildings to be
erected on the trust premises ; but is it not obvious that should the build-
ings so erected, from misadaptation, change of fashion, or other cause,
become in a measure valueless — an occurrence by no meanB improbable
or unheard of — the whole estate, soil as well as superstructure, might be
taken to satisfy the incumbrance )
If such a mortgage, then, by the trustees, however bona fide, on their
own motion, would be “ absolutely void,” canfethis court, by any previous
judicial sanction, prevent that consequence wfich the statute has so posi-
tively attached to the act ?
Large as its jurisdiction is, both in law and equity, I know of no such
power, even in the Supreme Court, to dispense with the enactments of
the Legislature, and make that valid which the law-giver has declared
“ shall be void.”
The parties interested sanction (it is said) the act, and desire that it
may be done. But the law says in such a trust the parties beneficially
interested cannot assign or in any manner dispose of their interest. How,
then can their consenting to, or joining in, the mortgage, improve its
efficiency ? It is void as the act of the trustee, and void as the act of
the beneficiary, and must, therefore, in this view, be void in toto.
353
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State, and not by an individual. Bat the act does not limit these asso-
ciations to the purchase of the notes of individuals. The power granted
by it is general, and without restriction, to discount any bills or notes.
Had the company, under this power, discounted a bond of the city of
New- York, no one, I presume, would have doubted the legality of the
act, and wherein, so far as the present point is concerned, do State bonds
differ from city bonds f Should it be said that these State engagements
are payable at a remote day, we may ask, is a written monied obliga-
tion less a bill, or note, if payable in twenty years, than if payable in
twenty days t Or— -for that is all we are required to establish — is the
instrument less an ** evidence of debt” when made by a State, and pay-
able with interest at a long, than when made by an individual, or ordi-
nary corporation, and payable at a short period 1 That the general
power to purchase bills, notes, and other evidences of debt, carried with
it incidentally, if not directly, the authority to purchase State bonds, and
that it was so understood by the legislature, is further obvious from the
second section of the act, which provides, as originally passed, that when-
ever any person or association of persons formed for the purpose of bank-
ing under the provisions of this act, shall legally transfer to the Comptroller
any portion of the public debt now created, or hereafter to be created, by
the United States, or by this State, or such other States as shall be
approved by the Comptroller, such person or association of persons shall
be entitled to receive from the Comptroller an equal amount of circulat-
ing notes, etc. Now, how, we may inquire, were these associations to
transfer, if they could not buy any “public debt” 1 And where, in the
act, is the authority to buy, unless it be contained in the words, “ power
to carry on the business of banking, by discounting bills, notes, or other
evidences of debt, or loaning money,” or in the words, “incidental
powers necessary to carry on such business”? If the grant be not
embraced in these words it is nowhere.
And yet, as will be Been, the legislature assumes (and such a definition
is conclusive) that a grant of power to purchase “ public debt,” as well as
private, is contained in the act; and as a consequence, by necessary
implication, declares that the provision cited was intended to give, and
did give, the power so to do, or, more properly speaking, was intended
to recognise, and did recognize, the natural right of associations, as well
as individuals, to purchase and hold that class of obligations, as well as
any other u bills, notes, and evidences of debt.” Thus do the terms,
purchasing “evidences of debt,” unrestricted, not only in their own
nature, impart the right to deal in the public debt of a State, but they
are expressly assumed so to mean by the very legislature which used
them, and in the very statute in which they were used. It may be that
the grant was impolitic; but it is the office of the judiciary, in the
language of the Court of Appeals (2 Selden, 12) “ to administer the
law as the legislature has declared it; not to alter the law by means of
construction, in order to remedy an evil or inconvenience (sometimes only
imaginary) resulting from a fair interpretation of the law.”
Under the monopoly and restrictive system of restraining acts and
chartered banks, as existing prior to 1838, it was usual, I admit, to pro-
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hibit those institutions from buying and selling State stocks. These
special prohibitions, however, are only an additional evidence that, with-
out them, under the general authority to bank, would have been included
the power to buy and sell such stocks. But it is sufficient to know that
one object of the free banking law was to remove, not to increase restric-
tions; to overturn and not to reestablish the chartered system. So
strong, as already stated, had the public sentiment on this subject become,
that as early as February, 1837, a year before the passage of the general
banking law, the legislature were compelled to repeal all that portion of
the Revised Statutes which prohibited individuals, “ or associations of
persons not incorporated,” from keeping offices of discount and deposit
The general act, therefore, of 1838, in this respect, did but recognize
and enlarge the restoration of the natural rights of the citizen established
the year previous. Again, the bonds or bills in this case, all or most of
them, were payable in London. They were, in effect, if not in form, in
the nature of exchange drawn by the State of Indiana on their bankers
in England ; and may fairly, therefore, without undue straining of lan-
guage, in the absence of any express prohibition, be included in the
power expressly granted, of “ buying and selling foreign coins and bills
of exchange.” They were engagements by the State to deliver so many
pounds sterling in London, at the periods specified, in consideration of
a certain number of dollars to be paid at certain other periods in New-
York, by the banking company. At all events, it is conceded, and could
not be denied, that the company had power to buy this class of “ evi-
dences of debt,” for the purpose of depositing them with the Comptroller ;
and the case shows conclusively, that neither the State itself nor the
agents of the State, had any notice or suspicion that the purchase was
for any other object, or for any object whatever prohibited by law.
The courts of a State of the Union will not presume that the legisla-
ture of another State of the same Union intended to violate its laws or
to authorize any of its agents to do so. The legislature therefore of
Indiana must be taken to have authorized a lawful and not an unlawful
disposition of its bonds ; and if the transfer in question (as we think we
have shown it was not) was unlawful, it was not authorized by the State,
and of consequence was of no effect to pass the title, and the State may
now claim a restoration of the securities, or, in default of such restoration
of the specific bonds, full payment of their value. So that whether the
pnrchase was lawful or unlawful, the result must substantially be the
same ; and the court, “ in furtherance of justice,” would be bound, under
the code, to allow any amendment of the proceeding which might be
necessary to adapt them to either view of the claimants’ remedy. And
this consideration, too, were there no other, furnishes a complete answer
to the receiver’s second objection, which goes to the form of the subse-
quently delivered evidences of the company’s engagement to pay, and not
to the engagement itself. For if these evidences, as interfering with the
currency, were unlawful, the agents of the State of Indiana had no
authority to receive them in fulfillment of the contract, and the act, in
that case, did not bind their principals.
Second. But were the “ negotiable obligations” of this “ association of
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persons,” as the law denominates them, payable on time, void by any
statute on the subjeot existing in 1839, when the contract in question
was made ? By that contract, which bears date the 18th of January,
1839, and covers the entire transactions of twelve hundred thousand
dollars, two of the obligations to be given by the banking company were
to be for $100,000, four for $150,000, eleven for $36,363.33^ each, and
one for $24,750— denominations of bills, it would seem, not very likely
to enter into the currency, or to admit of any very striking “similitude
to bank-notes.” Be this as it may, however, there was no statute, as I
have shown in the case of the Palmers lately decided by this court, pro-
hibiting the giving of such obligations by the free banks prior to that of
May, 1840, and even that statute, as appears from its legislative history,
although expressly including associations, was only intended to apply to
“notes and bills issued or put in circulation as money.” Admitting,
however, that it comprehended “obligations” such as the present, its very
* enactment was an admission that no such prohibition previously existed.
Else why did it declare, in the form and with the title of amendment,
that “ no banking association, (after the 4th June, 1840, for that is its
legal effect,) or individual banker, as such, should issue or put in circu-
lation any bill or note of said association or individual banker, unless the
same should be made payable on demand and without interest” ? If such
was the law already, why declare it over again, and why call the act an
amending act? Or, if its previous existence was so doubtful as to
require and receive a more explicit declaration of the legislative will,
what justice is there, the provision being penal, in exacting on the part
of strangers a previous knowledge of its requirements, on pain of forfeit-
ure, fine, and imprisonment ? These obligations, however, (that is, for the
$175,000 remaining unpaid,) although given before, were renewed, it is
said, after the act of 1840, and were renewed in a form — being for nine
and ten thousand dollars each — somewhat modified, so far as respects
amounts from that originally stipulated ; although even those sums, it is
obvious, are altogether too large to admit the idea, of a currency.
Assuming, however, that the renewed certificates, whatever their denomi-
nations, are within the act — a proposition, I imagine, which the district-
attorney would find it not very easy to establish on a criminal trial —
they are in that case simply void, and leave the original obligations
standing in full force. My conclusion, therefore, is, for the reasons above
stated, and others discussed by me more at length in deciding the case
of the Palmers, that the State of Indiana, in some one if not in all
aspects of the transaction, is entitled to recover, and that a decree ought
to be entered accordingly.
The following is a summary of the propositions deducible from the
foregoing decision :
1. The free banks, under the unlimited power expressly given to them
to “ discount,” not only bills* and notes, but all other “ evidences of debt,”
may lawfully discount, or buy at a discount, the bonds or sealed notes,
or other evidences, not only of the private debt of individuals, but of the
public debt of a State, and that it matters not whether the discount be
made with a view to their general banking operations, or for the specific
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purpose of depositing the bonds or notes so discounted with the Comp-
troller, as security for their circulating medium.
2. The free banks, until the act of 1840, were not prohibited from
issuing time paper, whether adapted to circulate as a currency or not.
3. By the act of 1840 the free banks were not prohibited from giving,
in fulfillment of lawful contracts, their promissory engagements on time,
provided such engagements in form and substance were not adapted, and
were not in fact intended, 44 to circulate as money.”
4. At all events, the contract in question, made as it was long prior to
the act of 1840, and stipulating for a payment by instalments, none of
them less in amount than twenty-four thousand seven hundred and fifty
dollars, was not a violation of any statute in relation to the currency
existing at the time, either in letter or spirit.
6. The free banks, although possessed of certain corporate attributes,
and subject to certain corporate liabilities, are not 44 bodies corporate”
within the meaning of the framers either of the Constitution or of the
general banking law.
6. At all events, penal regulations, involving forfeiture or imprison-
ment, enacted in reference to corporations proper, cannot by mere impli-
cation, and especially if contrary to the known intention of the legisla-
ture, be extended to the free banking associations, even admitting them,
in other respects, to be quasi corporations.
BANK-NOTE ENGRAVING AND PRINTING.
Fimom the London Bankers' Circular .
“Though we are aware it is futile to argue with £ s. d. men on the advantages
arising from the advancement of art, or even the retention of artistic beauty, unless
they perceive also boiuo pecuniary advantage arising to themselves, we should have
thought that our great financial potentates of Threadneedlo street had more regard
for their reputation than to yield at once to the unnatural scheme of some specula-
tive adventurer, or the aspirations of a would-be inventive mind, by which only
private advantage is held out, without any regard to the danger that may arise
to the public ; a danger which will, perhaps, be only perceptible when too Into to
bo remedied.
“ The Bank of England is about to issue surface-printed, or letter-press printed
notes, instead of the present engraved note, to which we have always been accus-
tomed, and which has always gained universal admiration for its beauty and sim-
plicity : not only are we, but the whole world is used to the English note. No
paper money is in greater circulation than that of the Bank of England, and no
paper more admired, nor in which a forgery can be more easily detected.
44 Prussia, who always had letter-press printed notes, is about to adopt the present
plan of the Bank of England, as being more simple, and in consequence of being
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engraved in a superior manner, is, therefore, less liable to be forged. For it is a
feet that there have been less forgeries in Bank of England, Bank of Ireland, and
the Austrian notes, than in any other, all of which are engraved on a similar plan.
But we may be certain that as soon as we have an issue of the new note, we shall
have as many forgeries in one year as we have had altogether since the Bank was
established : for no one watches any novelty of this kind more closely than the
forger, who thereby will have greater scope in passing forged notes, while the pub-
lic will be unaccustomed to this new introduction. However slight the alteration,
the difference will be watched most keenly by all who are desirous of forging notes.
And if the Bank be not afraid of being deceived, having a numerous body of
salaried officers to detect any fraud, the public generally will possess no such
security, for which the Bank should have greater regard. What can induce the
Bank to alter the present plan, which has forked so well for many years? Can it
be to economize its printing ? We doubt it, since that could have been effected by
transferring the present engravings to stone, from which afterwards some twelve to
twenty-four notes could have been struck off at once, as at present, without any
perceptible difference to the ordinary receiver of such notes : by this process, the
engraving, or rather the cutting of new plates would have been saved, and t£e
notes would still have looked better than letter-press, though of course not so fine
as those taken from the steel plate direct, like the present notes. All bankers1
checks aro similar transfers from the plate to stone in order to have the printing
executed quicker and cheaper. Many of them, if carefully printed, will at once
oonvince the Bank of England that they will neither improve nor economise their
printing by introducing letter-press notes for the finest steel engravings. And as
we know some of the directors to have a proper regard for the fino arts, we are at
a loss to discover the reason of this retrograde movement by an establishment we
should have expected would encourage progress in the arts and sciences; and more
security cannot be gained, as a note printed in an inferior manner can be much
more easily imitated than one engraved in a superior manner.
“The Bank relies greatly on its water mark; though that too can be imitated,
while few receivers of notes pay any attention to it What, then, are the motives
for this change? Probably nothing more than that some one of the directors
wishes to have his name chronicled in the records of the Bank for making this
introduction. But surely this is not a sufficient reason why the public interest
should bo endangered, by making it easier to pass forgeries in bank-notes. In such
a matter government ought to have a voice, and not allow such dangerous changes
to be introduced; and if the Bank persist, to issue at once the contemplated
government note.”
We have given insertion to the above remarks because it is sometimes
as useful to expose an error as it is to advance a truth. Our corre-
spondent has evidently taken alarm quite unnecessarily. It is true that
the Bank of England has adopted a new plan of impressing the bank-
note, as well as the checks of that establishment; but bis remarks
would convey an idea to the public mind that the directors have adopted
an inferior mode of printing the bank-note, by applying to it the term
u letter-press-printed notes.” But so far from this being the case, they
have adopted very considerable improvements into the machinery for pro-
ducing the bank-note. As many of our readers are probably more
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358 Bank-Note Engraving and Printing. [November,
familiar with a Bank of Eugland note than with the machinery used in
producing it, we will give a brief sketch of the present process.
The present machinery used in printing the bank-note is the invention
known as Perkins’ process, and which has been in operation at the Bank
for about seventeen years. Mr. Perkins, the inventor, was an American.
By this process the entire face of the bank-note is engraved upon hard-
ened steel plates ; five in number for each note. The several parts thus
engraved are transferred to soft steel rollers by means of steam pressure,
which produces the whole of the engraved parts in relief. These rollers
are then hardened and passed over a soft steel plate so as to form the
entire face of the bank-note, except the signature, which, till recently, has
been supplied by twenty gentlemen daily engaged in that occupation, at
£500 per annum each.
This plate was then fit for the operations of the machines, at which
several men are engaged in producing the bank-note, each man working
at a separate machine. This completes the process of printing the bank-
note under Perkins’ patent, except the signature.
Our correspondent tells us that this is so accurate, and possesses at the
same time so much beauty, that he is surprised any innovation should
be made upon it But these remarks lead us to doubt whether he has
actually examined the new process and compared it with the old ; or,
that he is not prejudiced in favor of the latter.
He tells us that the slightest dissimilarity can be detected in the
present system of engraving the bank-notes. Now it is for this express
purpose that the new plan has been introduced. The old plan, as far as
it goes, possesses many disadvantages, and to a certain extent the Bank
authorities are fully cognizant of them. Take the signature of the note
itself. Although twenty gentlemen were daily employed in signing the
notes, it was quite possible that there might be such a difference in the
signature at different times of the day as to render it difficult for any one
of them to vouch for its identity in a court of law. It was this that gave
rise to the act which empowered the Bank since January, 1853, to sign
all its notes by machinery, by which the Bank saved the expense of
£10,000 a yeas, and obtained a uniformity in the note which no indi-
vidual could perform. If any one doubts this, let him sit down from day
to day and write his own name and preserve it for examination. The
average number of signatures that were written by one individual was
about 1500 daily, though 2000 have been accomplished.
There is yet another point of difference which our correspondent, in his
adherence to the old plan, seems not to have noticed, and which is
inherent in it — the want of uniformity in the impressions produced by
the men at the machines. As each man works a separate plate, he
covers the face of it with ink in his own way ; some applying more, and
some less, before submitting it to the operation of the machine. The
difference in the result of this part of the process is veiy striking to any
one who has had an opportunity of examining it : it is, in fact, the inevi-
table result of all manual operations applied to the arts. And however
we may feel disposed to value the ingenuity and skill of the operator, it
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is impossible that he can compete successfully with the productions of
machinery in uniformity and accuracy of delineation.
To accomplish this object the Bank has introduced a new process.
We are not justified in giving the full details of this operation ; but lest
our correspondent should induce the public to believe that the directors
have descended from a scientific to a mere mechanical process of an
inferior kind, we feel fully justified in contradicting any such assertion.
They have sought to introduce a uniformity in the printing of the bank-
note, which the old process never could insure : and while under that
process numerous discrepancies could be discovered by a critical observer,
the notes produced by the new mode present Buch a uniformity and
accuracy of delineation as to render it more difficult than ever to pro-
duce a counterfeit. The public therefore need not feel the least alarm
that forged Bank of England notes will become more numerous than
hitherto, but probably less so. And should any of our country readers
wish to discover a genuine Bank of England note from a forged one, he
need only bear in mind that every note produced under the new process,
will be identical with another in every part except the amount or the
number.
THE MINT OF THE UNITED STATES.
From the Special Report of Professor TPtZson, on the New - York Industrial Exhibition.
The transmissions of gold from the new State of California have
caused a corresponding increase in the gold currency of the States, and
have invested the Mint operations with more general interest than under
the previous ordinary circumstances they possessed. The same condition
of things exists in this country ; and as it is intended to establish a mint
in the gold-producing colony of Australia, I thought it desirable to obtain
as much information as I could in reference to the organization and
working details of those in the United States.
The head establishment is at Philadelphia, and is called “ The Mint ;”
there are also three “Branch Mints;'’ at New-Orleans, in Louisiana;
at Charlotte, in North-Carolina ; and at Dahlonega, in Georgia, respect-
ively. The Branch Mint in California, and the Assay Office in New-
York, are not yet completely organized.
At the Mint in Philadelphia, gold, silver, and copper are coined ; at
New-Orleans, gold and silver are coined ; while the branches at Char-
lotte and Dahlonega coin gold only. At “The Mint,” the executive staff
consists of a director, treasurer, chief coiner, melter and refiner, engraver,
assayer, and assistant-assayer. At the New-Orleans Branch Mint the staff
consists of a superintendent, treasurer, melter and refiner, and coiner;
at each of the other two branch mints there are but three officers —
superintendent and treasurer, (combined,) assayer, and coiner. The
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The Mint of the United States. [November,
several duties of these officers, the remuneration they shall receive for
their services, and the amount of security they shall give for the due
performance of them, are duly prescribed by an Act of Congress supple-
mentary to the Act entitled (>An Act establishing a Mint and regulating
the Coins in the United States;” this latter Act giving all the details
referring directly to the coinage of the country.
At the United States Mint at Philadelphia, the salaries are fixed as
follows : Director, $3500 ; treasurer, $2000 ; chief coiner, $2000 ; melter
and refiner, $2000; engraver, $2000; assayer, $2000. At the New-
Orleans Branch Mint the salaries are, to the superintendent, $2500, and
$2000 each to the other officers ; and at the other branch mints the
superintendents receive $2000, and the other officers $1500 respectively.
In each of the establishments the appointment of assistants, subordinate
officers, and servants, is left entirely in the hands of the chief of the
different departments.
In visiting the Mint at Philadelphia I had the advantage of being
taken through the several departments by the chief coiner, Mr. Franklin
Peale, and the melter and refiner. Professor J. C. Booth, who kindly fur-
nished me with the following details of their operations. As the gold is
brought to the Mint in various quantities and in a crude state, it passes
necessarily through the department of the refiner before it reaches that of
the chief coiner ; I therefore give the actual details of the refining ope-
rations upon sundry deposits of gold, amounting in the aggregate to
$2,000,000.
The deposits are immediately weighed and a certificate of their gross
weight issued. The fires having been lighted in the five furnaces of the
deposit melting-room at four or five o’clock A.M., all the deposits, amount-
ing perhaps to seventy or eighty, are melted before noon ; assay slips are
then taken off and the assays finished* the next morning, after which
their values are calculated by the weight after melting, care being taken
to include all the grains that can be procured from the fiux, pots, etc.,
by grinding them up under a pair of small chasers, sifting, and washing.
There is a clerk and his assistant, and one hand, wholly engaged in per-
forming all the weighings for the treasurer, such as weighing deposits
before and after melting, ingots for coinage, fine bars, and the clippings
after cutting out the planchets. There are five men in the deposit melt-
ing-room, two of whom attend to two furnaces each at the same time,
one to one furnace and washing grains, and the remaining two are
laboring assistants. The whole deposit of $2,000,000 is melted in three
or four days in the deposit-room and assayed by from the third to the
seventh day.
As soon as the first deposits are assayed, say on the third day, (if expe-
dition is necessary,) or always on the fourth, they are granulated in the
proportion of one part of gold to two parts of silver. The pots contain
50 lbs. of gold and 100 lbs. of silver, equal to 1800 ox., and each melt
requires about an hour. With four furnaces, (attended by four melters
* The mode of assaying is according to the “ wet process” of Gay Lussac. This
is too well known to need description here.
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and two aids,) there are ordinarily made thirty-two melts per day ; but
when hurried, forty-eight melts can be made, making from one third of a
million to one half of a million dollars per day. Two days’ work, or
about $650,000 worth of gold, equal in weight to one ton, (avoirdupois
weight,) are granulated fos a single setting with acid. The granulated
metal is charged into large pots, together with pure nitric acid of 39°
Beaum6, between the hours of seven and nine A.M. on the sixth day, and
steamed for five hours. The pots, made in Germany, are two feet in
diameter by two feet in depth, and set in wooden vats, lined with ^g"
sheet-lead ; a single coil of copper pipe passing around the bottom of the
vat blows the steam directly into the water in which the pots are set to
about half their depth.
The vats are arranged in a small house in the middle of the room with
a large flue connecting with the chimey-stack, so that when in action the
odor of nitrous fumes is scarcely perceptible in the building. The
$2,000,000 require about sixty such pots; they are stirred about once
each hour, say altogether five times, with simple wooden paddles ; the
next day, (seventh,) the acid solution of nitrate of silver is drawn off by
a gold syphon into wooden buckets, and transferred to the large vat, in
which it is precipitated by salt, (chloride of sodium,) and fresh acid added
to the metals, now containing very little silver. Steaming for five hours
on the seventh day completes the refining of $650,000. Early on the
eighth, one pot is drawn off, washed with a little warm water, and the
gold-powder transferred to a filter. Fresh granulations are then put into
this empty pot, and the acid of the adjoining pot baled over upon them,
and thus through the series, the whole being re-charged in from two to
two and a half hours. After steaming for five hours, the acid which con-
tained but little silver from the preceding day becomes a nearly saturated
solution of nitrate of silver. By this arrangement 4^ lbs. of nitric acid
are consumed altogether for each pound of gold refined, and the latter b
brought up to 990 at 998 m. fine — rarely Mow 990. Thus every two
days 13,000 lbs. of nitric acid are used. In the course of last year
1,000,000 lbs. of pure nitric acid,' at seven cents per pound, equal to
$70,000, were consumed.
The gold is washed with hot water on the filter during the eighth day,
and until it is sweet, (say by 7 P.M.) The filter consists of two layers of
tolerably stout coarse muslin, with thick paper between, in a tub with a
false bottom 2^ feet in diameter and 2£ feet deep, and mounted on
wheels. One of the men remain, after washing hours, until 7 P.M., when
the watchman of the parting-room continues washing the gold and silver
until sweet, that is, until the wash-water ceases to color blue litmus paper.
Early on the ninth day the wet gold is pressed with a powerful hydrau-
lic press, and the cakes then thoroughly dried on an iron pan, at a low
red heat This process saves wastage in the melting-pot, since there is
no water remaining in the passed metal to carry off gold in its steam.
The same day (ninth) the gold is usually melted with a less proportion
of copper than is requisite to make standard metal, and cast into bars,
which are assayed by noon on the tenth. They are then melted with
the proper quantity of copper, partly on the same day, partly early on
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The Mint of the United States. [November,
the eleventh, and assayed and delivered to the coiner the same day.
On the fourteenth they are ready for delivery to the treasurer as coins.
The silver solution drawn off from the pots is precipitated in a large
wooden vat of 10 feet diameter by 5 feet deep, and the chloride of
silver immediately run out into large filte^T[6 x 3 x 14] where it is
washed sweet. The filter is covered with coarse muslin, and the first
turbid water thrown back ; the filter, which is on wheels, is then run
over to the reducing vats, and the chloride shovelled into them. There
are 4 such vats [7x4x2] made of wood and lined with lead, 1 inch
thick in the bottom. A large excess of granulated zinc is thrown on the
moist chloride in the vats, without the addition of acid; the reduction is
very violent, and, when it slackens, oil of vitriol is added to remove the
excess of zinc. The whole reduction occupies a few hours ; and after a
night’s repose, the solution of mixed sulphate and chloride of zinc is run
off into the sewer.
About 2 tons of zinc per $1,000,000 of gold are employed ; the silver,
however, in this amount, say 10 per cent by weight, should only take, by
equivalents, about 2400 lbs., so that nearly 2 equivalents of zinc for 1
equivalent of silver are used. This is found to be advantageous, as both
time and space are greatly economised by this excess.
The day after the reduction the reduced silver is washed, and the
second day it is pressed and dried by heat, the same hydraulic press as
for gold being used, but with different drying-pans. The same silver is
used again for making fresh granulations, but as it accumulates from the
California gold, 10,000 or 20,000 ounces are now and then made into
coin, great care being taken in this case to avoid getting gold in it when
drawing off the silver solution, and in the press.
Such are the actual working details in refining a specified amount
($2,000,000) of gold, the first third of which is delivered as coin in 14
days after its arrival, and the third third in 18 days.
But as there is a bullion-fund of $5,500,000 allowed by government,
depositors are paid from the third to the fifth day after an arrival, that is,
as soon as the gold is melted, assayed, and its value calculated. When
two heavy arrivals occur in close succession, the time of refining and coin-
ing can be shortened from 14 to 10 days.
The number of men engaged in the refining department is 14 : 1 fore-
man, 8 for the parting process, 3 for reducing, and 2 for pressing and
drying. In the gold melting-room there are 3 melters and 2 assistants.
The total number of hands in the melting and refining departments is
34, including a melting and parting foreman, and 3 in the place for
work, etc., etc.
The late law for reducing the weight of silver coin necessitated an
increase of force, and 15 more were in consequence employed for this
purpose. While $50,000,000 in a year have been parted with the above
force, they could, with the same force and apparatus, refine $80,000,000
if it were required.
After many experiments upon anthracite, Professor Booth stated that
/
1854.] The Mint of the United States. 363
be had at length fully succeeded in employing it for melting both gold
and silver in the same furnaces, slightly modified, in which he had been
accustomed to melt with charcoal. This change had been accompanied by
great economy in the cost of material and labor, and by greater comfort
to the workmen, from their toeing less exposed to heat The coBt of char-
coal (of the best quality — hard pine- knot coal) is 16 cents per bushel,
delivered at the Mint; and while the cost of this fuel for all their oper-
ations in 1852, when gold was chiefly refined and melted, was about
$7000, the cost of anthracite will be from $600 to $1000. In using the
anthracite he found that a simple draft of air, without a blast, was quite
sufficient to sustain combustion.
Californian gold frequently contains the alloy u iridoemine,” which is not
always detected by the assay. In order to remove it as far as possible
without' actually dissolving gold, it is allowed to subside first in the granu-
lating crucibles, and then in the crucibles for toughening, (melting fine
gold and copper.) If the assayers report its presence in the toughened
bars, they are again melted, and the iridosmine allowed to subside. By
these three, and often four successive meltings, the gold is separated from
its troublesome companion as far as practicable. The gold thuB refined,
and reduced to the proper standard, [ Section 8: “And be it further
enacted, that the standard for both gold and silver coins of the United
States shall hereafter be such that of 1000 parts by weight 000 shall be
of pure metal and 100 of alloy ; and the alloy of silver coins shall be of
copper, and the alloy of gold coins shall be of copper and silver, provided
that the silver do not exceed one half of the whole alloy,”] is delivered
over to the chief coiner in the form of bars or ingots of a certain weight,
to be divided and shaped into pieces required for the currency of the
country.
The Coining department of the establishment is of a power and effi-
ciency sufficient to perform all the mechanical processes incidental to the
issue of nearly 70,000,000 of pieces during the past year ; and I was
assured by Mr. Franklin Peale, the chief coiner, that it could have exe-
cuted much more if it had been steadily employed, or fully supplied with
material during the whole of that period. It is not necessary to go
through the whole course of operations in this department, but to notice
only such as possess novelty or present special characteristics.
The necessary power for working the machinery is obtained from a
large steam-engine, of the form usually known as the steeple-engine ; it is
a double vertical high-pressure engine, with cranks at right angles, the
power being carried off by a caoutchouc belt, 2 feet wide, from a drum
of 8 feet in diameter; the estimated power is equal to 90 horses. At
times this is all required ; at others much less is sufficient, and in uncer-
tain proportions ; to meet this irregularity, and to insure that steadiness
of motion so necessary in such delicate operations, a governor and throstle
valve of a peculiar construction have been devised which have now been
in use for some time, and have produced most satisfactory results, fully
effecting the purpose for which they were designed.* The rolling mills,
* A fall description of the engine, etc., is given in the Journal of the Franklin
Institute for October, 1851, page 255.
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4 in number, are driven entirely by belts, at the rate of 6 revolutions per
minute; the distances between the rollers being adjusted by double
wedges, moved by a train of wheels which are connected with a dial
plate and bands, divided and numbered into hours and minutes, so as to
indicate the proper thickness of the strips of metal without the use of
gauges. Gold strips are heated in an iron heater by steam, and waxed
with a cloth dipped in melted wax, and silver strips are coated with tal-
low by means of a brush. The draw-bench is used for both metals, and
trial pieces are cut from every strip and their weight tested, preparatory
to the cutting of the whole.
The cutting processes are very simple and efficient, consisting of a
shaft moved by pullies, and a 2^-inch belt, with a fly-wheel of small
diameter, but sufficient in momentum to drive the punch through the slip
of metal by means of an eccentric of three eighths of an inch, at the rate
of 250 pieces per minute, which skilled hands can readily accomplish and
continue until the slip is exhausted. The annealing during the rolling of
the ingots into slips is performed in copper cases, in muffles of fire-clay
and brick, heated by anthracite coal, three muffles or hearths being kept
at a bright red heat by one fire-grate or furnace, and the distribution
and i tensity regulated by dampers. These annealing furnaces are recent
in their construction, and very satisfactory in operation ; they are heated
by anthracite at the cost of about one fourth the expense of the wood
previously employed.
The whitening of planchets is performed as usual by inclosing the gold
in luted boxes, and by exposing the silver, in an open pan, to the beat of
a simple furnace with wood fuel ; the drying and sifting after the action
of dilute sulphuric acid, is rapidly and effectually accomplished by a roll-
ing screen — one portion of which consisting of a pair of closed concen-
tric cylinders, between which high-pressure steam is admitted. The
blanks, with a sufficient quantity of light wood sawdust, (linden or baas
wood is the best,) being introduced into the interior cylinder, a revolving
motion is given to it by the engine for a certain time ; the door is then
opened and the blanks and sawdust gradually find their way into the
wire screen, by which they are separated, the movement being continued
until the separation is complete, when the blanks are discharged at the
end of the machine. An arrangement exists by which a slight inclina-
tion is given to the machine so as to direct the motion of the blanks
towards the discharging end.
The milling machines are, I was informed, peculiar to this Mint, and
are in a great measure original, the operation being performed by a con-
tinuous rotary motion, with great rapidity and perfect efficiency, varying
in rate according to the denomination of the coin, between 200 and 800
pieces per minute, and at the same time separating any pieces that are
notably imperfect.
It must be understood that the operation there termed u milling w is
merely for the purpose of thickening and preparing the edge, so as to
give a better and more protective border to the coin, the ornament or
reed, commonly known I believe in this country as “ milling,” being
given to the piece by the reeded collar of the die in which the piece is
struck.
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1854.] The Mint of the United States . 365
The coining presses, 10 in number, and milling machines are worked
by a high-pressure horizontal steam-engine, made from the design and
under the direction of the present chief coiner, in the workshops of the
establishment in 1838.
The presses are of 3 sizes : the largest, applicable to the striking of
silver dollars and double eagles ; the second, to pieces of medium value ;
and the smallest to the dime, half dime, and three-cent pieces. The
first is usually run at the rate of 80 per minute, the last at 104 per
minute — the average rate of the whole is 82 per minute. This rate can
be increased if required.
If all the presses were employed in coinage at the usual rate, they
would strike in one day (9 working hours) 439,660 pieces, and if em-
ployed upon gold, silver, and copper, in the usual manner, and on the usual
denomination of coin, they would amount in value to $966,193.
During the past year, on one occasiou, 8 of the presses were run 22
out of 24 consecutive hours, and coined in that time 814,000 pieces of
different denominations of coin.
These presses have been made principally in the workshops of the
Mint. They possess, in common with the presses of Uhlhorn, in Germany,
and Thouellier, in Paris, the advantage of “ the progression lever,” M le
genou ” or “ toggle joint,” a mechanical power admirably adapted to this
operation ; but in almost every other particular they are original in
arrangement, being the result of experience, beginning as far back as 1836.
In order to supply these presses, various means have been devised ;
among them, and not the least important, is the “ shaking box,” in
which advantage is taken of a disposition observable in similar bodies, or
bodies of similar form, to arrange themselves in similar positions. This
is a box whose bottom is constructed with parallel grooves adapted to
the size of the blanks or planchets to be arranged. A quantity of them
is thrown indiscriminately into the box, which is then quickly shaken in
the direction of the grooves ; the pieces immediately lay themselves side
by side in parallel rows, from which they can easily be lifted in rouleaux
as required to be passed to the feeding tubes of the mills or presses.
It is very evident to all visiting the establishment that such a large
number of pieces could not be coined and manipulated by such a limited
number of hands without the aid of some labor-facilitating arrangements,
one of the most worthy of remark of which is the method of counting
the pieces coined — if counting it can be called, for in principle it is a
measuring machine. The arrangement of this counting frame, or tray,
may be understood from the following sketch of its construction.
A board or tray of such dimensions as may be required, is divided by
a given number of parallel metallic plates dissected into its plane and
slightly elevated above it, the edges of which rise no higher than the
thickness of the coin for which it is intended. The board is of such a
length as will admit of a few more than the required number of pieces to
be laid longitudinally in the rows, and is divided across and at right an-
gles with the rows, and hinged at a point opposite to a given number.
One of those employed by this department counted 1000 pieces, that is
to say, it bad 26 parallel grooves or rows sufficiently long to receive 46
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pieces. Now, having thrown on this boerd a large excess of pieces, it is
agitated by shaking until all the grooves are filled, and then inclined for-
wards until all the surplus pieces have slid off, one layer only being re-
tained by the metallic ledge ; the hinged division is then suffered to fall,
which at once throws off all but the 45 pieces in the length of each row.
This operation, somewhat difficult and tedious to describe is performed
in a few seconds, and results in retaining on the board 1000 pieces, each
piece exposed to inspection, and the whole accurately counted without
the wearisome attention — so likely to result in error — required under
usual circumstances.
The very large number of pieces coined during the last year has been
counted almost exclusively by two female manipulators, assisted by a
man who had the duty of weighing them in addition as a testing check.
The same amount of labor by ordinary means could not have been per-
formed with fewer than thirty or forty hands, to say nothing of inferior
accuracy. This machine was originally arranged and#patented by the
late R. Dyler, coiner of the New Orleans Branch Mint, but has been ma-
terially improved in its application and construction by Mr, Franklin
Peale, of Philadelphia.
The balances of the Mint of the United States have received the at-
tention necessary to an instrument of such importance in mint operations.
They have been arranged and made generally in the workshops of the
establishment, and operate entirely to the satisfaction of the department.
It is not necessary to enter into details of their construction, as a full and
minute description is given in the Journal of the Franklin Institute for
July, 1847. I, perhaps, ought to mention that since that appeared, some
slight improvements have been made by inclosing all but the stirrups
and pans in glass, by these means excluding dust and protecting them
from the influence of air currents.
In concluding this brief sketch of the practical working of the two
most important departments of the United States Mint, I cannot omit a
reference to the very excellent remarks of the chief coiner on the employ-
ment of females in some of the operations in his department This, he
informed me, had generally excited the surprise of, and been commented
upon, by foreigners who had visited the Mint. His experience, however,
had led him to believe, that in places of trust, where no great physical
exertion was called for, but where accuracy and strict integr ty were of
first importance, the moral perceptions of the female, generally stronger
and of a higher standard than in the man, would qualify her as his sub-
' stitute, and thus, while opening a new field of labor for the occupation of
females, would strengthen their claims to it by the superior accuracy and
economy of their work.
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The Causes of Commercial Distress.
367
THE CAUSES OF COMMERCIAL DISTRESS.
ConpnunicaXed to the Editor of the Courier ifc Enquirer.
Having framed for ourselves a theory which in our opinion corresponds
to the facts of the case, while we have looked in vain for any other eluci-
dation of the subject, and to make our communications more practical,
permit us to offer your readers our views of the causes of our present
financial difficulties, and the remedies required.
The first cause, that which lies back of all others, and is the seminal
principle from which they all proceed, is the expansion and consequent
depreciation of the value of the currency of the United States ; the
enormous amount of our money, the circulation, deposits, and other cre-
dits which are represented by the loans and discounts of the banks of all
the States, which by its quantity determines the market-price of all the
commodities exchanged by that medium.
The second cause, which is a natural result from the first, is the aug-
mentation of our imports, or what is its equivalent, the relative diminu-
tion of our exports; for in an equitable condition of exchanges, if imports
and exports are equivalents, there is merely a change in the forms, and
a multiplication of the varieties of wealth which may fairly be presumed
to be an advantage. In our exports we are willing to comprehend both
gold and public credit , and to presume that the export of gold and the
import of capital in the form of commodities by the transfer of our credit
to Europe, would be advantageous to us, but for a collateral evil which
has its origin in the primary cause of our difficulties, the expansion of
our currency.
The effect of this evil is to prevent the free and full exercise of our
powers of production, by the competition of foreign productive power at
lower prices, making our market the best in the world to sell in, and the
worst to buy in. The law of convertibility, which practically renders our
currency the equivalent of his own, gives to the European the option of
taking gold or commodities ; he consequently takes only what he is una-
ble to produce, while we are compelled to accept of all he chooses to give
us, however we might be able to produce them for ourselves at a less
* labor-cost ; and thus we are restricted in the application of our labor and
capital, and are obliged to direct them to the least profitable pursuits —
the production of raw materials. We not only are obliged to forego
many pursuits for which we have both skill and capital, but to give him
our gold at a price fixed by his currency, the expansion of ours having
no influence upon that commodity, while the cost of production is deter-
mined by ours.
Tffe third and the immediate cause — Assuming the expansion of our
currency to have reached its maximum at the point of contact with the
foreign exchanges — New-York, by the increase of banks and the augmen-
tation of loans and discounts in New-York, New-England, and the West-
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The Causes of Commercial Distress . [November,
era States, in August, 1853, and the momentum of its general increase
to extend for several months beyond that time, before it was entirely
checked by the central action here, the amount of the currency as indi-
cated by loans and discounts, was diminished in New-York city for about
three months, at the rate of more than a million a week, or from August
6, 1853, when the loans and discounts of the banks of the city of New-
York were $97,899,499, to $82,882,499 on the 12th of November, 1858,
a difference of $15,017,090 in about fourteen weeks. By the law which
governs the action of the banks who create the currency, and which it is
impossible for them to resist, a general reduction must have taken place
in all sections of the country, modified by circumstances, yet similar in
all important particulars. The extent of this reduction may be deter-
mined by a comparison of the amount of the loans and discounts of New-
York with those of the whole country. This hasty reduction of the cur-
rency is the cause of our present condition, and it will continue until the
exchanges and the existing credits can be adjusted to the altered condi-
tion of things. It is true that, alarmed at the effect of their own action,
the banks in New-York again rapidly expanded their loans and discounts,
and on the 4th of March, 1854, they were $94,558,421 ; but the mischief
was done, and though the violence of the blow was mitigated, its stunning
effect was not prevented, the wave of contraction was spread over the
whole nation.
This rapid diminution of the active currency of the country was deemed
wise and prudent by those who govern and control it ; it may have been
necessary ; it was alleged that the financial action of the public, which
can move-only by their consent , had become too extended, but doubtless
there will be various opinions on the subject. It has produced a suspen-
sion of domestic operations, but whether it has produced a diminution of
our imports, or prevented the export of gold, is a question not so easily
decided ; both these were results contemplated. It has diminished the
nominal value of a vast amount of funded property, and injured its
holders where transfers have been rendered necessary. It has already
cost the sacrifice of a large amount of the wealth of those engaged in
domestic commerce, for extra interest ; but this is not lost to the country,
but is safely in the hands of the owners of currency ; it will consume more
before the end is reached. It is producing, and will continue to produce,
relatively far greater sacrifices by the suspension of the labor of the indus-
trial classes, the workers in the cities, the manufactories, and on the rail-
roads; who must wait for the resumption of business in these various a
avocations or find new directions for their labor. Whether the gain will
be equal to the loss, each must determine for himself ; but that the direct
and immediate cause of our present difficulty was the improper expansion
of our currency, and the rapid contraction of the loans and discounts of
the banks of the city of New-York in the autumn of 1853, is obvious and
palpable, and can be accounted for in no other way.
The procedure occurred after all the preparation for the business of
1853, on the seaboard, had been made; its effects in the interior were
not severely felt until their business arrangements were also near their
dose. It was entered upon for reasons satisfactory, no doubt, to those
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The Causes of Commercial Distress .
369
who control and direct bo tremendous a power ; they are wise, prudent,
and honorable men, whose experience should qualify them for the posi-
tion they occupy ; but the present condition of the country demonstrates
that there was then no weakness, no loss of wealth or energy to render
such extreme measures of caution necessary, or at least such haste in
retreating from a false financial condition. We are outliving the storm,
which has evidently spent its force, and it only remains for us to wait
patiently until the country can, by its remaining energies, recover itself
from the shock, and until those who create and control the currency of
the nation shall be relieved of their unreasonable fears or satiated with
excessive interest, or until competition among them and the diminution
of existing credits shall reduce the price of the use of money to a point
which the business of the public will enable them to pay, till supply and
demand for money shall reach an equilibrium.
The remedies . — The firet which will present itself to a portion of the
public is a tariff hnd protection. This remedy would be an efficient one,
but it is not acceptable to a majority of those who control public affairs.
They resolutely deny all the teachings of our experience as a nation, and
maintain their opinions in spite of the failure of every promised result of
the tariff of 1846, which was to enable us to become the granary of
Europe. But a change in the tariff would require too long a period for
its enactment Before that ^remedy could be realized, we shall have
escaped from our present condition if California continues its supply of
gold. Again, a tariff would only be a temporary remedy, and is the
substitution of one false principle to counteract the evil effects of another.
Free-trade is becoming more and more the rule of the commercial world,
and soon the obvious correlative principle — the necessity of equivalent
currencies — will be discovered ; nations will not long consent to exchange
without equal measures of value , any more than they will now consent
to exchange without equal measures of length and weight. We shall
soon also discover the absurdity of paying interest for credit , and new
rules for the creation of our currency will be adopted : the world has
much yet to learn. In addition to this, the gold of California and Aus-
tralia is rapidly expanding the currencies of Europe, and, with any tolera-
ble skill and prudence, the present difficulty will pass away — to be renewed
again, however, unless we change our policy in relation to the creation of
our currency of credit, restraining it within proper limits.
The banks of the city of New-York having caused the present financial
difficulties, must aid in their removal by an intelligent and decided course
of action. They occupy the same relation to the currency of the United
States as is occupied by the Bank of England to that of Great Britain,
except that they are, in the creation of currency, not under the control of
law, and their power is comparatively small ; hence it is more important
that their action should be wise and prudent. Let them, then, fix the amount
of their loans and discounts at ninety millions, rather less than more, and
on no condition, neither for their own profit, rlor on account of any accu-
mulation of metal in their vaults, nor from the solicitations of their cus-
tomers or the public, permit them to be extended beyond that amount.
A- few of the larger institutions adopting that rule, will compel all the
24
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The Reciprocity Treaty tcith
[November,
others, by the operations of the clearing-house, to conform to it Let
them use all their influence to compel all their associate banks in all
parts of the country to adopt the rule of the prompt settlement of balances ;
doing every thing in their power, by advice and influence, to suppress the
abuses of banking now so common in all directions ; while at the same
time they aid by their administration the legitimate institutions who are
disposed to concur in restoring the business to its true character, and pre-
vent its further relapse to the degraded condition to which many seem
disposed to sink it, making what ought to be honorable institutions mere
shaving-shops to plunder the public.
Let the public be content to go forward with a lower grade of prices ;
high prices are a national evil. Let planters and farmers send forward
their crops to be sold at the market-price, that the merchants of their
various sections of the country may meet their obligations at maturity.
Let mechanics cease from M strikes ” for higher wages. Let us become
large exporters of bread-stuffs to Europe ; it is a sad dbmment upon our
intelligence and industry, that British farmers, who pay two pounds ster-
ling an acre rent for their lands per annum, their local taxes and church-
rates, and sustain an extravagant government engaged in war and an
enormous national debt, can yet sell wheat in Liverpool, where no duty is
levied upon U9, as cheap as American farmers, who pay comparatively
no taxes, and can purchase the fee of their lands for three or four years’
rent of an English farmer.
This course of action, and this alone, will relieve us from our present
difficulties. But if, as soon as our financial* affairs begin to mend, the
expansion of our currency is resumed by the augmentation of loans and
discounts, the public will resume their wonted activity in the use of credit,
prices will rise again, and we shall again wonder at our great prosperity,
till the next collapse occurs, which will probably be destructive to our
whole system, overwhelming the banks and the public in a catastrophe
similar but more fatal than that of 1837. Far.
THE RECIPROCITY TREATY WITH GREAT BRITAIN.
Commercial Prospects of Canada and the British Provinces.
Canada has become of late years one of the leading wheat-producing
countries of the world. Upper Canada, as formerly called, or Canada
West as now known, promises a still larger yield of wheat than at former
periods. This important article of export bids fair to add largely to the
wealth of the province, while to the Northern States of the Union,
Canada promises to be a great competitor. Some of our fellow-citizens
who have recently visited the western portions of that province, state that
the wheat crop of this year will probably exceed that of any former sea-
son. According to recent information, one third more wheat was sown
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371
last fall titan the year before ; and it all looks flourishing. The surplus
of the year 1853 was estimated at seven millions of bushels. This sea-
son the surplus will probably exceed twelve millions of bushels. Esti-
mating the market value at $1.25 per bushel, the farmers will realize
$15,000,000 for wheat alone. At the present moment they are greatly
in want of field hands, to gather in the harvest; and the inducements
for emigration to those portions of Canada are the most flattering.
We avail ourselves of the materials in the July number of Blackwood's
Magazine, (published by Leonard Scott & Co., 79 Fulton street,) to show
the rapid growth of Canada in its agricultural resources. In a recent
report of Lord Elgin to parliament, we learn that the product of wheat
in Upper Canada alone was
Bushels. To each inhabitant.
In 1841, 3,221,991 6.60
“ 1847, 7,658,773 10.45
“ 1851, 12,692,852 13.33
In Lower Canada the increase has also been large, namely :
Minots. To each inhabitant.
In 1843, 042,835 1.36
“ 1851, 3,075,868 4.46
He production (in bushels) of graius in the two provinces, as repre-
sented in the census of 1851, and in the United States in that of 1850,
gives the quantities per capita as follows:
Wheat. Rye. Oats. Buckwheat. Barley . Maize.
Upper Canada, 13.3 0.5 11.7 0.7 0.8 1.7
Lower Canada^ 3.4 0.4 10.1 0.9 0.5 0.6
Both Provinces, 8.5 0.4 10.9 0.9 0.6 1.1
United States, 4.4 0.6 6.6 0.4 0.2 25*0
But the increase of the wealth and productiveness of Upper Canada
was even more striking than the increase of its population. We quote
from the report of Lord Elgin, presented to parliament February 15,.
1853: •
The first returns of the assessable property of Upper Canada, as taken
under the act of 1819, which I have been enabled to procure, are those
of 1825. Its total amount is estimated iu that year at :
£1,854,965 5 0 In 1840, £4,608,842 12 0
In 1830, 2,407,618 14 8 “ 1845 6,393,630 16 ,0
“ 1835 3,189,862 14 11
Emigration was formerly somewhat larger to Canada than at present
Australia has since drawn off large numbers of those who would other-
wise have gone to the British North-Aroerican Provinces. The following
are the returns of immigration for the past six years :
Year.
Mo.
Year.
Mo.
1848,
27,839
1851,
1849,
1852,
1850,
32,292
1853,
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The Reciprocity Treaty with
[November,
Of the 36,085 who arrived last year, there were from
England and Wales, 8,714
Ireland, 14,976
Scotland, 4,6S2
Lower Ports, 435
European Continent, 7,278
Total for the year 1853, 36,085
Thus Canada furnishes about forty per cent of the new accessions to
thepopulation of the province.
While the agricultural prospects of the province have been, and con-
tinue to be, quite flattering, the shipping interest has been less' prosper-
ous. The following statement of the number and tonnage of vessels from
sea, which entered inwards and outwards at the ports of Quebec and
Montreal, in each of the six years preceding 1852, is taken from Lord
Elgin’s report, before mentioned :
Tear. Ships. Tonnage.
1845, 1C99 628,389
1846, 1099 623,791
1847, 1444 542,605
1848, - 1350 494,247
1849, 1328 502,613
1850, 1341 485,905
1851, 1469 573,397
His lordship remarks, in explanation of this falling off :
“ During the earlier years of this series, while the Canada Com Act
of 1843 was in operation, an impulse was given to the trade of Quebec
and Montreal, by the preference accorded in the markets of Great Britain
to produce conveyed by the route of the St. Lawrence. Since that pre-
ference has been withdrawn, the facilities afforded by the government of
the United States for the transportation, in bond, of Canadian imports
and exports through the territory, and the multiplication of railways con-
necting the southern bank of the St. Lawrence with different points on
the coast, have diverted a portion of the travel of that river from the
Canadian seaports to those of the United States. As this is, however, a
point of considerable importance to the interests of the lower province
especially, it may be well to look into it more closely, with the view of
inquiring whether there be any thing in the nature of the route itself, or
in the nature of the trade, which places the route of the St. Lawrence at
a disadvantage in competing with others for the trade of the Great
West.”
Canada has heretofore been sadly deficient in her railroad facilities.
This will be remedied at an early day. There has been recently estab-
lished a railroad communication between Portland (Maine) and Montreal,
and the distance is travelled in twelve or fifteen hours. From Montreal
to Quebec there will be, before long, a continuous railroad. From Mon-
# treal to Detroit, the grand trunk-road will, in a year or two, furnish
ready means of travel.
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Great Britain.
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It is stated upon good authority, that a line of powerful steamers has
been established from the port of Liverpool to Portland.
The canals have, however, done much in behalf of Canada West. The
capability of the country, when perfect means of accommodating its
traffic shall have been completed, may be estimated by the following
returns of the receipts on the canals in connection with the great lakes :
CANAL TOLLS.
Grots Receipts. Xett Receipts.
1848, £38,214 1 3 £30,259 1 9
1819 46,192 8 3 39,479 13 8
1850, 54,059 12 3 45,296 7 8
1851, 62,640 3 8 52,545 5 6
We quote again from Lord Elgin’s report :
A still more striking result is obtained, if the total movement of pro-
perty in goods, wares, and merchandise on the principal canals, namely,
the Welland, St Lawrence, and Chambly, in each of these years respect-
ively, be compared.
Welland. St Lawrence. Chambly.
Tons. Tons. Tons.
1848, 307,6114 164,267 18,835
1849, 351,5964 213,153 77,215
1850, 399,600 288,183* 109,040*
1851, 691,627* 450,200* 110,726*
The great scheme of a tubular bridge across the St. Lawrence is already
more than conceived. This bridge will be constructed after the design
of Robt. Stephenson, E*q., C. E., the eminent builder of the world-famed
viaduct over the Menai Straits, on the Chester <fc Holyhead Railway.
This gigantic work has already been provisionally contracted for by an
eminent English firm — Messrs. Peto, Brassey, Betts & Jackson — who
have also undertaken the construction of the line, 345 miles in length,
from Montreal to Toronto, where it joins the great western scheme, and
connects the whole of Upper and Lower Canada with the great lakes and
the western States of the Union.
The business of the leading towns of Canada West is shown in the
annexed summary of imports into each :
PowulO-
1848. 1849. 1850. 1851. tionin
• 185L
Toronto, $788,900 $1,315,452 $2,538,889 $3,601,932 30,775
Hamilton 941,380 1,123,024 1,683,132 2,198,300 14,112
St John, 8,106,692 1,213,640 1,477,784 1,948,460 3,215
Kingston, 363,788 384,044 499,040 1,026,492 11,686
Of the future of Canada, Blackwood gives high colon. His article
on the Provinces concludes as follows :
“ There is, however, in addition to other hindrances to the alienation of
British America, by force or otherwise, from its present connection with
the mother country, the strong ties of consanguinity, of a common reli-
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Coins , Coinage , and Bullion.
[November,
gion and laws, and a yearly decreasing absence of any strong motive for
separation. Our North-Americau brethren see their present position,
and their future career of greatness, and appreciate the power of their
mother country to aid them in their career. That it will be a successful
one we cannot doubt ; and those amongst us who may live for twenty
years to come, may be privileged to see British America, not merely as
she is called at present “the brightest gem in the diadem” of our sove-
reign, but the most prosperous portion of an empire, which, though lying
in different zones, composed of different races, and divided bv oceans,
improved science and truly paternal legislation will have cemented
together in one harmonious and compact confederacy, the greatest and
the most powerful which the world has ever beheld.”
COINS, COINAGE, AND BULLION.
Spanish Dollars. — The assayer of the Mint has just finished the
examination of a new variety of counterfeit coin, of which some notice
has appeared in the foreign news. It is one of the ‘ Spanish Carolus
dollars,’ understood to be coined at Canton, to supply the Chinese prefer-
ences for that particular denomination. In external appearance and
mechanical execution it is a faithful counterpart of the original coin, and,
indeed, rather better struck; but it bears upon its face the immense
anachronism of 1017, as the date of issue. The 0 is well defined, and
very different from the 8 (8R) on the other side; yet it seems likely
that the Chinese artist intended 1817; and if so, there was another
blunder in chronology, as Charles III., whose name and head appear on
the coin, abdicated in 1808. But the great point with a Chinaman is to
have a Carolus dollar.
The assay of this coin furnishes traits not less remarkable. The fine*
ness is eight hundred and ninety eight thousandths, about the average if
the genuine, and there is in addition two thousandths of gold , a partible
quantity not equally in the true coin. The calculations resulting there-
from are as follows, (the weight of the piece being grains light :)
Amount of silver, $1.0006; mint premium, say 5.30 ; value of gold,
3.56; total $1.0892.
If we deduct the parting charges, ($1.72,) the result gives us $107.20
as the net Mint return.
It is proper to add that this is the return of a single piece, which may
or may not be a fair representative of the same coinage in large quan-
tities.
Branch Mint, New-Orleans. — Statement of the deposits and coin-
age at the Branch Mint, New-Orleans, from the 1st August, 1853, to the
31st J uly, 1854, inclusive :
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Branch Mint , New-Orleans.
GOLD DEPOSITS.
California gold bullion, $1,440,416 42
Other gold bullion, 172,620 27
Total gold doposiis, ■ $1,6.
SILVER DEPOSITS.
Silver extracted from California gold, $8,996 25
Other silver bullion, 4,002,675 38
Total silver deposits, $4,011,671 63
Total gold and silver deposits, $5,624,708 32
Last year, 4,485,865 83
Iacreaso,
$1,138,842 49
GOLD COINAGE.
'Piece*. Value.
9,750 $195,000 00
96,500 965,000 00
46,000 230,000 00
132,000 330,000 00
284,250 $1,720,000 00
SILVER COINAGE.
Piece*.
Value.
Half dollars
Quarter dollars, . . .*
Dimes,
Half dimes,
1,480,000
1,300,000
2,800,000
$2,252,000 00
370.000 00
130.000 00
140.000 00
10,084,000
$2,892,000 00
Last year,
10.368,250
2,833,500
$4,612,000 00
2,857,000 00
Double eagles,.
Eagles,
Half eagles, . .
Quarter eagles,
Increase,
7,534,750
$1,755,000 00
Sunken Treasure. — The Philadelphia Ledger states that a deposit
was made at the Mint a few days since, of about five thousand dollars’
worth of the melted gold taken from the recently raised wreck of the
unfortunate steamer Erie, which was burnt and sunk on Lake Erie some
thirteen years ago. There was found mixed in with the melted money
part of an old German lock, the material parts of which were in a pretty
good state of preservation. On raising the wreck it was found burnt
•nearly to the Keel, and to be broken forward near where the gold is
found. It is believed that a considerable portion of the gold has been
lost through the break.
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Coins , Coinage \ and Bullion .
[November,
* at Britain. — While California and
aunts of gold into England, the exp
5old and silver are augmenting. The fol
orts for six months ending June 30, 18
-ritain :
.ustralia are pour-
•ts from the latter
•wing is a synopsis
3 and 1854, from
port to
Gold.
Silver.
Total.
a,
£34,400
:i2,600
£47.000
ralia, J . . . .
10,500
28,000
*zil,
' 18,700
18,700
>apo Good Hope,
30,200
30,200
China,
164,900
1 569,470
1,834,370
Franco,
9,124,000
172,550
9,296,550
Hamburg, Belgium, etc.,
1,043,400
1 247,870
2,891,270
India and Ceylon,
34,600
173,960
208,560
Mediterranean,
657,100
121,560
778,660
West-Indies, ....
142,800
54,450
197,250
New-Zealand,
1,100
1,100
Total, 1854,
£11,869,000
£3, 162,960
£15,331,960
44 1853,
8,614,000
2,186,500
10,800,500
Excess, 1854,
£1,276,460
£4,531,460
The silver is mainly sought for China, and for Hamburg, Belgium,
and Rotterdam, while the gold is wanted for France.
Treasury Department, Sept. 26, 1854.
Foreign Coins. — The value of the specie dollar of Sweden and Nor-
way having been fixed by act of Congress of 22d May, 1846, at 106 cents
United States currency, and it being satisfactorily shown that the rix
dollar banco of Sweden and Norway is a component part of their specio
dollar in the invariable valuation of 2$ to 1, and consequently equal to
39| cents American currency, it follows that no consular certificate to
invoices of goods from those countries, as regards the equivalent of Swed-
ish and Norwegian to the United States currency, is required by law;
any portion of existing instructions from this Department, therefore,
requiring such certificate, is necessarily hereby rescinded.
James Guthrie, Secretary of the Treasury.
Coinage of the United States for 1854. — The following table
will show the coinage at the Mint of the United States, Philadelphia, for
the nine months of 1854 :
Fir it 8 months. Sept.
Double eagles, $13,476,220 00 $168,680 00
Eagles, 457,080 00 84,520 00
Half eagles, 570, 5C5 00 141,760 00
Quarter do., 1,006,440 00 200,030 00
Three dollars, 347,634 00
Dollars, 902,736 00 82,000 00
Total.
$13,644,900 00
542,500 00
721,325 00
1,207,370 00
347,634 00
084,736 00
Total Gold, 16,860,575 00
677,800 CO
17,538,465 00
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1854.]
Coinage of the United States far 1854.
377
Dollars,
Half Dollars,
Quarters,
Dimes,
33,140 00
1.153.000 00
2.520.000 00
270.000 00
212.000 00
12,000 00
40,000 00
260,000 00
33,140 00
1.193.000 00
2.780.000 00
270.000 00
212.000 00
12,000 00
"Half-Dimes,
Three Cents,
Total Silver,
Copper,
Gold, Silver, and Copper, . . .
Gold Bars,
4,200,140 00
33,651 04
300.000 00
2.734 52
4,500,140 00
38,385 56
21,096,3C6 04
13, <>24,029 60
980,624 52
1,976,907 98
22,076,990 56
15,600,937 58
Total,
34,720,395 64
2,957,532 50
37,677,928 14
In 185.-5
39,854,552 05
6,474,698 00
45,329,250 05
Decrease, 1854,
5,134,156“ 41
2,517,165 50
7,681,321 91
The whole number of pieces coined in September, 1854, was 1,601,062,
against 6,496,066 the corresponding month of 1853.
The deposits of precious metals for the first nine months of the year,
were:
Gold.
1858.
Silver.
Gold.
1354.
Silver.
Januarv,
$4,962,097
$14,000
$4,215,579
$108,000
February,
3,548,523
13,560
2,514,000
1,166,000
March,
April,
7,533,752
70,000
3,962,000
147,500
.... 4,851,321
2,550,000
3,379,000
1,129,000
May,
.... 4,365,638
1,447,000
3,506,000
196,000
June,
4,545,179
1,447,000
4,000,000
100,000
July,
3,505,331
611,000
3,940,000
310,000
August,
.... 4,512,000
860,000
2,940,000
332,000
September,
3,027,805
320,000
2,660,000
177,000
Total,
.... $40,851,646
$7,332,560
$31,136,579
$3,668,000
COINS AT THE MINT.
Denomination of Coins on hand at the Mint of the United States , at Philadelphia, at
the close of business for the day , on Sept, 30, 1851 :
GOLD.
Double Eagles, $880,700 00
Eagles, # 98,430 00
Half eagles, * 204,385 00
Quarter eagles, 272,580 00
Three-doilar pieces, 3,579 00
Dollars, 4,365 00
Bars, 3G,3G1 61
$1,500,400 61
SILVER.
Dollars, $23,396 00
Half dollars, 138,359 50
Quarter dollars,. 475,872 00
Dimes, .' 56,609 60
Half dimes, 75,665 70
Throe-cent pieces, 343 05
Cents, 1 12
$770,246 97
Total amount on hand P.M. September 30, 1854, $2,270,647 58
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UNIVERSITY OF CHICAGO
373
Coins, Coinage, and Bullion.
[November,
Exports of Coin and Bullion. — A return has been published of
all gold and silver coin and bullion exported from Great Britain during
the last half year, and also during the preceding six years. It is, how-
ever, of little statistical value, since it does not include either the quanti-
ties transmitted by private channels to the continent, or those taken out
by emigrants to America and Australia, which constitute a large portion
of the yearly efflux. Annexed are the principal figures :
Exports of Coin and Bullion to all parte, in each year , from 1848 to 1853, and in the
half year ending July 5, 1854.
GOLD. SILVER.
Years.
1S4S
1849,
1850,
1851,
185*2,
1853
1854
Chinese Currency. — The dollar currency of the Chinese ports is, jve
perceive by one of our last files, still occupying considerable attention
among the inhabitants. The prejudices of the natives in the northern
ports make them insist upon payment for their comodities in a coin — the
Carolus, or old head dollar — which Europe can no longer supply to any
appreciable extent This unprocurable dollar, however, being the stand-
ard of currency in Shanghai, while in Canton all kinds of dollars now
pass with equal facility, there has resulted a difference of exchange
between the two places against Shanghai of from 20 to 25 per cent
Until a year ago the Spanish pillar-dollars only were current at Canton,
and of these certain kinds were rejected, which, with all Republican and
Isabella dollars, would only pass at a discount ranging from about 2 or 3
to 8 or 10 per cent; but through the instrumentality of the Chamber of
Commerce, the various consuls and traders, and the Chinese government,
after a struggle of a few months, the measure was fully carried out, to
the great relief of the trade of the port, as exchange, which had previously
ranged between 5s. 6d. and 6s. 6d., has since only varied between 4s. 10d#
and 5s. 3d. At these rates, however, the merchants of Canton can still
afford to import dollars, though all kinds have risen so much in Europe
as to cost a good deal more than the intrinsic worth of the coin. It has
been suggested that a British dollar might be coined at Hong Kong of
the exact value of the old head dollars, which would be received as a legal
tender, and soon work its way into popular use. It could be coined at a
much lower cost than the dollars can now be imported at, and yet would
afford the government a considerable seignorage. It would also be most
British
Coin.
Foreign Coin
and Bullion.
Total.
British
Coin.
Foreign Coin
and Bullion .
Total.
Ounce*.
Ounces.
Ounces.
Ounces.
Ounces.
Ounces.
.... 227,577
176,422
403,999
696,887
27,470,089
28,166,876
.... 210,426
98,905
309, 331
277,000
80,608,571
80,886,171
.... 229,431
439,288
668,719
259,481
17,203,631
17,463,112
.... 481,833
550,724
1,032,562
699,083
19,687,065
20.336,748
.... 590,767
520,199
1,110,966
490,589
23,387,971
23,878,560
.... 599,298
2,685,687
8,274.935
279,208
24,340,691
24,619,899
.... 69,860
2,358,503
2,428,423
55,314
18,190,454
13,245,768
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UNIVERSITY OF CHICAGO
1854.1
Assay Office in New - York.
379
useful in Singapore and the Straits settlements, where there are so many
Chinese located. — London Globe , Oct. 3, 1854.
Absay Office in New-York. — The following official notice of the
opening of the Assay Office was published October 10 :
United States Assay Office, )
New- York, Oct. 9, 1854, )
This Office will bo open for business on and after this day.
Deposits of gold and silver bullion will bo reccivod on the samo terms as at
tlio Mint.
Payment for deposits will be made eithor in stamped bars, in coins, or in certi-
ficates, at tho option of the owners, to be expressed at the time of making their
deposits.
Silver purchases aro not made at this Office.
For tho present it will bo impossible to admit visitors to witness tho operations
of the Office. Sam. F. Butterwortii, Superintendent.
Counterfeit Quarter-Eagles. — We have seen a new counterfeit
quarter-eagle, which was taken at the Post-Office in this city. It is less
exactly executed than the quarter dollar noticed a day or two since, but
is well calculated to deceive. It has not yet been analyzed, but is sup-
posed to be made of over 50 per cent gold, and to be worth about $1.50.
It bears date 1843, and has under the eagle the letter O, which is placed
upon the coins struck off at the New-Orleans branch mint The wings
of the eagle are less sharply cut than in the genuine coin, but the size of
the coin is perfect, and it would be readily taken by any shopkeeper. It
was detected by Mr. Birdsall, weigher and tester at the Sub-Treasury. —
N. Y~. Journal of Commerce.
The following is an official statement of deposits and coinage at the
Branch Mint, San Francisco, during the month of August, 1854 :
Deposits.
Gold for unparted bars,
do. coinage,
.... $122,298 40
1,042,511 95
Total deposits,
Coinage.
.. .$1,704,810 35
Gold,
Double eagles,
Eagles,
Dollars,
Pieces.
40,900
23,000
4,200
Value.
$818,000 00
230,000 00
4,200 00
122,498 40
Unparted bars,
302
Total value of coinage, .
...$1,174,498 40
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UNIVERSITY OF CHICAGO
380
Summary of the Coinage of the U. S. [November,
SUMMARY OF THE COINAGE OF THE UNITED STATES,
AT THE PHILADELPHIA MI\T, DURING THE MOXTnS OF AUGUST AND SEPTEMBER.
August, 1S54.
September , IS 54.
Gold,
y<>. of
Pieces.
Value.
Xo. of
Jbcce*.
Value.
Double eagles,
$2,277,120 00
8,434
8,452
28,;152
$168,680 00
84,520 00
141,760 00
Half eagles,
245,980 00
Quarter eagles,
62/9S
150,745 00
80,872
200,930 00
Dollars,
118,798
118.793 00
82,000
82.000 00
Fin© bars,
2,140,947 00
1.976,907 9S
Total Gobi,
344,543
$4,945,585 00
207,610
$2,654,797 98
SUver.
# Half dollars,
80,000
40,000 00
260,100 00
Quarter dollars, % . . .
Copper.
1,440,000
360,000 00
1,040,000
Cents,
325,134
3,251 34
273,452
2,734 52
RECAPITULATION.
Gold coinage,
344,543
4.945,585 00
207,610
2,654.797 98
Silver M
1,440,000
860,000 00
1,120,000
3(H), 000 00
(Copper M
825,134
8,251 84
273,4*2
2,734 52
Total,
$5,308,886 34
1,601,062
$2,957,532 50
GOLD
AND 8ILVER BULLION DEPOSITED.
From California,
$2,904,000 00
Sept
2,620.000 00
From other sources,
36,000 00
H
40,000 00
SUver Bullion.
Silver (including purchases,) .
u
332.000 00
U
177,000 00
Total,
$8,272,000 00
$2,837,000 00
The London Stock Exchange. — London,
March 16.—
-This day tl
10 7i av Shock
Exchange, was opened to the subscribers. It has been entirely rebuilt at a cost of
£40,000, and is certainly as handsome a room as could be desired; it now gives
plenty of space for the entire members — their number being 1300, and to that may
be added 700 for the clerks. It is a singular fact connected with the history of the
London Stock Exchange, that no sooner have the work-people been called in to alter
the “ House” than it has been followed by panic or stagnation. The reason is obvious.
The business continues to increase, until it arrives at a culminating point, when it
is generally discovered that the Stock Exchange is too small, and can be altered to
advantage, but the moment of alteration is also that of reaction. Two sets of
plasterers are immediately required. Seven months ago we were turned out of the
Stock Exchange to admit of its being rebuilt, and one glance at the state of things
for that period will show that it has not been an improving one. By parity of
reasoning our rcOntrancc ought to be a turning point, but this remains to be seen ;
certainly it will be long before the membersof the London Stock Exchange will
again bo called upon to suffer annoyance from further alterations.
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UNIVERSITY OF CHICAGO
1854.]
Bank Statistics.
381
New-Orleans Banks.
Statement of the New- Orleans Banks, condensed from the Official Report of the Board
of Currency , on the last Saturday of September.
CASH LIABILITIES.
Banks.
Circulation .
Deposits.
Other cash
liabilities.
Total cash
liabilities .
Citizens*,
.... 1,825,710
1,618,280
66,188
8,505,081
Canal,
.... 1,181,745
958,817
194,200
2,284,762
Louisiana,
.... 1,031,949
2,478,069
282,491
8,742,499
Louisiana State,
.... 1,158,455
2.875,146
899,157
4,427,758
Mechanics A Traders*, .
.... 34J25
621,810
114,251
770,786
New-Orleans,
.... 401 070
539,246
28,358
968,674
Southern,
.... 264,705
250,631
29,218
548,551
Union,
.... 208,040
468,920
766,966
6,141,399
9,805,884
1,06*2,798
1 7, 0; 0,080
CASH ASSETS.
Banks.
Specie.
Loans payable, in
Exchange,
Other cash
Total cash
full at maturity .
etc.
assets.
assets.
Citizens*,
.. 1,512,137
3,221,202
94,217
4,827,556
Canal,.
. . 1,808,436
2,564,133
8,185,913
287,317
166,803
4,199,S86
6,012,640
Louisiana,.
. . 1,460,424
♦200,000
Louisiana State,
.. 1,685,016
2,817,163
22,792
+774,000
5,299,876
Mechanics A Traders’, . .
. . 806,261
030,477
11,190
+256,000
1,598,923
New-Orleans,
. . 290,418
778,535
239,697
$674,000
1,991,645
Southern,
.. 157,018
657,507
845,245
+619,473
1,779,243
Union,
. . 156,801
787,701
153,003
+610,000
1,657,505
7,066,406
14,892, 63C
1,269,764
4,183,478
27,862,279
* Stock of the bank purchased from the State. t Bonds, etc., deposited with the State Auditor.
$ 230 Shares Bank of New-Orleans aud Stocks with State Auditor.
comparison wrrn august returns.
Banks.
Circulation.
Deposits.
Other cash
liabilities.
Total cash
UalAlities.
Citizens’,
.... *13,125
+244,702
+13,425
+286,423
.... +103.855
*116,029
+38,308
+25,634
+147,059
Louisiana,
. . . . +82,395
+117,443
*<3,279
. ... +34,135
*43,573
+28,933
+91,561
+9,595
+103,064
Mechanics A Traders*, . . .
. . . *23,650
+45,153
New-Orleans,
.... +18,915
+83,139
+16,961
+ 124,015
Southern,
. ... *20,915
+20,386
*27,5153
*27,387
Union,
.... *17,7*5
+1,707
*17,492
Net,
. .. +103,575
+350,014
+143,326
+603,916
Banks.
Specie.
Loans , etc.
Exchange,
etc.
Other cash
assets.
Total cash
assets.
Citizens',
+372,924
*514,825
+123,099
*13,802
(’anal
♦156,722
+324,645
*477,213
+234,366
+104,693
*399,069
Louisiana,
*772,127
♦342,739
Lonisiana State,
+32,521
*191,491
+60,391
*98,079
Mechanics A Traders’,
*33,993
+28,553
+116,599
*30,000
+70,159
New-Orleans,
+6,605
+59,479
+14,918
+23,000
+104,002
Southern,
♦18,394
*102,319
+26,545
+38,232
*51,936
Union,..
+1,38-4
*133,355
$1,338
*128,633
Net,
+528,970
*2,102,798
+683,441
ft 1,232
*859,152
* Increase since last month. t Decrease since lost month.
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362
Fraudulent Bank Notes .
[November
FRAUDULENT BANK NOTES.
One of the most important considerations for our monied institutions is
the adoption of some measures to prevent the issue and circulation of
fraudulent bills — including both counterfeit bills and those altered from
a small to a large denomination. Various attempts have been made,
and at large expense, to invent a bank-note paper and mode of engraving
that cannot be counterfeited. Our bank-note lists teem with descriptions
of the many fraudulent imitations of American bank-notes. Thus far no
method has been discovered for the prevention of forgery although there
is an association of New-England banks for the purpose of preventing
counterfeits, and liberal offers are made for any cure for the evil. The
legislature of Massachusetts has liberally appropriated the sum of twenty-
five hundred dollars per annum, for the space of three years, in aid of
this association. The latter offer a reward of $100 for the best specimen
of bank-note paper, and further offer a liberal reward for any mode of
preventing counterfeits.
The evil we are subjected to here is the multiplicity of bank-notes.
They vary too much in name, style, vignettes, manner of execution, and
in general appearance. It takes a practised eye to discover many of the
fraudulent issues of the day ; and even experienced bank tellers are
imposed upon frequently by such frauds. It is only a few months since
the Bank of the State of Missouri took in, in one day, five thousand
dollars of fraudulent imitations of its own notes ; and these were so well
executed as to be supposed genuine after the fraud was suggested, and
the magnifying glass was called into use, finally, in order to enable the
officers to discriminate between the genuine and the fraudulent.
The Bank of England has recently determined to alter its mode of
issuing bank-notes, after having used Mr. Perkins’ steel plate for seven-
teen years. The Bank has sought to introduce uniformity in the print-
ing of the bank-note, which the former process never could insure. By
Mr. Perkins’ plan the entire face of the bank-note is engraved upon hard-
ened steel plates, five in number for each note. The several parts thus
engraved are transferred to soft steel rollers by means of steam pressure,
which produces the whole of the engraved parts in relief. These rollers
are then hardened and passed over a soft steel plate so as to form the
entire face of the bank-note, except the signature.
Hitherto the signing of the notes consumed the time of twenty gentle-
men, who were employed at a salary of £500 per annum each, each
person being able to sign from 1500 to 2000 per day, 30,000 fresh note*
being required daily. But in January, 1853, the Bank was empowered
to sign all its notes by machinery, by which a saving of £10,000 a year
was gained. As the Bank never reissues a note, the labor of preparing
them is very great.
Mr. Perkins, a native of Massachusetts, was induced by Sir Charles
Bagot, (the English Minister to the United State® ) in 1819 to remove
to England, where he was liberally compensated for his discoveries by
the Bank of England. His inventions were highly important, namely :
1st. The hardening and softening of steel.
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1854.]
Fraudulent Bank Notes.
383
2d. To engrave on steel.
3d. To transfer figures from steel to steel, thus multiplying the num-
ber of plates.
4th. Geometrical lathe work.
Mr. Perkins was joined by Mr. Charles Heath, the noted engraver, and
other artists, and in the year 1821 the firm of Perkins, Fairman & Heath
was formed.
In the new and enlarged edition of the “ Prize Essay on Banking,” by
Mr. Granville Sharp, (London, 1854,) may be found ninety engravings of
bank-note specimens, bank stationery, with specimens of patent bank-note
paper, envelopes, bills of exchange, etc. ; all which deserve the attention
of American artists. Copies of this work are sold in London at eighteen
shillings sterling, ($4.50,) and can be supplied here at six or seven dollars.
The importance of the subject to the Bank of England may be inferred
from the fact that that institution alone has already expended £100,000
in experiments to bring the bank-note to perfection : and that in ten
years (1810-1820) the forged notes detected at the bank were 170,008
in number, and in the last named year alone were 27,903.
The process now about to be adopted by that institution bids fair to
remove the serious evil of counterfeit bank-notes. The paper is such as
will prevent fraudulent alterations, which in our country create more
losses and trouble than imitations of genuine bills. It is to be hoped
that the efforts of parties in Great Britain and the United States will
thus effectually remedy the great evil of spurious bills, from which all
classes of the community now suffer.
We have seen within a few days past a genuine one dollar bill of the
Shoe & Leather Dealers’ Bank, Boston, altered to one hundred, and
the alteration is so complete that few persons, even among bank tellers,
could detect the fraud.' This bill is in the hands of Mr. Merritt,
of the independent police, firm of Hayes & Merritt. This note is no
doubt one of a large number executed in the same style, and with intent
to ^circulate them at a distance from Boston. The fraud is thus timely
discovered, but it only serves to show how liable the community is to
impositions of the kind ; and that more stringent measures are necessary,
in the matter of bank-note engraving, to protect the community from
similar fraud.
So perfect is the deception in the notes of the Shoe <k Leather
Dealers’ Bank, that eight or ten Wall-street brokers and bank tellers
offered to take it at the usual discount for genuine bills before the fraud
was pointed out to them.
The New-England Association for the Prevention of Counterfeits has
already accomplished much in detecting frauds of this kind. To facilitate,
if possible, the operations of this Association, against the manufacturers
and utterers of bank-notes, and other spurious money, the following
rewards are offered :
11 The Association of Bonks for the Suppression of Counterfeiting will pay to tho
person who shall furnish information which shall lead to tho conviction and sen-
tence of the parties herein mentioned, the following sums, to wit : A Iteward of
Two Hundred and Fifty Dollars for each person convicted and sentenced for engrav-
ing a plate or plates for counterfeit bank-bills, or dies for altering bauk-bills ; and a
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384 Bank Paper . [November,
Reward of Twenty-Five Dollars for each person convicted and sentenced for utter-
ing or passing counterfeit bank-bills, said sums to be paid upon the presentation of
the certificate of the judge or the prosecuting officer of the court where such con-
viction shall bo obtained: provided said counterfeits are on the banks in New-
Kngland. Suitable rewards will also be paid for the conviction and sentence of the
makers of counterfeit coin, or of dies for the same, and for the utterers of such coin.
“Boston, Aug. 1, 1853.”
So thoroughly is the work of alteration done in recent instances, that
those who make “ money” their business, and devote years to the critical
examination of bank-notes, are deceived. Of course the people at large
cannot readily detect such frauds, and the community is thus subject to
innumerable impositions of the kind.
The last instance of this sort is a one dollar bill of the Bank of the
Commonwealth, in this city, altered to a five, by the careful abstraction,
by chemical process, of the figures 1, and the substitution of the 5. The
large letters on are also taken out of the word one, and fiv substituted,
and the letter S added to the word dollar, thus presenting in large letters
the words five dollars in a circle. This bank had adopted the recent
plan, which originated with the bank, by which their one, two, and three
dollar bills could be known, to wit : The one dollar note has one large
circle; the two dollar note has two large circles, and the three dollar bill
has three large circles on its face ; the fives and tens having totally
different vignettes. It is difficult, however, for the masses to recollect
these devices, and in the present case, so complete is the alteration of the
one dollar not*, that it was readily taken on deposit yesterday by one of
the banks of this city, and detected at last only by the issuers.
Bin Papbl — Count Sparry a Swedish nobleman, now In this neighborhood,
has discove r' <1 ti c nUUim Of imitating any hank-note, cheek, hill of exchange,
promissory note, or letter of credit* without tin1 pwiHlity of detection ; and, at the
same time, has invi n seription of bank paper which does not admit of imita-
tion, removal of signature, change of the amount, etc., which can be readily effected
by him with the paper at present in use. The question of Count Sparres paper for
notes throughout the kingdom of Sweden and Norway is now under the considera-
tion of the directors of the Royal bank, Stockholm. The Count has already
expended upwards of £5000 in experiments and the construction of the necessary
machinery, and now seeks a capitalist willing to invest a similar sum, with a view
to the establishment of a bank-paper manufactory in England. We understand
that the managers of our local banks, and some of our leading citizens, to whom
specimens of counterfeit notes and the newly Invented paper were exhibited on
Saturday, expressed their astonishment at the completeness of the imitation, and the
security afforded by the BSW paper, to which they attach great importance. Count
Spam 1 1 out patents for Sweden as well as for (meat Britain and Ireland,
tod proposes next year proceeding to America for the purpose of obtaining like
privileges there. — Cork Examiner.
Go gle
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UNIVERSITY OF CHICAGO I
L 4
1854.]
N. Y. and N. H. Railroad Frauds.
385
FRAUDS ON THE NEW-YORK & NEW-HAVEN RAILROAD
COMPANY.
OPINION BY C. P. KIRKLAND.
My opinion has been requested, by parties interested, on the subject
of the liability of the New-Haven Railroad Company for the stock issued
by Robert Schuyler, in excess of the capital authorized by the act
incorporating the Company. I do not use the term “fraudulently”
issued: that term is applicable only as between Schuyler and the
Company. As between the Company and the honest holders of the
stock thus issued, it has no application, practically or legally, in fact or
in law.
In investigating this matter, it is quite as necessary to ascertain what
is nott as what is the question. The question is not as to the power of
the Company or any of its agents to issue stock beyond the amount
allowed by the act of incorporation. On this point, there cannot be two
opinions ; neither the Company nor its agents have or had any such
power : this proposition is elementary ; it is on all hands conceded ; it
never has been, it never will be disputed by any judicial tribunal, or by
any lawyer. As was Well said by the Courts of Pennsylvania, in pro-
nouncing judgment in the case of the Bank of Kentucky against The
Schuylkill Bank, “ were this point of any practical value ii> the case, the
decision would be in favor of the defendants ; but it is not.”
The real and only question in the case arises under the law of
principal and agent
How far, to what extent, is a principal liable for the acts of the
agent ?
Do corporations in this respect differ from natural persons 1 Are they
subject to a different rule ? These and these only, are the questions in
this case.
It becomes necessary, first, to ascertain the facts and circumstances in
reference to Schuyler’s agency for the Company, the nature, extent,
“scope” of that, agency; the position of Schuyler relatively to the Com-
Eany ; the duties, the power confided to him ; the aspect in which they
eld him out to the world : fortunately on this subject there is no dis-
pute or doubt. We have the highest aftd most satisfactory evidence in
an authentic and conclusive shape ; namely, in the report of the board
of directors, made to the stockholders, at their meeting in New-York on
the 3d day of October instant. In that document it is stated that
“Robert Schuyler was appointed President of the Company on the 19th
day of May, 1840, and by successive and unintermitted elections held
the office up to the third day of July last;” that while President of the
Company, he was its chief executive officer, exercising the principal
powers of the corporation, enjoying the full confidence of the Company
and of the Directors ;” — “ that at a meeting of the stockholders in
November, 1849, the following resolution was unanimously passed:
25
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386
N. Y. and N. H. Railroad Frauds. [November,
Resolved , That the stockholders have entire confidence in the President
and Board of Directors, believing them to have executed the important
trust committed to them, not only with zeal and fidelity, but with high
intelligence.”
“Mr. Schuyler was also the transfer-agent of the Company from the
commencement of its operations : the principal part of its business was
transacted in the city of New-York ; its offices were practically there ; its
principal stock account was kept there, and Mr. Schuyler, when acting
in that capacity, (that is of transfer-agent,) exercised the office and duty
usually intrusted to the highest officers of all such corporations. The
provision for the transfer of shares in New-York are such as obtained
generally in that city, except the greater security that the transfer-agent
was a Director and President of the Company, possessing its unlimited con-
fidence and that of the stockholders, and was not a mere clerk or agent
employed at a salary.” It appears also from the paper annexed to the
report, and forming a part of it, “ That he was appointed transfer-agent
in New-York, by virtue of the express authority contained in the act of
incorporation, permitting the stock to be transferred at such places as the
by-laws of the Company should direct ; that he was furnished with blank
certificates of stock, and that all the certificates issued by Schuyler, (as
well those admitted to be valid as those claimed to be invalid,) were
signed in the same manner, with the name of R. Schuyler, transfer-agent,
it having been the uniform course of the Company to affix no names to
the certificates, other than that of the transfer-agent at the place where the
transfer was made."
Schuyler was thus presented to the public as a director and the
president of the Company, as its transfer-agent in New-York, exercising
the office and duty usually intrusted to the highest officers of such com-
panies, and as possessing its unlimited confidence, and as exercising his
transfer-agency at the place where the offices of the Company practically
were, and where its principal stock account was kept.
It is quite unnecessary to inquire what the “ office and duty” of this
transfer-agent were as between himself and his principals , the railroad
company ; such an inquiry would be irrelevant and useless. He doubt-
* less owed them “ certain duties” and so far as they were concerned, he
could not properly execute his office without performing those “ duties.”
For instance, he was bound to them to keep accurate accounts, not to
issue new scrip until the surrender of an equivalent amount of old scrip,
to see that all transfers were duly entered, and the like. But all this is
wholly immaterial here ; what we have to do with in this inquiry is the
business of this transfer-agent, so far as the public are concerned ; what
were his “ office and duty” so far as related to them. On this point there
cannot, I apprehend, be any difficulty or doubt His business simply
was to sign, as transfer-agent, and to deliver and thus to issue certificates
of stock. By the very terms of his appointment and the nature of his
office, this was what he was to do, and all he was to do in regard to the
public ; this was, and necessarily must be the extent of his transactions,
so far as third parties were concerned. The Company, by this his
ppointment, invested him with plenary power in this respect; among
Digitized by
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1854.]
Opinion by C. P. Kirkland.
387
other things, they from the very nature of the appointment, and from the
necessity of the case, gave him full power, as tranfer-agent, to issue cer-
tificates to himself, as an individual, or to the firm of R. & G-. L. Schuy-
ler ; and such certificates when issued, had all the indicia of genuineness
which any certificates had, and no more badges or marks of fraud than
certificates issued to others. As we have seen, the Company had
intrusted him with their blank certificates, they had given him the
power to exercise the office and duty usually confided to the highest
officer of such a corporation ; they had solemnly and publicly, in Novem-
ber, 1849, announced to the world his “fidelity” — his fitness for the
trust ; and to give to the public what may well be said to have been
absolute and entire reliance on him as the transfer-agent, they had
appointed him a director and also president of the Company, so that that
public could plainly see that this power was not committed — as it usually
is, and generally must be — to “a clerk or agent employed at a salary.”
It would be difficult for ingenuity to devise a state of things better cal-
culated to lull the public into security, and to inspire them with entire
confidence as to the issues of stock by jSchuyler, as transfer-agent, than
that which was contrived and adopted by this Company, as set forth by
its directors in their report above referred to. Who, under the admitted
facts and circumstances, could hesitate to receive as genuine and obliga-
tory, the certificates issued by him, whether issued in the form of certifi-
cates to R. & G. L. Schuyler, or even to R. Schuyler himself, with blank
powers indorsed, or whether issued directly to and in the name of the
holders of such certificates, on the surrender by them of the certificates
originally received by them of Schuyler or of others I As has been stated,
and as cannot be contradicted, Schuyler’s legitimate and only business and
duty as transfer-agent, so far as the public was concerned , were to sign as
agent and deliver the blank certificates with which he had been intrusted by
the Company; and all that was requisite for the secuiity of any person
receiving such certificates was the fact of the genuineness of his signature.
The Company, by its own acts, answered for and guarantied every thing
else. The receivers of the certificates prior to their reception, had no
power over the books of the Company ; they had no legal right to
inspect, or to demand an inspection of them ; they were, up to that*
period, so far as the Company, its books and records were concerned, in
every legal and practical sense strangers. The law cannot be so tyran-
nical, so unjust, and unreasonable, under such circumstances, as to charge
any negligence or default, any want of diligence, on the recipients of the
certificates for not knowing what the books of the Company contained,
or omitted. If any person not owning any stock in a given corporation
should apply to the officers of that corporation for an inspection of its
stock-books, they could very properly inform him that they had no legal
power to grant, and that he had no legal right to demand, such inspec-
tion, though such inspection might be permitted, in some instances as a
matter of mere courtesy. The statute authorizes the inspection of stock-
books only by a stockholder. (1 R. S. .601. 1st ed. See also Laws
1848, p. 60.)
It seems to me, then, an indisputable proposition that, under the facts
Digitized by
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388
N. Y. ami N. H. Railroad Frauds. [November,
as expressly stated and declared by the Company itself, through its
president and directors, Schuyler, as its transfer-agent, was invested, so
far as the public are concerned, with full power to issue certificates of
stock ; and this was, as to them , his legitimate and sole business as snch
agent : that the Company put into his hands additional, if not conclusive
evidence of his power and authority in the blank certificates furnished him ;
that in addition to all this (though no addition was required) they, by
their deliberate resolution published to the world, not only justified but
invoked and demanded the implicit confidence of all parties in him as
such agent He had, in every legal and practical sense, for the purposes
of the issues of stock , concentrated in himself the power of the president
and directors, acting at a lawful and duly convened meeting ; and an
issue of stock authorized at such lawful meeting would give the party
receiving it no greater or better right than its issue by Schuyler, as
transfer-agent
The foregoing considerations establish the proposition that in issuing
of stock-certificates, Schuyler was acting within the “scope” of his
authority ; nay more, that he was performing the precise and only busi-
ness he, as transfer-agent, had to do or could do with the community at
large. That community was in no manner bound to know — it had no
power or means of ascertaining whether, in the performance of this
legitimate business with them, he was violating his duty to his princi-
pals ; they had given him the full power to issue certificates ; they had
in the most authentic and impressive manner invited and solicited the
confidence of the community in him as their delegated representative ;
and thus they emphatically declared that the consequences of his con-
duct were on them and not on those thus led on, and induced to deal
with him. Strip this case of the irrelevant and idle discussion of the
question as to the power of a corporation to issue stock beyond the amount
authorized by its charter, and keep steadily in view the manifest and
vital distinction between Schuyler’s duties and liabilities to his principals ,
on the one hand, and his legitimate powers as to the public, on the
other, and the doubts and difficulties apparently surrounding this subject,
disappear. The same act may be (and in this case is) grossly fraudulent
as to the principals, and yet perfectly bona fide and valid as tp third
persons dealing with the agent.
The liability of the principal for the acts of the agent, when acting
within the “scope” of his authority, when performing the business
embraced in and contemplated by that authority, is established by the
uniform current of authorities, and has become a maxim, an elementary
proposition in the law. We have seen that the issuing of Btock was not
only within the “ scope” of his authority, but was all and the only busi-
ness he was to do or could do under that authority ; it follows inevitably
that it can never be a question between the Company and the bona-fide
holders of the stock issued by Schuyler, whether the issue exceeded or
fell short of the authorized capital ; and it is a clear sophism to argue
that there is any distinction between stock issued beyond or stock issued
within the chartered limits ; and yet great stress has been laid on the
&ct that Schuyler’s issues were in excess of the capital. This has been
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UNIVERSITY OF CHICAGO
1854.] Opinion by C. P. Kirkland. 389
relied on aa the fatal defect, in the claim of the holders, whereas it
scarcely requires argument to show that an issue within the authorized
limit, might have been equally fraudulent, as between him and the Com-
pany, as an issue beyond it, and consequently that the fact of over-issue,
per se, is in no sense material to the question between the Company and
the present holders of the stock alleged to have been over-issued.
The liability of the principal for the conduct of the agent, as above
stated, is so well established, so repeatedly adjudicated in every variety
of form, that it is a work of supererogation to cite authorities in support
of the proposition ; and I shall therefore limit myself to a reference to
the well-established doctrine as stated by one of the most eminent of
American lawyers and judges, and whose authority will not be ques-
tioned.
Judge Story in his admirable treatise on agency (§ 17) says that Ma
general agency exists where there is a delegation to do all acts connected
with a particular business or employment ,” and (§ 452) “ the principal
is held liable to third persons in a civil suit for the frauds, deceits, con-
cealments, misrepresentations, torts, negligences, and other misfeasances
and omissions of duty of his agent in the course of his employment,
'although the principal did not authorize, or justify, or participate in, or
indeed, know of such misconduct, or even if he forbade or disapproved it.”
Authorities on this subject might be multiplied indefinitely ; to do so
would be merely to make an idle parade of cases and to show a useless
diligence in the search of digests and the abstracts of indices. No case
has been, none can be, cited in behalf of the Company impeaching in
the slightest degree the rule as above stated ; and the cases that have
been referred to in their behalf for that purpose will, on examination, be
found to wholly fail in affording them exemption from the operation of
the rule so well and so correctly stated by Judge Story. I should pro-
ceed to analyze and criticise those cases and to demonstrate how entirely
they foil to sustain the principle they are cited to establish ; but that,
easy as is the task, is quite unnecessary on this occasion, however suit-
able it may be on another.
There is not, and necessarily there cannot be, any distinction between
corporations and natural persons as to the application of the rule. If
there is any difference, it is clearly against the corporation, for while a
natural person can act by and for himself, corporations can from their
very nature and constitution act only by agents. “ Persons natural and
artificial (corporations) stand in this respect on the same broad platform :
each is under the same measure of responsibility : no less, no more. The
natural person may contract and perform personally ; the artificial per-
son contracts and performs through its corporate functionaries. A cor-
poration is compelled by the incorporeal nature of its essence to act by
others.” “ Corporations are liable for the frauds and torts of their ser-
vants and agents done in the course of their employment in the same
manner as individuals are responsible for the acts of their servants trans-
acting their business.” Numberless cases on this point also might be
cited ; and multitudes of illustrations of the correctness of the general
role as above laid down, drawn from the every-day business of life, and
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390
N. Y. and N. H. Railroad Frauds. [November,
intelligible and convincing to the commonest understanding, whether that
understanding belong to lawyer or “ layman,” might be introduced ; but
this would only be the endeavor to make that plain which is already too
plain to admit of contradiction from any disinterested quarter.
If the preceding views are not totally erroneous, and were there no
adjudicated case on the subject, the conclusion would of necessity follow,
that the New- Haven Railroad Company are liable to the bona-fide hold-
ers of the stock issued by Schuyler.
But the exact question has been decided in one of the most import-
ant cases that ever came before a judicial tribunal in this or in any
other country — a case involving one million and a quarter of dollars — a
case which was conducted on each side by the ablest counsel of the land,
among whom were John Sergeant on the part of the plaintiffs, and George
M. Dallas on the part of the defendants — two names standing among the
highest at the American bar ; a case in the argument of which twenty
entire days were occupied, and in which every consideration of State
pride, of local influence, of deep-felt sympathy for friends and neighbors,
was pressed on the court with unsurpassed ingenuity and eloquence, and
made to bear against the plaintiffs.
This was the case of the Bank of Kentucky against the Schuylkill
Bank, and which will be found reported at large in Parson’s Select
Equity Cases, pages 180 to 269, above briefly referred to. This case
was in every essential particular the exact counterpart of that which I am
now considering, and in no important respect is it possible to distinguish
the one from the other. It was brought originally in the Court of Com-
mon Pleas of the First (Philadelphia) Judicial District of Pennsylvania,
a court corresponding in dignity and in jurisdiction with the present
Supreme Court of the State of New-York. Notwithstanding all the
adverse influences under which the plaintiffs labored, the court gave judg-
ment in their favor, and thereby established every principle for which we
now contend. They adjudicated, as a substantive and material part of
the case, and an absolute pre-requisite to the plaintiffs’ right to recover,
that a corporation is liable to the bona-fide holders of stock issued by its
transfer-agent in excess of its capital ; an excess which amounted in that
case, as above stated, to a million and a quarter of dollars.
The judgment thus pronounced by the highest court of original juris-
diction in the city of Philadelphia was carried by writ of error to the
Supreme Court of Pennsylvania, the court of ultimate resort in that State,
and corresponding with the present Court of Appeals in this. The case
was again elaborately argued by the same eminent counsel before that
high tribunal, and on the 7th March, 1849, the judgment was unani-
mously affirmed. The case as decided by the latter court, has never
been reported ; but in the original record on file in the clerk’s office of
the court in Philadelphia, it is stated, “ that the judgment is affirmed for
* the reasons , among others, given by the court below thus showing the
unqualified adoption of those reasons by the appellate court. A case of
such magnitude, thus argued and thus decided — sustained, too, as the
decision is, alike by the clearest principles of law, and by justice and com-
mon-sense, will at all times be a prevailing authority, and will for ever
Digitized by
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UNIVERSITY OF CHICAGO
1854.]
391
Opinion by C. P. Kirkland.
remain as a light and a guide to all other judicial tribunals, before whom
the same questions may be presented.
It cannot be amiss to embody here a few extracts from the opinion of
the court in pronouncing judgment in that case, deciding, as it does, in
favor of the holders of the stock over-issued by Schuyler every material
proposition for which they contend ; and establishing, for reasons which
will successfully withstand the test of the severest scrutiny, the liability
of the New-Haven Railroad Company to those holders. The court says :
“ While it is true that in making a regular transfer of the stock of the
corporation, the corporation, and all its transfer-agents, wherever situated,
were required to receive the surrender and assignment of the preceding
certificate from the holder thereof, it is not true that the purchaser of the
stock is under any obligation to see that such surrender is made by the
seller. The obligation to surrender the old certificate is not a limitation
on the power of permitting transfers so far as respects the corporation.
It is a provision intended for the security of the corporation. How, then,
can it be pretended that a purchaser of stock has any obligation imposed
on him to see to the surrender of the old certificate, when that is a matter
for the interest and consequent supervision of the corporation itself?
When he receives his new certificate, has he not the right to assume that
the corporation has attended to all things in the transaction necessary to
its own protection 1 Who conducts the preliminaries resulting in the
issue of the new certificate ? Why, the corporation itself, or, what is the
same thing, on this occasion, its agent lawfully constituted for this “pur-
pose. The idea that the purchaser of stock is to lose the property he has
honestly paid for, because the corporation has not done its duty to itself,
is unreasonable to the last degree. It would seem strange indeed to an
unsophisticated understanding, if such a notion could be invoked success-
fully to save the corporation from the results of its own misapplied con-
fidence in a faithless agent. The true doctrine on this subject is, that
where one of two innocent persons is to suffer for the tortious act of a
third, he who gave the aggressor the means of doing the wrong must alone
bear the consequences of the act.”
Again : “ To the existing holders of these certificates, the corporation
( the Bank of Kentucky) must respond, whether the certificates were
issued by the Philadelphia, New-York, or any other transfer agency .”
“ The bona-fide holder of every certificate issued by either of these trans-
fer-agents, has a pecuniary and direct claim against the corporation, ( the
Bank of Kentucky,) either to be admitted as a corporator of the bank, or,
IF THAT IS IMPRACTICABLE PROM THE EXCESSIVE ISSUE OF STOCK, TO-
BE COMPENSATED BY THE BANK FOR THE FRAUD PRACTISED UPON
THEM.”
Many more equally pertinent extracts might be made, but the above
will suffice. It is not in my power to add by comments to the strength,
the clearness, the convincing force, and the pure justice of the doctrines
thus deliberately declared by those distinguished tribunals of our sister
State.
I deem it scarcely necessary to allude to another very serious objection to
the ground of non-liability assumed by the New-Haven Railroad Company.
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392
N. Y. and N. U. Railroad Frauds. [November,
I mean the utter impracticability of determining, by any certain or defi-
nite rule, which of the certificates of stock now outstanding are for over-
issues. In some cases this probably may be done ; but in multitudes, it
certainly cannot be. Thus, if A, owning fifty shares of stock admitted
to be properly issued, and fifty alleged to be improperly issued, sells the
whole to B, to whom one certificate for the one hundred shares is
delivered ; B sells fifty shares to C, (and a certificate is issued to him,)
and fifty shares to D, (to whom also a certificate is issued,) does C cr
does D hold the stock lawfully issued ? A satisfactory answer to this
question would require, I apprehend, a more “ scientific book-keeper” than
the world has yet produced, or will produce, so long as the intellect of
man remains finite. And certainly this Company cannot contend for
exemption from liability, when, from the nature of the case, there is no
rule by which their liability or non-liability can be determined. Other
instances might be mentioned, in which it would be equally impossible
to determine within which class the stock fell ; but it cannot be necessary
to enlarge on this point.
I am strongly confirmed in the correctness of the opinion I now advance,
by its entire consonance to honesty and good morals. It is the beauty
and the boast of the common law that its foundations are laid deep in
integrity, that it is imbued with a strong and abiding sense of justice,
and tolerates no cheat or deception. These benign principles would
manifestly be disregarded, and contemned, if a principal is permitted to
cast on innocent third persons the injuries consequent on the fraudulent
conduct (fraudulent as to the principal) of his agent in the conduct of his
(the principal’s) business. These are principles, too, which commend
themselves instinctively to the conscience and to the approval of all dis-
interested persons. And I venture to say, that there is no one in the
commercial and financial circles of this metropolis, who values his char-
acter for integrity and who stands impartial between these parties, who
would not decisively reject the doctrine contended for in behalf of this
Railroad Company.
Sir Mathew Hale, in his history of the common law, (p. 51,) says:
“ That the common law is the just, known, and common rule of justice
and right between man and man ” — and in another place, that “ the
guide for ascertaining the rule of the common law is the common reason
of the thing." In these sentiments I entirely concur; and on them the
honest holders of the stock in question may safely rest their claims for
indemnity against the Company.
It cannot have escaped the observation of the most superficial and
indifferent, that the ground assumed by the Company, if successfully
maintained, would materially injure the value of the hundreds of millions
of stocks of corporations existing in this country, and held by persons in
every condition of life. No man could be safe in the possession of this
species of property ; its transfer would be seriously impeded if not
v entirely checked ; and financial evils and troubles would arise in ruinous
abundance. I will not dwell on this point ; its truth and its seriousness
must be manifest to all.
This opinion is already too extended. The importance of the case is
Digitized by
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Original from
UNIVERSITY OF CHICAGO
1854.]
Bank Statistics.
393
Digitized by
my apology for its length. Its result is that the New-Haven Railroad
Company are liable to the bona-fide holders of the stock over-issued by
Robert Schuyler, as their Transfer* Agent; and that as the holders “can-
not be admitted as corporators to the Company, in consequence of the
excessive issue of stock, they are to be compensated by the Company for
the fraud practised on them,” by the payment of such sums as will iully
indemnify them.
It will be observed that throughout this opinion, I have used the terms
“ bona-fide holders” — “ honest holders.” All entitled to apply to the Com-
pany for remuneration must be of that description. It is possible that
there may be “ holders” who have taken the stock under Buch circum-
stances as to render them legally chargeable with notice of Schuyler’s
fraudulent conduct; if so, they are not in a legal sense “ bona-fide ” or
“honest holders,” and would not be entitled to indemnity. I do not
know, nor have I heard of any such case ; and I mention this matter
merely to Bhow that the terms “ bona fid? and “ honest," have been used
by me intentionally and carefully.
Charles P. Kirkland,
Jauncey Court, 39 Wall street.
New- York, Oct. 14, 1854.
BANK STATISTICS.
New-York.
The weekly returns of the New-York City banks were commenced in
August, 1853. We now furnish a summary of these reports, for each
week 'since that period : to which is prefixed a similar summary for
various periods before that time. We add two columns showing the
coin balances in the Sub-Treasury at New-York during the same period,
and the aggregate coin in banks and Sub-Treasury, (fractions omitted.)
Loans.
Specie.
Circulation.
Sept. 1849
..$51,079,220
$9,022,250
$5,990,100
Sept 1350,
.. 62,386,522
9,056,135
6,695,010
Sept 135!
.. 65,426,353
6,032,468
7,376,114
8ept. 135*2,
.. 83,815,464
8,702,895
8,678,664
1853.
Feb.
26,
.. 05,271,576
8,991,680
9,274*025
Jane
U,
.. 05,520,656
12,174,509
9,084,106
Aag.
«,
.. 07,809,617
9,746,452
9,510,465
Aug.
18,
.. 95,562,277
10,054,618
9,451,945
Aag.
20,
.. 08,866,970
11,092,552
9,414,696
Aug.
27, .•••«..
.. 92,336,954
11,319,049
9,427,191
Sept
8,
.. 91,741, ass
11,268,049
9,554,294
Bcpt
to,
. . 91,108,347
11,380,698
9,597,886
Sept
17, :
. . 0O,19O,r«9
11,860,285
9,560,728
Sept
24,
.. 90,092,765
11,340,925
9,477,541
0( L
1,
.. 90,149,540
11,281,912
9,521,665
Ort
8
... 91,128,993
10,266,602
9,678,453
Oc t.
15,
.. 87,S87,878
11,380,172
9,464,714
Gck igle
Deposits.
SuthTreas. Aggregate.
$28,551,092
87,280,880
86,957,670
50,216,410
57,556^507
15,879,000
$14,870,900
59,073,171
7,546,000
19,720,000
60,994,568
8,406,000
18,182,000
53,166,712
8,550,000
19,204,000
57,817,218
8,401,000
19,498,000
57,431,806
8,991,000
20,810,000
67,502,970
9,079,000
20,847,000
57,543,164
8,907,000
20,237,000
57,612,801
9,325,900
21,636,100
5S, 312,884
10,189,800
21,580,200
57.968,661
9,726,400
20,958,800
67,935,760
9,899,400
10,666,000
50,063,674
8,502,200
19,892,300
Original from
UNIVERSITY OF CHICAGO
394 Bank Statistics. [November,
Loan*.
Specie.
Circulation.
Deposits.
Sub-Trcas. Aggregate.
Oct
22,
. N\, 807,981
10,303,254
9,3ss,548
55,748,729
8,124.000
1 *,427.200
Oct
20,
. 88,400,821
10,866,672
9,800,350
53,385,462
7,624,200
18,490,600
Nov.
ft,
. 8:pi92.G30
11,771,SS0
9,492,1 5S
55,500,977
6,408,600
1 6,1 60,400
Nov.
12
. S2.s>2,4<»9
12,823,575
9,287,629
56,201,007
6,146,900
18,970,400
Nov.
19
. 83,717.022
13,691,324
9,151,443
57,466,424
5,694,200
19.3-5,500
Nov.
26,
. 84,6<i2,530
13,343,196
9,032,769
58,673,076
5,343,600
18,666,700
Pec.
a,
, . 85, v2 4,750
12,830.772
9,13:3,586
56,435,207
4,736,800
17,569,500
Dec.
10,
86, 70S, <>23
12,493,760
9,075,704
57,S3>,076
4,065,100
1 7,156,6) M)
Dec.
IT,
.. 87,805,073
12,166.020
8,939,830
58,812,473
4,176,600
1C,:42,600
Dec.
24,
88,760,623
11,981,270
6,867,261
56,145, s31
3,703,300
15,664.500
Dec.
. 90,102,106
11,053,473
8,927,018
5S, 963,976
2,182,000
18,240.000
1854.
Jan.
7, .
90,133.687
11,506,124
9,075,129
60,635,862
2,500,000
14,006,000
Jan.
H
.. 90,010,012
11,S94,453
8,663,344
53,896,956
2,664.600
14,759,200
Jon.
21,
. . 90,068,733
11,455,156
S, 605,235
59,071 ,252
3,580,600
15,03,\ 9(H)
Jan.
28,
.. 89,759,465
11,117,958
6,642,677
58,239,577
4,469,600
15,567,500
Feb.
4,
.. 90,549,577
11,634,658
8,996,657
61,206,466
5,323,100
16,957,700
Feb.
11,
. 91,434,022
11,672,126
8,994,0s3
61,024,617
5,671,700
17,548.600
Feb.
18,
. 92,69^,085
11,742,334
8,954,464
61,826,669
6,563,600
18,306,200
Feb.
25,
. 98,529,710
11,212,698
8,929,814
61,293,6-45
7,183,600
IS, 396, 200
M'rh
4,
. 94,558,421
10,560,400
9,209,8:30
61,975,675
7,354,600
17,915,200
M’rh
11,
. 94,279,994
9,832,4S3
9,187,655
60,226,583
8,022,000
17,654,400
M’rh
18,
. 93,418,929
10,01S,456
9,255,781
61,096,605
8,246,000
18,204,400
M'rh
25
. 92,972,711
10,132,246
9,209,406
59,166,173
8,192.200
18,324.400
April
1
. 92,825,024
10,264,009
9,395,820
59,478,149
S, 426,800
18,690,800
April
8,
. 92,551,808
10,163,141
9,718,215
60,286,889
8,246,600
18, 434.7(H)
April
15,
. 91,636,274
11,044,044
9,5133,993
60,825,191
8,430,000
19,474.(hX)
April
22
. 90,376,340
10,526,976
9,853,854
59,225,902
8,6.31,100
19,156.000
April
29,
. 90,245,049
10,951,158
9,877,687
59,719,3S1
8,664,700
19,615,800
May
6,
. 90,739,697
11,437,018
9,823,005
68,855,491
8,372,000
19,609,000
May
18,
. 90,245,919
12,332,063
9,507,796
64,203,602
8,2 1 0.44X1
20,596,400
May
20,
. 90,886,723
12,118,643
9,480,013
68,362,061
8,349,000
20,467,600
M.y
27,
. 90,981,974
10,981,581
9,284,607
61.628,670
8,799,800
19,761.300
June
«,*
. 91916,710
10,281,969
9,361,714
71,702,290
8,921,300
19.203,200
Juno
10,
. 91,015,171
9,617,180
9,807,669
72,495,859
8,901,600
16,516.600
Juno
17,
. 90,063,573
10,013,157
9,144,264
71,959,105
8,9:4,500
16,967,700
June
24,
. 88,751,952
9,628,375
9,009,726
69,598,724
9,166,300
18,794,700
July
1
. 88,608,591
11,130,800
9,063,258
71457,984
8,130,200
19,261.000
July
8,
. 88,347,281
12,267,818
9,195,757
72,716,443
9,795,100
22,062.400
July
15,
. 90,437,004
15,074,093
8,837,681
75,227.833
8,520,600
1 8,594,800
July
22,
. 92,011,870
15,720,309
8,768,239
75,959,062
4,137,400
19,657,700
July
29,
. 92,5s>579
15,386,864
8,756,777
74,790,656
4,666,800
20.273,600
Aug.
»,
. 98,723,141
14,468,931
9,124,648
76,379,487
4,654,900
19,323,800
Aug.
12,
. 93,435,057
13,522,023
S, 917, 179
74,626,369
5,289,500
16 809.100
Aug.
19,
. 92,880,103
14,258,972
8,855,523
73,834,563
6, 032, soo
2o.2S0.70O
Aug.
26,
. 91,447,075
14,395,072
8,811,869
78,731,179
6,933,500
21,326,500
Sep.
2
. 91,891,188
14,714,613
8,984,682
72,856,727
6,836,000
21,57.0,600
Sep.
9,
. 91, 52 s, 244
14,446,317
8,966,707
73,631,2:55
6,995,200
21,441.500
Sep.
!«.-
. 91,693,782
14,484,259
8,620,609
74,467,701
7,023,300
21.507,50))
Sep.
23,
. 92,095,911
12,932,386
6,802,623
72,936,453
7,024,100
19,950.500
Sep.
30,
. 92,102,013
12,042,244
S,712,136
71,795,423
6,316,700
18,356,900
Oct
7,
. 91,8^0,525
10,630,517
S, 91 8,402
78,285,610
6,502,400
17,132.900
Oct
H
. 88.61^,936
11,130,377
8,53-1,18.3
69,141,597
6,012,000
17,142,3*))]'
Oct.
21,
. 87,092,810
10,820,163
8,497,556
65,627,686
G,13 1,500
16,451,600
* The increase apparent in the item of deposits for the week ending June 3, 1854, is owing to
the fact that all the banks, for the first time, Included under the head of 44 Deposits” the bahin. es
held for account of other banks and banks out of the city. Previously, only a few of the city bants
had included these balances as deposits.
Digitized by
Gck igle
Originaifrom
UNIVERSITY OF CHICAGO
1854.]
Bank Statistics.
3 95
Capital and Dividends of the Boston Banks.
Name,
BoyLston Bank, $400,000
Broadway Bank, 100,000
Freeman's Bank, 850,000
Market Bank, 560,000
Suffolk Bank, 1,000,000
Tremont Bank, . 1,250,000
Atlantic Bank, 600,000
Atlas Bank, 500,000
Bank of N orth-America, 750,000
Bank of Commerce, 2,000,000
Black stone Bank, 850,000
Boston Bank, 900,000
Eagle Bank, 700,000
Eliot Bank, 800,000
Exchange Bank, 1,000,000
Faneuil Ilall Bonk, 500,000
Globe Bank, 1,000,000
Grocers’ Bank, 650,000
Hamilton Bank, . 500,000
Howard Banking Co., 800,000
Mechanics’ Bank, 200,000
“ M extra,
Merchants’ Bank, 4,000,000
National Bank, 600,000
New-England Bank, 1,000,000
North Bank, 750,000
Shawmnt Bank, 500,000
Shoo and Leather Dealers’ Bank, 1,000,000
Traders’ Bank, 600,000
Union Bank, 1,000,000
Washington Bank, 500,000
Massachusetts Bank, 800,000
Granite Bank, 900,000
Columbian Bank, 500,000
State Bank, 1,800,000
Webster Bank, 1,500,000
City Bank, 1,000,000
$31,860,000
Year
Year
Year
Year
1S54.
1850.
1851.
1852.
1853. April.
Oct.
9
9
9
»X
5
5
Commenced Dec. 20, 185a
new
6
9
9
9
9
5
5
10
10
10
10
5
5
10
10
10
10
5
5
8
8
6
8
4
5
8
8
8
8
4
4
7
6*
7
7
8X
4
new
7
8
7X
4
4
new
9
8
8
4
4
.
new
7
8
4
4
8
8
8
8
4
4
7
7
7
7*
4
4
Commenced Oct 6, 185a
8
4
8
8
8
8
4
4
, .
new
7
8
4
4
8
8
8
S
4
4
8
8
8
8
4
4
7
8
8
8
4
4
Commenced Aug. 28. 1853.
4
4
8
8
8
8
4
4
.
.
.
.
.
12X
8
8
8
8
4
4
Commenced Aug. 1, 1S58.
4
4
8
8
8
S
4
4
7
7
7
7
4
4
8
8
8
8
4
4
8*
8
8
8
4
4
8
8
7X
8
4
4
8
8
8
8
4
4
6
6
6X
6 X
4
4
6
6
6
6
3
8 1-5
7
7
8
8
4
3X
7
7
6X
6X
sx
3X'
7
7
6X
7
8X
»X
Commenced Aug. 15, 1S58.
8X
3X
7*
7
7
7
8X
3X
Indiana. — Interested parties in Wall street find no better occupation than
to run down the country banks of this State, or to create and give currency to false
rumors as to the stability of these institutions. Imprisonment in the penitentiary
is too mild a punishment for such incendiary publications and falsehoods. Among
the banks named were the Sacketts Harbor Bank at Buffalo, the Bank of Rens-
selaer at Lansingburg, Merchants’ Bank, Burlington, Vermont. All theso institu-
tions redeem their paper promptly, and there has been no run upon them. Ono of
theso publications states that the notes of tho Union Bank Providence, and the
Producers’ Bank, aro refused, and that the Eagle, Bristol, Smithfields, Exchange,
Citizens’ Union, and Grocers’ Banks, aro considered doubtful, “although their notes
continue to be bought up to tho hour of our going to press.” According to the
Providence Journal, all theso statements are without a shadow of foundation ; tho
above banks are in a perfectly sound condition and credit, and tho object of tho
statement is undoubtedly to aid in getting up a panic, under which the bills may
bo bought at a discount from ignorant holders.
Digitized by
Gck igle
Original from
UNIVERSITY OF CHICAGO
396
Government, State, and City Bonds
[November,
/
/
Digitized by
GOVERNMENT, STATE, CITY, COUNTY, AND RAILROAD STOCKS,
BONDS, etc.
New-Yobk, October 23, 1864.
NAMES Or COMPANIES.
' Alabama k Tenn. River
Baltimore k Ohio
do. do. ... •
do. do.
Buffalo k State Line .
do. do.
Buffalo k New-York City . .
Bellefontaloe k Indiana .
Cin.. Wilmington, A Zanesville
/Cincinnati, Hamilton, k Dayton
do
Cincinnati k Marietta . .
Qleveland,Painesville,A Ash tabula]
Cleveland k Pittsburgh
do. do.
Cleveland k Toledo
do. do. (Ohio June.)
Chicago k Rock-Island, (Illinois)
Chicago k Mississippi
do. do. ...
do. do. ...
Covington k Lexington . .
do. do. .
Dayton k Western
Fort Wayne A Chicago .
Galena A Chicago ....
Indianapolis A Bellefont&ine .
Indianapolis A Lafayette .
Indiana Central ....
Illinois Central ....
Illinois Great Western
Jeffersonville (Ind. to Louisville)
do. do.
Lake Erie, Wabash, A St. Louis
feaw^enceburgh A Indianapolis
ittle Miami
Maysville A Lexington .
Madison A Indianapolis
Michigan Central
do. do
do. do. . . , ,
Michigan Southern
Milwaukee A Mississippi .
do. do.
New-York Central
do. do. (Subscription) |
New-York A New-Haven . . 1
New-York A Harlem . . .
New-Haven A New-London . .
New-Haven A Hartford .
New-Albany and Salem
do. do. .
Northern Indiana ....
do. do. Goshen Branch
Northern Cross
Ohio Central *
do
Ohio A Pennsylvania
do. do
Ohio A Indiana ....
Panama
Pennsylvania ....
Reading
do
8cioto A nocking Valley .
Spring!., Mt. Vernon, A Pittsburgh
Steubenville A Indiana
Tennessee R. R.’b guar, by State
Terre-Haute A Indianapolis
Terre-Haute A Alton . .
Wilmington A Manchester (N. Ca.>
* 833,000 1st mort. con. till 1872'
1.000. 000 Transferable— taxed
l,128.ono Coupons, free of tax
700. ooo j do. do.
1100.000 1st mort., not conv.
300.000 No mort., do.
l,2oo,uoo 1st mort. . . .
fioo.ooo 1st do. convertible!
1,300.000 1st do. do.
600.000 2d mort., not conv.
1.000. 000 3d do. do.
2,5(H).0oo 1st do., conv. till 1862
607.000 1st mort., not conv.
8OO,0OO| do. convertible
1,200.000] do. 2d sec., conv.
“£ ,u“l do. not conv.
17,000,000 Mort., not conv.
1,000,000 1st mort., do.
NATURE OF BONDS.
wmnr payable
ask’d
625.000
900.000
2,tx»0,0»ju|
1,000.000,
1,000,000'
do. convertible
do. conv. till 1858
do. 1865
not conv.
do.
do.
1,600,000 2d mort. con. till 1858
4<X>,(>uu 1st mort., not conv.
1.000,000 2d mort., convertible
300.0(H) lat mort., do.
1,250.0001 do. conv. till 1863
1,200.000
450.000
350.000
600, (KH)
do.
do.
do.
do.
not conv.
convertible
do.
do.
300.000
800.000
3.400.000
600.0)0
1.500.000
600.000
600,000
do. 1st sec. do.
do. 2d do. do.
do. conv. till 1859!
do. 1857]
not conv.
conv. till 1860,
convertible
do.
do.
do.
do.
1.000. 0H) No mort., do.
1,305,000! do- do.
1. 153.000 do. not conv.
1.000. 000: 1st mort., do.
6oo,0u0| do. 1st sec.con. 1857]
650,000- do. 2d do. 1858]
8.287.000 No mort., not conv.
750, IKK), do. do.
750.000 do. do.
l,800,(KX)]lgt mort,, do.
450,(XK)
1,000,000
600,000
2.325.000
1,000,000
1.500.000
1.200.000
450.000
800.000
1,750,000
do.
do.
do.
do.
do. on 1st sec
do.othcr do. con.*58
do. not conv.
do. do.
do. convertible
do. conv. west sec.
do. do. east do.
do. convertible
600.000 Income, no mor. con.
1.000. 0(H) 1st mort., conv. I
2.378.000 No mort. con. 1856-58
5.000. 000 1st mort. con. till 1800
6,014,000] do. ...
3.039.000 2d mort.
300 000'
500I000 1st mort. 1st div. con.
1,600,000! do. convertible
7'1 Jan. 1 July
6 Quarterly,
6 January, July
6 Half-yearly
7‘Aprll, Oct. ,
7 January, July
7 Divers
7 January, Jtily
7. May, Nov.
7 May, Nov.
7 January, July
7 Feb., August
7 Feb., August
7 March, Sept.
7 Feb., August
7 Divers
7|10Jan„ 10 July
7 April, Oct.
7 April, Oct.
7 January, July
6 April. Oct.
7 March, Sept.
7 March, Sept.
7 January, July
7 Feb., August
7 January, July
7 16 Feb., 15 Aug.
7]May, Nov.
. 7 1 Oct., 1 April
|10 April. Oct.
7 March. Sept.
7 April, Oct.
7 Feb., August
7 .March, Sept.
6 April, Oct. |
6 January, July
7 May. Nov.
8 April, Oct.
8 April, Oct. |
8 Semi-annually
7 May, Nov.
8 January, July
8 April, Oct.
6 May, Nov.
6 May, Nov.
7 June, Dec.
7 May, Nor.
7 lOM’ch, 10 Sep.
. 6 January, July
10 April, Oct.
8 May, Nov.
7 Feb., August
6 Feb., August ,
7.Tanuary, July
8 Feb., August 1
7 May, Nov.
7 January, July
7 jApril, Oct.
7 Feb., August
7 January, July
71 Jan., 1 Jul
long *1 83
1861-72 x! 83V* «6
i860 1
1^73
Il'gj
>58-62 x 95
,lx*»4-75; X. 86
il80l | | 94
11*918 x
1873 x 90
11861 x- «
|1n*4 'x* 93
!l*65-6#X 1(J2
600,000]
1,000.000]
600,000
do.
do.
do.
do.
do.
do.
do. conv. till 1865
%\
6 January, Jul
6'AprlI, Oct.
7 May, Nov.
7 January, July
7 January, July
fit
7 March, Sept.
7 Feb., August
7 June, Dec.
N.Y
43
1
N.Y
1 1872
11867
189X5
’1880
11860
|1870
1861
•18Tv8
J1865
11866
11865
1866
US!
1 89
v 96
X| 83
I 78U
X 88
X 84
X 99
X 103
Xi 81
XI 92
95
96
87
95
87 V*
93
96
, 95
iosv*
85
100
90
97
84V*
7m
90
, 85
100
103
83V*
93
M X ” stands for Ex-Interest.
Gck >glf
Original from
UNIVERSITY OF CHICAGO
1854.]
Government, State, and City Bonds.
397
U* S. Got* Securit’s.
Loan, 6 percent... 1856!
nrr. payable.
[OPF’D I ASK’D | Ra Ra Co.’a. D"ld«?d>T. PAT’BL. OrF’D.: ASK’D
[Jan. July,
do.
do.
do.
do.
do.
Jan. April.
July, Oct.
an. July.
Jan. April.
July, Oct.
do. do 1862 1
do. do 1867,
do. do 1868
do. do Coup. b’s. 1*66*
do. 5 per ct. do. 1865|
State Securities.
N. Y. 6 per ct.... I860- ’61-*62!]
do. do 1864-’6o
do. do. ....... .1866-’67 ,
do. 61, * per ct 180o-’6i ,
do. do 1 H65
do. 5 per ct 1808-’' H)
do. do 1866
do. 41/2 per ct. 1858-’59-’64 j
Canal Certific's, 6 p. ct... 1861 Jan. July.
Ohio, do. 1k.V,J do.
do. do. 1-w'Kij do.
do. do. D7<j[ do.
do. do. ]875| do.
do. 5 per cent I860, do.
Pennsylvania, 5 per ct [Feb. August
do. 5 per ct.coup..l877| do.
•Massachusetts, 5 per ct — I
Kentucky, 6 p.ct.brd.lS69-’?2 Jan. JaJy,
Illinois, Int. Imp. 6 p. ct.l847i do.
do. 6 per cent. Interest}
Indiana State. 5 per ct.
do. per ct..
do. Canal Loan, 6 per ct.
do. Canal Pref. 5 do.
•Maryland, 6 do.)
do. 5 do.)
Alabama., 5 do.
1041/21105
1121/2,113
1171/21118
U7V*
118
10714
^07
108
>109
100
100
100
118
U8U
109
102
103
101
103)* |1M
| liJu 106
do.
do.
do.
do.
Jan. April.
[July, Oct.
May, Nov.
Tennessee, 5 per ct. bonds. .! Jan. July.
• rln 6 Hn (In Inncri rl n
do. 6
Virginia, 6
Missouri, 6
N. Carolina 6
Georgia. 6
California, 7
do. do. longi
do. do..l^"6!
do. do..l872i
do 1*73
do 1
do 18701
do.
do.
do.
do.
do.
do.
; Feb. May.
Aug. Nov.
City Securities
New-York 6 per ct...1858-’0o!
do. do. ...1870-’75,
•Albany, Bond,6p.c.l871-’*i;£el) ^uir
•Alleghany do. do. 187-V77 Jan*. July.
Baltimore do. do. 187o-’9U,ja. Ap. Ju. Oc
•Boston do. 5 do April, Oct
Brooklyn do. 6 do Jan.Julv
•Cleveland do.W.W7p.c.l879| <|o y
•Cinclnatl <1°. 6 p. c.. . L... . .|Dlyera.
•Chicago do. do. 18^.3- 7/ ij«.n julv
•Detroit W, W. 7 p.c.T3-’78-X/ Keb. Aug.
•Jersey C. do. 6 do 1877 jan. July.
•Louiavilledo. 6 do.. .1880 X1 ]>iveriJ *
IJJdw’kie do. 7 do J*™ March. Sept
•Memphis do. 6 do 18*2 Jan. July.
•Norfolk do. 6 do l*,;7!ADrll Oct
•N. Orl’ns do. 6 do...l892-1tt!jK Jufc
Philadelp. 6 do...l^), y
•Pittsb'gh do. 6 do, ’69-’7K-’*3 n|ver8*
•Rochest’nlo. 6 do 18781 do.
•St. Louis do. 6 do (i0‘
•SacramentolO do.. ..1862-’73| do*
•b.FrancUco 10 do 1871 May, Nov.,
do. 11 do 7. do.
County Bonds* |
•St Louis, Mo. 6 p. C....1 July
Fayette, Ky. 6do.con.lS*l!
•Bourbon. Ky. fido.do.Sl’Hl
•Mason. Ky. 6 do.do.81 -’821
•Alleghany, Pa.6 do l878i
Railroad Bonds.
112
113
84
89
103
82
59 ,
79 v*
50 1
95
1G3V*
91
82
100
94^4
83
101
96
95
lOU/2'102
101 1103
841/a 80
1121/1
114 •’
104 ,
851/2
90
104
84
60
81
60
97
20
104
91
Baltimore A Ohio. ...100, I April. Oct.
Cin., Ham., A Day ton 100, 10 Feb. Aug.
Cleveland, Col. A Cin.100, 13 I Jan. July.
Cleve. A Pittsburgh.. 60 10 do.
Cleveland A Toledo. ..60 10 M’ch, Sept.1
Erie 100! 7 lApril. Oct
Galena A Chicago... .100, 20 !Feb- Aug.
Harlem 50 4 do.
do. preferred 601 8 1 Jan. July.
Hudson River 100 May, Nov.
Illinois Central 100* 7 Jan. July.
Little Miami 50 10 June, Dec.
Macon & Western 10; 9 Feb. Aug.
Mad. A Indiana polls.. 60 9 [Jan. July.
Michigan Central 100 8 Dec.
do. Southern . .100,15 j Jan. July,
do. do. con. st.100 8 do.
New- Jersey 60 10 Feb. Aug.
Northern Indiana . ..100 15 Jan. July,
do. con. st. 100 8; do.
Apr. Oct.
Feb. Aug.
15 Fe 15 Au!
Jan. July,
do.
May 15 No.|
Jan. July.
Feb. Aug.
98
1 100
99
78
9534
102
1021/2
93
923.4,
Kri 1103
991, 2 199
831 21 *4
99
102
100
96
103
103
95
93
911/21 92
do.
do.
do.
do.
N. Y. Central
Erie 1st mort.
do. 2d do.conv.do.
do. 3d do. do.
do. Income do.
do. Convertiblesdo.
7 p. ct... 1883, May. Nov,
do. ..1867| do.
March, Sept
..1883' do.
. .1855, Feb. Aug.
.1871| do.
8
99
84
75
1U3L*
85
78
70
69
691/2
77 I
8714
114
94 I
86I/2
901-2
751/2
76
101X4
90
71
95
94
HO
100
85
76
103
86
79
W.
70
701/2
78
871/2
115
95
87
91
76
77
102
92
72
96
95
^ do. do, . . 1862 Jan. July.
Hud d R. 1st mor.do. 1809-*7o Feb. Aug.
do. 2d do. do. . .1860116 Ju, irt Dec.
do. conv. do. 867 May. Nov.
Michigan South, do. ..18601 do.
North. Indiana do. . .iHdlFeb. Aug. __
* N- B. A1 1 8tocks not specified as Bonds are transferable by inscription. All Bonds (except Hudson 1st and
*a Mortgage and Erie Con vreUbles) are payable to bearer. * denotes Ex-interest or Ex-Dividend.
N. Haven A Hartford. 100 10
New-York Central... .100, 5
N. Y. A New-HavenlOO1
Ohio A Pennsylvania. 60 7X
Panama 100 10
Pennsylvania 50| 6
Reading 50! 6
Rome A Watertown. .100, 10
NlJscellaneous*
N. Y. Life A Trust Co.l 00 10
Ohio do. 100 8
N. Y. Gas-Light Co.... 60 10
Manhattan do 50 10
Dela. A Hud. Can. Colon; 9
Pennsylvania Coal Co.50 10
U. S. Bank 100|
Boston Banks.
par
Atlantic 100
Atlas 100
Blackstone 100
Boston 50
Boy Is ton 100
Broadway, (S. Boston)... 100
City 100
Columbian 100
Commerce 100
Eagle 100
Eliot, (new) 100
Exchange loot
Faneuil Hall 100
Freeman’s lOOt
Globe 100]
Granite loo'
Grocers’ loo
Hamilton 100
Howard, (new) loo
Market 7()|
Massachusetts 250
Maverick loo!
Mechanics’, (9. Boston).. 100
Merchants’ 100
National, (new) 100
New-England loo
North 1U0
North America 100
9hawmut 100;
Shoe and Leather 100
State 60
Suffolk lot)
Traders’ 100
Tradesman’s, (Che!.).... 100
Treinont 100
Union 100
Washington 100
Webster, (new) 100
Feb. Aug.
Jan. July.
May Nov.
IJan. July.
[June, Dec.
Feb. Aug.
In liqdati’n
Div’ds,
1854.
4 4
8V2 4
4 4
4 4
5 5
62V*I
75 !
10214
42
66
46
961/2
31
75
40
100
97
97
5
87
91
82
120
89
81
115 ,
881/2]
84
86
87
74
711/4
631/a
, 78
1031/1
67
47
97
32
85
41
\mv2
99
12
83
125
90
82
117
150
73
130
127
115
98
23/4,
106V*
101
1003/j
, 57
114
101
3 V* 8I/2 1 101
3V* 81/2,101
4 4
8 4
4 4
5
4
8V*
4
4
5
Exchanges.
London
Paris
Amsterdam.
Frankfort,
Bremen,
Hamburg
Antwerp
4
6
4
4
4
4
4
6
8
new.
155
77
140
1130
116
981/a
3
10714
102
101
58
115
102
103
102
981/*
104 +
<«
1031/2
98 I 99
108 1 109
104 Vi; 105
113 1114
110 111
99 V*1 100
95 ; 97
109 !uo
93 I 94
831/2* K4
255
1100
8 1-5 <250
.7. 90
16V* 102. Iiyo
4
4
4
4
4
4
,1051/2 106
;1U0V2 101
1 107 1108
100 101
101 V '2 102
102
107
8V* 3V* ‘53
125
101
91
103
108
1 64
130
102
95
10634 108
loOJ 4 108
HKM 4 101
8V* 8V*i 103V* ( 104
[GO days’ st. 109i *Jl093-4
1 5.r
5.U>4 6.12H
41 417 Q
41 A«! 41»4
79 79b a
t 1 W 4
6.12H5.13Y
Digitized by
Gck ,gle
Original from
UNIVERSITY OF CHICAGO
393
Foreign Items.
[November,
Digitized by
FOREIGN ITEMS.
Trade of Great Britain. — Tho British Board of Trade have just issued an
account of the customs’ duties received during the past year, as compared with the
two preceding years. The subjoined table shows the totals furnished by ten lead-
ing articles, and it will be seen that the only items which fail to show a consider-
able increase over 1852 are tea, butter, and cheese, and fruits; the first having
been affected by the reduction of duties, and tho last by the diminished supply
consequent upon the current blight.
GROSS DUTIES RECEIVED.
Articles.
1861.
1862.
1858.
Tea,
£5,902,433
£5,985,484
£6,686,194
Tobacoo,
4,560,742
4,751,780
Sugar
3,651,989
3,639,653
3,913,727
Spirits,
2,512,476
2,569,052
2,677,232
2.036,083
Wine,
1,872,942
Grain and flour,
608,485
406,826
532,692
Coflee,
Fruits, .
445,139
438,076
463,665
679,004
367,245
Silks,
191,233
233,999
Butter and cheese,
261,290
213,892
191,453
1,758,662
Other articles,
1,833,356
1,781,855
Total,
£22,258,304
£22,187,149
£22,612,729
Tobacco is the second article in importance in producing revenue. Tea, another
necessary article, is the first in importance ; whilo sugar is tho third. These three
articles enter largely into consumption among tho lower (as well as the higher)
classes — while those articles, not so much articles of necessity as of luxury for the
rich, are of less value in creating a revenue.
The New British Stamp Law. — We have already explained the provisions of
the new English Stamp Law, but for the further convenience of our readers we
append the following
circular.
By a law, made this year, and which comes into force on the 11th October next,
the following stamp duties are required, on —
1. All bills of exchange drawn from abroad, and payable in the United Kingdom,
when indorsed, transferred, or negotiated :
2. All bills of exchange drawn abroad on foreign places, when negotiated in the
United Kingdom :
3. All bills of exchange drawn in the United Kingdom on places abroad :
at the following rate, namely : On bills not exceeding
£5
£0
Os.
Id. duty.
£400,
45.
Od.
duty.
10
0
2 “
600,
0
5
0
a
25,
0
0
3
750,
0
7
6
a
50,
0
0
6 “
1000,
10
0
a
15
0
0
9 “
1600,
0
15
0
a
100,
o
1
0 “
2000,
1
0
0
a
200,
0
2
0 “
3000,
1
10
0
a
300,
0
3
0 “
4000,
2
0
0
.a
Sums exceeding, 4000,
2
5
0
a
The average amount of this tax is therefore about one half of one per milk on
sums of £4000 and under.
Tho stamp must bo attached by the first indorser in tho United Kingdom of the
bill before collection, or negotiation.
On bills of exchange payable abroad, and drawn or negotiated in the United
Gck igle
Original from
UNIVERSITY OF CHICAGO
1854.]
Foreign Items.
399
Kingdom, the full amount of the above-mentioned stamp duties is only applicable
to sola bills. If drawn or negotiated in sets, each set must consist of three bills,
and each of these three bills must be stamped for one third of the above-stated pro
rata duty.
Fines are imposed on those who do not comply with these regulations ; and no
legal use can be made of an unstamped bill of exchange.
Moreover, all posted letters, whether addressed to persons in the United King-
dom or abroad, acknowledging a remittance of money, bills of exchange, promissory
notes, or other securities for money, are liable to a stamp of one penny for each
letter.
In consequence of this law, we shall keep with all our correspondents an account,
similar to that for postage, in which we shall enter the cost of all stamps actually
used for each correspondent, and the amount will be debited at the close of each
year in account current. Baling Brothers & Co.
London*, Sept 29th, 1854.
According to tlieJLondon Times, it appears, from a recent correspondence between
Mr. J. T. De Mattos, of the firm of De Mattos & Godefroi, and the Board of Inland
Revenue, that it will be legal on and after the 11th October next, to negotiate and
transfer foreign bills of exchange either with the inland stamp, if less than three of
the set are drawn or indorsed at the same time, or in sets of three, liable to the
reduced duty of one third each bill, on condition of the whole set being transferred
at once.
London Money Market for September. — The Bankers 1 Magazine contains the
following notice regarding the money njarket for the month of September :
“ With regard to money, there has been a good demand for it, both at the Stock
Exchange and out of doors, and present rates will, it is expected, be supported.
On consols 4J per cent is freely paid, and the bill-brokers will not negotiate first-
class paper under 5 per cent. The allowance for deposits has again in some cases
been increased to 4| per cent. Although large arrivals of gold have taken place
from Australia and America, they have not greatly augmented the stock in the
Bank of England. Tho activity in the demand for accommodation is visible, by a
further increase in tho private securities held by that establishment. Tho general
quietude of business in the city during the month has been a common topic of
remark ; and, tho weather being favorable, many parties have seized the opportu-
nity of taking recreation. There is also a strong desire manifested to shorten the
hours of attendance, particularly on Saturdays, and this arrangement will shortly be
almost universally adopted. Tho entire range in consols has not exceeded per
cent, and prices havo improved from 94^ until 96 was all but reached. After some
fluctuation, the quotation has settled down at 95 2-8. Exchequer-bills show firmness,
with a moderate amount of transactions. Tho additional million of the Turkish loan
was appropriated to the original subscribers of the £2,000,000 at 80, on tho 16th
instant, and tho proceeds of tho further payments have been transmitted to Con-
stantinople. The quotation of the scrip is now consequently marked ex new,
and has ranged from 2£ to 3£ premium. The present price is about 3 premium ex
new, equal to 4| according to the old quotation. There are still £2,000,000 of the
stock to be issued.”
Paris Money Market. — Tho accounts from the Bank of France for the past
month, show a renewed increase in the stock of bullion to the extent of £905,000.
In the previous month, for tho first time since February, there has been a falling off
of £665,000, but it was rightlyattributed to temporary causes. The total now hold
is only just below £19,000,000, and consequently within about £300,000 of the
extraordinary amount attained a4 ais time last year. From that period to Febru-
ary there was a continuous decLuo to the amount of £8,000,000, which has since
been steadily recovered, the only interruption to the upward movemont having been
that presented in the last return. With regard to tho other figures of the present
statement a contraction of tho general trado of the country continues to be indi-
cated by a diminution in the discounts, which show a further reduction of £495,000.
Their present amount is £10,400,000, against £11,600,000 in the corresponding
month of last year. — London Times , 14 th August]
Digitized by
Gck igle
Original from
UNIVERSITY OF CHICAGO
400
Bank Items.
[November,
Digitized by
BANK ITEMS.
New- York. — Three suspensions among the New-York City banks have occurred
tills Tfionth. I. The Knickerbocker Bank, comer of Fourteenth street and Eighth
avenue. Capital, $400,000. Loans at the time of suspension, $507,000. Circula-
tion, $80,000. Deposits, $298,000. II. The Suffolk Bank, comer of Pine and
Nassau streets, capital, $250,000. Loans, $207,000. Deposits, $G8,000. Circu-
lation, $33,000. III. The Eighth Avenue Bank, capital, $10,000. Loans, $108,000.
Deposits, $34,000. Circulation, $82,000. The circulation and deposit of all these
institutions will no doubt be paid within a short time.
Utica. — J. Watson Williams, Esq., has resigned the cashiers.liip of the Oneida
Bank, and is succeeded by George Langford, Esq., [for some years book-keeper of
the institution.
Clinton. — The President of the Kirkland Bank, Clinton, Oneida county, has given
notice that tiller October 1st, the institution will be closed, and depositors are
desired to remove their deposits immediately.
J£a ss a c nr §£ilK->-Th e Monument Bank at Charlestown which was chartered by
the lasF legislature with a capital of $150,000, will commence business as soon as
suitable rooms can be obtained. Tho first annual meeting of the stockholders took
place in October, when the board of directors, chosen some six months ago, was
unanimously reelected. James Dana is President, and Geo. L. Foot, (late teller of
the Traders’ Bank, Boston,) Cashier.
Boston. — Tho annual meeting of the stockholders of tho Globe Bank was held
October 1G, for the choice of directors for tho ensuing year, when the old Board w’aa
reelected, as follow’s: Ignatius Sargent, Abel Adams, Stephen Fairbanks, Henry
Hall, John Lamson. The Globe Bank was chartered June 12, 1824. Two of the
Board — Messrs. Adams and Fairbanks — have been directors ever since the Bank
W'as incorporated. Charles Sprague, Esq., has been tho only cashier, he having
been appointed at the time the bank went into operation, and he is now* paying the
sixtieth semi-annual dividend, not having been absent in a single instance w’hen
tho dividends were declared and paid.
Bank of Commerce, Boston, September 1G, 1854. — At a meeting of the Board
of Directors, this day, the following resolutions were read and unanimously
adopted :
1st. Resolved, That the directors of this Bank aocept the resignation of their
cashier, William H. Foster, with sincere regret.
2d. Resolved , That the thanks of this Board are hereby tendered to William
H. Foster, Esq., their former cashier, for tho earnest ability and energy with which
he has faithfully conducted tho trust of casliiership of this institution, since the date
of its organization.
3d. Resolved \ That this Board tender to Mr. Foster their best wishes for his pros-
perity and success, in whatsoever pursuit lie may hereafter engage.
Also, at a meeting of the Board, the 20th, the following resolution was adopted :
Resolved, That this Bank pay to W. II. Foster, our late cashier, one year’s salary,
four thousand dollars, as a gratuity for the services that ho has so ably rendered in
establishing a large business and extensive correspondence during the past four years,
that has been so profitable to the bank; and as a further mark of respect for tho
able and faithful manner in which he has conducted the affairs of the institution.
Boston, — The annual meeting of the stockholders of the Boston Bank, for the
choice of directors wras held recently. The old board, Messrs. Hooper, Brad-
lee, Appleton, Bullard, Homer, Bacon, Minot, Curtis, Upham, Howe, Bowditcb, and
Stevenson, were reelected This is one of the oldest banking institutions in the
city, and has always been under the management of some of the best known of the
Google _
Original from
UNIVERSITY OF CHICAGO
Bank Items.
401
1854.]
mercantile community. Two of the present board of directors have been in its
management over forty years — Mr. Appleton forty-three years and Mr. Bradlee
forty-two years — and are probably the oldest bank directors in office in the city.
Nathaniel Harris, Esq., has been elected President of the Atlantic Bank, Boston,
in place of Pliny Cutler, Esq., who declined a reflection.
The following banks have recently commenced operations in Massachusetts :
Location.
Warn*.
President.
Cashier.
Capital .
Athol,
Miller's Elver Bank,
John Boynton,
M.E. Ainsworth,
$100,000
Beverly,
Bess River Bank,
Henry Kitfleld,
Jonathan Nichols,
100,000
Brighton.
Market Bank,
Life Baldwin,
R. B. Graves,
100,000
Charlestown,
Monument Bank,
James Dana,
George L. Foot,
160,000
Grafton,
Grafton Bank,
T. W. Slocum,
J. Cary,
100,000
Lawrenoe,
Pemberton Bank,
Levi Sprague,
BarnL C. Woodward,
100,000
Lowell,
Merchants9 Bank,
HarUn PiUsbnry,
EUphalet Hills,
100,000
HolUflton,
Holllston Bank,
Wm. 8. Batohelder,
Rufna F. Brewer,
100,000
Mooflon,
Monson Bank,
W.N. Flynt,
J. R. Flynt,
100,000
North- Bridgwater,
N. Bridgwater Bank,
Martin Wales,
R.P. Kingman,
100,000
South-Beading,
8. Reading Bank,
T. Emerson,
L Eaton,
100,000
Townsend,
Townsend Bank,
Walter Fessenden,
Edward Ordway,
100,000
Worcester,
City Bank,
G. W. Richardson,
Parley Hammond,
200,000
Lynn,
City Bank,
John C. Abbott,
BeqJ. V. French, Jr.,
100,000
The City Bank of Worcester, with a capital of $200,000, went into operation on
Tuesday, September 26. George W. Richardson, Esq., (the Sheriff of Worcester,)
is the President, and Parley Hammond, Esq., the Cashier. This makes the sixth
bank establishment in Worcester.
Maine. — The following new banks have commenced operations :
Location .
Name.
President.
Cashier.
Capital paid.
New-Castle,
Bank of New-Castle,
A S. Austin,
Thaddoos Weeks,
$26,000
Hallowell,
American Bank,
E. E. Rice,
A H. Howard,
60,000
Bangor,
Grocers' Bank,
Wm. H. Bratton,
E. 8. Morrison,
Wm. R. Smith,
75,000
Augusta,
Stats Bank,
Goa W. Stanley,
75,000
Kennebunk,
Ocean Bank,
Joseph Tltcomb,
ChriA Littlefield,
60,000
Skowbegan,
Bank of Somerset,
William Rowell,
R. Kidder,
25,000
New-Hampshire. — The Weare Bank at Hampton Falls, was organized on the
7th October, by tho election of a board of directors, of which Moses Eaton, Jr., Esq.,
was chosen President.
New-Jersey. — At a meeting of the Board of Directors of the Newark Banking
& Insurance Company, on Thursday, Sept 14th, Mr. John Taylor resigned the
Presidency of the bank, which he has held for twelve and a half years. James B.
Pinneo, Esq., was unanimously elected to the office.
Rhode-Island. — The Pocasset Bank, chartered May, 1864, and located at Tiver-
ton, has commenced business, with a capital of $200,000, all now paid in. Presi-
dent, Oliver Chace, Esq. ; Cashier, W. H. Brackett, Esq.
District op Columbia. — The Washington Star cautions the public against
receiving the notes of the so-called 44 Anacostia Bank,” purporting to be located in
Washington City. The Star says: 14 There is no such institution in Washington,
and there never has been any such bank here. As far as is known in Washington,
the proposed affair is wholly irresponsible to the community, who are to be per-
suaded to part with their property for its promises to pay. Within the last five or
six years, tho people, generally at a distance, have been shamefully swindled by
pretending Washington banks, a dozen of which have been started After the same
fashion— on the brass of irresponsible persons — and every one of them have dis-
honored their issues after so managing matters as that by tho time they were ready
to close their doors, their notes were in the hands of innocent people at a distance,
to the tune of from fifty thousand to from two to three hundred thousand dollars.”
26
Digitized by
Gck igle
Original from
UNIVERSITY OF CHICAGO
Bank Items .
[November,
402
Maryland. — The Farmers A Mechanics’ Bank, at Chestertown, Kent Co., Mary*
/ land, suspended payment on the 6th September. The failure of the Farmers &
/ Mechanics’ Bank is thus announced in an advertisement signed G. B. Weecott,
I President :
l “ The President and Directors of the Farmers A Mechanics’ Bank of Kent Co.,
! finding themselves unprepared to continue a specio redemption of their issues,
have concluded that the interests of its creditors and stockholders would be pro-
! moted by suspending all operations in said bank until Thursday, the 21st of
1 September, inst. Whereupon they ordered and directed the officers of said bank to
; discontinue operations until that time, unless otherwise directed — and further
declared their confidence in the ability of the institution to meet fully all of its
liabilities.”
North- Caro lina. — Notices are given that application will be made to the next
legislature of North-Carolina, to charter new banks in Wilmington, Nowbem, and
Beaufort The Raleigh Star says, it is probable that a movement will be made in
that city also for the establishment of a new bank. Besides these, the Bank of the
State of North-Carolina, and the Bank of Cape Fear, have given notice that applica-
tion will be made for an extension of their charters.
Michigan. — At the suit of James C. Sterling, one of the directors, the Erie A
Kalamazoo Bank, at Adrian, was enjoined and closed Wednesday, Oct. 4. The
ground of the injunction was, that the bank had exceeded the power of its charter,
by issuing a larger amount of bills than were allowed — three times the amount of
capital stock paid in. Should the injunction be sustained, this will be the end of
the bank without a question. The Times , of Detroit, in mentioning the circum-
stances, is very severe on Attorney General Hale, and not unnecessarily so, few not
enjoining the bank at its first resuscitation.
Georgia. — The name of the Marine A Fire Insurance Bank of the State of Geor-
gia, at Savannah, has been changed to that of the Marine Bank of Georgia.
Augusta. — The name of the Bank of Brunswick has been, by law approved
February 13, 1854, changed to that of the Union Bank, and located, as for some
years past, at Augusta.
Indiana. — The Savings Bank of Indiana, at Connersville, has been organized
by the election of Judge Elisha Vance as President, and L. D. Allen,. Esq., late
cashier of the Fayette County Bank, as Cashier. The Savings Bank commenced
business on the 25th September with a capital of $200,000.
Connersville . — E. F. Claypool, Esq., hitherto teller of the Fayette County Bank,
has been elected Cashier of that institution, in place of Mr. Allen, now Cashier of
the Savings Bank of Indiana.
Bank-Notes Stolen . — The Bank of Tennessee, as we learn from the Nashville
Banner, recently ordered from its engraver a new set of bank-notes of various
denominations, with red backs. The box containing these notes was received a
few days ago, but none of them have yet been put into circulation. On Monday a
ten-dollar bill, red back, without signature, was presented at the counter of the
Bank. It was a genuine note, but as none had been issued, suspicions were
aroused, and an examination of the contents of the box, which had not previously
been opened at the Bank, disclosed the fact that notes of the denomination of ten
dollars, to the amount of $40,000, had been abstracted. None of the other notes
were disturbed. The box came from New- York, in charge of Adams A Co.’s
Express, and it is thought the notes were abstracted on the steamboat between
this city and Nashville. The person who presented the note at the Bank, stated
that he obtained the note from a negro who had purchased goods from him to the
amount of -$5, and received $5 in change. The appearance of the negro indicated
that he was a steamboat hand. The community should be on their guard against
these notes. The Bank will not issue one of the ten-dollar red backs unless the
whole $40,000 are recovered. — Louisville Courier , 16ft July.
Original from
UNIVERSITY OF CHICAGO
Digitized by
1854.]
Bank Items.
403
Digitized by
Indiana Banks . — Of the Indiana Free Banks the Indianapolis (Ind.) Journal of
the 22d inst, says:
“ Quite a number of free bankers assembled here yesterday, and we hear that
they suggested to the Auditor of State the propriety of calling in five per cent of
the entire circulation of the Free Banks This course will meet the approbation of
all, and give additional strength to the system. As the stocks now stand, they
are worth a quarter of a million of dollars more than tho amount issued on them.
If five per cent of the circulation is called in, and the stocks remain in tho Auditor’s
hands, tho bills will bear a depreciation of seven and a half per cent — quite a mar-
gin to fall back on ; and as State securities are continually increasing in price, we
see no cause for alarm in the present attempts of the Cincinnati brokers to crush
our free banks.”
Cochituale Bank — The hearing in the Cochi tuate Bank case took place August
22d, in the Supreme Court, before Chief- Justice Shaw. Mr. Dehon, for the receivers,
moved that a dividend of fifty per cent be paid on all claims proved prior to August
1st, stating that heretofore no distinction in the distribution had been made between
bill-holders and other creditors, the bill-holders having an additional remedy against
.the stockholders for any deficiency. The cash on hand August 1, was $168,762.
Total bills now outstanding, $73,000; deposits outstanding, $1600; other debts
outstanding, $1400; in dispute, $25,000. There is uncollected $131,000 of debts
considered good. Mr. Whiting, for sundry stockholders, was against making any
distinction. Mr. Jewell, for the Grocers’ Bank, said it was claimed that the
Cochituate Bank ‘was a stockholder in the Mattapan Iron Company, and it had been
suggested that as tho company was deeply insolvent, the bank, as a stockholder,
might be called upon to pay the debts of that company. It was also stated that the
Bank was interested in the Boston Carpet Company, in the same condition. Mr.
Dehon denied that the bank was a stockholder in those companies, holding stock
only as security. The court in view of the question of preference, decided that tho
matter should go before the whole court at its earliest session, which would be in
Berkshire county in September.
In the case of the Cochituate Bank, Judge Bigelow, on the 27th September,
announced the decision of the fbll bench of the Supreme Court, namely, that all cre-
ditors of the bank share pro rata in the dividends, and that the remedy for the bill-
holders, if any , is against the stockholders. The receivers will, of course, soon
declare the dividend to be paid.
Indiana Currency. — On the 2 2d ult, at a meeting of the delegates of tho several
railroad companies of Ohio and Indiana held at Columbus, Ohio, it was resolved,
“that it is inexpedient for railroad companies to receive the bills prohibited by the
‘Act of the State of Ohio to prohibit the circulation of foreign bank-bills of a less
denomination than ten dollars,’ under any circumstances whatever.” At the same
time the Convention resolved to abolish the system of free passes; to dispense with
the aid of agents or runners by the 1st November ; to increase their rate of fares to
cents per mile for through, and of 3 for way-passengers, in first-class cars ; 2 cents
per mile for through passengers in second-class cars, and 1 cent per mile for emigrant '
passengers by freight trains. The freight rates are raised in like proportion.
Memphis. — Twenty thousand dollars of the ten-dollar bills of the Mechanics’
Bank, Memphis, Tennessee, were stolen from the room of the President on tho 26th
September. They are numbered firom 1 to 1250, inclusive, and dated July 4, 1855,
with a largo blue X engraved on the lower sido of the bill, between the vignettes. The
President states that nono of the bills of the above date, mark, and denomination,
have been put in circulation by the bank, and will not be paid. Ho fiirther states
that he recovered $12,000 of said bills.
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404
Notes on the Money Market.
[November,
Note* on tfje JKones JKartut.
New-Yokk, October 25, 1854
Exchange on London, sixty day? sight, 9| a 9f premium.
Wx have no features to record In the monej market more favorable than those which existed a
month since. On the contrary, the events of the present month show a greater stringency in money
affairs and more disturbance in the commercial relations of the country. There is a marked decline
in the foreign imports at New- York and other cities, but the enormous debt created abroad six and
twelve months since has continually hampered the money market, and has, within the same period,
crushed some of our oldest firms.
At the South, (including Ncw-Orleana, Mobile, Savannah, and Charleston,) a distressing mortality
has prevailed, so as seriously to interrupt the usual courso of business. The exports of cotton from
those cities which generally furnish, at this period of the year, a substantial basis for bills on
Europe, are thus in a large measure deferred until the provalent epidemic shall be removed. The
market values of produce received at New -Orleans during the past commercial year, (ending Sep-
tember 1, 1854,) were estimated at nineteen millions less than for the year preceding : the principal
falling off being in cotton, from $68,000,000 to $54,000,000. The aggregate receipts for each of the
post thirteen years having been as follows:
Tear.
Amount ,
Year.
Amount
Tear.
Amount
1858-91,
$115,886,000
1848-49,
$81,989,000
1844-45,
1852-58,
184,288,000
1847-48,
T9, no, 000
1848-44,
60,094,000
1851-58,
108,051,000
1845-47,
90,088,000
1842-48,
1850-51,
106,924,000
1845-46,
.... 77,198,000
1841-42,
45,716,000
1849-50, 96,897,000
The stringent condition of the money market in the Atlantic cities is shown by the numerous
failures that have taken place during the past few weeks. Among the latter is that of Messrs.
Gibson, Stock well A Co., a firm hitherto possessed of a large capital, and high character and credit
We hear from Boston that the money market of that city is more straitened than at any time
during the last two years. Among the commercial failures reported in Boston are the following
houses: Samuel Sandford, a large bolder of real estate; Messrs. Samuel F. Morse A Co., clothing
and dry-goods firm; Messrs. Lincoln, Wing A Co., Australia trade; Chapin A Whitton, wholesale
druggists.
At Philadelphia, the failure is announced of Messrs, Bead, Brothers A Co., dry -goods jobbers,
with heavy liabilities. The firm publish a card, stating that they have resolved upon putting the
affairs of the late firm into liquidation, and cautioning holders of their paper from hastily negotiat-
ing the same.
Some of the hanks of this city have likewise exhibited weakness, and three of them have been
compelled to close their doom. These were the Eighth Avenue Bank, suspended 6th Inst II. The
Knickerbocker Bank, 11th Inst, and the Suffolk Bank, closed on the 11th inst
The three suspended banks of this city make the following exhibit of liabilities :
Knickerbocker. Svtfblk, Eighth Avenue.
Loans, $507,000 $897,000 $108,000
Specie, 48,000 8,000 1,200
Circulation, 89,000 88,000 82,000
Deposits, 898,000 68,000 84,000
The liabilities of the Suffolk Bank will probably be liquidated within sixty days. The individual
deposits on the 11th Inst were only $55,988
Balances due other banks, , 12,800
Actual circulation, 88,000
$101,788
The withdrawal temporarily of the capital and circulation of these institutions will serve further
to curtail the active resources of the community.
The suspension of the Eighth Avenue Bank In N. Y. had for some days created an unfavorable
feeling towards the Knickerbocker Bank, corner of Eighth Avenue and Fourteenth street Unfor-
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405
1854.] Notes on the Money Market.
tunately for the latter institution. It had become the recipient of the deposits of the Knickerbocker
Savings Bank. Such deposits are apt to be fluctuating, and the Bank in the present case was
drawn upon heavily. At a meeting of the Clearing-House Committee on the 17th, the Knicker-
bocker Bank was excluded from the Association by virtue of their 19th rule, as follows:
MFor cause deemed sufficient by the Associated Banks, at any meeting thereof any bank may be
expelled from the Association, and debarred from all the privileges of the Clearing-House, provided
a majority of the whole number of Associated Banks vote in favor thereof.”
The action of the Committee was confirmed on the following day at a general meeting.
The connection between Banks of Issue and Savings Banks should be avoided. The latter are
no advantage to the former, And In times like the present when excitement is easily created and a
run easily and unnecessarily produced, they Jeopard the safety of the former. Independently of
this consideration, savings deposits should never be hazarded with the operations of a Bank of
Issue. Savings deposits should be carefully invested as trust funds, in the most solid securities ;
and in such securities as can be readily converted Into cash at a few hours1 notice.
The Clearing-House has now been in operation more than one year. Its results have been
highly satisfactory to the banka, It has saved them a vast deal of labor, risk, loss, and trouble. At
the same time it has enabled the cashiers and tellers and book-keepers to give closer attention to
other matters before them. It was also the means of dosing about fifty accounts in each bank In
the city : an aggregate of twenty-five hundred accounts. But the principal convenience has been
in the mode of adjusting balances, all which has been done with the intervention of only small sums
in ooin.
The aggregate payments through the Clearing-House for the fifty-two weeks endlqg 10th tost,
were nearly six thousand millions of dollars, or about nineteen millions of dollars per day. The
average payments in ooin or in coin certificates being somewhat less than one million of dollars per
day.
The effect of the Clearing-House has been to create more prompt settlements by and between
the numerous banks of the city, and to eompel the smaller and weaker ones to restrict their
business.
The contraction since August 6 is shown to be nearly seven millions of dollars, and within the
peat two weeks ftilly $4,800,000.
The annexed statement exhibits the average condition of the leading departments of the banks
of Boston daring the past twenty weeks:
w
Loom.
Specif.
Deposits.
Circulation*
June 5,
12,840,817
$13,270,002
$8,277,019
June 19^
2,988,521
18,129,602
8,400,280
June 19,
2,929,756
18,298,887
8,221,887
June 26,
2,796,914
18,015,916
8,058,265
July 8,
2,644,883
13,1S3,196
8,099,089
July 10,
2,889,025
12,788,605
9,158,459
July 17,
2,807,795
12,917,429
8,562,122
July 24,
2,984,940
12,672,918
8,541,494
July 81,
2,892,740
18,159,082
7,859,255
Aog. T,
Aug. 14,
60,855,906
2,904,012
13^07, $54
8,207,597
50,907,742
2,878,898
18,504,750
8,184,828
Aug. 81
2,858,684
18,867,501
8,087,008
Aug. 28,
51,589,519
2,872,742
18^09,477
7,972,888
8«pt 4
2,626,442
13,182,571
7,996,799
Sept n,
2,584,491
12,799,689
8,623,771
Sept 18,
2,295,152
12,464,357
8,504,865
Sept 95,
2,845^92
11,903,980
8,8S5,806
Oct 8,
2, 884^97
12,208,225
8,218^16
Oct t,
2,720,698
12,816,662
9,049,165
Oct 6,
8,068,359
18,794,878
8,816,761
Oct 88,
8*812,565
14,052,928
8,718,781
The export of coin for the current year has been greater than at any former period, namely :
January, $1,845,689 June,
February, 579,794 July,
March, 1,466,197 August,
April, 8,474,625 September,
May, 8,651,696 October, 91 days,.
Total, $88,410,828. For the same period in 1858, $19,562,769, and in 1852, $22,242,779.
$6,168,188
. 2,922,453
. 4,548,220
. 6*547,104
. 8,906,580
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406
Notes on the Money Market.
[November,
A defalcation of the Paying Teller of the Ocean Bank waa discovered on the 19th lost, when the
Board authorized the following statement to be made :
M In order to correct an exaggerated rumor, I deem it proper to state that the late Paving Teller
of this Bank Is deficient in his funds to an outside amount of seventy-five thousand dollars. The
Bulk has a surplus of $45,000. Its capital of one million will be but little impaired, and there will
be no interruption of its business. Touts, respectfully, J. 8. Gibbons, Cashier.
“Ocean Bank of the City of New- York, Oct. 19.”
The Teller had held this office ever since the organization of the Bank five years ago, and has
always had, to the last moment, the ftill confidence of the Board of Directors. Fortunately for the
stockholders, the loss will evontually be much reduced by availing of the securities of the Teller, and
by his bond. Instances of such losses are rare in this city, and as the best are liable to temptation,
it has been suggested that similar losses can in some measure be avoided by a change of duties
between the paying and the receiving teller of the Bank. In the present case we learn that th©
process of defalcation was in the certification of checks that were not good, and drawn by parties
who at the time were aware of the fraud, and are thus open to a charge of fraud and collusion.
The North-Carollna State six per cent loan of $260,000 was taken at Raleigh on the 20th Inst, at
an average premium of per cent, the purchasers paying the accrued interest from 1st July. No
bids were received from New- York, and the whole loan, with the exception of $24,000, was taken
by parties in North-Carollna. A prior six per cent loan for that State was taken by New- York
capitalists in March, 1858, at 105.20 per hundred dollars; another of $500,000 in October, 1858, at
three per cent premium for account of the Sinking Fund of Alabama; and another loan of $500,000
in March la&t, principally by New-York capitalists, at an average of 104.25.
The circulation of the Indiana banks was extended too rapidly early In the present year. The
neglect of those banks to provide a redeeming point for their bills has Induced the Ohio and Ken-
tucky banks to refuse them.
The intelligence from Cincinnati is to the effect that two or three of the private banking firms
have had a run upon them for balances. Messrs. Outcalt & Co., and Mr. P. B. Manchester, bank-
ers, have suspended. The Newport Safety-Fund Bank and the Kentucky Trust Co., at Covington,
have both suspended, as well as several of the free banks of Indiana. Messrs. Ellis A Sturgea
proved themselves too strong for the run, and are perhaps better fortified (as they were upon a
similar occasion two years ago) than at the commencement of the drain. The Citizens' Bank is
reputed to have large capital, and to be abundantly able to meet its liabilities. The run upon this
firm created no alarm. It is generally believed at Cincinnati that the present discredit of Indiana
money will in a short time have a good effect upon tho currency. The Indiana free-bank bills
have, for some months past, displaced the Ohio bank paper, which Is well secured and convertible
at all times into coin or Eastern exchange. The latter paper will now obtain more general circu-
lation, and be more acceptable to the people of that State.
The heavy drains upon European capital, for the support of tho war, have not been very seriously
felt yet. Government expenditures of this naturefwill bo felt long after the war shall terminate.
When we consider the large force employed by both sides in the present struggle, It will be seen
that the accumulated debt of Russia, England, France, and Austria, will be a very severe burden
upon them. Hence the commercial circles of tho United States need not look abroad for that
abundant supply of capital with which, for many years past, Europe has supplied us.
The London Times of the 5th inst, says, it became generally known yesterday, that the bills of
Mr. Edward Oliver, an extensive merchant and ship-owner of Liverpool, have been returned. The
position of his house, however, is of Buch importance that tho strongest efforts are in progress to
avert a permanent stoppage. Its liabilities are stated at £700,000, while the value of the assets,
chiefly in ships, is asserted to be over £1,000,000. Meetings of some of tho banks and the leading
firms have take^ place, and a committee has been appointed to ascertain the correctness of these
figures. Should it clearly appear that the hoped-for surplus exists and merely requires time for
realization, sufficient aid, it is understood, will be at once afforded to prevent a final suspension.
Should that event not bo averted, it is feared other houses will fall Whatever may be the view
taken, it is to be anxiously hoped that nothing will be sacrificed through panic just at a moment
when all the evils of a long period of pressure are gradually disappearing, and every prospect is
presented of an easier and more healthful state of business than has prevailed for many months.
The bills of Messrs. Jamos McHenry A Co., of Liverpool, also, have been returned to-day ; but the
amount of their liabilities, which are believed to bo very large, has not been stated The difficul-
ties of this house have occasioned less surprise than thoso of Mr. Oliver, since, during the last five
months, they have been reported to have returned about £100,000 or £180,000, of drafts drawn upon
them from New-York by a merchant who was supposed on that side to act as their agent The
reason given for the dlsfc jor of these drafts was, that they had been drawn without instructions.
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1854.] Notes on the Money Market.
Mosers. McHenry * Co. are understood to have speculated largely In cotton and corn as well as
other produce, and were represented as having made £98,000 by their grain transactions during
last autumn and spring.
The Committee of the Stock Board who have the How-Haven Railroad fraud in hand, have
employed eminent counsel in behalf of the holders of the disputed stock. Our pages contain
the elaborate opinion of Judge Kirkland on the subject This opinion will be read with inter-
est not only by those concerned directly in the matter at issue, but by all persons who are interested
in monied and railroad corporations, either as directors, officers, or stockholders.
Judge Kirkland concludes that Mr. Schuyler, in the issue of certificates of shares, was acting
within the scope of his authority. In fact the community at large have no means of ascertaining
when an over-issue takes place ; they rely upon the directors of a company to establish such guards
and restrictions as will effectually secure holders from any frauds through the accredited agents or
officers of the corporation.
The noted case of the Bank of Kentucky ««. Schuylkill Bank, was a parallel case to that which
occurred with the New-Haven Railroad Company. The Schuylkill Bank at Philadelphia, was the
^ accredited transfer-agent of the Bank of Kentucky. Mr. Levis, as cashier of the bank at Philadel-
phia, was authorized by his board to discharge such duties, as an officer of the bank. He was guilty
of the same fraud as was committed by Mr. Schuyler, only to a less extent The Schuylkill Bank
repudiated bis acts, and refused to acknowledge their liability for such fraudulent transactions; but
the Pennsylvania courts decided that the Bank of Kentucky was entitled to recovery. This ruined
the Schuylkill Bank, and swept away nearly every dollar of its assets to liquidate the claim. The
Supreme Court of the United States confirmed this decision, and it may be now looked to as the
law of the land, and a precedent in all such cases. Its justice is universally acknowledged by the
bar, the bench, and the commercial community.
In reference to this Important case, and comparing it with the New-Haven case, Judge Kirkland
says, 44 In no important respect is it possible to distinguish the one from the other.'1
The difficulties in the money market have unfavorably affected the values of leading stocks.
Railroad shares have declined still farther than were quoted last month. U. 8. Six per Centa main-
tain their prices, and few of the bonds are in the market County bonds have declined to very
low rates; but the quantity offered is small. We annex a careful summary of prices for the past
six weeks, as a record for fixture reference :
Sept. 15.
Sept 22.
Sept 29.
Oct 6.
Oct. 18.
Oct. 21.
U. 8. # per Cent, 1867-8,
... Ill
117
117*
117
117
118
Panama R.R. Shares,
... 88
85
89*
88
85
85
N. Y. A Erie R.R. 8haresr. .
... 44
44*
44*
44*
45
44*
N. Y. Central R.R. Shares^..
... 92
90*
91*i
91
9034
89*
Mich. Central R.R. Sharea*.,
... 90
89*
89*
88*
87
86X
Mich Southern R.R. Shares,. . ,
... 98
90
96
90
93
90
Nor. A Wor. R.R. Shares,.. . .
... 48
46
44
45
43
44*
Hudson River R.R. Shares,. .
... 48
42*
45
45
48*
40
Beading R.R. Shares*
... 70
74
76
75*
78
71*
Long-Island R.R. Shares*.. . . .
... 25
27 X
28*
28
27*
28*
Illinois Central R.R. Shares*..
... 100*
99*
9»X
99
98*
100
Illinois Central Bonds,
... 73*
74*
T4X
68*
68
69*
N. Y. Central R.R. Bonds*. . .
... 87*
87
86*
86*
S6*
88
Erie Railroad 7s, 1859,
... 98
94
90
90
92*
94
Brie Income Bonds,
... 77
81
84
84*
87
90*
Erie Convertibles, 18T1,. . ....
... 72
72*
71
70
69
75
Panama Railroad Bonds,. . . .
... 90
87
90
86
as
85
Pennsylvania Coal Co.,
... 98
101*
102*
100
99*
98
Del. A Had. Canal Co.,
... 112*
116
118
117
115
115
Cumberland Coal Co.,
... 82
80*
81
80*
29*
29*
New-Jersey Zinc Co.,
... 5*
5*
5*
5*
4K
4*
Canton Zinc Co.,
... 21
20*
20*
20*
20*
21
Nicaragua Transit
... 24*
28*
23*
22*
22*
/ 23
Hud. Rlv. R.R. 1st Mortr ...
... 101
101*
100
102
101*
102
Crystal Palace,
... 5*
8
—
—
2
8
New- York A Harlem,
... 88*
88*
82*
82
81*
81
The Directors of the Erie R. R. Co. have decided to issue new bonds, amounting to 14,000,000,
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Deaths.
[November, 1854.
Adequately secured by & sinking-fund of $85,000 per month ; this fund to be placed for Accu-
mulation in the hands of trustees, who shall act independently of the Company. The funds
Urns set apart to be invested by the trustees in the bonds thus issued, as long as they can be
bought at par— and then in such other bonds of the Company which can be bought at lowest price.
When the total debt of the Company shall be thus reduced to $20,000,000, the trust to be closed,
and the cancelled bonds to be delivered to the Company, who will then declare a stock dividend
equivalent to the amount absorbod by the sinking-fund, which In 1865 will bo about 48 per cent.
Four important legal opinions have appeared in support of the assumption by the Company of the
New- York A New -Haven Railroad over-issue, by the late Transfer- Agent, Robert Schuyler; one
from Mr. Charles P. Kirkland, one from Mr. Charles O'Conor, through the Evening Poet ; another
from Hon. Qrecne C. Bronson ; and a fourth from Mr. LoTd. Three of these eminent gentlemen have
been retained by the Committee of the Stock Exchange, who have the subject in charge, and who
are resolved that the case shall bo fairly put before the public and the courts, notwithstanding the
very extraordinary and mistaken step of the New-Haven Directors to prejudge the issue by solicit-
ing, and their publishing the opinion of learned counsel on the other side. The opinion of Mr.
Kirkland maintains that the celebrated result of the Kentucky Bank controversy covers the whole
ease. The parallel is complete, and the sense of the commercial interest, as well as the judgment
of the courts has affirmed the equity and wisdom of the assumption of the entire fraudulent issue
of a faithless agent, acting within the general scope of his authority. Mr. K. makes only two cardi-
nal points; first, on the liability of the principal for the acts of his agent, and secondly, that corpo-
rations, In tills respect, do not differ in the essential spirit of the laws of agencies from natural per-
sons, and cannot be made subject to a different rule.
The opinion of Judge Bronson, after treating the settled law of principal and agent, aa one
founded in common justice, and all essential to commercial security, in a trading community like
this, where agency in one form or another “ enters Into more than one half the business transactions
of the State," takes ground against repudiation by the New-Haven Company.
First. Because it has no sanction in the plea that the capital of the Company was exceeded by
the over-issue. Capital stock and certificates of ownership are two different things. Capital is the
fund gathered together for constructing and operating the road. The certificates are only the legal
evidence of an interest in the frind. The effect of the over-issue was to diminish the value of the
shares ; the fund remained precisely as it was before. The addition of 20,000 shares to the original
80.000 reduced the intrinsic value of each share to three fifth* qf what it was before.
Second. The ca«e would not have been changed if the Company had, by the over-issue, received
five millions instead of throe, as against innocent third parties ; nor would the holders of the last
20.000 shares stand upon a different footing from the first 80,000. But this point is not at issue.
The actual capital is not in excess ; too many certificates have been Issued, but instead of increasing
the capital, the value jno rata of all the shares has been diminished.
Third. The charter provision that the capital stock should be divided into shares of $100 each,
was not inserted to limit the capital— that had been already fixed. The value was a nominal one
fbr the convenience of the Company, and not one in which the State had any interest It was
not essential to the substantial powers of the Company. And the question, therefore, is reduced to
one between the Company and its members.
DEATHS.
At Newport, R. I., on Thursday, September 21st, Stephen Caiioon, Esq., formerly, and for
eighteen years, Cashier of the Newport Bank; and for ten years Treasurer of the State of Rhode-
I s land.
At Pulaski, Tenn., on Friday, September 22, Elisha B. Smito, Esq., Cashier of the Branch
Planters’ Bank of Tennessee, at that place.
At Brooklyn, N. Y., on Tuesday, July 4, John 8. Doughty, Esq., Cashier of the Atlantic
Bank, Brooklyn.
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UNIVERSITY OF CHICAGO
THE
BANKERS’ MAGAZINE,
AND
0tattBtical Bcgister.
Vol. IV. New Series. DECEMBER, 1854. No. VI.
t
THE NEWJOBK CLEARING-HOUSE.
Constitution of the New-York Clearing-House , adopted September, 1853.
§ 1. The name of this Association shall be “The New- York
Clearing-House Association.”
§ 2. The objects of the Association shall be the effecting at one
place of the daily exchanges between the several Associated Banks,
and the payment at the same place of the balances resulting from such
exchanges. But the Association shall be in nowise responsible in
regard to such exchanges, nor in regard to the balances resulting
therefrom, except so far as such balances shall be actually paid into
the hands of the Manager. The responsibility of the Association is
strictly limited to the faithful distribution by the Manager among the
creditor banks, for the time being, of the sums actually received by
him ; and should any loss occur while the said balances are in the
custody of the Manager, they shall be borne and paid by the Asso-
ciated Banks, in the same proportion as the other expenses of the
Clearing-House, as hereinafter provided for.
§ 3. The Association at present consists of the following members :
Bank op New- York,
Manhattan Company,
Merchants’ Bank,*
Mechanics' Bank,
27
Union Bank,
Bank op America,
Phenix Bank, ,
City Bank,
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UNIVERSITY OF CHICAGO
410
%
The New- York Clearing-House . [December,
North River Bank,
Tradesmen’s Bank,
Fulton Bank,
Chemical Bank,
Merchants’ Exchange Bank,
National Bank,
Butchers and Drovers’ Bank,
Mechanics and Traders’ Bank,
Greenwich Bank,
Leather Manufacturers’ Bank,
Seventh Ward Bank,
Bank of the State of New-York,
American Exchange Bank,
Mechanics’ Banking Association,
Bank of Commerce,
Bowery Bank,
Broadway Bank,
Ocean Bank,
Mercantile Bank,
Pacific Bank,
Bank of the Republic,
Chatham Bank,
People’s Bank,
Bank of North America,
Hanover Bank,
Irving Bank,
Metropolitan Bank,
Citizens’ Bank,
Knickerbocker Bank,*
Grocers’ Bank,
Empire City Bank,
Nassau Bank,
East River Bank,
Market Bank,
St. Nicholas Bank,
Shoe and Leather Bank,
Corn Exchange Bank,
Central Bank,
Continental Bank,
Bank of tiie Commonwealth,
Oriental Bank,
Marine Bank,
Atlantic BANK.f
§ 4. Each Bank belonging to the Association shall be represented
at all meetings thereof by one or more of its principal officers, and
shall be entitled to one vote.
§ 5. A general meeting of the Association shall be holden at the
Clearing-House, on the first Tuesday in October, in each year, at 12
o’clock M. At every annual meeting a Chairman shall be elected, by
ballot, to preside at that meeting and all subsequent meetings during
the year. Whenever he shall be absent, a Chairman pro tem . shall be
appointed. At the same meeting, a Secretary shall also be elected by
ballot
§ 6. Special meetings shall be called by the Clearing-House Com-
mittee whenever they may deem it expedient, or whenever they shall
be thereto requested by any seven of the Associated Banks.
§ 7. At all meetings of the Association, a quorum for the transac-
tion of business shall consist of a majority of the whole number of
Associated Banks.
§ 8. At every annual meeting a Standing Committee of five bank
officers shall be elected by the majority and by ballot, to be called the
Clearing-House Committee, whose duty it shall be to procure, from
time to time, a suitable room or rooms fur the Clearing-House ; to
provide proper books, stationery, furniture, fuel, and whatever else
may be necessary for the convenient transaction of business thereat ;
to appoint a Manager annually, and such clerks as may be necessary ;
to establish rules and regulations to be observed at the Clearing-House
in cases not provided for in this Constitution, subject to the approval
of the Association ; and generally to supervise the Clearing-House
affairs. This Committee shall have charge of the funds belonging
to the Association; shall draw on each Bank for its quota of the
* Since suspended
f All these Banks are enumerated in the order of commencement of business.
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\
\ . " J
1854.] 'H&fHeyf-York Clearing-House.
expenses ; and shall also, at the first meeting of the Association after
their election, submit detailed estimates of the expenditures that will
be required for the Clearing-House during the current year.
§ 9. The salary of the Manager shall always be fixed by the Asso-
ciation. The salaries of the clerks shall be fixed by the Clearing-House .
Committee. The Manager shall give a bond, with sureties, in the
sum of ten thousand dollars, and each clerk in the sum of five thousand
dollars, to be approved by said Committee.
§ 10. The Manager, under control of the Clearing-House Commit-
tee, shall have immediate charge of all business at the Clearing-House,
so far as relates to the manner in which it shall be transacted ; and the
clerks of the establishment, as well as the settling clerks and porters
of the several Associated Banks, while at the Clearing-House, shall be
under his direction.
§ 11. The Clearing-House Committee shall have power to remove
the Manager or any of the clerks whenever, in the opinion of the
Committee, the interest of the Association shall require.
§ 12. The hour for making exchanges at the Clearing-House shall
be 10 o’clock A.M., precisely. At one o’clock P.M., the debtor
Banks shall pay to the Manager, at the Clearing-House, the balances
against them, either in actual coin or in the certificates hereinafter
mentioned, except fractional amounts. At 1^- o’clock P.M., the
creditor banks shall receive from the Manager, at the same place, the
respective balances due to them, provided the balances due from the
debtor banks shall then have been paid.
§ 13. Should any one of the Associated Banks fail to appear at the
Clearing-House at the proper hour, prepared to pay the balanoe against
it, the amount of that balance shall be immediately furnished to the
Clearing-House by the several banks exchanging at that establishment
with the defaulting bank, in proportion to their respective balances
against that bank resulting from the exchanges of the day ; and the
Manager shall make requisitions accordingly, so that the general set-
tlement may be accomplished with as little delay as possible. The
respective amounts so furnished the Clearing-House on account of the
defaulting bank will, of course, constitute claims on the part of the
several responding banks against that bank ; but, as before stated, the
Association shall in nowise be responsible therefor.
§ 14. Errors in the exchanges, and claims arising from the return
of checks, or from any other cause, are to be adjusted directly between
the banks who are parties to them, and not through the Clearing-
House, the Association being in no way responsible in respect to them.
§ 1 5. Reclamations for errors and deficiencies in specie rc reived at
the Clearing-House, contained in bags or other packages, sealed and
marked in conformity w'ith any rules established upon that subject by
the Clearing-House Committee, should be made within a reasonable
time by the receiving bank directly against the bank whose mark the
sealed bag or package bears, the Association not being responsible for
the contents of such sealed bags or other packages.
§ 16. The Associated Banks shall, from time to time, appoint one
of their own number to be a Depositary to receive, in special trust,
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UNIVERSITY OF CHICAGO
412
The Neto-York Clearing-House. [December,
I
such coin as any of the Associated Banks may choose to send to it for
safe keeping. The Depositary shall issue certificates in exchange for
such coin, in proper form, and for convenient amounts. Such certifi-
cates shall be negotiable only among the Associated Banks, and shall
# be received by them in payment of balances at the Clearing-House.
Such special deposits of coin are to be entirely voluntary, each bank
being left perfectly free to make them, or not, at its own discretion.
The coin thus placed in special deposit is to be the absolute property
of such of the Associated Banks as shall, from time to time, be the
holders of the certificates, and is to be held by the Depositary, sub-
ject to withdrawal, on the presentation of the proper certificates, at
any time during banking hours.
§ 17. New members may be admitted into the Association at any
meeting thereof. Such new members shall pay an admission fee of
five hundred dollars, and shall signify their assent to this Constitution
in the same manner as the original members. But no new member
shall be admitted, except by a vote of three fourths of those present.
§ 18. A Standing Committee of five bank officers shall be appointed
at every annual meeting, to whom all applications for admission into
the Association shall be referred for examination.
§ 19. For cause deemed sufficient by the Associated Banks, at any
meeting thereof, any bank may be expelled from the Association, and
• debarred from all the privileges of the Clearing-House, provided a
majority of the whole number of Associated Banks vote in favor
thereof.
g 20. A Standing Committee of five officers of banks shall be
elected at every annual meeting, who, acting in concurrence with the
Clearing-House Committee shall have power, in case of extreme
emergency, to suspend any bank from the privileges of the Clearing-
House until the pleasure of the Association thereupon shall be ascer-
tained. But no such suspension shall take place unless a majority, at
least, of each of these two Committees shall be.present at the ordering
thereof, nor unless the vote be unanimous. In case of such suspen-
sion, the Clearing House Committee shall forthwith call a general
meeting of the Association to take the matter into consideration.
§ 21. Any member of the Association may withdraw therefrom at
pleasure, first paying its due proportion of all expenses incurred, and
signifying its intention to withdraw, to the Clearing-House Committee.
§ 22. The expenses of the Clearing-House, not including the
expense of printing for the several banks, (which last mentioned
expense shall be apportioned equally,) shall be borne and paid by the
several banks belonging to the Association, according to their respect-
ive capitals, as follows :
Banks having capitals of less than $500,000, shall pay $100 each
annually.
Banks having capitals of less than 1,000,000, and not less than
$500,000, shall pay $200 each annually.
Banks having capitals of $1,000,000 and over, shall pay $300 each
annually. And in the same proportion, if more funds become neces-
sary.
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UNIVERSITY OF CHICAGO
1854.] Operations of the New- York Clearing-House. 413
§ 23. This Constitution, when agreed to by the Association at any
general meeting thereof, by a majority of votes, shall be submitted to
the respective Boards of Directors of the several banks herein named
as members of the Association, for their adoption. When adopted
by a majority of the whole number of banks, it shall be deemed and
taken to be in full force and operation. Adoption shall be signified
by the signature of the proper officer of the bank to two copies
hereof, one to be kept by the Chairman of the Clearing-House Com-
mittee, and the other by the Secretary of the Association. A copy of
the vote or resolution of the Board authorizing such signature shall be
deposited with the Secretary. Such banks as shall not adopt this
Constitution within two months from the time it is agreed to in gene-
ral meeting as above mentioned, shall, at the expiration of such two
months, cease to be members of the Association, provided the Con-
stitution shall then be in operation.
§ 24. Amendments of this Constitution may be made at any meet-
ing of the Association, by the vote of a majority of all the members
thereof notice of the proposed amendments having been given at a
previous meeting.
OPERATIONS OF THE NEW-YORK CLEARING-HOUSE,
For the Year commencing Oct. 10, 1853, and ending Oct. 9, 1854.
Week ending
Total Clearing #.
Bal.Paid.
Week ending
Total Clearing*.
Sal Paid.
October 17,....
$129,799,058
$7,189,291
April,
IT,
.. 128,572,764
5,989, C43
44
84,...
.... 117,871,196
6,201,057
44
*4,
.. 120,481,608
5,910,912
a
«...
.... 105,626,544
6,055,92#
May
1
.. 116,698,943
5,504,4*2
Nov.
7,...
.... 115,556,121
5,729,672
u
8,
.. 189,891,546
6,930 574
u
14,...
.... 109, 881, 644
5,578,928
M
16,
.. 181,94#, 71#
6,102,324
N
«...
.... 119,896,451
5,418,144
44
«,
.. 124,744, 881
5,657,763
M
28,...
.... 99,436,806
5,035,883
. At
*»,
.. 123,058,443
5,773,916
Doe.
5,...
.... 115,SS0,S09
6,455,147
June
8,
.. 125,559,274
6,112,047
u
12,...
.... 109,427,908
6,087,706
44
M.
.. 128,748,755
6,0S2,2G8
u
19,...
.... 114, 828,863
#^$4,989
44
1».
.. 124,295,161
5,731,126
11
27,...
.... 107,897,118
5,940,620
44
26,
.. 117,960,517
5,88<\215
1651
Jjul
8,...
.... 98,220,192
6,150,091
July
44
8,
10,
.. 117,552,834
. . 107,493*34
6,754,887
5,167,063
u
9,...
.... 105,850,625
5,889,200
a
IT
.. 112,065,780
6,780,239
11
16,...
.... 107,231,435
5,344,896
44
H
. . 102*25,229
6,9S7,829
u
21,...
.... 106,555,580
4,962,286
41
81,
.. 95,193,023
6,709,879
11
2S,...
.... 101,004,929
4,735,968
Aug.
T,
.. 109,089,201
6,189,6(8
Feb.
6,...
.... 119,898,637
6,154,177
44
14,
.. 102,263,605
5,834,945
14
ia,...
.... 108,250,076
5,749,860
14
«.
.. 100,781,043
6,094,278
U
20,...
.... 111,418,265
6,736*76
44
28,
.. 100,054,045
5,634,486
U
27,...
.... 109,970,249
5,618,983
Sept
4* •
.. 98,453,915
5,344,881
March
6,...
.... 121,919,296
5,872,295
U
ii
.. 106,505,009
6,524,242
a
18,...
.... 115,625,088
6,080,708
44
18,
.. 109,171*48
6,595.698
a
20,...
.... 124,922,128
6,069,546
41
25
.. 106,800,144
5,691,927
u
25,...
.... 114,261,026
5,345,086
Oct,
2,
.. 104,921,469
6,036,723
April,
8,...
.... 117,697,377
5,522,896
14
9
.. 112,881,403
5,661,496
*
10,...
.... 127,758*70
6,223,602
Tot&l 62 weeks,
..$5,886,758,588
$304,132,437
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UNIVERSITY OF CHICAGO
414
Frauds on the
[December,
FRAUDS ON THE NEW-YORK <Se NEW-HAVEN RAIL-
ROAD COMPANY.
Report of the Directors of the New- York <t New-Haven Railroad Co.,
to the Stockholders , at their Special Meeting , October 3, 1854.
The Directors of the New- York & New-Haven Railroad Company
submit to the stockholders the following report, in relation to the issue
of fraudulent stock by their late President :
Robert Schuyler was first appointed the President of the Company
on the 19th day of May, 1840, and, by successive and unintermitted
elections, he has held the office up to the 3d day of July last, when be
sent to one of the members of the Board a letter resigning his office.
During that period of eight years, and up to the discovery of his recent
frauds, he had sustained the highest reputation for intelligence and
integrity, and was particularly distinguished for his experience and
skill in the construction and management of railroads. An abundant
evidence of this is found in the eagerness with which his services and
advice were sought on these subjects, and the numerous lucrative and
responsible railroad offices he has held during that time, and the power-
ful influence he has always exercised in their government.
While President of this Company he was, of course, its chief execu-
tive officer, exercising the principal powers of the corporation, enjoying
the full confidence of the Company and of the Directors, who never
had, until the recent discovery, the slightest doubt of his perfect integ-
rity and honor.
As some evidence of the estimation in which Mr. Schuyler was held
by the stockholders, we refer to the following resolution, passed unani-
mously at a meeting of the stockholders held in November, 1849 :
“Resolved, That the stockholders have entire confidence iu the Presi-
dent and Board of Directors, believing them to have executed the im-
portant trust committed to them not only with zeal and fidelity, but
with high intelligence.”
It is apparent from the repeated and unanimous votes by which
Mr- Schuyler has been constantly reelected, that his conduct as Presi-
dent has met the approbation and confidence of the stockholders.
Mr. Schuyler was also the Transfer-Agent of the Company from the
commencement of its operations. The Company being a Connecticut
corporation, its principal office was necessarily in that State.
The principal part of its business, however, was transacted in the
city of New-York — its offices were practically there. Its principal
stock account was kept there, and Mr. Schuyler, when acting in that
capacity, exercised the office and duty usually intrusted to one of the
highest officers of all such corporations.
The provision for the transfer of shares in New-York was such as
obtained generally in that city, except the greater security that the
Transfer-Agent was a Director and President of the Company, possess -
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UNIVERSITY OF CHICAGO
415
1854.] N. Y. iY. H. Railroad Company.
ing its unlimited confidence and that of its stockholders, and was not
a mere clerk or agent employed at a salary. His duties and powers
as such were clearly marked out by the by-laws of the Company. No
greater guards could have been thrown around the execution of his
duties, unless they were such as to imply entire unfitness for any posi-
tion of trust ; and his fall struck the Directors, as it did the commu-
nity, with profound astonishment.
The large sales of the Company’s stock had attracted the attention
of one or two of the Directors as early as the 29th of June, but no
suspicions were entertained by any one of Mr. Schuyler’s integrity, or
that any thing was wrong in the management of the Company, until
the afternoon of the third of July, 1854, when a member of the Board
met Mr. Schuyler’s legal adviser, on his way, as he said, to deliver a
letter to the Board, inclosed in a sealed envelope addressed to another
Director, who was then out of town ; the bearer of the letter intimated
that it contained some information in regard to an over-issue of
stock, but declined delivering the letter, and it was not received by
the person to whom it was addressed, until the next day. The Direc-
tor with whom this conversation was had, took immediate possession
of the stock ledger, and, with several other Directors, spent the 4th of
July in examining them. The fraud was then discovered, and notice
given of it on the morning of the 5th of July, upon the several bulletins.
The following is a copy of the letter :
“ New-York, July 3d, 1854.
“ Gentlemen : I beg to resign my seat in the Board of Directors
of the New-York & New-Haven Railroad Company, and also the office
of President, and the appointment of Transfer- Agent of the stock of
the Company. Your attention to the stock-ledger of your Company is
essential, as you will find there much that is wrong. The details can be
furnished you with precision, though I cannot do so. In reference to
the connection of these transactions with R. & G. L. Schuyler, I wish
to make my solemn assurance, that in no way has my brother been
concerned in them, nor has he ever known or been informed of them ;
in fact, there was no mode in which he could obtain information except
from myself, and I have ever been quite as careful to keep him in
ignorance as any other person. He could not even have ascertained
the facts from our own books and accounts, and to those of the New-
Haven Company in my charge he had no access.
“ Your obedient servant,
“ Robert Schuyler.
“To the Directors of the N. Y. <t N. H. R. R.”
A notice was also given in the newspapers on the evening of the
5th of July, in these words :
“ New-York & New-Haven Railroad Company. — At a meeting of
the Board of Directors of this Company, holden this morning, it has
been made apparent, on a hasty examination of the stock-books, which
have been kept by the late President, Robert Schuyler, as Transfer-
bv Google
Original from
UNIVERSITY OF CHICAGO
Frauds on the
[December,
416
Agent in New-York, that by means of false entries, erasures, and other
similar practices, an issue of illegal and fraudulent stock has been
made within a few months past, to the amount, as nearly as can be
ascertained, of nearly twenty thousand shares, or two millions of dol-
lars. A rigid examination will immediately be made, by order of the
Directors, of the books and papers, and the result, when accurately
ascertained, will be made public.
•• In the mean time, the transfer-books are closed, by order of the
Board. By order of the Board of Directors,
“ W. W. Boardman,
- New-York , July 5th, 1854. President, •pro tem .”
The Directors also took legal advice as to the duty devolving upon
them in the emergency, in pursuance of which they appointed a Com-
mittee to examine the stock accounts of the Company, to ascertain
precisely the amount of the capital stock then outstanding, and how
much of the same had been fraudulently or improperly issued, and
make a report as soon as possible. As soon as proper assistance could
be procured, the Committee entered upon the discharge of their duties,
and the result of their investigation is contained in the report herewith
submitted. By this it appears that the genuine capital stock of the
Company consists of 30,000 shares of one hundred dollars each,
amounting in all to 3,000,000 dollars. That Mr. Schuyler has issued
false certificates, purporting to be certificates of stock to the firm of
R. & G. L. Schuyler, of which he was a member, and also has fraudu-
lently issued other like false certificates to other persons whose names
appear in the report, amounting in the whole, between the 18th Octo-
ber, 1853, and the 3d July, 1854, inclusive, to 17,732 shares. Besides
which, there are outstanding certificates in the name of R. & G. L.
Schuyler, covering 1048 shares, and in the name, of R. Schell & Co.,
100 shares. The stock which these last certificates originally repre-
sented, has been transferred by R. & G. L. Schuyler, and Schell
& Co., without surrendering the original certificates, and the per-
sons holding these certificates have no such stock to their credit on
the books of the Company. Of the fraudulent stock, 9283 shares
now stand upon the books of the Company, in the names of parties
to whom they were transferred and issued by R. &. G. L. Schuyler.
Of the outstanding certificates in the name of R. & G. L. Schuyler,
872 of the 1G48 shares were issued after they had overdrawn their
account, which first occurred October 18, 1853. And those in the
name of R. Schell & Co., 1G0 shares, were all for spurious stock.
Much time has been consumed in this investigation, but it could not
have been done in a shorter period. The Directors believe that the
results are accurately ascertained, and that the report .presents the facts
as they now exist.
An exceedingly important question arises from these facts. Are
the holders of these false certificates of shares to be regarded and
treated as’ stockholders of the Company? Upon this subject and the
other questions connected writh it, the Board submits herewith the
Got gle
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UNIVERSITY OF CHICAGO
417
1854.] N. Y. arteLJf. M^Railroad Company.
opinion of their counsel. They say that no power short of the Legisla-
ture of the State of Connecticut, with the assent of the stockholders,
can increase the capital stock. And that the fraudulent acts of an
officer, so greatly transcending any power conferred upon him, or
which the Directors or the Company could confer on him, do not bind
or implicate the Company in any way.
With these facts and opinions before them, the Directors have called
a special meeting of the stockholders, at the earliest moment the by-
laws would allow, to ask their advice and assistance.
The questions arising are so interesting and important, and involve
so great an amount of pecuniary interests, that the Directors, whatever
may be their individual views as to the duties and obligations of the
Company, decline to make any decision, or to express any opinion in
regard to them ; for independent of any doubt of their power in the pre-
mises,*and of any validity to be accorded to their determination, what-
ever they may believe justice and equity to require, they feel them-
selves concluded, by the opinion already referred to, from taking any
direct action upon the subject, and they submit the whole matter to the
judgment of the stockholders.
Upon one point, however, which is in the nature of a preliminary ques-
tion, and which must be settled before the others can be legally taken
up, there appears to be no reason for a difference of opinion. A meet-
ing of the stockholders must be legally constituted. Hence, who are
the legal members of the corporation and entitled to vote at its meet-
ings, is an important inquiry, and must be answered before the meet-
ing can be properly organized. The charter describes the members
as holders of the shares of the capital stock, and this capital stock it
limits to 30,000 shares. It then declares that “each share shall
entitle the holder thereof to one vote.”
It seems, therefore, that none but the holders of the original 30,000
shares and their successors can be members of the corporation, and
authorized to vote at its meetings. The charter and the by-laws of the
Company direct how the stock shall be transferred, and how a person
may, by such transfer, become the successor of an original stockholder.
A certificate of stock is only evidence. It is not the stock itself, and
if improperly or illegally issued, whatever other effect it may have as
against the Company, it does not constitute the holder a member of
the corporation, or entitle him to vote at its meetings. The proceed-
ings of the corporation would be vitiated by the admission of those
who are not actually corporators to the privilege of voting, and the
Directors therefore have been compelled to express the opinion, which
they and their counsel entertain, that none but the original stock-
holders and their legal successors can vote at the contemplated meet-
ing. They do not intend, however, to give or intimate any opinion as
to the absolute or equitable rights of those who hold the spurious cer-
tificates, but simply, for the guidance of the presiding officer in organ-
izing the meeting, and for that purpose only, to determine that only
the holders of the original capital stock and their successors, as they
appear on the books of the Company, and by the investigations already
28
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UNIVERSITY OF CHICAGO
418
N. Y. and N. H. Railroad, Frauds. [December,
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referred to, can be admitted to vote. The Directors also wish it to
be distinctly understood, that they do not design to express or intimate
any opinion as to the course proper to be pursued by the corporation
relative to the fraudulent issue of stock. That is a question, the deter-
mination of which belongs to the stockholders collectively.
The unfortunate defection of Mr. Schuyler induced the Board to
institute an immediate and careful examination into the pecuniary
affairs of the Company. With the assistance of a skillful book-keeper,
the accounts of the Treasurer have been carefully examined and found
to be correct, and properly vouched for. The bond account has also
been examined, and it is found that for all the bonds issued by the
Company, the Company has received the proper consideration in
money, except for a small amount, which were hypothecated as secu-
rity for a note given to raise funds to meet other bonds, which note
will be paid at maturity and the bonds returned. With the exception
of the fraudulent issue of stock already mentioned, the Directors have
not been able, upon careful examination, to discover any thing wrong,
or any attempt at fraud on the part of Mr. Schuyler in the affairs of
the Company, with the exception of two acceptances of $10,000 each,
purporting to have been drawn by R. & G. L. Schuyler, on the Com-
pany, and accepted by R. Schuyler, as President. These wrere not
transactions of the Company, and the avails of the drafts were never
realized by it, and as the transaction was out of the common course,
and he had no authority to accept for the Company, or to pledge its
credit as security for his firm, the Directors have ordered their Trea-
surer not to pay them, and will resist their collection, if it should be
attempted. In view of the great interests involved, and of the proba-
ble consequences suspended upon the proceedings of the approaching
meeting, the Directors beg leave to urge upon every one entitled to
take part in its proceedings, to be present, in order that the course
which wisdom and justice shall require, may be adopted.
By order of the Board of Directors,
Wm. W. Boardmax,
New-York, Sept. 13, 1854. President, pro tem.
OPINION OP COUNSEL.
Our opinion has been requested by the New-York & New-Haven
Railroad Company as to their liability for the excessive and unauthor-
ized issue of stock by Robert Schuyler, its late President and Transfer-
Agent in New-York.
The facts, as detailed to us, are substantially these :
The Company was incorporated by the Legislature of the State of
Connecticut, in May, 1844. The charter contains this clause:
“ § 2. That the capital stock of said Company shall be two millions
of dollars, with the privilege of increasing the same to three millions
of dollars, and to be divided into shares of one hundred dollars each j
Google
Original from
UNIVERSITY OF CHICAGO
Opinion of Counsel.
419
1854.]
■which shares shall be deemed personal property, and be transferred
in such manner and at such places as the by-laws of said Company
shall direct.”
Immediately after the organization of the Company, the following
rules were adopted by the Board of Directors, under this section, regu-
lating the transfer of its shares :
“The principal transfer-office shall be in the city of New-Haven,
but transfer-agencies may be established in the cities of New-York and
Boston, by resolutions of the Board of Directors, and all transfers of
stock at any office shall be made under and in compliance with such
rules and regulations, and by such instrument of assignment and trans-
fer (which need not be under seal) as may from time to time be made,
ordered, and appointed by the Board of Directors. Certificates of
stock shall be in such form, and issued under such rules and regula-
tions, as the Board of Directors may from time to time appoint and
direct ; but when a certificate of stock has been issued to any stock-
holder, no second or duplicate certificate shall be issued, and no trans-
fer of the stock shall thereafter be made or permitted without the sur-
render of said certificate, unless the same shall be lost or mislaid, and
then only on special resolution of the Board of Directors, and the
compliance with the rules and regulations, conditions and stipulations,
as to the renewal of certificates lost or mislaid, which may be adopted,
imposed, and required from time to time by the Board of Directors.”
Schuyler, being the President of the Company, was appointed the
transfer-agent in New-York; similar agencies being established in
New-Haven and Boston. Soon afterwards the capital was increased
to three millions, as authorized by the section already quoted ; the
whole of which was paid in, and scrip certificates issued for the shares
to the respective owners. The capital had thus stood at three mil-
lions, beyond which it could not be increased without an act of the
Legislature of Connecticut, for nearly ten years. In the autumn of
1853, and subsequently, Schuyler, acting as transfer-agent, having
blank certificates of stock in his possession for the purpose of trans-
ferring existing shares, when the old certificates should be surrendered,
made an illegal issue of certificates, purporting to represent shares in
the Company, without the knowledge or authority of the Board of
Directors, or any member of it ; no prior valid certificate of shares
being surrendered. These illegal certificates were in the same form,
and signed in the same manner as the valid certificates, with the tame
of “ R. Schuyler, Transfer-Agent ;” it having been the uniform usage
of the Company to affix no name to their stock certificates other than
that of their transfer-agent at the place where the transfer was made.
These certificates, to the amount of nearly two millions of dollars,
were issued to R. & G. L. Schuyler, (a firm in which he was a mem-
ber,) and to other persons to whom they assigned them, and were
used by Schuyler in his own private business, or in that of the firm ;
chiefly by borrowing money upon them, and pledging them as col-
lateral. None of the transactions in these shares were, ostensibly or
really, for the benefit of .the Company ; nor in passing them did Schuy-
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UNIVERSITY OF CHICAGO
420
N. Y. and N. H. Railroad Frauds . [December,
lcr profess to act as the President or transfer-agent of the Company,
but simply for the firm, as the owners of the shares. Each certificate
was for a large number of shares, and those issued to the firm were
generally delivered with blank powers of attorney to transfer the
stock, signed by Schuyler in the name of his firm, without being
actually transferred on the books.
Upon these facts, w*c are of opinion,
I. That these certificates of stock are illegal and void, and that they
confer upon the holders no rights as stockholders. If the Board of
Directors had originally issued a like excessive number of shares, their
act in so doing would have been illegal and void ; and these can stand
upon no better ground. Indeed, the holders of them are in a much
worse condition than the holders of such shares would have been.
II. That the Company is not bound to, and that it cannot, lawfully
recognize or adopt them, as representing shares in the Company, or as
entitling the holders to any of the rights of shareholders. The Board
of Directors could not, by any vote or resolution whatever, increase
the stock beyond the three millions ; their power upon that subject
was exhausted when they brought it up to that sum, and any effort to
go beyond it, would not only have been invalid, but a violation of the
charter warranting a forfeiture. It follows as a necessary consequence,
that no subordinate agent of the Company could do what the Board of
Directors itself could not, and that the Board of Directors have no
power to ratify or confirm any act which they could not originally
perform. The power to admit the holders of these illegal shares as
owners of stock, requires not simply their admission as stockholders,
but the power to reject and exclude an equal number of lawful share-
holders from their rights as such. If the holders of the illegal shares
are entitled to come in at all, it is as stockholders in a Company with
a stock of three millions ; they received the shares as such and not as
shares in a capital of five millions, and their just rights in that event
require the ouster of an equal number of lawful shares, so as to keep
the capital within three millions. It is quite obvious that the Com-
pany have no power to do either of these things.
III. That the unauthorized and illegal acts of the transfer-agent in
issuing these certificates to his own firm, and raising money upon
them for his and their own use, does not create any debt or any legal
obligation against the Company. He was only the agent of the Com-
pany to issue new certificates of stock for the three millions of its
lawful capital, whenever certificates previously issued w ere surrender-
ed. His agency did not extend, nor could it law fully extend, to the
creation of new shares. No such power had been conferred upon the
Company, and of course it could not be conferred upon him. He
was not empowered to sell or transfer new shares, but simply to trans-
fer the old ones, and all beyond this was plain excess of power, and an
obvious illegality. A corporation is never responsible for the unau-
thorized and unlawful acts of its officers, transcending their corporate
powers, though done colore officy. To fix the liability, it must appear
that the officers were authorized by the charter to do the act, or that
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Opinion of Counsel.
421
it was done bona fide in pursuance^ of a general authority in relation to
the subject of it, or that it has been adopted or ratified by the corpo-
ration, where it is a matter within the corporate authority.
In the case of a general agent, his acts will be binding on the prin-
cipal, though he violates his particular instructions, provided the acts
done in violation thereof come within the general scope of his author-
ity. But it cannot be said that an act extending beyond the subject,
and of course beyond the limits of the agent’s authority, can be valid,
when it also transcends the power and authority of the principal him-
self, and more especially when in thus transcending the authority of
the principal, it is at the same time illegal and against the policy of
the law.
IV. It follows from these views, that the Board of Directors has no
more authority to recognize the holders of these illegal certificates as
creditors of the Company, for the amount advanced upon them, than
it has to admit them to the rights of stockholders.
The directors of a corporation have no power to appropriate its
funds, or to give an obligation to pay an illegal claim which is made
against it. This was settled by the Court of Appeals in the case of
Halstead against The Mayor of Ncw-York, (3 Comst. R., 430,) where
the corporation of this city gave its drafts to the corporation counsel
to pay the cost of defending a suit against some of the aldermen who
had done an act in which the city was not interested, in violation* of
law ; the defence having been assumed by a resolution of the common
council. It was held that the drafts were void, even in the hands of a
third party. If, therefore, the Directors should apply the funds of the
Company to pay these advances without the consent of the lawful
stockholders, they would be personally liable for misappropriating the
Company’s property, and if they should give the Company's bonds for
the amount, they would be void, and no recovery could bo had upon
them.
V. That if all the holders of the lawful stock should consent, the
Board of Directors might recognize the holders of the illegal shares as
creditors for the sums advanced upon them, and might pay or give the
bonds of the Company for the amount ; so, if a like consent was given,
they tnight be recognized as stockholders ; but in order to do this, an
act of the Legislature of Connecticut would be necessary to increase
the capital so as to include the whole number of legal and spurious
shares, or to reduce the original stock so as to bring it, after adding
the spurious shares, within the prescribed limit of three millions. In
no other way can this be lawfully done.
Wm. Curtis Noyes,
New-Yobk, August 9th, 1854. Geouoe Wood.
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- N. Y. and N. H. Railroad Frauds . [December,
OPINION BY JUDGE BRONSON.
My opinion has been asked upon several questions arising out of
the frauds committed by Robert Schuyler, while acting as the transfer-
agent of the New-York & New-Haveu Railroad Company.
The Company was incorporated by the General Assembly of the
State of Connecticut, in 1844, with the usual powers for constructing
a railroad. The second section of the charter is in these words : “ That
the capital stock of said Company shall be two millions of dollars,
with the privilege of increasing the same to three millions of dollars,
and to be divided into shares of one hundred dollars each ; which shares
shall be deemed personal property, and be transferred in such manner
and at such places as the by-laws of said Company shall direct.” The
seventh section gives the Directors full power to make and prescribe
by-laws, rules, and regulations “ touching the disposition and manage-
ment of the stock, property, estate, and effects of said Company.”
Under this power the Directors established a transfer agency in the
City of New-York, appointed Schuyler, the President of the Company,
transfer-agent, furnished him with transfer books, blank certificates,
and powers of attorney to transfer stock, and authorized him to sign
and issue the certificates. The certificates were signed by Schuyler as
“ Transfer-Agent,” and by him alone, and stated that A B was entitled
to so many shares of the capital stock of the Company, transferable
on the books of the Company, at its office in the City of New-York,
by the said A B or his attorney, on surrender of the certificate. A
blank power of attorney to transfer the stock was subjoined to each
certificate.
After faithfully conducting the agency for several years, during
which period a great number of certificates -were issued, Schuyler
> commenced the fraudulent issue of certificates, in the usual form, but
without the surrender of the old ones, and continued in this course
until the over-issue amounted to nearly two millions of dollars. Many
of these certificates were issued to his firm of R. & G. L. Schuyler,
and subsequently passed into the hands of third persons, either as pur-
chasers for a valuable consideration paid at the time, or by way of
hypothecation in security for monies loaned. Some of the purchasers
und pledgees who took powers of attorney to transfer, have surren-
dered the certificates which they received, and obtained new ones in
their own names on making the usual transfer on the books of the
Company, and others still hold the original papers.
The question now' is, whether the loss resulting from the misconduct
of Schuyler shall fall upon the Company whose agent he was, or shall
be borne by the holders of the certificates. In the consideration of
this question I shall assume that the present holders of the certificates
purchased or received them in the usual course of such transactions, and
without any notice that the agent had acted or was acting improperly.
Schuyler was the general agent of the Company for keeping trans-
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Opinion by Judge Bronson.
423
fer books and issuing certificates of stock in the City of New-York.
In that business his powers were as ample as those of the Directors
themselves. During the period of nine months, within which the
fraudulent issues were made, there were many proper transfers of stock
at that agency, and a largo number of certificates were issued by
Schuyler, the validity of which has not been and cannot be questioned.
Though he sometimes acted dishonestly, he was all the while acting
within the scope of his authority — or, in other words, in the business
which he was commissioned to transact ; and the persons into whose
hands the certificates passed took them in the usual course of such
affairs, and without any means of distinguishing between the certifi-
cates which were properly and those which were improperly issued.
In such cases the general rule of law is that the agent binds his prin-
cipal so far as third persons are concerned, and the loss resulting from
his misconduct falls upon those who employed him and trusted in his
fidelity, and not upon innocent third parties who bestowed no such
confidence.
It is true that Schuyler had no commission to do a wrong ; but it
is also true that the Company intrusted him with the transaction of
business in which he might act improperly, and virtually said to all
that he was a person with whom they might safely deal in that mat-
ter. No question of this kind ever arises between the principal and
third parties, except where the agent has acted improperly, and yet,
if he kept within the line of his employment, the principal is bound
by his acts.
It cannot be denied that a general agent binds his principal when
acting within the scope of his authority, though he violates his instruc-
tions. But it is said that the agency of Sdiuyler only extended to
the transfer of old shares, and not to the creation of new ones ; and,
therefore, in making the over-issue, he was acting outside of his powers.
The whole force of this argument depends upon the form of stating
the question ; and I think it will be found on careful examination that
it amounts to nothing more than saying that the agent had no conven-
tional authority to do a wrong. He was commissioned to keep books
for the transfer of stock, and to issue certificates of ownership. That
was the business which was intrusted to his care. Ilis commission
covered the whole subject, and third persons had the right to presume
that all he did in that line of business was rightfully done. It is true
that he was not commissioned to create new shares, nor to do any
other wrong ; but it is equally true that he was invested with powers
which enabled him to do wrong while apparently acting in the line of
his employment. If, as transfer-agent, he had issued a promissory
note in the name of the Company, he would have stepped entirely
beyond his powers, and would nave bound no one but himself : but
when he issued a certificate of stock, he did the very thing which the
Company authorized him to do ; and, although some were issued
improperly, still, as he was acting in the line of his employment, the
principal must bear the burden of his misconduct.
A lew examples will aid in illustrating the subject. If the teller
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UNIVERSITY OF CHICAGO
424
N. Y. and N. H. Railroad Frauds . [December, *
of a bank, having authority to certify checks, goes beyond the under-
stood limit, and certifies checks to an amount which exceeds the ’sum
which the drawer has on deposit, the bank cannot repudiate the acts
of the agent, and say to a bona-fide holder, We will pay some of the
checks and not the others. And this is so, whether the agent acted
negligently or fraudulently, because he was acting in the business com-
mitted to his charge. Again : where a bank is authorized to issue
bills or receive deposits to a limited amount, and the officers transcend
the limit, it cannot be doubted that the bank in both cases is bound
by the acts of its agents. It cannot reject the bills which were issued
after the limit had been reached, nor withhold the excess of deposits.
And this doctrine must, I think, hold good where the officers of a trust
company receive trust funds after the limit prescribed by the Legisla-
ture has been reached, and where the agents of a corporation, having
authority to issue bonds, go beyond the proper limit. So, too, if the
owner of a ship or canal-boat limits the master in relation to the
amount of freight which he may carry, and the agent transcends the
limit, it is quite clear that the owner of the ship or boat must answer
for the loss of the goods which were improperly received, as well as
for those which were within the limit, because in both cases the agent
was acting in the line of his employment, and third persons had no
means of knowing he acted improperly in, one instance more than in
the other. These are parallel cases to the one in hand, and all are
governed by the same principle. It is the only rule under which the
affairs of this commercial and trading community can be successfully
conducted. Agency, in one form or another, enters into a large share
— probably more than one half in value — of all the business transact
tions in the State, and those transactions must come to an end if third
persons, while dealing with the agent in the business committed to
his charge, must ascertain at their peril whether he is not acting
fraudulently, or transcending the limit to which he might properly go.
Although these certificates are not negotiated in precisely the same
way as bills of exchange and promissory notes, there can hardly be
said to be any substantial difference between the two classes of cases.
On a sale of stock the holder usually signs a blank power of attorney
to transfer, and delivers it with the certificate ; and the papers then
pass from hand to hand by mere delivery, until some purchaser thinks
proper to fill up the power, surrender the certificate, and receive a
new one in his own name. These blank powers are sometimes printed
on the back of the certificate, and sometimes — as was the case here —
are subjoined to it on the same piece of paper. There was nothing on
the face of the papers to induce a doubt that the purchaser would ac-
quire a good title, nor to put him upon inquiry on the subject ; and if
the certificates are held to be void on account of a latent defect, no
one will hereafter feel safe in purchasing this description of property
until a transfer has actually been made and a new certificate has been
issued in his own name. Indeed, he will not be safe even then ; for
the Directors of this Company claim the right to trace back a certifi-
cate through several transfers, and to repudiate the whole if they find
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Opinion by Judge Bronson.
425
a vice at the root of the several transactions. If that may be done
here it may be done in other cases. This will lead to endless litiga-
tion between those through whose hands the stock has passed, and no
one will run the hazard of investing his funds in this description of
property.
Those who hold that the Company may repudiate what are called
the spurious certificates, rely mainly upon the assumption that by the
over-issue the capital stock of the Company was increased beyond the
three millions of dollars authorized by the charter ; and it is said that
neither Schuyler nor the Directors could bind the Company when act-
ing beyond that limit. To this there are, I think, one or two very
satisfactory answers.
In the first place, the argument is based on an erroneous assump-
tion. The capital stock and the certificates of ownership are very dif-
ferent things. The capital stock is the fund which the Company has
gathered for the purpose of constructing and operating the road. The
certificates are only the legal evidence of an interest in the fund. The
over-issue of certificates, if held to be valid, did not increase the fund
or capital stock a single farthing. It remained in amount precisely
what it was before. The only effect of the over-issue was to diminish
the value of the shares. The addition of twenty thousand to the ori-
ginal issue" of thirty thousand shares reduced the intrinsic value of
eaeh share to three fifths of what it was before, but it added nothing
to the capital stock. In my judgment, this disposes of the whole-
argument based on a supposed increase of the capital stock of the
Company.
But there is something more. If the Directors, or any other gene-
ral agent of the Company had issued certificates and received the
money to the extent of five millions, and had thus actually increased
the capital stock beyond the limit in the charter, I am not prepared to
admit that the Company could discriminate between the different stock-
• holders, and say to one, Your certificate is good, because you got it
yesterday, when we were within the limit ; and to another, Your cer-
tificate is void, because you got it to-day, when the limit had been
passed. I am strongly inclined to the opinion that all of the stock-
holders would stand upon the same footing. What has already been
said on another branch of the case, and the examples which were
there mentioned, are equally applicable here, and need not be repeated.
The fact that the Company might be called to an account by the
State for exceeding the limit mentioned in the charter would not ren-
der the transaction void as between the Company and innocent third
persons, who parted with their money while the Directors or other
. agents were apparently acting in the line of their employment,
t . But, however the case might stand, if there had actually been an
excess of capital stock, the argument under consideration is fully
answered by the fact that there has been no such excess. Too many
certificates have been issued ; but instead of increasing the capital, the
only effect has been to diminish the value of each share.
The provision in the charter that the capital stock should be divided
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426
N. Y. and N. H. Railroad Frauds . [December,
into shares of one hundred dollars each was not inserted for the pur-
pose of limiting the capital, for the amount of that had already been
specified. The nominal value of the shares was only mentioned as a
matter of convenience tb the Company, and not as one in which the
State had any interest. It might well have been left to the Directors
to divide the specified capital into as many shares as they pleased.
Whether the nominal value of the shares was either more or less
would neither increase nor diminish the substantial powers or privi-
leges of the Company ; and if fifty thousand shares, of the nominal
value of one hundred dollars each, have been issued, no injury has been
done to the State of Connecticut, and I do not think it any ground of
forfeiture as to the whole or any part of the franchise. If the capital
stock had been increased, the State might have called the act in ques-
tion; but there has been no increase. We are thus brought to con-
sider the question as one between the Company and its members, and
no one else ; and I do not think the Company can reject any portion of
the shares on the ground that by issuing too many, the intrinsic value
of each has been diminished. It is true that the first stockholders will
suffer damage ; but that is no more than may happen in any Company
where trust is reposed in an agent who proves unfaithful.
This does not come within the class of cases where a corporation
has acted outside of its chartered powers, as where an insurance com-
pany issues circulating notes, or a bank issues policies of insurance.
Nor does it come within the class of cases where a corporation does a
forbidden act, or one which is contrary to the policy of the law, as
where a bank issues post notes. In all such cases third persons deal
with the corporation at their peril ; for they see upon the face of
the transaction that it is unauthorized, and consequently void. But
it is not so here. Keeping transfer-books and issuing certificates, whe-
ther done by the Directors or any other agent of the Company, were
authorized acts ; they were lawful in their nature, and third persons
dealing with the Company or its agents in that business might well
presume that the act was rightfully done.
What has been said may be applied to the different classes of per-
sons who hold what are called spurious certificates, as follows :
1. Those who have, in the usual way, obtained certificates in their
own names, are stockholders in the Company, and entitled to be treated
as such for all purposes. In this class I include those who have ob-
tained certificates since, as well as those who obtained them at the
time of the purchase or hypothecation.
2. Those who have not yet obtained certificates in their own names,
may do so on surrendering the certificates which they hold, with the
power to transfer, and having the transfers made upon the books of
the Company, and will, therefore, become stockholders, with all the
rights resulting from that relation.
Should the Company, on a proper application, refuse to allow the
transfers to be made and to issue new certificates, the holders can
maintain actions against the Company to recover the value of the
stock.
Original from
UNIVERSITY OF CHICAGO
Opinion by Charles O' Conor.
427
1854.]
I am fully of opinion that the Company is answerable in some
form for the acts of Schuyler ; and, if it can be shown that there is a
more appropriate remedy than the one which has been mentioned, it
will not diminish the force of what has been said on the main question.
Greene C. Bronson.
New-York, Thursday, Sept. 28, 1854.
OPINION BY CHARLES O’CONOR.
The New-York & New-Haven Railroad Company was incorpo-
rated by the Legislature of the State of Connecticut in 1844, for the
purpose of constructing and maintaining a railroad from New-Haven,
via Bridgeport, to the west line of that State, toward the city of New-
York. m 1846, the Legislature of the State of New-York passed an
act recognizing this corporate body, and authorizing it to extend its
road from the Connecticut line to the line of the New-York & Harlem
Railroad, at or near Williams’ Bridge, in the county of Westchester.
The latter act delegated the eminent domain of the State to the extent
necessary for the object in view, authorized the making of the road,
and declared that the Company should be suable by summons “ in the
same manner as corporations created by the laws of this State,” and
that in case the summons could not be served upon “ the officers of
said Company, as now provided by law,” it might “ be served on any
agent of the Cbmpany.” The Legislature of Connecticut, in the same
year, 1846, assented to and confirmed the New-York act, authorized
the acceptance of the grant thereby made, and the exercise and enjoy-
ment of all the rights, powers, and privileges thereby conferred.
The President, Secretary, Cashier, and Treasurer were the only
officers of a corporation upon whom a summons might have been
served as “ provided by law ” when these acts were passed. (2 R. S.,
458, § 4.)
The act of incorporation fixed the capital stock at $2,000,000,
increasable at will to $3,000,000. It further declared that this capital
should be divided into shares of $100 each, and that such shares should
be deemed personal property, and be “ transferred in such manner and
at such places as the by-laws of the Company” should direct. The
“government and direction of the affairs of the Company” were
“ vested in a board of nine directors.” And to such directors was
given “ full power to make and prescribe such by-laws, rules, and regu-
lations as they should deem needful and proper touching tbe disposi-
tion and management of the stock , property, estate, and effects of the
said Company, not contrary to that charter or the laws of that State
or the United States ; the transfer of shares, the duties and conduct of
their officers and their servants, touching the election and meeting of
the directors, and all .matters whatsoever which [might] appertain to
the concerns of said Company.”
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N. Y. and N. H. Railroad Frauds . [December,
Before the over-issue hereafter mentioned, the capital stock was
enlarged to > 3,000,000.
The Company established transfer offices in New- York and Boston,
and appointed its President sole transfer-agent at the former. The
form of the stock certificate adopted at this office required his signature
only, and for several years he conducted that whole department of the
corporate business. The books, papers, and accounts were left under
his exclusive control and management, without supervision of any
kind, until the 3d of July, 1854, when, having failed in business, he
resigned his official employments in the Company. Upon investigation,
it was found that, from time to time, in 1853 and 1854, he had illegally
issued, and used to obtain money for his own purposes, certificates for
about 20,000 shares of stock beyond the number allowed by the char-
ter. The books of the transfer office were so kept that a very slight
scrutiny, at any time after the commencement of these irregularities,
would have led to their detection. None such was ever had by the
Directors, who, as well as the President, were duly reelected to their
respective offices some months after a large portion of the frauds had
been committed.
Many of these shares have circulated freely in the stock market
through the ordinary channels of business ; and, under contracts of
loan, pledge, or purchase, have been transferred from hand to hand
upon the books of the Company. It is not the practice of corporations
to permit their stock-ledgers or transfer-books to be perused and
examined by any other person than their officers and directors. It
would not readily occur to the most careful dealer in stock to inquire
whether the chartered capital of a company had been exceeded ; and
in this instance no means of investigation w ere within the reach of a
purchaser, except an application to the author of the over-issues, who,
of course, would have concealed them. Consequently, all persons, not
being directors of the Company, w ho have acquired these shares in the
ordinary course of business, for a valuable consideration, w ithout notice
of any wrong, or reason to suspect its existence, must be deemed in
every sense bona-fide holders.
Upon this state of facts the question has arisen whether these per-
sons are entitled to be recognized as stockholders, and if not, whether
they can hold the corporation liable for the loss occasioned by the
improper management of the transfer office, and the fraud of its agent
in charge thereof.
I am of opinion, first, that the Directors may refuse to recognize as
stock all shares which can be clearly and certainly traced to an origin
in the over-issue ; secondly, that all shares which cannot be so traced
must be recognized, notwithstanding that the effect will be to exhibit
a larger stock list than thirty thousand shares ; and thirdly, that the
corporation is bound to pay all bona-fide holders of shares thus rejected
the full amount of their loss.
Being prohibited from issuing more than thirty thousand shares, the
corporation is by necessary consequence forbidden to recognize or
admit as a part of its corporate stock any share known to have been
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1854.] Opinion by '&haxi& fJCOonor. 429
issued contrary to that prohibition. Theoretically it has no corporate
power to create a valid title to a single share beyond the prescribed
number, or to confer upon its holder the specific legal rights and privi-
leges of a regular stockholder ; and no court could compel the com-
mission of an unlawful act, such as admitting to the exercise of corpo-
rate rights one whose whole title to the character of a stockholder was
founded on a known violation of law, and a clear usurpation by the
Company of power not granted. Still it is true in theory only that
the Company had not power to create more than the prescribed num-
ber of shares. Practically, it had that power ; for the Company pos-
sessed functions capable of being exercised in such a way as to bring
into being fifty thousand or any other number of shares, which would
of necessity be deemed valid under all circumstances, as between the
corporation and individual holders.
A proper understanding of the distinction between what a corpora-
tion may rightfully do in the legitimate exercise of its corporate
powers, and what it has actual capacity to do, contrary to but under
color of law, will prove this position, and solve most if not all the dif-
ficulties in which the subject under review has been involved. It will
therefore serve a good purpose to illustrate that distinction at the
outset.
The directors of a newly-created corporation might fraudulently
issue and sell, in addition to the shares prescribed by the charter, an
equal number for their own private benefit, and so manage the form
of the certificates and the books of the Company as to render it utterly
impossible to distinguish any one share from any other. After they
had applied their fraudulent acquisitions to their own use, and ab-
sconded, all the documentary or other reliable evidence which could
be resorted to might place the shares on an equality, and all the hold-
ers of stock might well appear to be perfectly innocent of fraud or
neglect, and entitled to every protection which the law will afford to a
bona-fide purchaser. In such a case it is evident that, practically speak-
ing, all the shares would be good ; and that on every one of them the
holder would be allowed to vote at corporate elections, and to exercise
every right of a legitimate stockholder. By every test that could be
applied to human things, the shares having a legitimate and those
having an illegitimate origin would stand on an equality. Neither the
inspectors of an election nor any tribunal of justice could distinguish
between them. If every share was not recognized, none could be.
Let it be granted that in fact and in law some must be spurious, and,
so to say, void; yet, of necessity, the question would always arise
upon some particular share; and if such share had every badge of
regularity, who could gainsay its validity 1 Nothing can be inferior
by mere comparison, unless compared with something superior.
Consequently, so long as the share under consideration, at any one
time or in any one proceeding, did not appear to be inferior to any
other, it would of necessity be held good. It is only in an action by
the State against the corporation for misurer of its franchises, that all
the shares could bo brought to the test together, and an effectual judg-
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N. Y. and AT. H. Railroad Frauds. [December,
ment given that an excess existed. In such a proceeding the corpora-
tion might indeed be condemned and dealt with as a delinquent ; but
this would produce no discrimination between shares ; it would not
show which were good and which were bad, nor would it visit upon
the shareholders any inequality of injurious consequences. Every
nominal and apparent holder of shares would sutler alike.
So, if a bank authorized to issue circulating notes to $2, 000, 000 only,
should issue five times the amount, no man can doubt that the bank
would be liable to innocent holders of the excess. And this does not
depend upon the peculiar favor of the law' for negotiable paper, for the
same principle would apply to instruments not negotiable. In case a
corporation having no general authority to borrow on its bonds, but
specially authorized to take up in that form a loan of $1,000,000 only,
should issue bonds to twice the amount, would not all the bonds be
valid in the hands of bona-fide lenders ? And in the case of the notes
or that of the bonds, if the respective issues were so marked, num-
bered, and registered as to render it easy to distinguish between the
rightful and the wrongful issues, no one will pretend that the innocent
and bona-fide holders of the paper would be at all affected, or the cor-
porate liability lessened, by that circumstance. If it should also appear
that the directors or officers engaged in the issue acted with a sole
view to their own personal ends, and applied the proceeds to their own
use, I think it will be conceded on all hands that no evil consequences
would thence result ta the holders of the paper, except so far as it
might impair the ability of the corporation to meet its obligations.
It must, therefore, strike every impartial mind, that those w ho base
the notion of corporate irresponsibility for the over-issue in question
on the supposed want of powTer in the Company to create the excess,
are mistaken. It had not the power de jure, and could not rightfully
do it ; but the means to do it de facto existed within the Company’s
sphere of corporate action. It might therefore be unlawfully done,
and in this as in all other cases of perpetrated wrong, the law, dealing
fairly with all parties, will protect and indemnify the fair dealer at the
expense of those who are justly responsible.
It is, indeed, laid down by the highest authorities that a corporation
has no legal existence or recognized capacity, except what it derives
from its charter ; that as a being, or moral entity, it is “ invisible, in-
tangible, and existing only in contemplation of law that it can per-
form no act whatever, except as expressly or impliedly authorized by
the law of its creation, or otherwise than in the manner prescribed by
law. These narrow definitions of corporate capacity are, as general
propositions, indisputably true; and it may be inferred from them
quite logically that a corporate body has no capacity to act contrary
to law. But, as has often been justly observed, there is scarcely a
rule to be found within the many tables of our law which is unquali-
fiedly true as between all parties, or in every relation. This one is
not of universal application. Reason and necessity prescribe limits to
it. It operates upon and against the corporation itself, just as the
moral law and the penal regulations of society operate upon natural
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431
persons ; it restrains individuals dealing mala fide with the corporation,
and avoids the disputed transaction in whole or in part against the one
party, against the other, or against both, as justice and good policy
may require in the particular case. Accordingly, a corporation failed
to recover back money lent on a security different from that prescribed
by the charter regulations touching its loans ; (7 Wend., 34 ;) an indi-
vidual lender failed to recover on a bank-note issued in a form which
the corporation was forbidden to use; (Palmer against Leavitt, 3
Comst., 33 ;) and a corporation making a prohibited loan was held to
have lost its money absolutely. (7 Wend., 35.)
Experience has demonstrated tnat corporations may fieglect a cor-
porate duty, or execute it in a manner not conformable to law ; that
they may transcend their chartered powers ; and that, in the course of
such excess, they may perform injurious acts. Their responsibility for
damages as tortfeasors in such cases, though for a time gravely dis-
puted, is now well established. (4 Sergt. and Rawle, 17.)
Let us apply these principles :
This Company, by the express terms of its charter, sections 2 and
7, took upon itself to provide for the transfer of its shares. This duty
is invariably undertaken by all joint-stock trading corporations, and is
indispensable to their existence. The facility which it affords to the
individual of adventuring in business at a previously-ascertained risk,
and promptly withdrawing therefrom at pleasure, constitutes the great
inducement to invest in railway and other corporate shares ; it has
drawn into them a large proportion of the active capital of the country.
The funds of a corporate stockholder, though actively employed in
what promises to be a gainful enterprise, are thereby placed within
call at any moment, should he desire to employ them otherwise. If
there were no regular transfer offices, entering into or withdrawing
from corporations would resemble the like dealing with a co-partner-
ship, and few would take interests in them. Indeed, the transfer
offices of a joint-stock corporation may properly be called its lungs ;
they supply it with the essential element of life ; it cannot exist with-
out them. This corporate duty was not officiously charged upon the
Company as a burden by the Legislature ; but, on the contrary, was
created by its own desire, and voluntarily assumed for its own benefit.
It should therefore be liberally construed in favor of the public. . The
Company must be deemed to have undertaken to provide for this pur-
pose suitable forms, offices, and officers, with all such checks and
guards against fraud upon persons taking transfers as are usually em-
ployed in like cases. The Directors were consequently bound so to
manage and superintend the affairs of the Company as to insure to the
dealer a safe and reliable method of acquiring title to its shares, and it
is familiar law that, for any failure or injurious neglect in this respect,
an action lies against the corporation at the suit of the injured party.
(Denny against Manhattan Company, 2 Denio, 118 ; Kortright against
The Buffalo Commercial Bank, 20 Wend., 94; S. C. in the Court of
Errors, 22 Wend., 368; Pollock against National Bank, 3 Seld.,
276, 279.)
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N. Y. and N. H. Railroad Frauds . [December,
In any case involving only a moderate loss, no one would question
this responsibility for an instant ; but the magnitude of the fraud
sunder consideration has stimulated ingenuity to search for some prin-
ciple leading to a different result ; and one has been found in the ex-
ploded fallacy that a corporation, being restrained by law to the exer-
cise of rightful and legal powers only, has no functions to do wrong.
From this proposition, if it were true, we might deduce the conse-
quence that such a body is wholly irresponsible for willful fraud
practised upon the community by its regularly constituted agents ;
but the premises arc unsound, and of course the conclusion must fall.
A doctrine so startling required a very stable foundation. Certainly, if
an individual engaged in trade should establish an agency, invite the
public to confide their business to it, and from mere inattention should
allow irregularity and fraud to prevail therein for months or years, his
negligence would be deemed acquiescence and if, from time to time,
he reappointed the same agents by solemn public act, he would be
adjudged to have confirmed and ratified their doings.
Why should it be otherwise with bodies corporate? (12 Wheaton,
40.) Trading corporations, such as railroad companies, so far as cor-
porate liability is concerned, are merely privileged partnerships. The
assumed motive of the State in granting to them special privileges is
generally some public benefit expected to flow from the exercise
thereof, but the motive of the corporators is their own private gain.
Corporations, like individuals, have power, the same in kind, but much
greater in degree, to work positive wrong, and to be permissively in-
strumental in injustice. This power is not, indeed, given to them by
law, but results to them in spite of the law. It is inherent ; it be-
longs to all beings, natural or artificial. And when a wrong is done
or permitted by the culpable act or culpable neglect of a corporation,
the prohibitions of the law are employed, not as a constructive nega-
tion of the fact, but as a means of redress.
Consequently, if this over-issue can be regarded as its own act, the
Company is responsible ; and it only remains to inquire whether it
must be so regarded.
He who manages or conducts his affairs by the agency of another
is, by a universally acknowledged principle, deemed to act therein
himself; and, as a consequence, to be personally responsible for the
acts and omissions of the agent. Mr, Justice Story, in his learned
work upon agency, says at § 452 that the principal is “ held liable for
the frauds, deceits, concealments, misrepresentations, torts, negli-
gences, and other malfeasances or misfeasances and omissions of duty
of his agent in the course of his employment, although the principal
did not authorise, or justify, or participate in, or, indeed, know of such
misconduct, or even if he forbade it, or disapproved it. In all such
cases, the rule is, let the superior respond ; and it is founded upon public
policy and convenience ; for in no other way could there be any safety
to third persons in their dealings. The principal holds out his agent
as competent to be trusted ; and thereby, in effect, he warrants his
fidelity and good conduct in all matters of the agency.” (See also §§
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Opinion by Charles O’ Conor.
458, 459, 443.) It is said that the transfer-agent in this case acted
fraudulently in furtherance of his own private ends, and not with a
view to the performance of any duty for the Company. This may be
true in feet, but appearances are otherwise. With the Company’s
commission in his hand, and at its established place of business, using
its forms, and surrounded by its insignia, he acted in its name, osten-
sibly for its benefit, and apparently in the regular performance of its
corporate duty.
It is not law that all the acts of an agent, in order to bind the prin-
cipal, must be in feet done by or in pursuance of the commands or
wishes of the principal. On the contrary, it is an undoubted rule
that the principal is bound for the fraudulent acts of his agent as
well as for those performed in good faith. If an agent accustomed to
buy on credit, or to borrow money for his principal, or having an ex-
press and special written authority to do so, buys merchandise on
credit, or takes up money on loan accordingly, but with the design
and for the express purpose of absconding, and applying it to his own
purposes, the principal will be bound. As between his principal and
himself, the act is not within his authority ; but as it respects the
vender from whom he purchases, or the lender from whom he bor-
rows, it is, as the courts express it, “ within the scope of his authority .”
This principle is essential to the safety of those dealing with agents,
and is recommended alike by good policy and its own intrinsic justice.
He who enjoys the convenience of using an agent should bear the bur-
then or inconvenience, if any, resulting from his injudicious or mis-
taken choice. He has the power to select the agent, the best means
to supervise his conduct, to discover unfaithfulness, if it occur, and to
enforce redress.
That third persons dealing with agents are warranted in acting upon
the appearances created by the principal himself, is established in a
multitude of cases. A co-partner in a dissolved mercantile firm can
bind his former partner by purchases from those with whom the firm
has dealt, until the latter have received or become chargeable with
notice of the dissolution. So a dismissed servant who has been in the
habit of purchasing for his master, on credit, may continue to bind
the master by taking up goods in the same manner, until notice of his
dismissal is given. Thus it will be seen that the actual existence of
authority in law or authority in fact, to do the very thing in question
is not an absolutely essential condition to the binding force of the
agent’s act as between the principal and third persons. It is enough
that by the consent of the principal, the assumed agent at the time of
his dealing stands accredited as agent to the person with whom he
deals. With the secret intent of the agent at the time, or his subse-
quently-consummated unfaithfulness to his principal, third persons
have no concern, provided they are ignorant of the former and not
participants in the latter.
In respect to dealings or business transactions, there is no exception
to this rule. It is true, indeed, that mere wrongs against a third per-
son, perpetrated by the agent with unlawful force, whilst in the act of
29
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434 N. Y. and N. IL Railroad Frauds. [December,
performing a service for the principal, do not always involve the prin-
cipal in liability. Where a servant drives his masters horse against
a person, thereby doing him an injury, the master is held to be
responsible, provided the servant merely erred through negligence or
unskillfulness, because these errors of conduct do not pre-suppose him
to have abandoned his employment. But if he commit such an act
purposely and to gratify his own malice against the injured party, he
is deemed to have quit his master’s service and gone upon an enter-
prise of his own. Cases of this kind can have no relation to the pre-
sent; for in such cases there is no mutual dealing, no confidence
reposed, no trusting to appearances, no reliance upon the principal.
/V simple, direct, and violent wrong having been perpetrated, the sole
question is, whose act produced it. (li) Wend., 347.) This distinc-
tion in the law of agency between mere acts of wrong and business
dea\ings may be easily illustrated. A bank would be liable for the
act of its teller who should receive money from a dealer at the coun-
ter with the prc-conceivcd intent of applying it to his own use, and
who should actually so apply it. But if, at the same time and at
the same counter, the teller should assault the dealer, or privily steal
from his pocket, no liability would attach to the bank. Accordingly,
where a cask of gold, specially deposited for safe keeping in the vault
of a bank, under such circumstances that in point of law" the bank
would not have been liable in case of theft by a stranger, was opened
and feloniously rifled of its contents by the cashier, it was held that
the bank was not liable. (Foster against the Essex Bank, 17 Mass.
507.) In reply to the inquiry for what acts of its cashier and
(Jerks a bank would be answerable, the court replied, “For any thing
which pertains to their official duty, for correct entries in their books,
and for a proper account of general deposits, so that if by any mis-
take, or by fraud in these particulars, any person be injured, he w-ould
have his remedy.” Thus it will be seen that a teller, by fraudulently
receiving and crediting worthless checks, and like means, may for his
own private ends bind his bank in favor of third persons to an unlim-
ited extent.
This Company undertook to keep, and did accordingly keep, a trans-
fer office. To allow a course of false entries in the stock-ledger kept
therein, and the issue of false certificates therefrom, was a failure in
the performance of a corporate duty. It was an act of negligence by
the corporation, for wdiich it is liable to the party injured. As
between the company and the individual shareholder, the former is
estopped, and it must either recognize him as a stockholder, or
respond in damages as a wrong-doer, for withholding from him his
apparent right.
Wherever the holder of the shares can trace them to the over-
issue, ho can recover the sum paid for them, with interest, as dam-
ages. This will afford to the shareholder a much higher measure of
reparation for the injury sustained than would result from his admis-
sion as a stockholder ; for admitting all the contested shares would
only reduce the stock to three fifths of its former value, whilst allowr-
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435
ing out of the corporate funds full compensation to the holders of the
over-issue for the injury done them, would reduce the value of the
remaining stock to one third. It is, therefore, of considerable import-
ance to the Company and the original shareholders to ascertain
whether the over-issues can be distinguished. It cannot be done by
an accountant or book-keeper’s method of separation. The rights of
the various shareholders, as between each other, are affected by more
facts and circumstances than can be brought within the cognizance of
any book-keeper, or of all the officers of the Company united. Stock
which has gone into the market changes hands frequently, and even in
the hands of the same owner is frequently mixed upon the books of
the Company with other parcels of stock coming to him from various
sources. This takes place in temporary loans of stock, and in tempo-
rary loans on stock, as well as in purchases and sales. A broker or
purchasing agent sometimes takes the transfer to himself, mixing the
stock taken with the stock previously held by him ; and, either before
having made any sales out of the mass, or after having made many
such sales, he transfers to his principal as many shares as the lot pur-
chased. Again, a lender of money on stock, when he is repaid, trans-
fers from his credit on the stock-ledger, either to the borrower or to
his assignee, as many shares as were pledged to him. In many of
these cases the same identical shares^ are not transferred. Besides, a
great many transactions in the purchase and sale, loan, pledge, and
exchange of stock, which are perfectly valid and binding as between
the parties, take place by mere delivery of the certificates, and in
modes less formal, without any record whatever being made thereof
on the books of the Company. (Bank of Utica against Smalley, 2
Cow., 779, approved 11 Wend., 627; Kortright against Bank of Buf-
falo, 20 Wend., 94, S. C., 22 Wend., 348.)
In each attempt at discrimination, the Company must assume to
settle the equity of the case as between rival claimants to priority.
How shall it perform the task? If governed by extrinsic tacts not
entered upon its own records, how shall the very truth be ascer-
tained ? It cannot subpoena witnesses ; it cannot cite all parties before
it ; it has no effectual means of investigation ; and its decisions upon
the law or the fact have no force or authority. It can neither protect
itself from litigation, nor settle the right between the contestants, h
will remain liable to suit for withholding from cither party his just
right to recognition as a stockholder, if at last he can establish it in a
court of justice. (Pollock against National Bank, 3 Seldcn, 275.)
So, after deciding that A B is entitled to certain shares, the Company
must withhold his dividends for ten years, or perhaps longer, until in
the court of last resort it shall be ultimately decided whether or not,
in settling the priority of right, it ascertained the real state of facta,
and properly applied the law. This might not be so difficult a matter
for the Company to deal with if it only affected a few transactions, but
when it is found to involve the shares of all or nearly all its stock-
holders, the practical evil becomes serious.
Should the Company disregard all external proofs, and govern itself
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by its own books exclusively, difficulties still greater, if possible,
would embarrass the process of discrimination. Where a party
-assumes to sell a quantity of stock, and has a legal right to sell that
quantity, the shares which he had a right to sell will vest in the pur-
chaser. Consequently, in all cases of sale by one having both kinds
of stock standing to his credit, priority in point of time must govern.
But to what time shall the Company refer f The holder of one thou-
sand shares of stock standing to his credit on the ledger of the Com-
pany, four hundred of which came from the over-issue, may have had
it in one hundred parcels, and in many separate certificates. He may
have sold from time to time by delivering the certificate for, say, ten
shares, with a power of attorney to transfer. In settling priorities
between purchasers from him, shall reference be had to the date of
the power presented to and filed with the Company, or to the time of
its actual presentation for transfer ? Certainly with no safety to the
date of the power, for the date of a paper is not conclusive evidence
of the time of its delivery, and powers to transfer stock are often
dated and held in blank a long time before the stock is sold. If the
date of a power given to one purchaser precedes an actual transfer on
the books to another, the presumption, until the contrary be shown
by proof, is that the former has actual precedence. Yet this is only a
presumption ; it may be rebutted, and, of course, it cannot safely be
acted on. The matter may be further complicated by assuming that
die holder of the one thousand shares made purchases of each kind of
atock day by day, intermediate his sales. If the Company shall hold
priority in time to be the standard of right between those who pur-
chased from him, and adjudge his credit on the stock-ledger, like a
receiver of oil and water, to have permitted every receipt of good
shares to float as oil, and every receipt of bad shares to sink as
water — all deliveries to his vendees passing off from the surface in
the order of their coming to the office for a transfer, without reference
to the actually existing priorities of equitable right between them — I
feel no hesitation in saying that, upon investigation, a large propor-
tion of the priorities decreed by the Company will be reversed by the
courts. The rule, “ first in time, first in right,” has no application
except between those whose equities are equal. And, indeed, it has
no application whatever to the entry of the transfer on the books of
the Company.
In the case of a money-lender’s return of stock to the borrower, it
would be hard that his re-transfer should be deemed to carry his
Own good shares and leave him possessed of the worthless shares
which he received at the time of the loan, yet after a sale by the bor-
rower, it might be just to his vendee so to hold it. Besides, in such
cases the borrower often relieves himself by finding a new lender, who
foes with him to the first, reimburses him, and takes directly from
im a transfer of the stock. The first lender may say, “ I meant to
return just what I received but the second lender may answer with
equal propriety, “ You informed me that you had one hundred shares
of stock standing in your name which you were willing to convey to
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Opinion by Charles O' Conor.
437
me as security for my intended loan. You did own so much stock,
you have conveyed so much to me for a valuable consideration, and I
claim to hold it accordingly.”
Embarrassing cases of this kind growing out of the usual methods
of' dealing in stock, could be stated to an indefinite extent Any one
acquainted with such dealings can readily imagine them. The inevi-
table consequence of permitting such contests to arise must be inter-
minable litigation* between contending claimants, and a complete
paralysis of the Company. Being unable to pay dividends with safety,
its stock will no longer be salable, or ever appear in the market,
unless at an occasional forced vendue of some bankrupt’s dubious and
unproductive assets. The wealthy stockholder, who has po need of
funds or of income and can afford to await results, must look to his
stock as an investment for posterity ; and when at last courts shall
have exhausted their powers of investigation, it is quite possible that
the intended separation will be found impracticable, and that much
more than thirty thousand shares will still appear to be clothed with
equally fair proofs of authenticity.
These remarks do not prove, nor can I affirm, the utter impossi-
bility of making the discrimination. But it is very clear to me that
the process must be attended with litigation, difficulty, and delay to a
most pernicious extent.
If I am right in my conclusion that the Company will be liable m
damages to the owners of the rejected shares, the other shareholders
will suffer a positive pecuniary loss by the discrimination, and would
greatly promote their own interests by recognizing the over-issue, if,
indeed, they can induce the holders thereof to come in as stock-
holders.
The recognition of a greater number of shares than the charter
allows is not impracticable. If it involves an excess of power, no one
but the State can take advantage of it. Beside, the Legislature, on the
petition of the Company, would at once pardon the transgression, and
heal the disorder it has produced, by legitimating all the shares, and
placing them on an equality. This was the precise course adopted
in an analogous case. The transfer-agent of the Bank of Kentucky
made a large over-issue of shares. After the fact was discovered, the
bank was advised to separate the genuine from the spurious issues.
Various efforts were made to accomplish that object, but it was found
to be impossible. (1 Parsons’ Select Equity Cases, pages 186, 18P7,
211.) The bank, therefore, adopted, and, with the consent of the Ken-
tucky Legislature, carried into execution a plan for recognizing a part
of the over-issues, and purchasing the residue. Prudence would pro-
bably dictate such a course in the present case.
It has been suggested that a corporation created by the laws of Con-
necticut could not lawfully establish a transfer office in New-York.
This objection was overruled upon general principles in The Bank of
Kentucky agt. The Schuylkill Bank. (1 Parsons’ Select Equity Cases,
p.234. See also 2 Denio, 118.) It can hardly arise in this case.
The concurrent legislation of New-York and Connecticut authorized
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the Company to conduct a large branch of its operations within this
State, and recognized the capacity of its officers and agents, from the
highest to the lowest, therein to exercise official functions, and repre-
sent the corporation. By necessary and inevitable implication, the
Company had power to establish within this State the offices or
agencies usually employed by such bodies in the transaction of their
affairs. Charles O’Conor.
OPINION BY DANIEL LORD.
CASE,
By the charter of the New-York & New-Haven Railroad Com-
pany, passed by the Legislature of Connecticut in May, 1844, that
Company was incorporated with the usual attributes of a railroad
company.
By the second section of the charter the capital stock was two
millions of dollars, with the privilege of increasing the same to three
millions, and to be divided into shares of one hundred dollars each,
which shares shall be deemed personal property, and be transferred in
such manner and at such places as the by-laws shall direct.
The third section provides for the creation of the shares by sub-
scription, and preventing the creation thereby of more than thirty
thousand shares.
The fourth section provides for the government of the Company by
a Board of Directors, and for the three charter officers, President, Clerk,
and Treasurer, the last of whom was to give bonds and the Clerk to
take an oath of office.
The seventh section gives to the Directors powrer to make such
by-laws, rules, and regulations as they shall deem proper touching the
disposition and management of the stock and effects of the Company,
the transfer of shares, the duties and conduct of their officers and ser-
vants, etc., and all matters whatsoever which may appertain to the
concerns of the Company.
By an act of the Legislature of New-York passed May 11, 1846,
the Company was recognized as a corporation, and obtained authority
to continue the road from the line of Connecticut to connect with the
Ncwr-York & Harlem Railroad Company near Williams’ Bridge.
A by-lawr wras passed soon after the organization of the Company,
providing that transfer agencies might be established in New-York and
Boston by resolutions of the Directors, and all transfers at any office
shall be made under such regulations as should be ordered by tho
Directors.
“ Certificates of stock shall be in such form, and issued under such
rules and regulations as the Board of Directors may from time to
time appoint and direct ; but when a certificate of stock has been
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Opinion by Daniel Lord.
\
issued to any stockholder, no second shall be
issued, and no transfer of the stock shall thereafter be made or per-
mitted without the surrender of said certificate, unless the same shall be
lost or mislaid, and then only on special resolution of the Board of Di-
rectors,” and the compliance of such conditions as they should impose.
The Board of Directors established a transfer office in the city of
New-York. Its principal stock account was kept there. The pro-
visions for the transfer of shares in New-Yorkfwera such as obtained
generally in that city.
Robert Schuyler was appointed President and was a director of the
Company from May 19, 1846, and the transfer-agent of the Company
from the commencement of its operations, and was repeatedly reelected
and continued in office until his resignation on the 3d of July, 1854.
The certificates of stock adopted by the Company were in the fol-
lowing form :
“ New-York & New-IIaven Railroad Company.”
No. , Capital, $3,000,000
New-York office, Shares, $100 each.
Be it known that A B is entitled to (number) shares
of the capital stock of the New-York & New-Haven Railroad Com-
pany, transferable on the books of the Company, at its office in
the city of New-York, by the said A B , or , Attorney,
on the surrender of this certificate. New-York, Jan., 1854. R. S.,
Transfer-Agent.”
Between Oct. 18, 1853, and July 3, 1854, Robert Schuyler issued
certificates of stock to the number of 17,732 shares, which were false,
and fraudulently issued by him, without stock to answer to these cer-
tificates. On these certificates the parties therein made sales of the
shares, therein expressed, and pledged for monies loaned thereupon,
and for their engagements, and until July 3, 1854, transfers were
made and allowed at New-York, on the surrender of these false
certificates.
The frauds were then detected, and the spurious stock, supposed to
be traced and disavowed by the Company, and thus the question arises
whether any liability rests on the Company in behalf of those who
have dealt on the faith of these false certificates.
OPINION.
The whole decision must depend on the question what was the
ostensible scope of the office of the transfer-agent. Corporations and
natural persons stand alike under the rule, that where by their acts
they invest any officer or agent with ostensible powers, the acts of
such officers or agents, within the open range and extent of such
powers, are the acts of the Company. The existence of the power, it
is true, must be shown, not by rumors, suppositions, or understand-
ings, but by undeniable acts of the corporation. And when such
ostensible power is conferred, the exercise of it, contrary to the duty
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N. Y. and N. H. Railroad Frauds. [December,
of the officer and the instructions of his principal, is treated, not as a
want of authority, but an abuse of an actual authority. Such exercise
binds the principal as to those who have relied on it, while it is treated
as an abuso and misbehavior between the principal and his subordi-
nate. This is the principle of the liability of ostensible partners, of
agents with a general authority, and indeed is the basis of many
branches of the law. (See Perkins against The Washington Insur-
ance Co., 2 Cow., R. 659. Lightbody against North- American Insur-
ance Co., 23 Wendell, 22. Fulton Bank against The New-York &
Sharon Canal Co., 4 Paige, R. 134. Angel on Corporation, ch. ix. § 10.
What, then, did this corporation hold out publicly as.the power and
function of the transfer-agent?
The certificates which were to be issued have the most material
bearing on this question. The form was adopted by the Directors and
the Company ; in the same form they have from its organization been
issued, surrendered, and in every way adopted by the Company.
They are among the most public and perfectly recognized acts of the
corporation. They also are designed to be acted on by stockholders
and by strangers. They were to be the assurances of the stockholder,
by which he might deal with others, and others deal with him. They
legalized stock contracts. (Of Stock Jobbing, 1 R. S. 710, § 61.)
The Company then, when they sanctioned this form, knowing how
extensively the stock was a subject of common traffic, must be deemed
as intending to speak to all who should sec the certificate, in the very
language of the certificate.
The certificate, it is to be noted, does not profess to create stock, nor
to grant or transfer it. It does not indicate the origin of the shares it
embraces, whether from original subscription or from subsequent
transfer. It merely certifies what person is owner of a certain number
of its shares ; and it is to be such a voucher that the Company will
recognize no other than those named in it as holders of the stock,
without a concealment of it. If it be false, then it is only so as
to the fact that A. B. is not the owner of the shares specified in the
certificate ; a fact which only the servants of the Company can know.
When the Company authorize such a declaration to go forth, under
the course of its business, and by the act of any of its officers, it
assumes (as do the authors of all such declarations, which are to invite
a traffic) to ascertain how the fact is, and to certify it truly, and it
appoints its own officer to issue it. His duty to the Company is to
ascertain and certify truly, but the power and function conferred on
him is to issue the certificate, without any condition on its face, and
with a view that strangers should act on it. When an authority is
limited, it must be possible for those called to act on it when they
call for the authority to ascertain the limit. Here the authority was
in the certificate and in the resolve authorizing the transfer-agent to
issue it. If the certificate is to be read with the implied condition,
that A. B. is holder of so much stock, provided he truly and in fact
holds so much stock, the certificate would be idle and senseless. The
scope of the office of issuing these certificates was to issue uncondi-
tional assurances.
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Opinion by Daniel Lord.
441
To suppose that such authority was limited as to strangers, to the
using of true Certificates only would obliterate the doctrines of the
law, holding principals liable for the misconduct of their agents. It is
true that no corporation authorizes its officers to certify falsehoods, or
to commit frauds, but when they have put into their hands the power
to do so, by acts which no one but the Company or its own agents
can scrutinize, they are bound by the exercise of that power, however
abused by those to whom they have confided it. It is the clear case
of a power not limited but abused; not of the absence of power but
of a wrong use of it.
It does not weaken this reasoning, that by treating the certificates
as true, more stock would be called for than existed. That might
show the certificate false, but on its face it would show no excess of
power. If false, the Company must be answerable, as for any other
deceit, as if it had certified any other material matter in the course of its
business by which others have been deceived. In such a case the mea-
sure of the indemnity must be such as to compensate the actual loss.
The conduct of the transfer-agent in this case in making the cer-
tificates and obtaining money on them, as if well authorized, was
doubtless obtaining money under fklse pretences; but to call this
abuse of trust and power forgery, would be a confounding of all dis-
tinctions in the criminal law. (See 4 Mass Rep. 64, Putnam against
Sullivan.)
The Ncw-Haveh Railroad Company are in my view liable to
those who have in good faith lost, by giving credit to these certificates
when they are false. Daniel Lord.
New-York, Oct. 2, 1854.
Mississippi — Free banking does not meet muck encouragement in Mississippi.
A bill for the establishment of this system in that State was introduced into the
legislature last winter, and did not receive the support of one sixth of the members.
The Mississippian says :
“ If wo are to have a renewal of the banking system in Mississippi, to the exclu-
sion of the sound currency with which we aro now blessed, wo prefer, as a choice
of ovils, tlio old system. The now system has utterly failed in Indiana and else-
where to produce aught but bankruptcy, litigation, swindling, and distress, while
the experience we have had of the abuses of the old system might enable us to
protect ourselves against them, at least to some extent.”
Tho interest laws of Mississippi were altered last winter, so as to permit contracts
for money loaned at the rate of ton (instead of eight) per cent per annum ; and tho
only penalty for usury is the forfeiture of the excess of interest paid.
We regret to learn by a private letter from a banking firm in that State, that
“ the payment of tho Mississippi bonds seems now to be an obsolete idea. Yet we
hope (tho writer says) that there may be a sense of returning honesty among our
people ; but it is doubtful if (his generation will live to see it.”
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Repeal of the Usury Laics .
[December,
REPEAL OF THE USURY LAWS.
Among the most important changes that are proposed in the com-
mercial and financial circles of the times, is the repeal or an essential
modification of the usury laws. This subject is about to undergo a
thorough investigation by the legislatures of various States, namely:
New-York, Georgia, Tennessee, Maryland, and elsewhere. They have
for an example the recent movement in Europe.
The entire repeal of the usury laws in Great Britian has been
accomplished at the recent session of Parliament. The act by which
this was effected is known as ch. 90, xvii. and xviii. Victoria, and is now
in operation. It is now lawful in Great Britain to loan money at any
rate of interest and on any description of property , cither real estate or
otherwise .
The bill passed the House of Lords on the 27th of July, was
immediately brought forward in the House of Commons, and finally
passed that body on the fifth of August last, and then became the law
of the land. As this is one of the important commercial measures of
the year, we may say of the age, we give the remarks made on the
occasion of the second reading of the bill in the House of Lords, on
the 24th of July last :
The Marquis of Lansdowne moved the second reading of this bill.
The inconveniences which had been found to result from the operation
of the laws against usury had been so many and so great that, not-
withstanding strong prejudices on the subject of usury and usurers, it
had been found necessary to relax those laws from time to time. At
the time of the commercial failures in the years 1830 and 1837, it was
found that the yreatest relief which was experienced , was the result of a
provision which had been introduced not long previously into the act for
the renewal of the Bank Charter , enabling the Bank of England to dis -
pense with the usury laws . In consequence of this he (the Marquis of
Lansdowne) bad been induced to take charge of a bill in that house,
by which, with respect to bills of exchange, and other securities of that
description, the rate of interest was to be indefinitely extended. Con-
siderable apprehension, however, was expressed as to the probable
effect of such a law ; and it was only passed at that time as a tempo-
rary measure. Nor were those apprehensions altogether removed for
many years, although the difficulties and inconveniences which had
been anticipated were not found to result from it. People could not
be brought to believe that money was as much a commodity as any
ordinary article of produce ; that its value must be regulated, like the
value of any other commodity, by the ordinary principles of demand
and supply ; and that it was as impossible to fix the rate of interest
at which it should be lent as to fix the price at which corn and butter
should be sold. This prejudice, however, had gradually disappeared,
and the object of this bill was, as the same considerations applied to
land and other property as applied to bills of exchange, to apply to
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Repeal of the Usury Laws .
443
them the same legislation. People were not deterred from raising
money upon such securities at a higher rate of interest than five per
cent by the present state of the law ; but they had recourse to collu-
sive practices and fraudulent proceedings in order to evade its opera-
tion. The inconveniences to which this led were very seriously felt
in England, but they were much more seriously felt in Ireland, where
the circumstances of many estates were such that it was impossible to
borrow money upon them within the limits which the usury laws pre-
sent. The result was, that annuities were granted, and various subter-
fuges and contrivances were resorted to, and, in the end, a much
higher rate was paid than if the money could have been had, at its
market value, upon a mortgage in the usual way. The usury laws, in
fact, did no good whatever, but they produced great inconvenience ;
they affected to do what all the powers of the legislature could not do
— to apply a different principle to one description of commodity from
that which was applied to every other, and they interfered with the
principle of supply and demand. Having referred to Calvin as among
the distinguished men who had doubted their policy, and to Jeremy
Bentham as having dealt the first great blow against them, the noble
marquis concluded by expressing an earnest hope that their lordships
would consent to the second reading of the bill.
Lord Campbell expressed his great satisfaction that the usury laws
were about to be entirely sw’ept away. From his long experience in
courts of justice, he could bear testimony to the mischievous effects
which they produced. They had been practically swept away in all
cases except where real security was given ; but in the cases in which
they were retained they led to a good deal of litigation, and proved
most disastrous and even ruinous to those whom they were avowedly
intended to protect. They had given a great deal of employment to
the Encumbered Estates Court in Ireland, and he believed that many
estates in Ireland which might otherwise have been disencumbered had
been brought to the hammer through the operation of those laws.
Lord Brougham supported the bill, both on mercantile and moral
grounds.
The Lord Chancellor also supported the bill. The usury law’s could
always be defeated by a person who was willing to resort to something
which bordered upon fraud. Building societies had been exempted
from their operation in order to encourage the industrious classes to
make small weekly or monthly investments out of their earnings.
But the exemption had been taken advantage of by people who had
capital to lay out, and w ho found that, by making use of these societies,
they could obtain real security for their money without being subject
to the restrictions w hich the usury laws imposed. This fact had been
brought prominently before him in a case which had occupied his
attention in the Court of Chancery during the last two or three days,
and he thought it was a strong reason for placing these lawrs upon a
rational footing, and for enabling people to do openly and directly
what they could now accomplish by indirect and crooked means.
Lord KedcsdaJe would not oppose the second reading of the bill,
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444 Repeal cf the Usury Laves. [December,
but thought it ought to have been introduced earlier in the session,
that there might have been more time for consideration.
The Marquis of Lansdowne said every matter of detail had been
omitted from the bill, and the principle was one which did not require
any long discussion.
We had intended to m&ke a few remarks on the operation of the
usury laws, in reply to certain positions assumed by the Louisville
Journal ; but we find the following remarks, from one of the Cham-
ber of Commerce, are sufficiently conclusive on the points at issue.
Our readers (and the Legislature of New-York especially) must bear
in mind that this important change in the commercial policy of Great
Britain, is not a hasty one. It was begun in the year 1833, and has
been gradually and fully developed, demonstrated by experience as
sound policy, and now after twenty years’ observation, is universally
acknowledged in Great Britain as tho only just course to be pursued,
with due regard to the interests and welfare of the borrower and the
lender.
In connection with this movement at home, we add a communica-
tion from a member of the New-York Chamber of Commerce:
THE USURY LAWS OF NEW-YORK.
I noticed in the Louisville Journal of 14th instant, a criticism on
the New-York Chamber of Commerce Report upon our Usury Laws.
They say the Committee do not state with strict accuracy the ground*
taken by the restrictive party. The Committee had before them the
written record of the positions taken by their opponents, and stated
them with studied precision and fairness, omitting certain unimportant
points, in the charitable belief that the authors themselves had rather
lay them on the shelf.
We will now, however, for the satisfaction of the Louisville Journal,
state their positions a little more fully. These we find in a text-book
of the restrictionists, written by a distinguished lawyer of Rhode-
Island, in 1836, and re-published, by certain persons in Albany, in
1850. The principal points have been again and again repeated by
such newspaper writers as advocate our present usury laws. W e give
their points almost word for word from their book, as follows :
“ Money is not originally tho product of individual labor and skill, is brought
into existence by the government, is the creation of law, deriving its value from
legislation;” “a man’s ownership to it is not absolute, but it is limited to be used
as currency ; ho having neither the legal nor the moral right to take for it all be
can get.”
“ Currency was created by government at tho expense of the whole.”
“ Our paper money is the creature of the State governments^ who authorize cer-
tain agents of theirs, called ‘ Banks,’ to issue certain amounts.”
“ Government possesses the power of converting lead, or silk, or rags, or certain
shells, into currency ; indeed, should government order that certain peculiar shells
should constitute the currency, and be a lawful tender in the payment of debts, that
currency would possess the same power , though probably not the same value aa gold
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445
Repeal of the Usury Laws .
and silver.” (The value we suppose would approach nearer to the famous French
government assignats than to gold and silver.)
“ Money does not possess any inherent value, farther than as a test of the value
of all other articles.” “ The power of money to command every thing else, does not
exist in the gold or silver or the paper constituting the materials of money, but it
arises out of the act of the government which impresses the character of money
upon it.”
u Currency is a license provided by government to enable all men to transact
their business.”
“ Money is always scarce” — (as compared with our desires , they should have
added.)
“ In theory, the power of money is the fruit of the industry and skill of the
government, therefore is the property of the government” — “ but, in point of fact,
this power was conferred for the benefit of the public, and became the property and
right of those for whose benefit it was invented (We don’t believe the Committee
were deep enough to see any meaning in this sentence.)
“ Lenders of money at six per cent become rich foster than any other class.”
“Borrowers are the slaves of the lenders: the borrower has no voice in the
matter; lenders dictate their own terms.”
“ The lender of money produces nothing, while the hirer of money, blending the
instrument called money with his own industry, can produce a great deal.” “The
lender of money was the instrument that assisted (he hirer to produce .” (Italics added
by us.)
“The man who loans ploughs, saws, eta, don’t produce any thing.”
“These implements aid in producing some things” — “ money aids in all things.”
Here the inquiry might naturally arise, Why should a man be
allowed to receive what he can get for certain implements, limited in
their powers, and yet be bound down by law to a certain rate, for the
loan of an article that “ aids in all things V' }
The writer of this text-book says :
“A navigable river is the property of the pubUc for specific purposes; an Indi-
vidual may acquire a particular kind of property in it, but must not interfere with
the grand object of all highways ” — and this the author of the book called “ one of
the many modes of illustrating the limited nature of individual title to the currency
of the country.”
It seems to us that what little meaning there may be in this figure
of the river, favors altogether the liberty views as to currency laws.
As for instance, our Hudson River is a public river, and yet our
river sloops are not limited by the legislature as to the rates of
freight.
Our good horn-fisted boatmen are freely allowed to use the water
in floating their vessels up and down the stream. True, they are rot
allowed to erect a dam across it, nor to divert away the stream. 'Nor
do we understand the Committee to advocate such freedom in money as
would permit of its being stolen with impunity.
We have now stated, in detail, all the views that we are aware of
having been put forth by any of the rcstrictionists this side of Louis-
ville.
It would be almost an affront to an intelligent, practical business
community, like New-York, to suppose they needea any one to fur-
nish answers to the strange doctrines we extract from the aforesaid
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Repeal of the Usury Laws.
[December,
text-book. W c will let them all quietly pass for the present ; indeed,
we will allow our friends of the Louisville Journal to carry out their
obvious intention of withdrawing the more prominent of these points,
and meet them briefly in the issue which they present.
Unaccustomed as we, on our part, are to newspaper discussion, we
must confess we derive what little strength we have, mainly from the
glaring demerits of what is opposed to us. We certainly should not
dare to meet the celebrated editor of the Louisville Journal in any thing
like an equal trial. But the truth is so proverbially u mighty,” that
the humblest individual, when armed by it, feels courageous, and at
the same time can afford to be magnanimous.
Under these impulses, we will allow all the egregious fallacies of
the little book to be withdrawn and laid upon the shelf, and meet the
one point put forth by the Journal, namely : “That metals have an
intrinsic value, independent of all law,” and “gold and silver derive
from the law their exclusive function of being the medium for the
liquidation of all debts.”
This is all very correct. The Federal Government makes gold and
silver a lawful tender in the payment of debts. Debts can, of course,
be liquidated by any commodity whatever when both parties agree
thereto. Specie, however, is the only article that a debtor can use as
a tender to stop, perhaps, some vexatious suit. But how in the world
this useful attribute can be referred to as a reason for limiting the price
upon loans of an article possessing “exclusive functions” of such sur-
passing importance, is a great deal more than wc can see. We should
suppose that the very opposite of this would result from such a quality.
The fortunate possessor of an item of property so extraordinary, ought
surely to enjoy the comfort of asking and receiving what any sane
man may deem fit to give him for its use. We may take ten silver
dollars from our pockets and have them melted into spoons, or we
may pay or receive what we please of this rare article of exclusive
functions, for any commodity in the world, or may pass it away, or
receive it, gratuitously — or throw it into the river, and the like ; but
the moment wc pay or receive for a loan beyond a certain talismanie
figure, indicating the outskirts of what is “moral,” we awaken some
antediluvian “prejudice” calling forth the immediate attention of our
regulators in and about Albany.
We should really like to have our friends of Louisville explain the
philosophy of all this. Our logic is quite at fault. If it is right to
restrain us in the amount of the money we may pay away for interest,
why not restrain us upon every possible occasion of our either parting
with or receiving any money for any thing whatever ?
The Journal somewhat discourteously speaks of Dr. Dewey’s “ con-
fused ideas.” Perhaps they had better take fairly hold of his illustra-
tion as to the origin of money or coinage, and point out, if they can,
wherein consists this confusion of ideas.
The Journal next takes very emphatic exception to the Committee’s
regarding money as a commodity. With a very confident air they
cite Webster’s Dictionary in proof that commodities do not include
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Repeal of the Usury Laics .
447
money. Webster’s Dictionary is, in general very good authority —
and yet, in law matters, may not be infallible. Be that as it may,
the Journal does not quote Webster accurately. They omit the words
contained in his full definition, namely, “.That which affords ease, con-
venience or advantage” — any thing that is useful, etc., ;etc., (as the
Journal quotes.) The words “ case,” and u convenience,” and “ ad-
vantage,” certainly have quite an obvious squinting toward money .
But, let that pass, too. While we entertain no doubts whatever as
to gold and silver, in any form, being commodities, we will for argu-
ment’s sake, waive even that, and admit that money is any thing —
either material or spiritual, mental or physical — no matter what, call
it what you please, still the question comes up, what is there in all
this that gives any government, except the “ government” within the
money-holder’s own breast, the right to meddle with the price of it 1
Premiums of insurance are not “ commodities,” still they are never
regulated by legislation.
We will say no more for the present, further than to invite tl
JoumaVs attention to the fact that, for more than eighteen centuries,
every single attempt to keep down the rates of interest by govern-
mental action, has been perfectly abortive.
Here we, in conclusion, present our immovable points : Usury laws
are futile in obtaining the end proposed, are inexpedient in relation to
public prosperity , are unjust toward the holders of capital , and are
oppressive totcard the needy borrower.
Not one of these averments can be reversed, and “they plead like
angels trumpet-tongued against the deep*’ disgrace of our usury laws.
Nkw-York, Oct. 21. One of the Chamber.
Western Railroads. — Hitherto the communication between St. Louis, Louis-
ville, and Cincinnati, has been seriously interrupted by the low water of the Ohio,
and, at times, passengers have been compelled to travel between those cities by
stage. The Ohio and Mississippi Railroad is now in running order for about 140
miles between St. Louis and Cincinnati. The cars on this road now run to Car-
lyle, fifty miles east of St. Louis. The track is graded to Salem, and the rails are
laid to within eleven and a half miles of the junction with the Illinois Central. The
St Louis Itepublican says of this road :
“ Another link in the Ohio and Mississippi Railroad is completed to-day. The
passenger cars commence running this morning to Carlyle, titty miles distant on thg
Eastern lino — and hereafter it will requiro only two hours to connect these two
points. Two trains arrive and depart each day, and very soon a vigorous com-
merce will spring up all along the route and concentrate at St. Louis. The road is
not to stop at Carlyle, but is to be pushed forward, with all possible expedition, to
its connection at Vincennes with the Eastern section of the line, which is advancing
as rapidly as possible from Cincinnati. In the early part of next year, this connec-
tion must be made, and then we shall bo able to take an early breakfast in St. Louis
and tea in Cincinnati or Louisville. Even before that time — say by the 1st of Jan-
uary— there will bo a railroad connection with Terre Haute, which will greatly
shorten the distance between St. Louis and the cities wo have named, whereby we
will avoid the circuitous route via Chicago, and greatly lessen the time now em-
ployed in travel between the cities of the Ohio and St. Ixnns.”
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Finances of Spain.
[December,
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FINANCES OF SPAIN.
Tire Madrid correspondent of the London Tim u, under date August 26, gives the
following summary of Spanish finances :
“ The greater portion of the very long Cfazette published to-day, is
filled with the statements furnished by the committee formed to ascer-
tain the state of the finances of Spain. These statements are two in
number, and with them is published an exposition addressed by the
Minister of Finance to the Crown. The first statement is that of the
floating debt as it stood on the 17 th of July last, the day of the dismissal
of the Sartorius ministry and of the outbreak of the revolution in Madrid.
It amounts to 588,938,345 reals. The second statement shows the
deficit, stated by the committee at 707,644,645 reals, or nearly eight
millions sterling. This, however, is reduced by subsequent discoveries
'd corrections set forth in the Ministers’ exposition, to about 655
illions of reals, of which the following is the detail :
Bool*.
Bills of exchange and promissory notes at all dates, 339,961,543
The balance against the treasury in favor of tho general chest of depo-
sits ( caja general dt depotritos) and of tho fund for military substitutes, 99,557,628
Forced and reimbursable anticipation decreed on the 19th of May last, 44,971,241
Funds received in anticipation on account of sales of quicksilver, 26,577,778
Bills and promissory notes in circulation on the Colonial Treasuries,. . 77,870,155
The obligations of the budget pending in the central treasury, 66,230,822
Total, 665,160,167
This amount, which at the present rate of exchange is a little over
£6,000,000 sterling, is the entire deficit. Although somewhat less than
it was recently feared it would prove, it is a very large sum, equal to
fully two-thirds of the annual revenue of the country. It is impossible
and unnecessary to translate to-day the whole of M. Collado’s very lucid
exposition, but I extract an important paragraph :
“If it is considered that of the 659,207,019 reals, to which the whole
of the liabilities mentioned in the statements amount, 131,904,953 are
credits in favor of the Spanish Bank of San Fernando, whose renewal may
be positively reckoned upon, judging from the support it has always
given to the treasury ; that 44,971,241 are due to the persons who had
paid their share of the forced loan, the reimbursement of which is not
immediate; that 77,870,155 affect the colonial treasuries, and will be
gradually covered by the remittances made by the same ; that 26,577,778
will be extinguished by the produce of the sale of quicksilver, already
extracted for a value exceeding that amount; that 84,074,205 is the
balance of the Caja de Depositos, which could at this moment claim
back only the part representing the deposits to be returned in ready
money and the accounts current; that 19,521,273 are the balance of the
fund for procuring military substitutes, the restitution of which is not
pressing; and, finally, that 22,500,000 have been cancelled, since the
date of the committee’s statement, the sum of the obligations whose
reimbursement may be demanded does not exceed 252,980,253 reals.
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The Free Banking System .
449
THE FREE BANKING SYSTEM.
An Act to Establish a General System of Banking, Passed by
the Legislature of Illinois, February, 1851.
Auditor to Procure Bank-Notes to be Engraved and Printed.
§ 1. Be it enacted by the people of the State of Illinois, represented
in the General Assembly, That the Auditor of public accounts is hereby
authorized and required to cause to be engraved and printed, in the
best manner to guard against counterfeiting, such quantity of circu-
lating notes, in the similitude of bank-notes, in blank, of different
denominations, not less than one dollar, as he may, from time to time,
deem necessary to carry into effect the provisions of this act ; such
blank circulating notes shall be countersigned, numbered, and regis-
tered in proper books, to be provided and kept for that purpose in
the office of the Auditor, under whose direction, by such person or
Sersons as the said Auditor shall appoint for that purpose, so that each
enomination of each circulating note shall bear the signature of such
register, or one of such registers.
When to be Delivered to Associations or Persons .
§ 2. Whenever any person, or association of persons, formed for
the purpose of banking under the provisions of this act, shall lawfully
transfer to and deposit with the Auditor any portion of the public
stock issued, or to be issued, by the United States, or any State stocks
on which full interest is annually paid, or the stocks of this State —
the latter stocks to be valued at a rate twenty per centum less in
value than the market price of such stocks, to be estimated and
governed by the average rate at which such stocks have been sold in
the city of New-York, within the previous six months preceding the
time when such stocks may be left on deposit with the Auditor, and
in no case shall the Auditor issue bills for banking purposes, on bonds
of this or any other State, on which less than six per cent is not
regularly paid, unless there shall be deposited with him at least two
dollars in bonds, exclusive of the interest, for every dollar in bills so
issued. Such person, or association of persons, shall be entitled to
receive from the Auditor an equal amount of such circulating notes, of
different denominations, registered and countersigned as aforesaid ;
and it shall not be lawful for the Auditor to take such stock at a rate
above its par value: Provided, that stock shall in no instance be
received by the Auditor at a rate above the market value at the time
of the deposit by said banker or association.
List of Notes to be Delivered to Treasurer.
§ 3. A descriptive list of the circulating notes so registered and
signed shall be delivered to the Treasurer, who shall copy the same in
the book hereinafter required to be kept by him, for recording de-
scriptive lists of securities deposited with him for safe keeping.
30
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Loan and Circulation of -Notes Authorized.
§ 4. Such person, or association of persons, are hereby authorized,
after haying executed and signed such circulating notes, in the manner
prescribed by this act, payable on demand, at the place of business,
within this State, to loan and circulate the same as money, according
to the ordinary course of banking business.
Securities to be Deposited with Treasurer — When to be re-delivered to Auditor .
§ 5. Three descriptive lists of the securities transferred to the Audi-
tor as aforesaid, shall be made and signed by the Auditor and persons
making the transfer, one in a well-bound book, to be kept by the
Auditor for that purpose, one in a like book to be kept by the Trea-
surer, and one in a book to be kept by the association ; and said
securities shall then be delivered to the Treasurer for safe keeping,
who shall receipt to the Auditor for the same, and who shall be re-
sponsible for any loss or destruction thereof, growing out of or result-
ing from negligence, or the want of reasonable precaution and care.
The whole or any part of said securities may be re-delivered to the
Auditor, for the purposes of being sold under the provisions of this
act, or being used or disposed of under any order or decree of court,
or of being returned to the owner, in conformity with the provisions
of this act — the Auditor, in either case, giving a receipt upon the book
kept by the Treasurer aforesaid, specifying therein the purpose for
which such re-delivery was made ; which receipt shall discharge the
Treasurer from all further responsibility.
Associations — Amount stock.
§ 6. Any number of persons may associate to establish offices of
discount, deposit, and circulation, and become incorporated upon the
terms and conditions, and subject to the liabilities prescribed in this
act ; but the aggregate amount of the capital stock of any such asso-
ciation shall not be less than fifty thousand dollars.
Certificate.
§ 7. Such persons, under their hands and seals, shall make a certi-
ficate, which shall specify :
Name.
First . The name assumed to distinguish such association, and to be
used in its dealings.
Place.
Second. The plstce where the business is to be carried on, designat-
ing the particular city, town, or village.
Shares .
Third. The amount of capital stock, and the number of shares into
which -t^e same shall be divided.
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Y XiLMrs and Residence.
Fourth . The names and -residence ,pf the shareholder, and the num-
ber of shares held by each of them respecti^ly.
Period of Association — Certificate to be Filed — Corporate Powers .
Fifth. The period at which such association shall commence and
terminate ; which certificate shall be acknowledged and be recorded
in the office of the Recorder of the county where any office of such
association shall be established, and a copy thereof shall be filed in
the office of the Secretary of State and the Auditor of State ; and upon
the recording of which certificate the person or association of persons
aforesaid shall become a body politic and corporate, by the name
assumed as aforesaid, for and during the time fixed in the certificate,
and by such name shall have power to make contracts ; to grant and
receive ; to sue and be sued ; to plead and be impleaded, in all courts
and places wherein legal or judicial proceedings may be had ; to hate
and use a common seal, and alter the same at pleasure ; to have,
hold, use, and enjoy property, real, personal, and mixed, with the rents,
issues, and profits thereof ; and to exercise all other powers conferred
by this act ; and all grants or conveyances of real estate shall be
under the seal of the corporation, signed by the president, and coun-
tersigned by the cashier.
Certified Copies of Certificate to be Evidence.
§ 8. A copy of the certificate required by the section of this
act, duly certified by the Recorder of the county and Secretary of
State, or by either of those officers, may be used as evidence in all
courts and places against any such association, or any other person
for or against whom any such evidence may be necessary, on any civil
or criminal trial.
Banking Powers.
8 9. Such associations shall have power to carry on the business
of banking, by discounting bills, notes, and other evidences of debt;
by receiving deposits ; by buying and selling gold and silver bullion,
foreign coins, and bills of exchange ; by loaning money on real and
personal securities, and by exercising such incidental powers as may
be necessary to carry on such business ; may choose one of their
number as president, and appoint a cashier and such other officers and
agents as their business may require.
Shares of Stock to be deemed Personal Property , etc. — Corporation to be Thxed.
§ 10. The shares of said association shall be deemed personal pro-
perty, subject to taxation, and shall be transferable on the books of
the association, in such manner as may be agreed on in the articles
of association; and every person becoming a shareholder by such
transfer, shall, in proportion to his shares, succeed to all the rights
and liabilities of shareholders by whom the transfer was made.
No change shall be made in the articles of association, or of the
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shareholders or members thereof, by which the right, remedies, or
securities of its existing creditors shall be impaired. Such association
shall not be dissolved by the death or insanity of any of the share
holders therein, when there is more than one shareholder in such
association. Taxes shall be levied on and paid by the corporation,
and not upon the individual stockholders : the value of the property
to be ascertained annually by the bank commissioners herein pro-
vided for ; and the rate of taxation shall be the same as that required
to be levied on other taxable property by the revenue laws of the
State.
President and Cashier to sign Contracts , etc. — Suits.
-§11. Contracts made by any such association, and all notes and
bills by them issued, and put in circulation as money, shall be signed
by the president and cashier thereof ; and all suits, actions, and pro-
ceedings, brought or prosecuted by, or in behalf of such association,
may be brought or prosecuted in the name of the corporation; and
no such suit, action, or proceeding shall abate by reason of the death,
resignation, or removal from office of any president, but may be con-
tinued and prosecuted according to such rules as the court of law and
equity may direct.
Actions against Corporation .
§ 12. Any persons having demands against any such association,
may maintain actions against the corporations ; which suits or actions
shall not abate by reason of the death, resignation, or removal from
office of any president, but may be continued and prosecuted to judg-
ment against the corporation ; and all judgments and decrees obtained
against such corporation, for any debt or liability of such association,
shall be enforced against the property of the same, except such judg-
ments or decrees as may be obtained against shareholders as herein
provided.
Power of Attorney — Surrender of Securities.
§ 13. The Auditor may give to any person or association of per-
sons, so transferring stocks, in pursuance of the provisions of this act,
power of attorney to receive interest or dividends thereon, and apply
the same to their own use ; but such powers may be revoked upon
such person or association failing to redeem the circulating notes so
issued, or whenever, in the opinion of the Auditor, the principal of
such stock shall become insufficient security ; and the Auditor may,
upon the application of the owner or owners of such stock, re-transfer
to such owner or owners, upon receiving and cancelling an equal
amount of such circulating notes, delivered to him by each person or
association, in such manner that the circulating notes shall always be
secured in full by the pledge of stocks ; which circulating notes, after
descriptive lists thereof have been made and recorded by the Auditor
and Treasurer, shall, in presence of these officers, be consumed by
burning.
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Proceedings in case of Failure to Redeem Bills .
§ 14. In case such person or association of persons shall fail or
refuse to pay any bill or note on demand, in the manner specified in
the seventeenth section of this act, the Auditor, after ten days’ notice,
given in two newspapers printed in the city of New-York, therein
mentioned, may proceed to sell, at public auction, in the city of New-
York, the public stock so pledged, or such portion as may be neces-
sary, and out of the proceeds of such sale shall cancel and pay the
said bill or note, default in paying which shall have been made as
aforesaid ; but nothing in this act contained shall be considered as
implying any pledge on the part of the State for the payment of said
bills or notes, beyond the proper application of the securities pledged
to the Auditor for their redemption.
Application of Securities.
§ 15. The public stock to* be deposited with the Auditor by any
such person or association, shall be — first, for the redemption of bills
or notes of such person or association, put in circulation as money,
until the same is paid ; second, for the payment of all other liabilities,
and the excess for the use of stockholders.
Plates , Dies, etc., to remain in Custody of Auditor.
§ 16. The plates, dies, .and materials to be provided by the Auditor
for the printing and marking of the notes provided for hereby, shall
remain in his custody and under his direction; and the expense
incurred in executing the provisions of this act, shall be audited and
settled by the Auditor, and paid out of any money in the treasury
not otherwise appropriated ; and for the purpose of reimbursing the
same, the said Auditor is authorized and required to charge against
and receive from such person or association applying for such circu-
lating notes, such rate per cent thereon as may be sufficient for that
purpose.
Amount of Notes not to Exceed Securities — PenaBy .
§ 17. It shall not be lawful for the Auditor, or other officer, to
countersign bills or notes for any person or association, to any amount,
in the aggregate exceeding the public stock deposited with the Audi-
tor by such person or association, a3 provided in the second section
of this act ; and any Auditor, or other officer, who shall violate the
provisions of this section, shall, upon conviction, be adjudged guilty
of a misdemeanor, and shall be punished by a fine not less than five
thousand dollars, and be imprisoned not less than five years in the
penitentiary.
Damages for non-payment of Bids — List of Shareholders.
§ 18. Every association under the provisions of this act, shall be
liable to pay the holder of every bill or note put in circulation as
money the payment of which shall have been demanded and refused,
damages for the non-payment thereof, in lieu of interest, at the rate
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of twelve and one half per cent per annum, from the time of sueli
refusal until the payment of such evidence of debt and the damage
thereon. The president and cashier of every association formed pur-
suant to the provisions of this act, shall keep a true and correct list
of the names of all the shareholders of such association, and shall file
a copy of such list in the office of the clerk of the county where any
office of such association may be located, and also in the office of the
Auditor, on the first Monday in January, in every year.
Notes, where Payable.
§ 19. It shall not be lawful for any association under this act, to
make any of its bills or notes, put in circulation as money, payable
at any other place than at the office where the business of the asso-
ciation is carried on and conducted.
Notes to be Payable on Demand in Specie.
§ 20. No banking association or individual banker shall issue or
put in circulation any bills or notes of such association or banker,
unless the same shall be made payable on demand. And every such
association or bankers shall always keep on hand a sufficient amount
of specie to redeem all such bills or notes as they may be presented
at the place of payment.
Mutilated Notes to be Exchanged by Auditor, and Lists (hereof to be Kept
§ 21. It shall be the duty of the Auditor to receive mutilated notes
issued by him, and re-deliver, in lieu thereof, other circulating notes
to the same amount. And twTo descriptive lists of such mutilated
notes so received, and of notes re-delivered, shall be made ; one to be
retained by the Auditor, the other by the Treasurer, and copied in
each office on the book kept for the purpose of recording descriptive
lists of securities ; and all such mutilated notes shall, at the time they
are received, be consumed by burning, in the presence of said officers.
Grants , etc., preferring Creditors , to be Void as to other Creditors .
§ 22. All grants, conveyances, assignments, transfers, sales, or
other disposition of property, rights, credits, or effects by any such
corporation, for the purpose or writh intent to secure the payment of
one liability in preference to another or others, or in any manner to
secure any priority or preference to any one or more creditors, or
which shall be intended to have such operation or effect, shall be void
in respect to all other persons and creditors whose rights or remedies
may be effected thereby.
Purposes for which Peal Estate may be Meld and Conveyed.
§ 23. It shall be lawful for such association to purchase, hold, and
convey real estate for the following purposes :
1st. Such as shall be necessary for its immediate accommodation,
banking-houses, and buildings connected therewith in the transaction
of its business.
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2d. Such as shall be mortgaged to it in good faith, by way of secu-
rity for loans made by and money due to such association.
3d. Such as shall be conveyed to it in satisfaction of debts pre-
viously contracted in the oourse of its dealings.
4th. Such as it shall purchase at sales under judgments, decrees, or
mortgages held bjrstich association, and at sales under judgments and
decrees in favor of others, where it is done with the sole view of
securing and saving debts due, or to become due to such corporation.
Restrictions in Purchase and Sale of Reed Estate.
§ 24. The said association shall not purchase, hold, or convey real
estate in any other case or for any other purpose whatever ; and all
conveyances of such real estate shall be made to the corporation, and
which the president and cashier, or either, may sell, assign, grant, or
convey under the direction of the association, free from any claim
thereon in favor of or against the shareholders, or any person claiming
under them.
Investigation of Affairs of Banks , when Made.
§ 25. Upon the application of the Auditor, the shareholders of any
such association, whose debts or shares shall amount to three thou-
sand dollars, and stating facts, verified by affidavit, the judge of the
circuit court of the pounty in which the business of the association
may be conducted, may order an examination to be made by any
competent person or persons, to be by him appointed, of the affairs
of such association, for the purpose of ascertaining the safety of its
investments and the prudence of its management ; and the result of
such examination, together with the opinion of the judge thereon, shall
be published in such manner as he shall direct, and who shall make
puch order in respect to the expenses of such examination and publi-
cation as he may deem proper.
Failure to Redeem, — Protest — Duty of Auditor — Power of Corporation to cease — Pro-
viso— Receivers — Application of Assets.
§ 26. In case the maker or makers of any such circulating notes,
countersigned and registered as aforesaid, shall, at any time hereafter,
on lawful demand, during the usual hours of business, between the
hours of ten and three o’clock, at the place where such note or notes
is or are payable, fail or refuse to redeem them in the lawful money
of the United States, the holder of such note or notes making such
demand may cause the same to bo protested for non-payment, by a
notary public, in the usual manner, and the Auditor, on receiving and
filing in his office such protest, shall forthwith give notice, in writing,
to the association or banker, the maker or makers of such notes, to
pay the same, and if he or they shall omit to do so, the Auditor shall,
immediately thereupon, (unless such association or banker shall
satisfy him by affidavits filed in his office that they or he had a good
defence as against the person presenting the same to a recovery
thereof,) give notice in at least one paper printed (if any paper is so
printed or published) at the place of business of such person or per-
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sons, bank or association, so refusing payment of any notes, (and in
one newspaper published at the scat of government of the State of
Illinois,) that all the circulation issued by such person or association
will be redeemed out of the trust funds belonging to the maker or
makers of such protested note, to the payment, pro rata , of all such
circulating notes, whether protested or not, and to adopt such
measures lor the payment of such notes as will, in his opinion, most
effectually prevent loss to the holders thereof. And so soon as any
such note shall be protested as aforesaid, a copy of such protest shall
be delivered to the president, cashier, or principal clerk, at the office
or place of business of the association. The powers and duties of any
such association or banker over or with the same shall cease and
determine, and all the officers connected with the same shall be pro-
hibited from exercising any control whatever over the same, unless
by the decision or decree of the court in which proceedings may he
had for the appointment of receivers and winding up the allairs of the
association, it shall be determined that such association was not bound
to pay the note or bill protested as aforesaid, the protest thereof to
the contrary notwithstanding : Provided, that the legal existence of
the corporation shall continue for purposes or proceedings in courts
for and against the same, and of avoiding the loss of property of any
kind, for want of a person in being to hold the same, but for no other
purpose whatever. And it shall be the duty of the Auditor to apply
to any judge of the circuit court of this State, whose duty it shall be to
appoint (a disinterested person or persons) a receiver or receivers, to
take the assets and property of every such banker or association into
his or their possession, and collect debts due, and apply all such
assets and property as may come into his or their possession, under
the direction of the circuit court of the county in which the corpora-
tion was located — first, to the redemption or payment of circulating
notes ; second, to the payment of all other indebtedness ; and third,
to the payment of stockholders on account of stocks invested. Re-
ceivers appointed under the provisions of this act shall give bond and
security as may be required by the judge or court appointing them*
Notes in Circulation to be first Paid.
8 27. That the distribution and application of all the means, assets,
and property of any such banker or association, as shall come into the
hands of any such receiver or receivers, or as shall be in the hands of
the Auditor, shall first be applied in payment and satisfaction of all
notes issued as and for a circulating medium, by any such banker or
association. *
Liability of Bankers .
§ 28. The amount of stock owned and held by any individual
banker, or by any stockholder in any such association, shall be held
and controlled by the receiver or receivers as aforesaid, for the pay
ment of any note put in circulation; the said liability to continue for
the space of six months after the assignment by him of any such
stock ; and any stockholder, who is really the party in interest, shall
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be liable as aforesaid, although such stock may be held and recovered
in the name of some other party or individual.
List of Stockholders required to he kept for Public Inspection .
§ 29. The names of all stockholders in any such association shall
be written, at length, and in legible characters, and shall be continu-
ally exposed, during banking-hours, for public inspection ; and every
transfer of stock, with the date of assignment, shall be exhibited in
like manner.
Application of Provisions of this Act.
§ 30. That each and all the provisions of this act shall apply to
and control, in all respects, any banker who shall conduct business
under the provisions of this law, whether the word banker is or is not
used in any such provision.
Bank Commissioners, Appointment , Powers and Duties of
§ 31. At the next session of the General Assembly after this act
takes effect, and every fourth year thereafter, the Governor shall
nominate, and by and with the advice and consent of the Se-
nate, appoint three citizens of the State as bank commissioners,
whose duties shall be to make annual examination in respect to the
affairs and business of associations incorporated under the provisions
of this act, and in respect to the condition and management thereof,
and* also to inspect the securities filed with the Auditor and Treasurer,
so as to be able to determine whether or not any change has been
made in said securities, as well as in respect to the sufficiency of such
securities to meet the liabilities of the corporation, and to report
thereon to the Auditor and to each corporation. Such commissioners
shall have power to examine all books, papers, and documents apper-
taining to the business of the corporation, and to swear or affirm all
officers, agents, and others connected with the corporation, in respect
to any matter or thing about which they have the right to inquire, and
their reports shall be published at the scat of government, and such
other papers as they may direct.
Diminution oj Securities — How Remedied.
§ 32. If the said bank commissioners shall ascertain, upon any
examination which they may make, that any change has been made in
the securities deposited with the Treasurer, or that any part thereof
has been lost, destroyed, or improperly withdrawn, or in any way or
manner misused or misapplied, or that securities have from any cause
become lessened in value or insufficient as security for the redemption
of bills or circulation, they shall notify the president and cashier of
such association or corporation liable to be affected by any such state
of facts, of the discovery thereof, and require the transfer and deposit
of other securities, of like kind and value with those originally trans-
ferred, to supply the place of those changed, lost, destroyed, or
Improperly withdrawn, or which shall have become insufficient
security as aforesaid, in a reasonable time, to be fixed by said com-
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missioners ; or that said association or corporation surrender to the
Auditor, to be burned, a sufficient amount of bills to reduce the
liability of such association to such a sum as that the securities in
possession of the Treasurer will be sufficient for the redemption of all
bills or notes not so surrendered ; and in case of any failure to com-
ply with any such requisition, the commissioners shall report the facts
to the Auditor, as well as to all the other associations incorporated
under the provisions of this act ; and the Auditor shall thereupon pro-
ceed to put such defaulting association or corporation into liquidation,
as provided for in cases of failure to redeem or pay notes or bills on
demand.
Quorum.
§ 33. Any two of said bank commissioners shall constitute a
quorum to transact business.
Reports to Auditor.
§ 34. Every banking association or individual banker who shall
hereafter carry on banking business under the provisions of this act,
shall make out and transmit to the Auditor of State a full statement
of its affairs, as they existed on the first Monday of January, April,
July, and October of each year, verified by the oath of its president
and cashier ; which statement shall be deposited in the office of said
Auditor by the twentieth day of each of said months in each year;
which statement shall be published quarterly in the nearest news-
paper ; and such statement shall contain —
Amount of Stock.
1. The amount of capital stock of the association or individual
banker, paid in and invested according to law.
Value of Real Estate.
2. The value of the real estate, specifying what portion is occupied
by the association or individual banker for the transaction of business.
Claims.
3. The debts owing to the association or individual banker, and the
date and amount of each bill or note discounted, and when the same
was made payable.
Debts.
4. The amount of debts owing by the association or individual
banker, and the amount deposited in other banks.
Notes in Circulation.
5. The amount of notes or bills, then in circulation, of said associ-
ation or banker ; of loans and discounts, and specie on hands ; what
amount of notes of other banks is held by such banker or association.
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Suspended Debt.
6. The amount of suspended debt held by such association or
banker.
Penalty for Neglect to RqxirL
§ 35. Every association or individual banker that shall neglect or
refuse to make out and transmit the statement required in the
section of this act, shall be restrained from the further prosecution of
the banking business, and shall forthwith go into liquidation.
Securities — When to be Surrendered .
§ 36. Whenever any individual banker or association, desirous of
relinquishing the banking business, shall have redeemed at least
ninety per cent of their circulating notes, and shall produce a certifi-
cate of a deposit to his credit, in such bank as the Auditor may
approve, to an equal amount with the notes of such banker or associ-
ation, it shall be lawful for the Auditor to receive the same, and to
give up all the securities theretofore deposited by such banker or as-
sociation, for the redemption of the notes issued.
Notice,
§ 37. Such association or individual, after having complied with
the provisions of the preceding section of this act, may give notice,
for three years, in a paper published at the seat of government, and
also in at least one paper published in the county where the said asso-
ciation or bank shall have been located, that all circulating notes
issued by such association or banker must be presented at the Audi-
tor’s office within three years from the date of such notice, or that the
funds deposited for the redemption of the notes will be given up to
the bank or association ; and on receiving satisfactory proof of the
giving such notice for the time aforesaid, the Auditor shall surrender,
to the order of said association or banker, any securities which he
may hold for the payment of any unredeemed notes of the said asso-
ciation or banker ; such notice to be published at least three weeks in
each six months of each year.
Rate of Interest .
§ 38. That any such association or banker, doing business under
the provisions of this act, shall not be authorized to take or receive
exceeding seven per centum per annum as interest on any real or per-
sonal security; which interest may, in all cases, be received in
advance; and in the computation of time, thirty days shall be a
month, and twelve months a year.
Maturity of Notes foiling due on Sunday, etc .
Notes, bills, and all other evidences of indebtedness to corporations
or associations organized according to the provisions of this act, falling
due or maturing on the Sabbath, or on the Fourth of July, or on
Christmas, or New-Year’s day, shall be deemed as due or as having
matured on the day previous.
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The stockholders in every corporation or association organized
undw the provisions of this act, shall be individually responsible to
the amounts of their respective share or shares of stock tor all of its
indebtedness and liabilities of every kind, to the full intent provided
for in the Constitution of this State.
Proceedings in Liquidation, when Assets are Exhausted.
When the property, rights, credits, assets, and effects of any corpo-
ration or association, put into liquidation under the provisions of this
act, shall have been exhausted in the redemption of notes and pay-
ment of liabilities, and there shall remain unpaid any indebtedness or
liability of any kind, any person having right or cause of action upon
or on account of any such remaining indebtedness or liability, shall
have remedy in any court of record having jurisdiction, against the
stockholders, for the amount due upon sufch indebtedness or liability;
and to enforce this remedy, any such person may institute and main-
tain any appropriate action or suit in equity against the corporation
or association, and upon the trial of such action or the hearing of such
suit, if judgment or decree is attained against the corporation or asso-
ciation, the court shall direct an issue or issues to be made in the
cause, for the purpose of ascertaining and deciding upon the liability
and extent thereof of each stockholder, under and according to the
provisions herein, and of the constitution ; and upon the decision of
such issue or issues, the court shall enter judgment or decree against
each stockholder for the amount and to the extent of his, her, or their
liability, so ascertained ; upon which judgment executions may issue
against the stockholders in succession, until the amount of the judg-
ment against the corporation shall be paid or collected, or the liabili-
ties of the stockholders extinguished; and payments or collections
made upon judgments against stockholders, shall operate to extinguish
the liability of such stockholders to the extent or amount of such pay-
ments or collection.
Judgments arid Decrees .
Judgments or decrees entered against stockholders, under, the pro-
visions of this act, shall stand and remain as security for the payment
of any judgment or decree which may thereafter be obtained against
the corporation, under the provisions hereof ; and when any such
subsequent judgment or decree shall be obtained, the court shall order
execution or executions to issue against stockholders liable to pay the
same, until the amount shall be paid or collected, or the liabilities of
stockholders shall be extinguished.
Proceedings in case of l>eo or more Judgment etc.
Whenever two or more judgments or decrees are obtained at the
same term of the court, in favor of different parties against any cor-
poration, under the provision of the three foregoing sections, the
aggregate amount of which shall exceed the amount for which the
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stockholders are liable, the court shall direct the amount collected to
be divided between the said parties pro rata , or in proportion to the
several amounts, and the same apportionment shall be made of money
collected on any such judgments, when the whole amount thereof can-
not be collected.
Satisfaction .
Whenever any stockholders shall have paid the amount that he,
she, or they is or are liable, the court shall, on motion and proof of
the facts of each payment, order satisfaction of the judgment, as
against or in any respect to such stockholder, to be entered of record.
Submission of this Act to the People— Time of
§ 39. At the general election to be held on the Tuesday next after
the first Monday in November, one thousand eight hundred and fifty-
one, at all the usual places of holding elections in this State, for the
election of Senators and Representatives to the General Assembly,
the question whether or not this act shall go into effect, or in any
manner be in force, shall be submitted to the people, and if the same
is approved by a majority of all the votes cast at said election, for
and against the same, it shall go into effect and be in force from and
after the date of said election ; otherwise it shall not go into effect or
in any manner be in force.
Manner of Voting .
§ 40. Every person voting at said election shall have the right to
use a ticket or ballot, with the words written or printed thereon,
“ For the General Banking Law,” or “Against the General Banking
Law,” which words shall indicate the vote of the elector for or
against the approval of this act ; and upon canvassing and counting
the votes, each clerk of the election shall carefully mark down the
votes given upon said questions, in separate columns prepared for,
that purpose, headed, “For the General Banking Law,” “Against
the General Banking Law and the judges or board qf election shall, (
in the certificate required to be given of the result of said election,
include the number of votes given for and against the general bank-
ing law, as aforesaid.
r Return and Canvass of Votes.
§ 41. In making the abstracts of votes given at said election, as
required by the election law, the clerks shall make separate abstracts
of the votes given under the provisions of this act, which shall be on
one sheet, a copy of which shall, without delay, be transmitted by
mail or other safe conveyance, to the office of the Secretary of State,
indorsed thereon by the clerk, “Abstract of votes for and against
banking,” or in words clearly indicating the contents of the paper ;
and the abstract so transmitted shall be opened, and the votes can-
vassed in the time and manner and by the officers provided for in
relation to the election for representatives to Congress ; and if it
should appear that a majority of the votes cast upon said question
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are for the General Banking Law, as aforesaid, or if it shall appear
that the majority of votes east are against said law, the officers can-
vassing the votes shall, under their hands, make a certificate of the
facts, stating the number of votes given for and against said law, and
file the same in the office of Secretary of State, to be by him recorded
and filed with the enrolled act to which it refers ; and the said certifi-
cate, or a copy thereof, certified by the Secretary of State or keeper
of enrolled laws, under the seal of office, shall be conclusive evidence
of the facts therein stated ; and upon the making and filing thereof,
the Secretary of State shall cause the same to be published, three
weeks in succession, in two newspapers published at the seat of
government.
Limitation of Colorations.
No corporation or association organized under the provisions of
this act, shall exist longer than twenty -five years.
[The foregoing aot having passed both Houses of the General Assembly, and hav-
ing been laid before the Governor, was by him, on the 15th day of February, A.P.
1851, returned to tho House of Representatives, in which it originated, with bis
objections thereto in writing, and on the same day, being reconsidered, passed the
House of Representatives and the Senate, by a majority of all the members elected
thereto respectively, and thereby became a law*, the objections of the Governor to
the contrary notwithstanding.]
SUPPLEMENTARY BANK LAW OF ILLINOIS.
Passed February , 1853.
For 44 An act supplemental to and explanatory of an act enti-
tled, i An act to establish a general system of banking,’ and
to prevent the issuing and circulating of illegal currency.*'
§ 1. Be it enacted by the people of the State of Illinois , represented in
the General Assembly : That the act to w hich this is supplementary shall
be so construed that no person or persons shall become incorporated
under the said act, until he, she, or they, shall first have deposited
with the Auditor United States or State stocks, as required by said act,
so that the capital stock of the said incorporation shall amount, in
such United States stocks or State stocks, at the rate and value fixed
by said act, to the sum of fifty thousand dollars ; and at no period
during the existence of said bank shall the said capital stock of the
same, in stocks deposited as aforesaid, be less than the sum of fifty
thousand dollars.
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§ 2. No bank, banking association, corporation, broker, banker
dealer in money, produce, or foreign merchandise, or other person,
shall emit, issue, utter, pay out, pass, or receive in payment, or on
deposit, any bill of credit, bond, promissory note, bill of exchange,
order, draft, certificate of deposit, written instrument, or instrument
partly written and partly printed, to be used as a general circulating
medium, as or in lieu of money, or other currency, or intended by the
maker thereof to be so used, other than the bills or notes of banks of
this State countersigned in the Auditor’s office, according to the pro-
visions of the act to establish a general system of banking, or the
notes or bills, (of a denomination not less than five dollars,) of specie-
Eaying banks, created by an express authority of law, in either of the
United States, or territories, the District of Columbia, or Canada.
Every bank, banking association, corporation, broker, banker, dealer
in money, produce, or foreign merchandise, or other person, who shall
violate the provisions of this section, shall forfeit and pay to any per-
son, or persons, who may sue for the same, the sum of fifty dollars
for each and every bill of credit, bond, promissory note, bill of ex-
change, order, draft, certificate of deposit, or other instrument so
issued, uttered, paid out, passed, or received, contrary to the provi-
sions of this section, to be recovered in an action for debt, before any
justice, magistrate, or court having jurisdiction, to the amount claimed
in any such writ.
§ 3. In addition to the penalties provided for in the foregoing sec-
tion, every broker, banker, dealer in money, produce, or foreign mer-
chandise, and every officer, agent, or employee, of any bank, banking
association, corporation, broker, banker, dealer in money, produce, or
foreign merchandise, who shall offend against the provisions of this
act, shall, for every bill, bond, note, order, certificate of deposit, or
other instrument or piece of paper emitted, issued, uttered, paid out,
passed, or received, contrary to the provisions of this act, bo liable to
be indicted, and, on conviction, shall bo imprisoned in the county jail
not more than one year. It shall not be necessary, in any indictment,
suit, or prosecution, under the provisions of this act, to specify or
particularize any particular bill, note, bond, order, certificate of
deposit, or other instrument, but it shall bo sufficient to allege gene-
rally that the defendant or defendants have been guilty of violating
the provisions of this act, by uttering, emitting, paying out, passing,
or receiving, as the case may be, any such bill, note, bond, order, cer-
tificate of deposit, or other instrument, of the character or description
which, by this act, are forbidden or prohibited to be issued, passed,
or received, and proof of such general nature shall be sufficient to sus-
tain such indictment, suit, or prosecution.
§ 4. Whenever it shall be represented to any one of the Bank Com-
missioners, upon the oath or affirmation of any credible person set-
ting forth the facts, or whenever, from any information, any one of
the said Commissioners shall have reason to believe that any bank,
corporation, broker, banker, dealer in money, produce, or foreign mcr
chandise, or any officer, clerk, agent, or other employee, of any such
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bank, corporation, broker, banker, dealer in money, produce, or
foreign merchandise, shall have been guilty of any violation of the
provisions of this act, it shall be the duty of such Commissioner forth-
with to proceed to the said bank, or place of business of such bank,
corporation, broker, banker, dealer in money, produce, or foreign
merchandise, officer, clerk, agent, or employee, and then and there to
inquire, by the oaths of the said broker, banker, dealer, officer, clerk,
agent, or employee, or other testimony, whether the said bank, corpo-
ration, broker, banker, dealer in money, produce, or foreign merchan-
dise, officer, clerk, agent, or employee, have been guilty of any viola-
tion of this act; the said Bank Commissioner shall have full power
and authority to issue subpoenas and attachments, to compel the
attendance ot witnesses before him, from any part of the State, and
shall also have power and authority to administer all oaths and affirm-
ations to parties, witnesses, or others, required to be administered
or taken by this act. And shall also have power to compel such
broker, banker, dealer in money, produce, or foreign merchandise, or
any officer, clerk, agent, or other employee, to answer all proper
interrogatories propounded to him, her, or them, touching any viola-
tions of the provisions of this act, and may commit any such person to
jail for refusal so to do, there to remain until such party consents to
answer such interrogatory, or is otherwise discharged by due course
of law. He shall reduce the same evidence and answers to writing,
and report the same to the other Bank Commissioners, and also to the
State’s Attorney for the judicial circuit, in which the said bank, or
other corporation, or the place of business of any such broker, banker,
dealer, officer, clerk, agent, or other employee, may be situated ; and
if the said Commissioner shall be of opinion that any such banker,
broker, dealer, officer, agent, or employee, has been guilty of any viola-
tion of the provisions of this act, he shall make complaint before some
judge, justice of the peace, or other proper officer, and the said judge,
justice of the peace, or other officer, shall proceed against the person
or persons named in said complaint, in all respects, as provided by
the eighteenth division of chapter thirty of the Revised Statutes, enti-
tled, “ Criminal Jurisprudence,” and for the purpose of compelling the
attendance of witnesses, may issue subpoenas and attachments to any
part of the State : Provided , that no answer made by any broker,
banker, dealer in money, produce, or foreign merchandise, officer,
clerk, agent, or employee, or any other person, upon any exami-
nation made by or before any Bank Commissioner, judge, justice ot
the peace, or other officer, touching any violation of this act, shall be
given in evidence against him, her, or them, on the trial of any indict-
ment, suit, or prosecution, for the recovery of any penalty or for-
feiture imposed or provided for by this act, or in every other suit or
legal proceeding whatsoever.
§ 5. In ease the Bank Commissioners, or a majority of them, shall
be satisfied that any bank, corporation, broker, banker, dealer in
money, produce, or foreign merchandise, or such officer, clerk, agent,
or employee, has been guilty of any violation of the provisions of this
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act, they shall immediately apply to some judge of a circuit or
supreme court for a writ of injunction against such bank, corporation,
broker, banker, dealer in money, produce, or foreign merchandise,
such officer, clerk, agent, or employee, forbidding and restraining him
or them from violating any of the provisions of this act ; and such
judge, after reasonable notice given to such bank, corporation, banter
broker, dealer in money, produce, or foreign merchandise, or such
officer, clerk, agent, or employee, shall proceed without delay to inves-
tigate the questions involved in such application and shall have power,
to compel the production of all books, papers, vouchers, and docu-
ments, in the possession of the defendant or defendants, or any other
person, that in his opinion may be necessary to the proper decision
of the cause, and to require answers on oath from such defendant or
defendants, which answers shall not be evidence on the trial of any
other action or suit in law or equity ; and if, upon such examination,
he shall be of opinion that any of the provisions of this act have been
violated, he shall issue such writ of injunction, and enforce the same
in case it shall be disregarded, according to the practice of the courts
of chancery ; and such further proceedings shall be had upon such
application in the circuit court of the county where the office, or place
of business, of such bank, corporation, broker, banker, dealer, officer,
clerk, agent, or employee, may be situated, as may be necessary to
enforce the provisions of this act. And, if it shall be finally deter-
mined by the judge or court that any of the provisions of this act
have been violated, it shall, by the order of the judge or court, be
certified to the Auditor, which shall be sufficient authority to him, and
he shall proceed to put the said bank' into liquidation, in the manner
contemplated by this act and the act to which this is a supplement.
§ 6. The Bank Commissioners to be appointed under the provisions
of the act to which this a supplement, before entering upon the duties
of their office, shall take and subscribe an oath or affirmation, faith-
fully and impartially to perform all the duties enjoined upon and
required to be performed by them, under the provisions of this act,
and the act to which this is a supplement ; which said oath or affirm-
ation shall be filed in the office of the Secretary of State.
§ 7. Every payment made, in whole or in part, in any bill, note,
bond, order, draft, certificate of deposit, or other instrument, or paper,
the passing, uttering, emitting, or use of which is prohibited by this
act, shall be utterly null and void, and the persons or corporation to
whom any such payment may have been made therein, may sue and
recover upon the original contract or cause of action, in the same
manner and with like effect as if no such payment had been made.
§ 8. No action shall be maintained in any court of this State upon
any contract, express or implied, the consideration of which in whole
or in part shall be any bill, note, check, draft, or other instrument or
paper, the use, receipt, or emission of which is prohibited by the act,
but the same shall be adjudged to be utterly null and void.
§ 9. In all prosecutions and suits for the recovery of the penalties
imposed for any violation of the provisions of this act, the person sue-
31
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Illinois Circulation.
11
ing for the same, (notwithstanding he may be liable for, or may have
given bond for the cost of such suit, or may be entitled to the said
penalties when recovered,) and the defendant or defendants, shall be
competent witnesses.
§ 10. This act to be in force and take effect from and after the first
day of August next.
Illinois Bank& — One of the Bank Commissioners of Illinois has issued the fol-
lowing card :
“ Tho undersigned foci called upon, at this time of monetary excitement, to make
a public statement for the benefit of such persons as are not in tho way of being
correctly informed as to the value of Illinois bank-bills of suspended banks.
Every bank of this State, under the General Banking Law, have deposited with
the Auditor, in the hands of the Treasurer, good interest-paying bonds of the several
States, to the full amount of every dollar of their own bills; and all registered
money is equally secured, one bank with another. Those that have closed their
doors have in no way depreciated tho security for their bills ; they are of their full
value now, but cannot command specie until the Auditor disposes of their bonds or
securities according to law, which is required to be done immediately, at which
time due notice will be given and tho bills redeemed in specie. No sacrifice should
be made on Illinois bank-bills whatever — not even suspended banks.
Chicago, Nov. 15, 1854. P. Maxwell, Bank Com .
Illinois Circulation. — The bankers of St. Louis have, under date 16th Novem-
ber, 1854, concluded to sustain the notes of the Illinois free banks. Their circular
is as follows :
TO THE PUBLIC — ILLINOIS BA^KS.
At a meeting of the undersigned, held this day, the following preamble and reso-
lutions were unanimously adopted :
Whereas , It appears that a feeling pervades this community, that tho notes of
the great majority of tho banks of Illinois (constituting a share of the circulation of
this city) are at tho present time peculiarly subject to distrust, and that the cus-
tomary credit of these institutions is measurably failing in this community, therefore
Resolved, That in tho opinion of the subscribers, bankers and brokers of St
Louis, we regard this feeling as wholly unnecessary and unwarranted by the real
condition of the great majority of these institutions.
Resolved Further , That in tho reception of currency at our respective counters, we
we will make no unusual discrimination against the notes of these banks, nor
countenance the discredit of any bank (not known or believed to be insolvent or
suspended) by a rejection of its notea
Resolved Further , That we recommend to our citizens generally, a restoration of
the confidence which they have heretofore manifested in the circulation of the
above-named banks, and the dismissal of any uneasy apprehensions respecting
their safety.
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The Cud Trade of the United States.
467
THE COAL TRADE OF THE UNITED STATES.
Fob some months past petitions to Congress have been circulated
with a view to remove the present duties on coal. At Boston, the
following petition was placed at the Merchants’ Exchange for signa-
tures :
To the Honorable Senate and House of Representatives of the United
States :
The undersigned, people of the United States, and residents of Bos-
ton, in the State of Massachusetts, respectfully petition your honor-
able bodies to repeal all duties now existing by law upon the introduc-
tion of foreign coals.
Recent action of the most prominent coal operators in the country
has demonstrated the impropriety of further protection of an interest
abundantly able to take care of itself ; and your petitioners represerit
that an immediate repeal of the existing burthensome national coal
tax would be hailed with satisfaction by every class of the commu-
nity not directly interested in speculative combination to raise the
price of coal.
October , 1854.
This petition is destined to attract considerable attention, and it i9
well to understand certain facts which have a direct bearing upon its
decision.
In the' year 1815, when the duty on foreign coal wa3 $3.60, the
price in New-York was $23 the chaldron, of 36 bushels.
From 1816 to 1823, the duty was $1.80, and the average price
was $11.
From 1824 to 1834, the duty was $2.16, and the average price
was $14.
In 1842, the duty was $1.75 per ton, and the market price was
$7.16; and in 1844, with a duty of $1, the price was $5.56. In the
year 1846, the duty was altered to an ad valorum one of thirty per
cent, or about forty-five cents per ton, and the market price since has
ranged from $6.50 to $7.50.
Pennsylvania is rich in its coal product. This article is one of the
great sources of wealth to that State, and its importance may be seen
from the single fact that about six thousand tons are carried over or
through the various railroads and canals of that State eastwardly. W e
refer only to the anthracite region, whose mines seem to be inexhaust-
ible, and we leave out of view the immense production in Western
Pennsylvania. The latter portion of the State owes its growth mainly
to its coal-beds, in conjunction with its iron and glass manufactures.
The maximum capabilities of the transportation companies may be
set down at 7,300,000 tons per year, with their present forces,
namely :
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Tons,
Lehigh (Canal) Navigation Company, 1,300.000
Schuylkill “ “ 1,000,000
Reading Railroad, 4,000,000
Delaware & Hudson Canal, 1,300,000
Total, 7.600,000
If we may judge by the increase of the last two or three years, the
quantity of coal required by the above conveyances will be 7,500,000
tons for the coming year, and between eight and nine millions for the
year 1856. We have received from London the Special Report of
Professor Wilfcon on the New-York Industrial Exhibition, in which
document we find a variety of useful information in reference to the
manufactures, minerals, mining, and metallurgy of the United States.
II is remarks on the iron, lead, copper, and zinc products and manu-
factures M ill be a valuable addition to the information already in pos-
session, and will be acceptable as well to the legislator, as to the
manufacturer and merchant.
Virginia takes the lead among the Eastern for Atlantic) States, as
the owner of coal-fields, and is, in fact, one of tne prominent States in
the whole Union as the possessor of this valuable mineral.
Area of Vie several States where Coal is found, and Vie Coal areas of each, and the
proportion of Coal.
States.
Area.
ft/uare Miles.
Coal A reas.
Square Miles.
Propor-
tion of
Coal.
1. Alabama,
50,875
3,400
1-14
2. Georgia,
58,200
150
1-386
3. Tennessee,
4*1,720
4,300
1-10
4. Kentucky,
39,015
13,500
1-3
5. Virginia,
64.000
21,105
1-3
6. Maryland,
10.829
550
1-20
7. Ohio,
38,850
11,900
1-3
8. Indiana,
Illinois,
34.800
7,700
1-5
69,130
44,000
3-4
10. Pennsylvania,
43,960
15,437
1-3
11. Michigan,
60,520
5,000
1-20
12. Missouri,
. f 60,384
6,000
1-10
Total,
565,283
133,132 Nearly 1-4
North-Carolina is reputed to hold about as much coal land as
Georgia.
From this valuable reference-table it will be seen that Illinois takes
the lead, having within her own borders one third of the entire coal
region of the United States. Next in importance is Pennsylvania,
producing both anthracite and bituminous coals. Of these immense
fields Professor Wilson says:
“ These comprise the three anthracite coal-fields of Eastern Penn-
sylvania, known as the Southern or Schuylkill, the Middle or Sha-
mokin, and the Northern or Wyoming, and the Frostburg or Cum-
berland Coal Field, (semi-bituminous,) in the State of Maryland.
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Besides these beds, a small outlying bed exists in Pennsylvania of
semi-bituminous coals, known as the Broadtop, which, however, owing
to its insulated position, being without any means of access, is only
available for local purposes ; and some deposits of considerable area
in Virginia, whose importance is being daily recognized, and whose
produce is gradually finding its way into the markets. The demand
at present, however, is confined chiefly to gas-making purposes.
“ Of the three anthracite beds of Pennsylvania, the Southern is both
by situation and magnitude the most important, and furnishes a large
proportion of the entire supply. It presents great facilities of access,
which have been made advantageous use of by two Canal Companies,
the Lehigh and the Schuylkill, and by the Reading Railroad, which pene-
trates far into the interior, and form the great outlets for its produce.
Other railways are now in progress, which will not only afford addi-
tional facilities of transfer to the Atlantic cities, but also open a com-
munication to the latter, and through them to the Western markets.”
The third in importance is Ohio, having nearly one third of its area
in coal. The returns as to production are not copious, but Sir Charles
Lyell, who made critical inquiries on the subject, reported the follow-
ing as the yield for 1851-2 :
Bushels.
Tons.
Western Pennsylvania,
35,000,000
1,110,000
Virginia,
16,000,000
600,000
Eastern Ohio,
16,000,000
636,000
Total,
2,205,000
At the Exhibition were produced samples of coals from Valley
Falls, Rhode-Island, but the product is of inferior quality.
Of the Virginia coal, twelve miles west of Richmond, and extend-
ing fifty miles, the seams are 800 feet in thickness — being the deepest
mines known in America. In Belgium some of the mines are known
to be from 1140 to 1476 feet in depth. In England, 1000 to 1794
feet — with an average in Lancashire of 750 feet.
To Mr. Taylor’s work (published by J. W. Moore, Philadelphia)
we are indebted for the following summary :
Countries.
Aren.
Sq. Miles.
Coal Area.
Sq. Miles,
Propor-
tion.
Great Britain, Ireland, Scotland, and Wales, . . .
120,290
11,869
1-10
Spain, (Asturias region,)
177,781
3,408
1—62
France, (area of fixed concessions,) in 1845, . . .
203,736
1,719
1-118
Belgium, conceded lands,
11,372
518
1-22
Pennsylvania, United States,
British Provinces of New- Bruns wick, Nova Sco-
43,960
15,437
1-3
tia, Cape Breton, and Newfoundland,
81,113
18,000
Prussian Dominions,
107,937
....
Austriart Provinces containing coal, or lignite, .
150,000
• • • •
The United States of America, 2,280,000
1-17
The twelve principal coal-producing States,. . . .
565,283
133,132
184,073
1-4
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We assume these as, in round numbers, correct; and here we per-
ceive at a glance the vast resources of the United States in their ooal-
producing regions, when compared with Europe. It must be recol-
lected, too, that several of our States have not had geological sur-
veys ; and it would not be surprising if other States than those enu-
merated were found, hereafter, to possess coal in abundant quantities.
The whole coal region of Europe is, by Mr. Taylor, shown to be
only 50,941 square miles, being somewhat less than that of the Western
States of Illinois and Indiana , while England has only 8139 miles, and
Ireland 3720 miles, the aggregate being somewhat less than that of
the State of Ohio. But Great Britain produces annually upwards of
31,000,000 tons of coal; while the yield of Pennsylvania is, perhaps,
ten millions of tons.
The consumpt ion of coal in Europe and the United States was esti-
mated as follows in 1845, showing also the square miles of coal for-
mation, the relative proportions, and the value in dollars :
Square
Miles.
(Treat Britain, 11,859
Belgium, 518
United States, 133, 1 32
France, 1,719
Prussian States, undefined.
Austrian States,
Total, ....
Prodii-rtio n
1345, ton*.
Propor-
tion.
Value.
31,500,000 •
642
$45,738,000
4,060,000
101
7,699,000
4,400,000
89
6,650,000
4,141,000
84
7,663,000
3,500,000
70
4,122,000
659,000
14
800,000
49,160,000
1,000
$72,662,000
Increased importation of coal into the port of London by sea and
land, from 1,667,301 tons in 1822 to 3,461,910 tons in 1845 — 108
per cent in 23 years; from 300,000 tons in 1699 to 3,461,199 in
1845 — 1057 per cent in 146 years; from 2,079,275 tons in 1830 to
3,461,199 tons in 1845—66 per cent in 15 years.
1846, 2,953,755 tons. 1849, 3,339,146 txrna
1847, 3,280,420 “ 1850, 3,553,304 44
1848, 3,418,340 “
Table showing the quantity of Cumberland coal sent to tide-water
from 1842 to 1853 :
Year.
Jmning'g
Valley.
Brad dock' 8
Valley.
Total.
1842,
757
951
1.708
1843,
3,661
6.421
10,082
21,890
1844,
9,734
1846,
10.915
24 653
1846,
18.555
29,795
1847,
32,325
52,940
1848,
36,571
43,000
79,571
1849,
1850
78,773
142,449
119,898
196,848
1851,
135,348
257,679
1852,
159,287
334,178
1853,
225,813
533,980
Tons,
841,020
1,678,773
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From the Piedmont region 73,725 tons were sent in 1853, and
total up to August, 1854, from the Cumberland region 353,154 tons.
We now only propose in this place to introduce an estimate of the
condition as to production, of the iron manufactory or smelting in
the year 1845, the latest year in which we could obtain a series of
contemporary returns, ( see Taylor's Coal Statistics.)
The respective proportions are as follows :
1. Great Britain, 2,200,000 6. Austria, . 190,000
2. United States, , 602,000 7. Belgium, 160,000
3. France, 448,000 8. Sweden, 146,000
4. Russia, 400,000 7. Spain, (1841,) 26,000
6. Zollverein or Prussian States, 300,000 10. All other Europ’n countries, 60,000
Total,
4,411,000
MAKE OF IRON IX ENGLAND.
Tear.
1830.. .
1840.. .
1843.. .
Furnaces
in Blast.
360
1845,. .
1848,. .
I860,. .
459
1852,..
655
1854, . .
Persons employed in mining,
Iron produced
in Tone
6*18,417
1,396,400
1,215,350
1,512,500
1,998,568
2.380.000
2.701.000
2.250.000
120,000
During the ten months ending Nov. 5, 1853, Great Britain
exported $75,000,000 worth of iron, and by far the largest portion
was taken by the United States. Of pig-iron, the United States
received 57,000 tons, and Holland, which comes next upon the list,
took 13,000. Of bar, bolt, and rod-iron, the United States took
263,530 tons, or nearly six times as much as Canada, which received
the next largest amount.
VALUE OF IRON IMPORTED INTO THE UNITED STATES.
Year.
Value.
Duly.
Tear.
Value.
1844,...
...$2,395,760
$1,607,113
1850,....
.$10,864,680
$3,269,404
1845,...
... 4,075,142
2,415,003
1851
..10,781,312
3,234,094
1846,...
... 3,660,581
... 7,060,470
... 9,262,567
1,629,581
1852,....
..18,843,569
..27,016,364
6,632,484
1848.. ..
1849.. ..
2,118,141
2,778,770
1863,....
8.104,609
Imports of iron from Great Britain into the' United States, ( frac-
tions omitted :)
Tear.
Tone.
Tear.
Tone.
Tear.
Tone.
1820,...
8,000
1830,
....21,000
1840,
72,000
1821 .. .
9,000
1831,
....41,000
1841^ ....
....112,000
1822,.. .
... . ;. .1M00
1832,
. . . .45; 000
1842’,
.... 107^000
1823,...
13^00
1833, ’
1834,
....62,000
1843,’
28,000
102,700
1824;...
11,000
47,000
1844,
1825,...
1835,
63,000
1845,
♦ . . . 68,000
1826,. . .
1836,
91,000
....54,000
1846,
1827,...
1837,
1847,
1828,...
1838,
....78,000
1848
1829....
1839
....85,000
1849,
....315,000
Digitized by
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Original from
UNIVERSITY OF CHICAGO
472
The Coal Trade of the United States
123
The following is a list of prices of coal during the past twelve
years at Philadelphia, wholesale ; and at New-York and Boston by
retail :
Year.
Philadelphia .
Few- York.
Bouton.
Ton of '22 40 lbs.
Ton r/2000 lb*.
Ton o/tOOO lb*.
1839,
$8 00
$9 00 to $10 00
1840,
5 50
8 00
9 00 to
11 00
1841,
5 00
7 75
8 00 to
9 00
1842,
6 50
6 00 to
6 50
1843,
3 50
5 75
6 0O to
6 60
1844,
3 37
5 50
6 00 to
6 50
1845,
5 76
6 00 to
7 00
1846,
4 00
6 00
6 50 to
7 00
1847,
1852,
1853,
3 85 to $4 00
6 50 to $6 00
6 50 to
7 00
3 76
4 25 and 4 50
6 00 to 7 00
7 00 to
8 00
1854,
7 00 to 8 00
8 50 to
9 00
Table showing the Imports of Foreign Coal into the United States annually, from 1821
to the \st July , 1853.
Tear. Tons. Tear. Tons.
1838, 129.083 1846*... 156,855
1839, 181,551 1847f. ..148,021
Year. Tons.
1821, 22.122
1822 34,523
1823, 30,433
1824, 7,228
1825, 25,645
1826, 35,665
1827, 40,257
1828, 32,302
1829 45,393
Year.
Tun*.
1830,...
. 58,136
1831,...
. 36.508
1832,...
. 72,978
1833,...
. 92,432
1834,...
. 71,626
1835,...
. 49.969
1836.. ..
1837.. ..
.108,432
.163,450
1840, 162,867
1841, 155,394
1842 141.526
1843, 41,163
1844, 87,073
1845, 86,771
1848..
..196,251
1849..
..198,213
1850..
..180,439
1851..
. .478,095!
1852. .
. .405,652j
1853. .
. .231,508
According to the recent reports of Sir Charles Lyell and Professor
Wilson, the coal deposits of the United States present features of
great importance and interest to the geologist; their immense area,
varying surface, etc., supplying a constant field for the researches of
the man of science, and for the development of those economic appli-
cations which have of late years given such value to the possession of
the mineral fuel. The history of the coal industry of the United
States belongs to the present generation ; having had no existence
anterior to tne year 1820. In that year the Lehigh Coal & Navi-
gation Co. sent tne first fruits of its operations to Philadelphia, in the
shape of sundry loads of coal, amounting in the aggregate to about
365 tons. Its progress from that date will be fully seen in the
annexed table showing the aggregate receipts for each year to the end
of 1853. The first receipts by the Reading Railroad were in 1841.
The present arrangements of this Company are such that it is enabled
to bring about forty-two thousand tons per week, or six thousand
tons per day. The following table will be found valuable and curiou9
ibr future reference, as it shows the various periods at which the
Lackawanna, Wilkesbarre, Skamokin, Lykins Valley, and Dauphin
County coal regions were severally opened.
* From 1st December, 1846, to 30tli June, 1847.
t For the year ending 80th June, 1846. $ Value.
Digitized by
Gck igle
Original from
UNIVERSITY OF CHIC&30
124
The Coal Trade of the United States,
473
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Original from
UNIVERSITY OF CHICAGO
474
The Coal Trade of the United States.
125
MINERS AND SHIPPERS OF COAL,
TOGETHER WITn THE QUANTITY MIXED BY EACH, DURING THE YEAR 1853,
EMBRACING THE SCHUYLKILL, LITTLE 8CHHYLKILL, 8WATARA, AND LORBERRY
REGIONS.
Tons. Tom.
Cliarles Miller A Co., 117,270 C. J. Dobbins A Co., 19,141
Rogers, Slnnickson A Co., 110,170 Wallace, Rothermel A Co., 19,0*29
B. lleikscher A Co., 99,546 Wm. Levan, LS,760
Snyder A Milnca, 96,709 L. C. Dougherty, 17,698
J. A R. Carter, 91,116 W. A C. Brittain, 15,269
G. Bast A Co., 87,383 Si Hyman A Reed, 14,988
John Pinkerton, 78,50*2 Nice A Taylor, 1 3,275
George H. Potts, 61,598 Titus A Co., 13,008
Jones A Cole, 61,241 H. Guiterman A Co., 18,002
R. Ratcliffe A Co., 57,341 D. P. Brown A Co, 12,976
Wm. A Thomas Johns, 66,716 E. Garrets on A Ca, 12,888
Brown A White, 65,577 Wheeler A Miller, 11,808
George S. Repplier, 68,654
Jones A S|>oncer, 52,163 59 Operators— shipped, tons, 2,888,298
Oliver A Moore, 62,060
Kirk A Baum, 52,020 A. Bteinberger, 9,405
H. C Harper, 8,941
16 Operators— shipped, tons, 1,188,071 Bteinberger A Cooley, Agents, 8,546
Bbultze A Bell, 8,810
Heaton A Carter, 49,076 W. L. Llttlehales, 8,295
Richard Hear, 45,194 Wm. Lewis A Co., 6,178
D. Wood, 48,010 D. Edwards A Co., 7,770
R. H. F. Horton, 42.207 McCormick A Clarke, 7.134
Geo. Mason A Co, 41,607 Oysterman A Co., 6,668
Geo. Wiggan A Son, 40,195 E. Coleban, 6,404
Wm. Donaldson, 40,o38 Dodson A Co., 6,006
Mever A Slllyman, 39,141 M. Weaver, 5,805
K. Borda, 89,187 Edward Pugh, 5,312
Dolbin A Rogers, 88,671 T. H. Wintersteen, 6,256
F. Macdonald, 36,609 Capewell, Dovey A Co., 5,154
Bowman A Richardson, 84, 70S JAB Williams, 5,026
M. G. A P. lleilner, 34.085 Aaron Eckel, 4,869
Wm. Payne, 81,451 J. Wasley, Jr., 4,692
James Thomas A Co., 27,541 D. Beal, 4,445
John Tucker, 27,184 J. P. Bcttinger. 4,115
F. J. Parvin, *25,883 S. Chadwick, 4,111
J. Maginnls A Co., 26,156 Morgan Brace, 8,023
Henry Eckel A Co., • 25,836 Jackson A Black, 8,®H
Sutton A Wright, 24,647 J. R. Davis, 8,618
8. Sillyinan, 24,220 Salem Hill Mining Co., 8,668
A. Billyman, 28,818 Isaac Ebert, 2£47
L. 8. Spangler A Co , 22,S22 Grcenawalt A George, 2,642
James Neill, 22,426 John Preston, 2,816
John Stanton, 22,053 Wm. De Haven A Co., 1,929
David Glover, 20,582 Odgers A C halfant, 1,944
J. B. McCreary, 20,354 Newell A Jones, 1,615
John Doherty, 20,26* Peter Bowman, 1A87
E. M. McGinnes, 20,099 Michael Riley, 1,584
John Macdonald, 1,528
44 Operators — shipped, tons, 2,111,468 H. Hill, 1,409
By sundry Shippers, names not
W. Y. Agard A Co., 19,802 returned, 17,485
Connor A Rhoads, 19,736
It will be observed by the above table that 59 operators mined and shipped 2^88,288 of the
2,551,608 tons sent to market in 1S53, from Schuylkill county.
%SBT Not one solitary ton of Coal teas mined "by any corporation in Schuylkill county
during the year 1953. The whole product of two millions five hundred and fifty-one thousand
six hundred and three tons teas mined by individuals .
Digitized by Gougle
Original from
UNIVERSITY OF CHICAGO
126
The Relative Valves of Gold and Silver.
475
THE RELATIVE VALUES OF GOLD AND SILVER,
AND THEIR INFLUENCES ON THE MARKET PRICES OF COMMODITIES.
An Historical Survey : by Dr. Mich els eu.
It is evident from various historical sources that in the most ancient
times the proportion between gold and silver fluctuated between 1:10
and 1 : 15, that is, that for every pound weight of gold was given from
10 to 15 lbs. weight of silver. The greatest fluctuations, it seems, were
owing to the circumstance that in the East vast quantities of gold,
which had been locked up for several centuries, either by the princes
in their treasuries, or by the priests in their temples, were suddenly
brought into the public market by conquerors or revolutionary chiefs,
who ransacked those depositories. We are thus told that after
Alexander the Great had poured into the markets of Greece the
hidden treasuries of Darius, the proportion between gold and silver
had fallen from 1 : 12 to 1 : 10. Also, at Rome, we are told, the
proportion had fallen from 1 *: 12 to 1 : 9 after Csesar had opened for
public traffic the Acranium of the capitol.
Herodotus tells us that the Indians had to pay to the kings of Persia
(about 500 A.D.) an annual tribute of 360 talents of gold, which were
equivalent to 4680 talents of silver, making thus the proportion as
1 : 13. According to Boeck, the proportion of gold and silver in Greece
(about 400 A.D.) was as 1 : 10, and so it seems to have stood also at
Rome about that period. It was only under Valentinianus that the pro-
portion rose to 14£, which under Honorius was still higher. After
that rise, a reaction took place, and a gradual fall was the conse-
quence. At the beginning of the twelfth century it seemed to have
sunk in Western Europe as low as 1 : 8 ; Vhile the year 1220 it had
risen in France as high as 1 : 20. Jn the year 1416, Jacques Coeur,
the silversmith of the French Court, fixed the proportion to 1 : 17.297.
Five years afterward, we find it again reduced to 1 : 11.181.
No safe reliance, however, can be placed upon the above data, they
being not only replete with contradictions, but also deficient in the
indications as to the exact quality of the gold at the various periods.
Be this, however, as it may, there can be no doubt that the discovery
of America, and the gold imported thence, did not at all tend to lessen
the value of that metal. Humboldt mentions an edict of Queen
Isabella, (1497,) raising the proportion from 1 : 1070 to 1 : 11*60.
In England, the proportion, which was in 1464 as 1 10*331 gradually
rose until 1543 to 1 : 12 ; while in 1546 it fell to 1 : 10, but recovered
in the following year to 1 : 10*40. Under Elizabeth it stood 1 : 11*10 ;
in 1604 it was 1 : 12*109 ; in 1626, 1 : 13*431 ; in 1666, 1 : 14*485 ;
and in 1717, 1 : 15*209.
Soetbeer has collected the following decrees regulating the propor-
tion between gold and silver :
Digitized by Gougle
Original from
UNIVERSITY OF CHICAGO
Digitized by
476 The Relative Values of Gold and Silver . 127
An Imperial German decree of 1559 fixed it as
Holland, 1589 —
Upper Germany, 1623 —
France, 1G41 —
Upper Germany, 1665 —
Leipsic, 1690 —
•
In judging of these figures, we must not overlook the fact that in
the sixteenth century the rich silver mines of Potosi had also been dis-
covered, which more than counterbalanced the great influx of gold.
The Hamburg Exchange Gazette gives the following rates :
1: 11-44
1 : 11-60
1:11-99
1 : 13-50
1 : 14-30
1: 15-22
1700,...
... 14*80
1740,...
... 14*48
1780,...
.. 14-69
1710,...
... 15*23
1750,...
... 14-47
1790,...
.. 15*10
1720,
.. 15*06
1760
14*91
1800,
... 15*64
1730,
... 14*82
1770,...
... 14*93
1810,...
... 16*21
The last high quotation may be owing to the influence of the war,
while that of 1800 pretty nearly corresponds with the average rate
of the period from 1816 to 1847. Since then the average annual pro-
portion was :
1848, 1 : 15-27 1851,
1849, 1:15-75 1852,
1850, 1:16-59
1 : 15-35
1 : 15 43
In England, the rate was legally fixed in 1747 at 15-2096, and in
1816 at 14-2878, the latter rate being still the legal basis in the
mint.
In Prussia, the legal rate fixed in 1832 is 1 : 15*6924077, to judge
from the legal value of the* Frederick’s d’or fixed at 5$- thaler.
In Spain, the law of April, 1840, fixed the rate at 15-714285; pre-
viously it was 1 6.
In Portugal, the legal mint value is 13-56 while the real value is
13-83.
In Russia, the legal value is 15, and the real 15*25.
In France, the value is 15 5 ; in Naples, 15-21 ; and in the United
States (America) it was until 1834, 15 ; from 1834 to 1887,
16-0021552 ; from 1837 to 1853, 15-9883721 ; since then 14-88. In
Chili, it is 16-39.
It is thus evident that in the fifteenth century the proportion of
gold to silver was universally as 1 : 11, while in 1848 it was 1 : 15, or
36 per cent dearer than in the previous period.
From the beginning of the present century to 1848, the proportions
between gold and silver had remained pretty stationary, but since the
discovery of the mines in California and Australia it underwent
various fluctuations. These fluctuations have given rise to manifold
Gck igle
Original from
UNIVERSITY OF CHICAGO
128
477
The Relative Values of Gold and Silver.
apprehensions, and to a general belief that money and gold would
continue to suffer a downward tendency or depreciation.
It is impossible to ascertain with accuracy the exact amount of gold
and silver in existence before the discovery of America, owing to the
utter want of well-founded data in that respect. That the total
amount of both sorts of metal must have been far less in extent and
proportion than those of the present day, may be inferred, partly from
the circumstance that many mines which were worked with advan-
tage in former times have since been neglected as unprofitable, though
the yield in metal had not diminished in quantity, and partly from
the feet that the price of these metals was then much higher than at
present. That price we find expressed in the most indispensable com-
modities of life, such as corn , which did not fetch in the fourteenth and
fifteenth centuries even the third part of its present market value.
And since it would be absurd to suppose that the proportion between
supply to demand was then greater than at present, nothing remains
but to conclude that gold and silver were proportionably more scarce.
It is true there is a difference between metals in existence and metals
in the market that there may have been vast quantities of the precious
metal shut up in the coffers of the state treasuries and cloisters, as
also worked into church plate and other sacred ornaments, to the total
exclusion of the market traffic ; yet must we consider on the other
hand that large quantities of gold and silver are now also manu-
factured into articles of luxury ; that the weight of perhaps only the
silver spoons of the present day fer exceeds that of all the accumu-
lated treasures of former times ; and that, moreover, there exists now
a number of commercial articles which were wholly unknown in those
days, and which require now in exchange a vast amount of the pre-
cious metal. Neither must we forget that, in former days, a great
part of trade consisted in direct barter of fruit and raw materials in
exchange for manufactures of various kinds, a mode of trade but little
in use now-a-days in civilized countries.
Taking, therefore, the price of com as the standard .measure of the
amount of gold and silver in existence, we must presume from the
fact that the price ®f the former was then only one third of that of the
present day, that the requirement of the precious metal was then also
only one third of that of the present day. The population at the end
of 1852, in Europe, the United States, and the British colonies, was
about 450 millions, and the amount of gold and silver now in exist-
ence in these countries, according to Soctbeer, is about 515 millions
sterling, which would make about 23s. per head, while at the close of
the fifteenth century there would come only 7s. 8 d. per head. The
population at the end of the fifteenth century in Europe being then
about 102 millions, it consequently follows that the amount of the
precious metals then in existence was about 39 millions sterling.
Michael Chevalier having carefully examined the statements of
Humboldt, Gallati, and other authentic authors, arrives at the conclu-
sion that from 1492 to 1848 the mines of America yielded:
Digitized by
Gck igle
Original from
UNIVERSITY OF CHICAGO
478
The Relative Values of Gold and Silver.
129
Digitized by
Gold. Silvjkr.
r
Value
r
Value
Toiol Value
Countries.
Kilogrammes
in francs.
Kilogrammes.
in Francs.
Million
Millions.
Millions.
Francs.
United States,.
. . ........
22,125
76
76
Mexico,
.. 61,985,522
13,774
389,269
1,341
15,115
New-Granada,
259,774
58
566,748
1,957
2,015
Peru, Bolivia,.
. . 58,165,244
13,559
340,393
1,172
• 14,731
Brazil,
1,342,300
4,623
4,623
Chili,
. . 1,040,184
231
250,142
862
1,093
Total,..
. . 122,050,724
27,622
2,910,971
10,031
37,653
Or 1506 millions sterling.
According to Chevalier and Soetbeer the total production of the
precious metals until 1847 was as follows :
Silver.
Million £
America, 1,044
Russia, 12|
In the rest of Europe 75$
Africa, Sunda Islands,'.
Gold.
Total.
Million £
Million £
386
1,430
43
55*
20
95*
97
97
Add the stock of 14D2, 28 J
1,678$
Hi 39$
Total, £1,718,000,000
The production of gold had consequently increased in the 855 years
from 1492 to 1847, from 39 to 1678 millions sterling, or about 4J
millions per annum, or 12 per cent on the original stock of 39 mil-
lions, independent of the production in the non-Asiatic countries of
Russia.
The amount of the present stock of the precious metals in Europe,
United States, and the British colonies, after deducting wear and tear
* and other losses, as also the amounts which never reached • these
countries, or which were exported thence by trade and commerce, is
estimated as above at 515 millions. Now, should the influence of
the present yields of the precious metal on the market price of goods
correspond with that of the previous periods, an annual production of
about 61 millions sterling (12 per cent of 515 millions) would be
requisite to keep up the balance of prices. Neither would that
amount even suffice to exercise that same influence on the market of
the commercial world, large countries having in the mean while arisen,
such as Brazil, California, and Australia, which are in continual want
of vast sums for their own trade and consumption.
From 1848 to 1851 it is estimated that the produce was as
follows :
Gck igle
Original from
UNIVERSITY OF CHICAGO
130
The Relative Values of Gold and Silver.
479
Gold.
Silver.
Marks.
Value £
Marks.
Value £
1848,
222,200
• 6,814,286
3,215,000
6,428,571
1849,
258,100
7,928,571
3,290,000
6,671,429
1850,
17,128,671
4,186,000
8,371,429
1861,
685,200
20,486,714
4,368,000
8,714,285
♦
£52,367,142
£30,086,714
30,085,714
£82,442,856
1852.
Gold. Mark 8.
California, 37 2, 100
Australia, 432,600
Russia, 111,600
Other countries, 79,000
£
11,428,571
13,285,718
3.428.571
2.428.571
Silver.
Mexico, Chili, etc.,
995,200 30,571,431
4,500,000 9,000,000
£39,571,431
We have shown above that to keep up the balance of prices, an
annual production of the precious metal to the amount of 61 or 62
millions sterling would be necessary, and it is therefore evident that
the yield of 1852, though it surpassed in extent any of the previous
years, is far from coming up to the above mark, its value being only
39 instead of 61 millions sterling.
Since 1847, however, the prices of commodities have experienced
a considerable increase, and though the same is chiefly owing to
various other causes, it cannot be denied that the new discoveries of
gold in California and Australia were not without some influence on
the market.
The various causes to which we alluded were : The bad harvests in
corn and other raw productions in various countries of the world, the
disturbances in industry by war, revolutions, and strikes, as also by
an excessive increase of the paper currency in Central Europe from
24 million pounds in 1846 to 46 million pounds in 1853. With the
cessation of these causes, the present prices must certainly undergo
some decrease ; nor would it be impossible to predict with certainty
a fell in the average prices of the period from 1820 to 1847, if the
above calculation of the annual requirement of an additional 61
millions sterling were based on more safe and reliable data. On the
other hand, should the actual production of the precious metal really
exceed the demand or requirement, it would, no doubt, manifest
itself in the progressive rise of prices, though that rise could only be
of a very limited character, simply because the increase of the metal
would not be sufficient to provide the working classes with the usual
necessaries at unproportionably high figures.
Digitized by
Gck igle
Original from
UNIVERSITY OF CHICAGO
480
The Relative Values of Gold and Silver.
131
Let us now proceed to the apprehensions entertained on account of
the altered proportion between gold and silver.
From our foregoing observations we may draw the following
deductions:
1. That taking the figure 100 as the unity of the number, we find
that in 1492 the stock on hand was, in gold 27'9 per cent, silver 72’1
per cent, total 100 per cent ; thence to 1847, the production was, gold
33 per cent, silver 07 per cent, total 100 per cent, while the produc-
tion from 1848 to 1852 was an inverse ratio.
In Gold, In Silver, Total,
1818, 51 49 100
1849, 65 45 100
1850, 07 33 100
1851, 70 80 100
1852, 78 22 100
The following is the value of production in pounds sterling of the
periods :
Gold,
SUver,
1492,
Thmce to
£28,570,000
1847,
1,160,710,000
1848,
6,428,000
1849,
0,571,090
1850,
8,371,000
1851,
8,714,000
1852, •*•••• ••••
9,000,000
Now, if we add the value of these last five years to the value of the
production from 1492 to 1847, the per centage of the two metals
would be, gold 34 per cent, silver 65 per cent, instead of gold 33 per
cent, silver 67 per cent — such as it was in 1847. It is thus evident
that even the excessive production of the last four years opposite that
of the previous periods is not enough to change materially the pro-
portions between the two metals.
. 2. Though much more gold has been produced since the discovery
of America than previous to that time, gold has nevertheless risen in
proportion to silver. It is true that also silver has been found in
larger quantities in the latter period, yet must we not forget that vast
quantities of that metal were exported to Eastern Asia, and more
especially to China, because the value of silver was there higher than
in Europe (the proportion between gold and silver being there as
1 : 10 or 1 : 11,) and because, moreover, we had nothing else to offer
them in exchange for their goods.
3. Gold affords so many facilities in trade from its higher value
and lesser compass, that all governments will probably make it a
general medium of circulation, as soon as it can be ascertained that
the supply will be equal to the demand. Should gold really become
the general medium of circulation, its wear and tear must neces-
sarily increase, while that of silver, will proportionally decrease.
Digitized by
Gougle
Original from
UNIVERSITY OF CHICAGO
The Relative Values of Gold, and Silver.
481
4. With the increase of wealth, the consumption of gold for orna-
ments, plate, etc., naturally also increased, simply because it is
handsomer and more fit for various purposes than silver.
5. The relative value of the two metals depends not only on the
quantity produced of each sort of metal, but also on the demand in
the market for each individual sort of the metal. Suppose, for instance,
that at a production of 50 per cent in gold, and 100 per cent in silver,
the demand for each sort of the metal was the same, that is, 50 for
gold, and 100 for silver, there can be no doubt that their respective
valuer would be in equal proportion. Should, however, the produc-
tion of gold rise to 100, its previous proportion to silver will still
remain unaltered, if the demand for gold has also been doubled. The
question is not, what would be the silver value of gold at a production
of 100, (gold,) if it is 15 at a production of 50, but simply what would
be the silver value of gold when the difference between production
and consumption is equal 0’2, if it was 15 at a previous period when
the difference between production and demand was equally = 0-2.
The answer must naturally be 15.
6. That under present circumstancessilverwould rise in price, because
there is now an equally extensive demand for silver as for gold, while
the production of that metal has undergone no material change, is a
presumption that is not likely to be realized, since measures are now
being taken by nearly all the governments of the commercial world
to convert the silver payment of banks and other public offices into
that of gold, by which means the demand for silver must diminish.
7. It seems indeed strange that the proportion between gold and sil-
ver should remain 1 : 5, while the production of the two metals in the
year 1852 was 1 : 4.37 (995,000 marks gold ; 4,550,000 marks silver.)
But when we consider that the production of the period from 1492
to 1847 was 17, 977 *699 gold marks against 580,334,554 silver marks,
forming thus a proportion of 1 : 32 5, it must be clear that it is not
exactly the proportion between the yield of the two metals that con-
stitutes their relative value, but, as we have said above, it is the pro-
portion between supply and demand that fixes the price of the metal.
It is therefore our firm opinion that should gold be produced even
in equal quantity with silver, gold will still rise in price opposite to
silver if it be made a legal medium of circulation throughout the
commercial world. The demand decides here the price, as in wheat,
which is dearer than buckwheat, though the latter is produced in
much less quantities.
8. The price of the most important articles of commerce has of
late years risen even in those countries where payments arc legally
made in gold instead of silver, while the proportion betwoen their
respective values has not materially been altered.
Though it is our firm opinion from the above reasons that the value
of gold will not be materially affected by large yield, yet we do not
deny the possibility of its undergoing some transient fluctuations, and
we see, on the contrary, in this very circumstance, an additional reason
for banks to linjit their metal transactions to that specie in which their
liabilities are expressed. 32
Digitized
bv Google
Original from
UNIVERSITY OF CHICAGO
482
Government, State, and City Bonds.
[December,
GOVERNMENT, STATE, CITV, COUNTY, AND RAILROAD STOCKS,
BONDS, Etc.
New-York, November 28, 1 854.
HAMCS OF COMPANIES.
Alabama k Tenn. River
Baltimore k Ohio
do. do. ....
do. do.
Buffalo k State Line .
do. do. ...
Buffalo k New-York City
BeUefontaine k Indiana .
Gin., Wilmington, k Zanesville
Cincinnati, Hamilton, A Dayton
do,
Cincinnati k Marietta .
Cleveland, Painesville, k Aah tabula
Cleveland A Pittsburgh
do. do.
Cleveland A Toledo
do. do. (Ohio June.)
Chicago A Rock-Island, (Illinois)
Chicago k Mississippi
do. do.
do. do. ...
Covington A Lexington
do. do. .
Fort Wayne A Chicago
Galena A Chicago
Indianapolis A Bellefontaine
Indiana Central ....
Illinois Central
Illinois Great Western
Jeffersonville (Did. to Louisville)
do. do.
Lake Erie. Wabash, A St. Louis
Lawrenceburgh A Indianapolis
Little Miami
Maysvillc A Lexington .
Madison A Indianapolis
Michigan Central
do. do
do. do
Michigan Southern
Milwaukee A Mississippi .
do. do.
New-York Central
do. do. (Subscription)
„ d9; . - do. convertibles
New-York A New-Haven .
New-York A Harlem .
New-Ha-. en A New-London .
New-Haven A Hartford .
New-Albany and Salem
do. do. .
Northern Indiana ....
do. do. Goshen Branch
Northern Cross
Ohio Central ....
do. •
do. Income
Ohio A Pennsylvania
do. do
Ohio A Indiana ....
Panama
Pennsylvania ....
Reading
do
8cioto A Hocking Valley .
Spring?., Mt. Vernon, A Pittsburgh
Steubenville A Indiana
do. do. Guaranteed
Tennessee R. R.’s guar, by State
Terre-Haute A Indianapolis
Ter re- Haute A Alton
West Chester and Philadelphia .
Wilmington A Manchester (N. Ca.)
i 1 1 I ! i ,
AMOUNT.! NATURE OF BONDS. , IN WHEN PAYABLE, AT OFF^). ASK D
♦ 833,000 1st mort. con. till 1872; 7 1 Jan. lJuly
l,00u,<W0 Transferable— taxed i 0 Quarterly
1,12* 000 Coupons, free of tax
700,000) do. do.*
600.000 1st mort., not conv.
300.000 No mort., do.
1,200,0001 1st mort.
600.000 1st do. convertible
1.300.000 1st do. do. |
600.000 2d mort., not conv. 7 i
1,000.000,3d do. do. I 7 May, Nov.
2.600.000 1st do., conv. till 1962
667.000 1st mort., not conv
h \*unrierijr,
6 January, July
6 Half-yearly
7 April, Oct.
7 January, July
7 Divers
7 January, July
7 May, Nov.
I
800,000
1,200,000
625.000
900.000
2,000.000
1,000,000
1,000,000
do.
do.
do.
do.
do.
do.
do.
convertible
2d sec., conv,
not conv.
convertible
conv. till 1*58
do. 1866
not conv.
1, 600,000! 2d mort. con. till 18331
400,000 1st morL, not conv. I
1. 000. 000 2d mort., convertible
l,250.00o[ do.
1,200,000) do. not conv.
450,000) do. convertible
600.000! do. do.
17,000.000! Mort., not conv.
1.000. 000 1st mort., do.
7 January, July
7 Feb., August
7 Feb., August
7 March, Sept.
7 Feb., August
7 Divers
7 10 Jan., 10 July,
7 April, Oct.
7 April, Oct.
7 January, July
6 April. Oct.
7 March, Sept,
conv. till 1863 i 7 January, July
' 7 Feb., August |
7 January, July
7 May, Nov. 1
7 1 Oct., 1 April
lo April, Oct.
7 March, Sept.
7 April, Oct.
conv. till 1W! 7 Feb., August
do. 1667| 7 March, Sept,
not conv. 1 6 April, Oct.
conv. till I860) 6 January, July
800,00o| do. 1st sec. do,
300,000; do. 2d do. do.
3.400.000 do.
600,000 do.
1,500, 00u do.
6oo.«uol do. .. _
600, ooo! do. convertible 7 May, Nov.
l.UOO.OOo No mort., do. ! s April, Oct.
1.305.0001 do. do. | * April, Oct.
l,ir»3,00h| do. not conv. ; 8 Semi-annually
1,000,000 1st mort., do. 7 May* Nov.
600.000 do. 1st sec.con. 1857 1 8 January, July
660.0001 do. 2d do. 1858 * April, Oct.
8,2*7,OOo;No mort., not conv.; 6 May, Nov.
750,000 do. do. ji; May, Nov.
N. Y.I1872
Balt. (1885
" 1880
N.Y.W ]X|
jlH61 lx!
.. 11860-66 Xj
\ 11866 !X
* 11862
1868
•• \\y$
,, 1861
.. ll*60
(1873
1863
72
THi/4
74
ix!
X' 88V2
X 90 j
x; 1
Lxi 75
X
11863-72 X 83
'1870
1863
1874
(1862
,1883
1863
X «3
X
70
90
78^2
95
90
93
821/2
90
95
93
77Lr2
83
86
86
721/2
I !
'1*60-61 X 91
1866 )Xi
80
77Vhl 81
89Va 90
94
Bost
11*75
;i*68
!l861
1 1*73
1*75
11866
1**3
1*73
1*61
1*60
, S?1'*
!x 6o
IX!
89
\Ih
ix;
m/2
82
82
Nv
\)-im
11862
1868
1883
1*55-56 XI
1*57-68 |
96 98W
3,000.000 No con. 15 Je *67 to T/V 7 June, 15 Dec. f- ■•• jl864
50,000! do.
1,800,000- 1st mort.,
450,000 1 do.
1,000,000!
500,000
2.325.000
1,000,000
1.500.000
1.200.000
1,250.000
do. ! 7 June, Dec.
do. i 7 May, Nov.
do.
do. do.
do. on 1st sec.
do.other do. con/58|
do. not conv.
do. do.
do. convertible
do. conv.
800.000 2d mortgage.
600.000 Income conv.
2.750.000 1st mort., conv.
OUO.ouo Income, no mor. con.
1.000. 000 :1st mort., conv.
2.378.000 No mort. con. 1856/8
6.000. 000 1st mort. con. till 1*00
6.014.000 do.
3.039.000 2d mort. . . ,
300,000! I 7 3>lay, Nov.
500,0001st mort. Istdiv. con. 7 January, July,
1.500.000 do. convertible ; 7 ’ '
500.000 2dmort.guaLPa,R.R.i 7j
list mort. conv. I 6
600,000; do. do
JKJfJkS,
?lU.M-ch.lOSeP.|
6 January, Juiy|
lO April, Oct.
* May, Nov.
7 Feb., August
ti Feb., August
7 January, July,
8 Feb., August
7 May. Nov.
7 April, Oct.
7 January, July
1 7 April, Oct. 1
7 Feb., August
7 January, July
7 1 Jan., 1 July |
61 January, July
6 April, Oct.
1,000.000, do.
do.
iJanuaty, July
April, Oct.
March, Sept.
7! Feb., August
n.y.!
1961-^2 X
im ix
1873 IX
1858-62 X
1864-75X
1861
93 ! 95
951-2; 98
87 1 90
823 k ! 03
80
100
75
80
103
80
81
1868
1873
1861
1864
91
1872
1867
1866
1880
1860
1870
Y Y 1861
-- ,1868
1865
1866
'1866
'X
jx1
X
1858-60 X , ,
1865-66 X l03Va!
400,000) do. conv. till 1863 ; 7iJanuary, July!
600,000; do. conv. till 18*35 ] 7jJune, Dec. <
*' X stands ” for Ex-Interest.
Phil.
11865
1873
<1866
X, »5
x! 99
i 761 2
x;ioo
83 ,
x
ixl
| XI
i£»
1X100
X!
IX.
ixl
73
96
90
90
95
80
78
105
, 86
!ioo
77
101
83 Vh
73
75
80
90
100
101
80
Digitized by
Original from
UNIVERSITY OF CHICAGO
1854.]
Government, State, and City Bo ;as.
483
U* S.Gov. Security,
Loan, 6 per cent. 1866Uan. July,
do.
do.
do.
do.
do.
do. do 18631
do. do 1867
do. do 1868
do. do Goup. b’s. 1868-
do. 6 perct. do. 1866
Suite Securities.
N. Y. 6 per ct. . . .1860-’61-*62
do. do. 1864~’65i
d°. do l866-’67iJan. July.
do. 6V2 per ct 1860-’61 '
do. do 1865
do. 5 per ct 1858-’0o!
do. do 1866i
IKT. PAYABLE. |Orr*D |a8K’D
|106"V'8 1 *
11314114 I
ll&Vl 119
[118W119 I
II8I4 11814
108 109
Jan. April.
July, Oct
Jan. April.
July, Oct.
do. 41/2 Per ct. 1858-’59-’64: ,
Certific’s,6 p. ct...l861 jan. July.
Canal
Ohio, do. 1856| do
do. do. I860] do.
do. do. 1870! do.
do. do. 1875 do.
do. 6 per cent I860 do.
Pennsylvamia, 6 per ct Feb. August.
do. 6 per ct. coup. .18771 do.
• Massachusetts, 6 per ct.. . .1
Kentucky, 6 p.ct.b^d.l86it’?2 Jan. July.
Illinois, Int. Imp. 6 p. ct.l847i do. *
do. 6 per cent. Interest
Indiana State. 5 per ct.
do. 2V2 per ct..
do. Canal Loan, 6 per ct.l
do. Canal Pref. 6 do.
Maryland, 6 do.?
.do. 5 do.}
Alabama, 5 do.
Tennessee, 5 per ct. bonds. .
do. 6 do. do. long
do. do.. 1886
do. do.. 1872
do 1873
do 1872
do 1870
105
106
107
101
101
100
104
99
95
96
do.
do.
do.
do.
do.
Jan. April.
July, Oct
1 May, Nov.
Jan. July.
1 do.
do.
do.
do.
do.
do.
Virginia, 6
Missouri, 6
N. Carolina 6
Georgia. 6
California, 7
City Securities.
New- York 5 per ct. . .1858-’6o] > Feb vrav
do. do. ... 1870-’75! C Au* No V
•Albany, Bond, 6p. c.l87I-’81 Feb Aug
•Alleghany do. do. 1875-’77jJn jpi?*
Baltimore do. do. 1870-Du jJ Ad Ju 0
•Boston do. 5 do I wn Prw ’ U
Brooklyn do. 6 do iS Julf'
•Cleveland do.W.W7p.c.l879| do y*
•Oincinati do. 6p.c Divers
•Chicago do. do. 1873-77^ j„lv
^Detroit W,W. 7p.c.’73-’78-’83
•Jersey C. do. 6 do 1877|jf JJ ju/L'
Uouisvilledo. 6 do.. .1880-’83 itvcrs ly‘
•MilwTcie do. 7 do 1873 March’ Soot
•Memphis do. 6 do l^ Ja^ Ju?v
•Norfolk do. 6 do 1867 April tet
•N. Orl’na do. 6 do.. ,1892-W jPn JnwT
Pbiladelp. 6 do. . .187<>-*90| ando
•Pittsb’gh do. 6 do, W78-’83|DJv?£;
•Rochest’rdo. 6 do 18781 do *
*St Louis do. 6 do do'
•gacramentolO do... .1862-73 do
*8.Francisco 10 do 1871 uft;’
• do. 11 do *7i SJ; ’
County Bonds, j
Louis, Mo. 6d.c....1866 Julj*
•Payette, Kv. 6do.con.l881| 2°*
•Bourbon, Ky. 6do.do.8K81 ^o.
•Mason. Ky. 6do.do.81-’»2!
•Alleghany, Pa. 6 do 1878
Railroad Bonds. {
JJ. Y. Central
Brie 1st mort.
do. 2d do.conv.do,
do. 3d do. do.
do. Income do.
do. Oonvertiblesdo.
^o. do. do.
783/4
I 82
! 95li
80
55
78
45
95
losvhl
80
81
88
84l/2<
84
108
1110
jioa
103
|ioo
96
97
106
106
79
83
97
82
58
79
48
97
104
90
do.
do.
7 p. ct... 1883 May, Nor.
do. . .1867' do.
..1859 March, Sept.
..18831 do.
..1855, Feb. Aug.
, .1871 ! do.
. .1862 Jan. July.
Hud*n It 1st mor.do. 1869-70 Feb. Aug.
do. 3d do. do. ..I860 16 Ju. 16Dec.
do. conv. do. ..1867.May, Nov.
Michigan South, do. ..18601 do.
North. Indiana do. ..1861Feb. Aug.
lOOVs
100 1
98
90
100
101
88 ,
761/2
90
8934
85
93
95
85
102
99
77
91
100
103
102Mi
91 i/2
85
88 14,
771/2!
I 99 ‘
84 85
743.1 75l/2|
1021/2 103
?5l/2
70
65
74
8214
IO8I4!
931/2,
82 1
86
6714
, 71
100
78
78
73 j
6714! I
76
83
1091/2!
94 I
82 V2
87 I
681/ '2!
711/2
100W
78
62
95
96
__ Lm*L>«ku
• B« CoJS* Dividend
Baltimore A Ohio.... 100 ApriLO^t
Cin., Ham., A Day tonlOO 10 Feb. Aug.
Cleveland, Col. A Cin. 100 13 Jan. July,
rCleve. A Pittsburgh. .50 10 do.
! Cleveland A Toledo... 60 10 M’ch, Sept.
i Kri,e. 100 7 April, Oct
Galena A Chicago... .100 20 Feb. Aug.
Harlem 50 4 do.
do. preferred 50 8 Jan. July.
! Hudson River 100 May, Nov.
1 Illinois Central 100 7 Jan. July.
j Little Miami 60 10 June, Dec.
j Macon A Western 10 j 9 Feb. Aug.
j Mad. A Indianapolis.. 50j 9 Jan. JuL
1 Michigan Central.... 100 8 Dec.
! do. Southern ..100! 16 Jan. July,
do. do. con. st.100! 8 do.
| New-Jersey 5010 Feb. Aug.
; Northern Indiana . . .100 15 Jan. July.
do. con. st.100 8 do.
! N. Haven A Hartford.100 10 Apr. Oct.
New-York Central. ...100 5 Feb. Aug. ,
N. Y. A New-IIavenlOO; 15 Fe 16 Au|
Ohio A Pennsylvania. 60 734 Jan. July.
Panama 100(10 do.
Pennsylvania ...60, 6 May 15 No.
Reading 601 6 Jan. July.
| Rome A Watertown. .100: 10 Feb. Aug.
I Miscellaneous.
N. Y. LifeATrustCo.lOOflO
Ohio do. 100] 8
N. Y. Gas-Light Co.... 60! 10
Manhattan do 60110
Dels. A Hud. Can. ColOU 9
Pennsylvania CoalCo.50 10
U. S. Bank 100|
Boston Banks.
Atlantic flOO
Atlas
Blackstone 100
Boston 60
Boylston joo
Broadway, (S. Boston). ..100
city.... 100
Columbian 100
Commerce 100
Eagle 100
Eliot, (uew) 100
Exchange 100
Faneuil Hall 100
Freeman’s 100
Globe 100
Granite 100
Grocers’ 100
, Hamilton 100
Howard, (new) 100
Market 70
Massachusetts 250
Maverick 100
Mechanics', (S. Boston). .100
Merchants’ 100
National, (new) 100
New -England 100
North 1U0
North America 100
Shawmut 100
Shoe and Leather 100
State 60
Suffolk 100
Traders' 100
Tradesman’s, (Chel.). . . .100
Tremont 100
Union 100
Washington 100
Webster, (new) 100
Exchanges*
1ST. pat’bl. off’d. abe’d
42
77
95*14
40
66
84
94
gw
8“
96
97
85
85
J*
114
82
18
80
86
75
80
80
41V4
75
9U/2I
50
33
93
B*|
95
§VSt|
74
113
78
73
112
7934
84
74
8U4|
661/2
Feb. Aug.
Jan. July.
May Nov.
Jan. July.
June, Dec.
Feb. Aug.
,In.liqdati’n
Div’ds,
185
73
135
127
m
96 V*
1854.
106
10214 108
1 Tim
140
75
,140
130
112
95
3
1071/4
London,.
Paris
Amsterdam,....
Frankfort,.
Bremen,....
Hamburg,..
Antwerp,.
wm. Indiana do. ..1861Feb. Aug. 94 96 (I I J r
jHi Stock* not specified as Bonds are transferable by inscription. All Bonds (except Hudson 1st
“ Mortgage and Erie Convertibles) are payable to bearer* *M denotes Exin teres tor Ex-Dividend.
Digitized by
Gck igle
Original fro-m
UNIVERSITY OF CHICAGO
484
Ford?)) Items.
[December,
FOREIGN ITEMS.
Australia.— At tho meeting of the “ British Association for the Advancement of
Science,” held at Liverpool in September last, “the geographical and ethnological
section, presided over by Sir R. L Murchison, Bart, was opened by the reading of
communications from Capt. Charles Stokes, and Drs. Blundell and Wilson, on the-
subject of the exploring expeditions of Australia; The opinion of the latter, who is
tho geologist appointed by government to the proposed expedition into tho interior,
is that it will accomplish results highly satisfactory, and that the northern portion of
Australia possesses facilities for commercial purposes with England far superior to
the south. Ho also stated that the range of mountains running through Australia
was of an auriferous nature, and that the highest mountains were the most produc-
tive of gold, the lowest of the baser metals. The discovery of copper had changed
the face of Australia as well as that of gold: as the farmer, who before cultivated
wheat only as food for his cattle, (tho rate of transit to tho English or other markets
making its export unreinunerative,) had now a mining population to feed. Dr.
Wilson oxpressed himself very confidently on the subject of the new expedition and
the results likely to accrue from it. At the desire of tho President, Mr. Jukes,
(geologist,) who spent considerable time in his researches in Australia, expressed
himself favorably of tho results of a well-planned expedition into the interior of
Australia, and not like one in which he feared Dr Lyshot lost his life. The presi-
dent and Sir Robert Inglis also spoke in strong terms of the importance, in a com-
mercial point of view, of such an expedition— the former stating that, had the Duke
of Newcastle’s attention not liavo been distracted by the breaking out of war, such
a step would ere this have been adopted ; but he had his grace’s assurance that it
would receive his earliest attention. Mr. If. Danby Seymour, M.P., read extracts
from the MS. notes of travels of General Fevrier in Central Asia, from Teheran to
Herat, Balkh, Candaliar, and along the course of the Helsund and around the Lake
Sistan.”
Custom-House Payments. — Under the existing Sub-Treasury law of tho United
States, the payments of Custom-House duties are still made in coin, much to the
inconvenience of tho merchants. We observe that in London a desirable change
l as been authorized in the reception of certified checks on tho Bank of England.
Of this the Times says :
“ An important Treasury minute has just been issued for simplifying payments at
the Customs. At present the payments of duties can be effected only by bank-notes
or coin, and for many years the merchants of London have complained of the risk
to which they are thus exposed, from tho necessity of sending large amounts by the
hands of clerks through the most crowded thoroughfares at all hours of the day.
Several methods to remedy the evil have been suggested, but they hayo hitherto all
been overruled, although in some cases on imperfect grounds. The Treasury, how-
ever, have now resolved upon a system which is better than any previously recom-
mended, and which is to come into operation on the 11th of Oct. next Checks
on the city banks are to be received in payment* crossed ‘ Bank of England for
Customs duties,* and a clerk is to be sent from tho Custom-House every hour from
• nine till three to get these marked by the several bankers, so that they may in each
case bo passed at the Bank of England from the bankers’ account to the credit of
the Customs. The Bank of England will sign a list of these receipts, and the Cus-
tom-House clerk will return with it forthwith, the whole proceeding occupying about
an hour. Meanwhile the necessary entries of the goods will be in progress, and
no time will be lost, as they could scarcely, in any instance, be ready for deliveiy
before the return of the clerk. By this plan, it is pointed out, the trader will
escape all risk from the transmission of notes and coin, the customs will be relieved
of much labor in receiving, examining, and marking large amounts in bank-notes,
and in weighing gold, and also of the risk of forged notes or bad com ; private
bankers will be spared the necessity of keeping so large an amount of notes on hand
to meet the demands of their customers ; and, Anally, as these payments in London
alone reach an average of about £13,000,000 a year, a considerable economy in the
use of bank-notes and coin will be effected.’*
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Foreign Items.
Such a plan must be eventually adopted by this government, to avoid the Increas-
ing labors which must ever pertain to the present system while in use here.
Subjoined are the banking firms upon whom checks will bo received, and who
have been selected only with reference to their proximity to the Bank of England
and Custom-House : Bank of England ; Barclay A Co. ; Barnett, Hoare A Co. ; Bosan-
quet A Co.; Brown, Janson A Co.; Commercial Bank; Cunliffes, Brooks A Co.;
Currie A Co. ; Dimsdale A Co. ; Fuller A Co. ; Glyn, Mills & Co. ; Hanbury, Taylor
A Co. ; Hankey’s ; Heywood A Co. ; Jones, Lloyd A Co. ; London A County Bank ;
London A Westminster Bank ; London Joint-Stock Bank ; Lubbock’s ; Martin, Stone
A Co. ; Masterman’s ; Prescott, Grote A Co. ; Price, Maryatt A Co. ; Roberts, Curtis
A Co ; Rogers, Olding A Co. ; Royal British Bank ; Sapte, Muspratt A Co. ; Smith,
Payne A Co. ; Spooner, Att woods A Co. ; Stevenson, Salt A Co. ; Union Bank ; Wil-
liams Deacon A Co. ; Willis, Percival A Co. The introduction of the above plan will
not prevent those from paying their duties in cash who may prefer doing so. A
privilege granted in 1836, by which persons might take their notes and coin to the
Bank of England, instead of the Custom-House, but which, from its involving much
additional time and labor, while it very slightly reduced the risk, has never been much
resorted to, will be continued till the end of the year and then abolished, as by
that time the new system will have come into full practice.
The Future op the U. S. — It cannot be doubted that, versatile as they are,
they will soon give the same attention to art which they now give to more
solid but less graceful matters. The incorporation into the community of so large
an amount of emigration from continental cities, educated in the arts of design, and
contributing by the pencil and the chisel to the national love of show, will hasten
such a result. When, in no very distant day, the prairies of the Lake country and
the valley of the Mississippi shall be peopled with fifty millions, gathered from all
nations, but guided by the English race and governed by English traditions ; when
the slopes of the Alleghanies and the Green mountains shall be covered with sheep,
and their valleys filled with the best bred stock ; when the plains of the South shall
be entirely devoted to the production of cotton, (let us hope without the curse of
slavery;) when the higher and more delicate branches of manufactures shall have
taken root in Massachusetts, and the mechanical arts found a firmer stay in Pennsyl-
vania ; when the white man shall have driven the buffalo from the fields which each
setting sun shadows with the peaks of the Rocky Mountains ; when cities shall fringe
the Pacific, towns line the banks of the Oregon, and farms dot the surface of Cali-
fornia and the Valley of the Willamette ; when skill shall have subdued the mineral
wealth of Lake Superior; when commerce shall whiten every lake and ascend every
river of the country, and shall carry its productions to every clime ; when railroads
shall unite the Atlantic with the Pacific, and bring every part of this vast nation
into close contact with every other ; when opulence shall have given a home to art
in their cities, and literature shall have created the traditions which they lack;
what a spectacle may they not present to the world, if, despising the allurements of
ambition, and disregarding the erroneous advice of interested leaders, they are con-
tent to reap the rewards of thej^ peaceful industry, and to enjoy the blessings which
Providence places within their reach. — Edinburgh Bevietv, Juty , 1854.
Tontines. — An Irish Tontine is proposed for certain estates in that country,
valued at £180,000, and yielding a rental of £7500, which is expected to increase-
It is to consist of 1800 shares of £100 each, and the interest of the holders is to
depend upon any lives they may respectively nominate, (either tlieir own or others,)
the persons so nominated not being less than 70 years of age. When only 20
lives remain, the estates aro to be sold and the proceeds divided among the share-
holders represented by them, or the distribution may bo mado at any earlier period
if required by four fifths of the persons interested. A sum not exceeding £1200
per annum is to be reserved for management, and the net rental is to be invested
in consols, or such other securities as may be agreed upon, find to be distributed
in 1860 and 1865, and after that annually, until *he final disposal of the property.
New Stamp Tax in Great Britain. — The London Times of Monday, the 12th
Sept., says that a deputation of bankers, consisting of Messrs. Masterman, Robarts
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[December,
Ulyn, Prescott, Bo van, and Sir J. Lubbock, waited upon tho Chancellor of the
Exchequer upon some points connected with the Stamp Act Their chief object
wa3 to ascertain if the retrospective and consequently objectionable operation of the
measure which comes into force on tho 11th of October, 1854, by which all foreign
bills are to be subjected to a stamp, could be modified so as to apply only to those
dated on or after that day, instoad of to all that then till due; but it was stated
that while there would have been every disposition to accede to the request as far
as regards the question of revenue, the clauses in the act are considered too explicit
to admit tho desired construction. With respect to an inquiry whether bankers
may continue to givo acknowledgments without receipt stamps for money paid in
or remitted by their customers, and also to receive advieo from their agents of
similar payments, tho answer was that they will still be free to do so.
% The Clearing House. — The admission of the London Joint-Stock Banks to the
Clearing House has at length been accomplished, tho London and Westminster
taking precedence and having been followed by the London Joint-Stock, the Union
Bank of London, tho London and County, and the Commercial of London. The
Royal British Bank, it is understood, will be admitted in the course of a few days.
This arrangement has been found necessary to avoid pressuro upon tho temporary
accommodation possessed at tho Hall of Commerce, while the old Clearing-House in
Abchurch lano is undergoing enlargement 44 Tills question,”* says the Times,
4- which has existed for twenty years, is now, therefore, definitively and satisfactorily
ended; and there is reason to believe that, coupled with the improvement lately
mentioned, by the adoption of checks on the Bank of England, instead of bank-notes,
for tho settlement of balances, it will cause an amount of circulation to be econo-
mised equal at least to £1,000,000 sterling.” — London Bankers' Magazine.
MISCELLANEOUS.
Marine Insurance. — We learn from the Cincinnati Commercial , that a case
involving the construction of a policy of insurance has been decided in that city by
Judge Gholson. The names of the parties to the suit were Duffield <fc Barclay
against the Merchants & Manufacturers’ Insurance Company, and others. The
property insured was a steamboat, which was wrecked and abandoned. The
amount insured was $15,000 in four companies, leaving $5000 uninsured, and as
the law stands (independent of the policy) in an adjustment of partial losses, which
are without abandonment, the insured would be entitled to claim one fourth of
what was saved from the wreck. Several principles governing contracts of
insurance were collaterally referred to by the court, but the main question at issue
was whether a clAuse in the policy, requiring that ip all cases of abandonment the
insured should assign and transfer all intorest in the steamboat free from all claims
and charges, extended the effect of the abandonment, so as to embrace not only tho
interest covered by the policy, but also any other interest tho insured may have
ownod at the time of taking out the policy.
The Judge decided in a lengthened opinion, in the course of which several
authorities were cited, that the clause, in question referred more to the form of the
abandonment than to its effect, and was intended rather to secure an effectual evi-
dence of transfer, than to extend the effect of the abandonment A verdict was
accordingly directed to lx> entered for the plaintiff' for the amount of one fourth of
tho $5000, the recovery being confined to an interest in tho boat It was intimated
that the case would be taken up ou error in tho court above.
* All who desire to be fully acquainted with the facilities and privileges afforded by tho Cl
House, will find them lucidly detailed in the u Elemonts of Banking, 1 (second edition,) by w-
W. Gilbart.
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Bank-Notes. — Tko annexed particulars are given by the Philadelphia Ledger ,
in reference to the late conspiracy suit brought by the Pennsylvania Railroad Com-
, pany against certain persons who had informed against this Company for violating
the act prohibiting the circulation of small bills :
“ Governor Bigler has given us another excellent veto message, accompanying
the return of the bill consolidating into one the several suits brought against the
Pennsylvania Railroad and the Pennsylvania & Ohio Railroad Companies, for vio-
lating the small-note law of this State. The facts of the case are pretty well known.
The penalty upon every corporation for passing a foreign bank-bill of less denomi-
nation than five dollars, is $500, one half to go to the complainants. The companies
above named paid out such inhibited bills daily, in open violation of the law.
Several persons combined to prosecute the law against the companies, and recovered
judgments for penalties for some $30,000. The companies then proceeded against
the complainants and had them convicted, fined, and imprisoned for conspiracy. Not
content with this, application was made to the Legislature, and through very cor-
rupt promises, it is alleged, a bill was passed relieving the mulcted companies from
all the penalties but one. That is, instead of the very large liability of many
thousands of dollars incurred in penalties, the Legislature proposed to restrict it
to $500. This bill it is that the Governor has vetoed, backing his veto by tho most
unanswerable reasons. He wisely considers all such special legislation as demoral-
izing and beneath the dignity of the commonwealth. We have no sympathy for
the persons who conspired to seduce these companies, as in some cases was charged,
to violate the lawr, that the conspirators might thereby benefit themselves to the
amount of half the penalty — and they probably got no more than their desert in
the sentence of the courts. But these companies are equally culpable, and should
be punished up to the letter of the lawr. Had the large corporations of the State
seconded the law with a hearty good-will, the illegal currency complained of would
have been effectually rooted out long ago, and silver coin would have filled its
place. If there is any justice in enforcing the penalty against an individual who
violates the law from necessity in passing the only bill he holds, there is much
greater reason for enforcing it against a great company, which, at very little trouble,
may respect the law and greatly aid in furthering its object. Let railroad compa-
nies and other corporations take warning from thus veto message. Let them read it
and learn from it that the law will not be repealed and wrill be enforced. Three
months’ action on these convictions will fill all the small-currency channels with
coin, when all further trouble on the subject will end. The message is an unan-
swerable document, and we hope from its effects the most salutary results.”
TnE Sub-Treasury. — At Columbus, Ohio, tho Circuit Court of the United States
is engaged in the case of the United States against the City Bank of Columbus, to
be tried during the term.
We learn from the Cincinnati Gazette , that on Tuesday Messrs. Ewing, Corwine
& Stanbury discussed a demurrer, w'kich the latter filed in the case to the first
count of the declaration. The questions raised were, the want of power in the
government to make the contract set out in the declaration, and the wrant of power
on the part of the bank. It seems that the bank agreed, in 1850, with tho Secretary
of the Treasury, to transfer one hundred thousand dollars of the public funds from
New-York to Ncw-Orleans, in sixty or ninety days, free of charge. This they failed
to do, but appropriated it to their own use, as the plaintiff claims. The court, by
Judge McLean, overruled tho demurrer in a most able opinion. He held that the
Secretary had the power to make this contract, as well by the terms of the Sub-Trea-
sury law as by the usage of the department. That the powrer of the bank w'aa vory
well defined in the act of the Legislature creating the State Bank of Ohio, under
w'hich this bank derives its powers. The opinion was elaborate and able, and
covered every point raised in the argument. The defendant plead the general
issue, and tho caso was set dowm for trial. Perhaps no case has ever been brought
in Ohio which involved more Of personal interest and property than this. At the
time of tho transaction it excited a great deal of discussion in the public press and
in private circles, and its trial will not fail to attract a large crowed.
488
Miscellaneous .
Arkansas State Bonds. — The public authorities of California
coupons on her State debt, due in January last, to remain unpai
months, and gave little attention to the remonstrances of creditors her
thereto. The State of Arkansas, with a population exceeding 200,
real and personal property stated, by the census returns, at tliirty-ni
dollars, has failed to pay the interest on her public debt for thirtee
copy from the Littlo liock Stale Gazette a statement of a case now pc
the State of Arkansas :
u It is, perhaps, not known to all of our readers, that a suit againsl
the interest on fifty-three State bonds, given for the Real Estate Banl
at the last term of our Circuit Court, in which suit it was not only
the State is liable for the interest, as it accrues on her bonds, but
that interest, for every day it is detained by the State after it becomes
the last week we have conversed on this subject with some of the firs
men in the State, and they all concur in the correctness of Judge Fi
The interest on these fi ft}'- three bonds, as recovered against the State,
153,000, or nearly $1000 on each bond. Before the debt is paid it i
“ The obligations of the State for interest on her bonds, are due, and
and unpaid, for thirteen years . Those obligations for interest now an
bond, to at least a sum equal to the original amount of the principa
soon, the amount will be far greater than the principal’1
A portion of these bonds is held, wo believe, by the United States
invested originally with a part of the Smithsonian funds. Another ]
by the War Department in trust for the Indians. Now tho whole del
is not much beyond four millions of dollars, and the annual intc
$153,000. Yet tho legislature fails to levy a tax of one half per coi
perty of hor citizens, with which to cover or liquidate this accruing ii
a disgrace to the State of Arkansas. It is also a disgrace to the who
Usury Laws in Maryland. — The Baltimore Board of Trade ha*
fifth annual report, in which tho following allusion is made to the US’
uTlie opinion of the Board on this vital question may be perhap
the words of the resolutions adopted unanimously at a special meetin
January last, and transmitted in due form to the Senate and Hous<
namely :
“ Resolved, That in the judgment of this Board any legislation enac
other than merely nominal, for lending or borrowing money at a
interest than six per cent per annum, is calculated to injure the b
State, as it would tend to drive Capital out of the State of Maryland t
where a more enlightened policy permits its free employment wit]
onerous restrictions.
“ Resolved, That it is tho unanimous opinion of this Board, that it
advantage of the borrower than the lender that all restrictions be rem
rate of interest, except in book accounts, or in the absence of spe
as tho ingress of foreign capital thus unrestricted, would necessai
wholesome check on the rate of interest and equalize tho value of me
neighboring marketa”
Lot us trust that the policy of free trade in money, as in morchan
it is only the representative value, may cro long find favor with our 1
that in following tho example of all our wealthiest and most industrioi
will not impose enactments as to its employment, which but serve
41 rich richer, and the poor poorer.”
St. Louis City Debt. — The Controller of St. Louis has made his
on the finances of tho city. The amount of indebtedness is $3,563,
subscriptions to railroads. The amount of real estate assessed ii
wards of the city is put down at $41,104,921.13. Amount of merchi
ation, $10,118,937.77, being an increase over last year of $3,081
amount of revenue from all sources collected during the year, ifi
$651,000, which is an increase over the last year’s returns of $40,00<
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Trade witii Canada. — The Boston Board of Trade has recGnUgr instituted
inquiries as to the extent of foreign commerce leading through that city to Canada.
The following is the return for the years 1848 to 1864:
For tho year ending . September 30, 1848, $28,420
44 41 44 1849, 24,720
44 44 44 1860, 108,962
44 44 44 1861, 632,700
44 44 44 1862, 1,700,963
44 44 44 1863, 4,338,648
44 44 44 1864, 5,304,220
Val'ie of Canadian produce transported in bond to the same district.
For tho year ending December 31, 1850, $62,811
44 “ 44 1851, 119,651
44 44 44 1852 366,149
14 44 44 1853, 604,035
44 1st, 2d, and 3d quarters of 1854, 616,227
Ohio Banks. — The Franklin Branch of the State Bank against Oliver P. Hines,
Treasurer of Franklin county. The object of this suit is to recover back the taxes
of 1852 and 1853, paid to the Treasurer under protest The following grounds are
assumed in defense, by way of demurrer, by Warden & Smith:
1. The Supreme Court of the United States has not yet directly decided that tho
tax law of 1852 is unconstitutional.
2. Nor is such the necessary effect of its decision that the tax law of 1851 is
invalid — there being an essential difference in the bases of the laws.
3. Whatever power the U. S. Court has to define its own jurisdiction, and to
enforce its own decisions by its own means, it has no power by its mandate to tho
State Court, or otherwise, to reverse the record or action of that Court ; but the
federal court must take the whole responsibility, and operate on the parties alone—
not on the State Court.
The cause being submitted to Judge Bates of the Common Pleas, on the written
briefs of Messrs. Warden & Smith for the demurrer, and Mr. Parsons for the plain-
tiff, the demurrer was overruled, and judgment given for the whole amount claimed.
Tho case will bo taken to tho Supreme Court — Ohio Slate Journal,
Certified Checks. Before Judge Bosworth . — Tho Farmers & Mechanics1
Bank of Kent county vs. The Butchers and Drovers’ Bank. This suit was brought
to recover upward of $6000, being tho amount of four checks dated February,
1852, and drawn on the defendants by Tullius A. C. Green. It appeared that
these checks wero certified as good by the teller of the Bank, but without the
authority of the other officers, on Green promising that he would use the checks
for a specific purpose, and that they should not bo presented for payment. Subse-
quently he paid them away to the plaintiffs for certain shares of stock and other
banking purposes. The plaintiffs held the checks for one year, and then demanded
payment, which was refused. The court charged that if the plaintiffs took them in
good faith and without notice, then they were entitled to recover. Tho jury found
for the plaintiffs for $6522.
Tax on Stocks and Securities. — An important question recently came before
tho city authorities of Frederick, Md., as to the power vested in the corporation of
Frederick by its charter to include 44 stocks and private securities,” and other pro-
perties in the assessment for city taxes. The City Council adopted a resolution
referring tho question to J. V. L. McMahon, Esq., of Baltimore, for his opinion,
which has just been published. Ho holds that no property, within the taxable
limits of Frederick, and the several additions thereto, is exempt from taxation,
except parsonage houses. Therefore, “stocks and private securities,” and all 44 the
property of incorporated literary and charitable institutions,” wluch latter, under
the act of 1841, chapter 23 and its supplements, is exempt from state and county
taxation, are liable to corporation assessment and taxation.
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Connecticut. — The Annual Report of the State Controller of
shows that the aggregate expenditures of the State during the pas
$154,071, with a balance on hand of $56,229. The state finances a
with great economy. The treasury holds quite a large sum in Bank
other available means.
“ The Controller thinks savings banks should bo taxed as high as 0
institutions. He estimates the receipts of the State for the current year i
or $30,000 less than last year, and the expenses at $138,600, or $16,0
last year, leaving an estimated balance of $43,786.13 in tho treasury,
priatcd, we trust, to promoting tho benevolent and industrial projects i
State is interested. Ho proposes a tax of one half of one per cent
raise $32,657 ; the bank dividends will pay $37,000, and the railroa<
insurance taxes will raise $51,000. He thinks tho present Legislate
$2000 less than its predecessor, and estimates the contingent expem
$30,000 less than under a Democratic administration. The permanc
tho State amount to $406,000 in the stock of the Hartford, Phoenix, J
Middleton, and Farmers & Mechanics’ Banks.”
Public Lands. — The Land Offices in Mississippi are now opened f
of lands under the act of Congress, passod August 4, 1854. All publi
havo been in market for ten years shall bo subject to sale at $1 an acn
years, at 75 cents ; for twenty years, at 50 cents ; for twenty-five years,
and for thirty years at 12$ cents per acre.
Tho conditions are, that the person applying shall make affidavit
Register or Receiver, that he enters the same for his own use, and for t
ment and cultivation, or for tho use of his farm adjoining it. In no
enter more than 320 acres, according to the established surveys.
Recovery op Money. — Two persons, Sweet and Davis, in Vermont
since, obtained pensions for two widows on fraudulent papers. Th
limitations barred proceedings for the same before the fraud was discc
tho above-named persons were men of property, and civil actions ha\
menced against them by Hon. L. B. Peck, United States District Att
tho direction of the Commissioner of Pensions ; and at the last term ol
States Court in Vermont, judgement was entered against them for th
those two pensions, being $1101.62. This decision is of great importi
BANK ITEMS.
Private Banking. — George S. Coe, Esq., formerly of the Ohio !
Company, has been elected Cashier of the Ocean Bank, New-YorV
the vacancy caused by the resignation of J. S. Gibbons, Esq. Mr. G.
partnership with Mr. Ellery, of this city, for the purpose of engaging in
and exchange business, at No. 10 Wall street Mr. G. rotires from
duties of Cashier with the entire confidence and good will of the Dir
Ocean Bank. With adequate capital and long experience, and an env
tion for integrity, Mr. G. will no doubt secure a large business in his pr
taking.
Considerable excitement existed in the street on the 23d, inconsei
avowal of a fraud (or series of frauds) upon the American Exchange B;
close of bank hours the following publication was authorized by the Di
“We learn from the officers of the American Exchange Bank, that a
examination of the accounts of Mr. Candee, their First Teller, since tt:
the 21st inst., they find a deficiency in his cash of $138,500, in consec
having certified checks for irresponsible parties. To protect the bank f
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Candee has placed securities in their hands, consisting of bonds and mortgages and
other property, to the amount of $161,977, at their cost value. The bank further
holds bonds for $20,000 from his sureties, and in the judgment of the officers the
ultimate loss, if any, will bo trifling.”
New- York. — At a meeting of the Board 4f Directors of the Umpire City Bank,
held 23d October last, A. M. Bininger, Esq., was unanimously elected President in
place of C. P. Peck, resigned August 29th, 1854 ; L. H. Church, Vice-President, in
place of L 0. Barker, (whoso duties as President of the Rutgers Fire Insurance
Co. prevented his accepting the office of President, which was unanimously tendered
to him,) and R. T. Creamer, Cashier, in place of L. H. Church, promoted to the office
of Vice-President.
The Empire City Bank removed its business on Wednesday, the 25th, after
banking hours, to the new building at the south-east comer of Greenwich and
Duane streets, recently erected for the National Exchange Bank. The premises
hitherto occupied by the Empire City Bank, 336 Broadway, will hereafter be occu-
pied by the Sixpenny Savings Bank.
New- York City . — John J. Stevens, Esq., was elected Cashier of the Mechanics’
Banking Association on the 31st October, in place of John H. Cornell, Esq.,
deceased.
New- York. — John Rice, Esq., was, on the 8th November, elected President of
the Atlantic Bank, New- York.
New- York. — John Leveridge, Esq., was elected President of the Chatham Bank
on the 14th November, and Osmond H. Schreiner, Esq., Cashier.
Albany. — The Board of Directors of the Commercial Bank at Albany have
resolved to increase its capital stock, on the 1st day of February next, one hundred
thousand dollars. Its present capital is $300,000.
Massachusetts. — William Bramhall, Esq., was, on the 31st October, elected
President of the Shawmut Bank, Boston, in place of Albert Fearing, Esq, who
declined a reelection.
Boston . — Nathan Robbins, Esq., was, on the 6th of November, chosen President
of the Faneuil Hall Bank, in place of Joseph H. Curtis, Esq., who declined a
reelection.
New Banks. — The following new banks commenced operations in October : L
Bass River Bank, October 2. II. City Bank of Lynn, Oct 5. IIL Monson Bank,
5th. IV. Pemberton Bank, Lawrence, 13th. V. Holliston Bank, 20th.
Boston. — Albert Fearing, Esq., was, on 9th November, elected President of the
Webster Bank, Boston, in place of J. M. Forbes, Esq., who declined a reflection.
New-Hampsiiire. — Samuel S. Clark, Esq., of Dover, has been elected Cashier of
the Farmington Bank, which has recently gone into operation.
Connecticut. — William H. Tuller, Esq., has been appointed Cashier of the
Winsted Bank.
Bank Bobbery. — The Bank at Windham, Conn., was robbed on Friday night
November 17, of $22,000 — $7000 in specie, $11,000 in bills of the Windham Bank,
and $4000 foreign. It was tho custom of this bank to have a watchman sleep
there instead of relying upon tho rocently improved bank safes. Tho watchman
went to the Bank at about 8 o’clock, and as soon as ho got inside he was seized,
gagged, and blindfolded by the robbers, who had previously entered tho premises
and remained there in the dark until they had safely secured tho watchman. They
then proceceded with tho robbery, allowing tho watchman to remain as a spectator
or listener. The robbers were arrested on tho following night, and will be tried far
the offence — the money having been found in their possession.
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Dank Items.
Hartford. — The banking firm of Geo. P. Bissell k Co. has been foi
ford, consisting of D. F. Robinson, late President of the Hartford E
Bissell, late Loonier of the Farmers k Mechanics’ Bank, and Mr. Calv
New- Jersey. — Moses Coddington, Esq., has been appointed Cashie
Bank at New- Brunswick, in place of Goo. R. Conover, Esq., resigned
ver has returned to the Mechanics’ Bank at New-York, whose direetoi
ciating his capacity and integrity, have offered him sufficient inducenn
the post of teller in the latter institution.
South- Carolina. — People's Bank of South- Carolina, Charleston.— A
meeting of the Board of Directors, it was Resolved, That notice be
stockholders that the balance due on their stock is payablo on th
November, 1854, with interest accruing on the same at the rate of si
pursuance of the action of the stockholders, held in March last
Cashier.
Ohio. — Subscriptions to the stock of the Merchants’ Bank, as a 3
State Bank of Ohio, have been liberally made by our best houses. 1
further subscription are now open at the Merchants’ Exchange, an*
open until Saturday next, if the full capital of $500,000 should not 1
taken.
We have been informed that about four hundred thousand havo
subscribed to tho capital of this bank, and wo presume no reasonal
exist that tho remainder of the stock will be taken up before tho end
week. Wo havo also seen names of the subscribers to the stock, ai
prise many of the best firms in tho city. So far as the stockholders a
nothing more favorable could be desired. Wo learn that it is the pui
who are most active in having the bank established, and who Will ha\
ence in its management, to have it conducted upon the most appro
banking. No interest will be paid upon deposits, and the chief objee
will be to afford facilities to the business men of the city, to effect
reasonable rates, and to' discount paper so as to afford fair dividends t<
without exacting tho payment of exorbitant rates of interest. In
determined to use tho bank, not so much for the purpose of dividing
as to afford facilities to business men, and to have its allairs conducted
and for the highest interests of Cincinnati.
We are informed that it will be organized under the law establisl
Bank of Ohio, and may be regarded as a branch of that institution,
hear before tho close of the week that the entire amount of stock reqi
subscribed. — Cincinnati Gazette.
\
Kentucky. — The Directors of the Trust Company Bank of Covingt
made an assignment of its assets to Judge Wm. B. Kinkhead and Sam
Esq., neither of whom havo had any connection with the bank here
W. Stevenson, Esq., was selocted as attorney, to act jointly with the t
affairs of the bank are to bo closed as speedily as possible. The prefc
given to depositors if it can be legally done. If not, the proceeds of
to be divided pro rata between the depositors and vote holders.
Louisiana. — F. Rodewald, Esq., was on tho lltli November elec
of the Southern Bank, New-Orleans, to supply the vacany caused by i
of Mr. Egerton.
Tennessee. — W. M. Churchwoll, Esq., has been chosen President <
East-Tennessee at Knoxville, in place of J. W. J. Niles, Esq., wl
reelection.
Canada. — John Cameron, Esq., who has been for some years Cashii
mcrcial Bank of tho Midland District, at Toronto, has resigned that
has entered into the business of private banking, stock and exchange
1854.]
Notes on the Money Market .
493
BANK FAILURES.
The past month has been productive of more failures among banks
and bankers Jhan any month since the memorable year 1887. A
panic seized upon the community in the Western cities, and bank cir-
culation was so suddenly returned and deposits withdrawn, that many
were compelled to suspend. Among these were houses of long
established credit and abundant means. The following is a list of the
suspensions :
New- York. — Exchange Bank, Buffalo ; H. Johnson, banker, Buffalo
Pennsylvania, — A. Wilkins & Co., 41. D. King, bankers, Pittsburg.
Ohio. — Bank of Circloville, Mechanics & Traders’ Bank, (State Bank,) Cincinnati ;
City Bank, Columbus ; Canal Bank, Cleveland ' Sandusky City Bank ; Commercial
Bank, Toledo. Messrs. Ellis & Sturges ; Smead, Collord k Hughes, (Citizens’ Bank ;)
John R. Morton k Co., McMicken & Co., George Milne & Co., T. S. Goodman & Co.,
Outcalt & Co., bankers, Cincinnati.
(Messrs. J. R. Morton & Co. resumed payment (he following day.)
Illinois. — The City Bank, Merchants k Mechanics’ Bank, Farmers’ Bank, Union
Bank, all at Chicago.
Wisconsin. — Messrs. G. Papendiek k Co., bankers, Milwaukee.
Kentucky. — G. H. Monsarrat k Co., bankers, Louisville.
New- Orleans. — Messrs. Horace Bean k Co., Matthews, Finley k Co., bankers.
Attempts have been made to discredit the bills of some of the banks in Maine,
Connecticut, and Vermont ; but thus for their paper is punctually paid on present-
ation.
Notes on tije JWonej? Jfcarfcet.
New-York, November 26, 1864.
Exchange on London at sixty days ’ sight, 9£ a 9| premium.
Tns money market has assumed a worse shape since the publication of our last No. than at any
period during the past ten years. The inflation and extravagance that prevailed In the years
1862-3, was marked in every class in life and in all branches of business. The importation of dry
goods at this port alone has Increased from $.54,000,000 during the first ten months of 1852, to
$75,000,000 for the same period In 1854. The result of this enormous expansion has been to glut
the market for the present season, and to depress prices to such an extent as to force numerous
firms, in this line, into suspension.
The manufacturers of Great Britain and Europe generally, were crowded with orders from the
United States, and other countries, during the years 1S52-8, and as a consequence the prlcee of
labor and of goods rose rapidly. The Imports of iron Into the United States were, in the year
1844, only $2,895,000 in value. Last year they had increased to $27,015,000, with duties amounting
to $8,104,000 ; and petitions were laid before Congress for the entire repeal of the duties on railroad
iron. This last measure, If accomplished, would have lessened materially the actual coat of our
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494
Notes on tfie Money Market.
[December,
new railroads then and now In course of construction ; but it would have had a ruinous effect upon
the American manufacturer. To show this rapid increase of consumption of iron, wo annex a
table showing the aggregate imports into the United States, and the duties paid thereon for each
year, 1844-58, (fractions omitted.)
Year .
Value.
Duties.
Year.
Value.
Duties.
1644,....
...$2,895,000
$1,607,000
1850
$10,964,000
$8,259,000
1845,....
... 4,075,000
2,415,000
1851,
10,781.000
8,234,000
1846,....
. .. 3,660,000
1,629,000
1852,
19,848,000
5,632,000
1848.. ...
1849.. ...
... 7,060,000
. .. 9,262,000
2,118,000
2,778,000
1858,
27,015,000
8,104,000
an average of about thirty-two per cent duty.
The official tables of exports from Great Britain show that the values of iron, steel, brass, and
other metals and hardware, exported for the year 1852, amounted to no less than £12,500,000 ster-
ling, or upwards of slxty-two millions of dollars. A review of the commercial and financial affairs
of Great Britain for the past twenty years, was given to our readers in the pages of this work for
March, 1854, (pp. 695-706.) It is only necessary to bear in mind the figures therein famished, to
show that England, with all her free-trade principles of the last few years, has grown rich at the
expense of the United States, and other nations. The total exports of manufactures, etc., from
Great Britain, have increased from £85,S26,000 in 18*21, to £S7,000,000 in 1858, namely:
Year. Total Ex jxtrts. Iron <t Steel.
1914, £48,447,000 £1,772,000
1921, 35, 826,000 2,900,000
1881, 87,102,000 8,514,000
Year.
Total Exports.
Iron & Steel.
1841,. .
£51,684,000
£5,052,000
1850,...
71,867,000
9,083,000
1658,...
87,766,000
16,554,000
The year 1958 is computed according to the returns for the first ten months of the year, namely :
£78,155,000 and £18,795,000.
This vast expansion of the manufacturing interests of Great Britain is perhaps fully equalled, if
not surpassed, in the United States. Wc^know in fact that it has in the items of ship-building,
construction of railroads, as well as in the consumption of foreign dry goods, etc. One of the pri-
mary causes of the existing stringency in the money market is tho unusual investments in ship-
building during the past two years. The demand, although large, is greatly exceeded by tho
supply ; now that the decline is so considerable in the export and import trade of the country. The
follow ing table will exhibit the aggregate tonnage, registered, enrolled, and licensed, of the United
States for some years past :
Year.
Tonnage .
Year.
Tonnage.
Year.
Tonnage.
1921,
1,298,000
1842,
2.092,000
1848,
8,154,000
1925,
1,423,000
1848,
2,158,000
1849,
1880,
1,191,000
1844,
2,280,000
1850,
8,585,000
1885,
1,824,000
1845,
2,417,000
1851,
8,772,000
1840,
2,180,000
1946,
2,562,000
1852,
4,183,000
1841,
2,180,000
1847,
2,889,000
1853,
4,407,000
The increase of one third during the four years, 1849-1858, w*as mainly owing to the opening of
the trade with California, and thence with China and the East-Indies and Australia. This trade
has been largely overdone; it has produced heavy losses to the shippers, and Insolvency among a
large number of our merchants in the Atlantic cities, as well as on the Pacific coast The demand
for foreign goods for onr own and tho Pacific markets was overrated. During tho past eighteen
months our importations have been excessive ; and it is now that wre feel most severely the reac-
tion. Real property as wrell as manufactures have declined in value; imported goods have
declined to ruinous prices, and the whole commercial community is deranged thereby.
This over-production and over-trading were accompanied by a commensurate extension of bank
currency and bank accommod^ion. New banks suddenly sprung np in this and other cities.
Illinois, Indiana, and Wisconsin adopted general or free-banking laws, w hereby over ten millions
of bank-notes were within a few months placed in circulation, without an adequate bash of redemp-
tion. This increase was too sudden for tho actual wants of the West; speculation and inflation
were the immediate consequence.
This over-issue was only one of the several causes of commercial disaster. Another cause was
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u Njv e r srrgar one Afia
THE
BANKERS’ MAGAZINE,
AND
0tati0tical Kegister.
Vol. IV. New Series. JANUARY, 1855. No. VII.
FINANCES OF THE UNITED STATES.
Annual Report of the Treasury — Revenue and Expenditure of the
United States — Proposed Reduction of Duties — Examination of the
Sub-Treasury.
The official report of the Treasury for the fiscal year ending 30th
June, 1854, was published in the daily papers early in December.
The receipts from customs have increased, and are largely in excess of
\the estimates made in December, 1853. In order to show the net
results of the past two years, we now place them side by side.
Receipts of the government 1853-4 :
To Jutu 80, 1858.
Customs, $58,931,865
Public lands, 1,661,085
Miscellaneous, 138,624
Balance, July previously, 14,632,136
To Suns 80, 18M.
$64,924,190
8,740,708
884,716
21,942,892
$75,969,710 $96,492,596
The estimated receipts for the last year from customs were
$56,700,000, and for lands $1,480,000. The Secretary estimates the
receipts for the current year at fifty-one millions. W c hope he will
be near the actual results on this occasion. Wo cannot anticipate a
settled condition of commercial aflairs until the importations are
largely abated. The Secretary alludes to the pressure upon the money
33
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UNIVERSITY OF CHICAGO
Finances of the United States.
[January,
498
market that existed twelve months ago. The decline then anticipated
in the receipts did not take place, but our people were induced to
think that the foreign demand for American produce wrould be fully
sustained ; while large orders went out for foreign goods, under the
belief that we were to have a favorable turn in trade. The large sur-
plus in the Treasury during the past year has been largely applied to
the reduction of the public debt, leaving an outstanding debt on 30th
June last, of about forty -seven millions. It seems that $20,098,422
were redeemed during the fiscal year ending 30th June last. This
reduction is still going on.
The Secretary states the imports to be in excess of the exports
$26,321,317 for the year. We are surprised to find him expressing
an opinion that the profit on our exports and the freights earned by
our ships in the foreign trade “ ought more than cover this excess.”
No commercial man, w ith any experience, w'ould assume this. It is
notorious that the foreign importations are generally undervalued, and
that the ad valorem principle encourages such undervaluation. We
will undertake to assert that the apparent excess of $26,321,317
is less than the actual amount. And that whatever such profits on our
exports and profits on freights may be, they will not compensate for the
profits made here on the foreign importations for foreign account,
and the undervaluations in invoices.
The actual export of $38,000,000 in gold during the year is indis-
putable proof that this amount at least , was required to discharge the
balances of foreign indebtedness. To this sum should be added the
amount of American loans negotiated in Europe during the same time,
which have temporarily only , taken the place of so much gold, that
would otherwise have been further shipped hence.
The idea of reducing the customs revenues to the actual w'ants of
the Treasury, by means of a reduced tariff, is unsound. We all know’
it to be a fiction. Great Britain has been reducing her tariff for twTenty
years, and her revenue from customs is now as large as ever and
larger in fact. The reduction in duties on the contrary stimulates
imports and wrould bring us further in debt if we could readily dis-
charge that indebtedness. But there is a principle in trade more fixed
and more invariable than any free trade notions of these times,
namely : No commercial people will, for a series of years , import more
largely than they can conveniently pay for .
The Treasury report states that the large sum of $16,152,170 in
silver has been coined by the Mints at Philadelphia and New-Orleans.
This new coinage has been a vast benefit to the people, and has served
to expel the old and defaced coins of Spain, etc., that wrere current
here for many years.
Additional clerkly force is required for several of the subordinate
bureaus at Washington ; and the Secretary recommends the construc-
tion of other buildings for the business of the Sixth Auditor and other
officers of the Treasury. A separate building is much needed for the
use of the Commissioner of Lands and his clerks, whose business is now-
much increased by the vast immigration to the country.
Original from
UNIVERSITY OF CHICAGO^
1855.]
Finances of the United States.
499
Mr. Wm. M. Gouge and Mr. J. Ross Browne have been specially
appointed by the Treasury, as examiners into the funds of the Sub-
Treasury, the former for the Atlantic cities, and the latter for San
Francisco. Mr. Gouge, the special agent of the Treasury, has made
his report on the condition of the Sub-Treasury ; and in reference to the
currency of coin says :
“ There is but one way in which we can detain in the country a just
proportion of the gold of California, and that is by creating an active
demand for it. There is but one way in which this active demand can
be created, and that is by prohibiting the issues of notes of small
denominations.
“The policy of many of the State governments has, of late years,
been the very reverse of this. It has insisted in encouraging the issue
of small notes by sanctioning the establishment of what are popularly
called ‘free banks,’ with deposits of stocks and mortgages for the
‘ultimate’ security of their issues. This ‘ultimate’ security is, it
may be admitted, better than no security at all. The mischief is, that
it is least available when most wanted. The very causes which pre-
vent the banks from redeeming their issues promptly, cause a fall in
the value of the stocks and mortgages on ‘ the ultimate security’ of
which their notes have been issued. The ‘ ultimate security’ may
avail something to the broker, who buys them at a discount, and can
hold on to them for months or years; but the laboring man who has
notes of these ‘state-security banks’ in possession, finds, when they
stop payment, that the ‘ ultimate security’ for their redemption does
not prevent his losing twenty-five cents, fifty cents, or even seventy-
five cents in the dollar.”
It would be more effective in preserving our specie circulation if
Congress would adopt laws to encourage manufactures of iron, cotton,
and wool, and other important branches of American industry.
The work on the Coast Survey is alluded to as in progress, but as a
special report may be soon looked for from the Superintendent, this
subject occupies but little space in Mr. Guthrie’s report. This branch
of public service is appropriately recommended to the consideration of
Congress. The operations of the Coast Survey and of the Light-House
Board, have a very important bearing upon the oommerce of the
country.
Heavy expenditures have been made at New-Orleans for the
erection of a custom-house ; but it is ascertained that the foundation is
not sufficient for the superstructure ; and some prompt remedies must
be applied to make the building a solid and permanent one. The
official report of the examiner also states that the Branch Mint at that
city is not fire-proof.
Mr. Guthrie reports that further legislation is required in reference
to the steamboat inspection system, with a view to secure life and
property. Further legislation is also required in reference to the
collection of the revenue at the lake ports, where frauds have been
ascertained to a large amount
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UNIVERSITY OF CHICAGO
500
Financial Review of the Year 1854.
FINANCIAL REVIEW OF THE YEAR
The events that have marked the year 1854, are such i
it a memorable one in the commercial history of the coi
aster has marked its course at home and abroad, and the
at its commencement, thought themselves not only
wealthy, have been compelled to succumb to the reverses
commerce. Those who are old enough to remember the
disastrous periods of 1837 and 1843, will bear witness thai
year has been equally fruitful in adversity — in a severe s
the money market — in a heavy accumulation of inde
Europe — a largo export of coin — in bank failures — fraud:
losses — and commercial distress.
In fact, the years 1837 and 1854 form a marked pai
followed an undue expansion of bank credit, excessive imp
foreign goods, speculations in the public lands, the creati<
ous concerns for mining, banking, and other operation!
extension of internal improvements, a sudden expansion
turing, ship-building, real estate operations, foreign tradi
domestic trade. All these were encouraged by an exi
circulation created in 1836; a state' of things caused by
system adopted by the Jackson administration in 1834-
the destruction of the Bank of the United States.
The year 1853 was equally prolific in its birth of new
The railroad system itself had become expanded beyond
requiring all the aid of domestic and all available for
The importation of foreign iron was indispensable to the
these works; new mining and manufacturing companies v
a large number of new banks was created in Illinois and In
upon stocks and not upon solid capital ; the bank circ
created gave a sudden impulse to prices of all descriptions <
real estate in this city advanced by millions in value ; l
were demanded by the various classes of laborers, and
advance was not granted, combinations of workmen took j
such increase from their employers.
This expansion can be better illustrated by the official
imports and exports, than by any reasoning or argument!
Tear. Imports. Exports. Duties.
1880 170,876,000 $78,849,000 $44,280,000
1884, 120,621,000 104,886,000 81,076,000
1836, 189,980,000 123,663,000 48,288,000
1840, 107,141,000 182,085,000 16,998,000
In 1837, the bubble burst, and it took four or five yea:
the country to a solvent condition. The suspension of
ments by the banks in 1837, produced by the failures of i
her of merchants and manufacturing concerns, led to a i
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^UNIVERSITY OF CHICAGO
114
Financial Renew of the Year 1854.
501
elation of property, and to great sacrifices by holders of public securi-
ties. Several years passed before business and property resumed a
healthy condition ; and it is probable that twelve months at least will
now elapse before a restoration of credit and ease can take place.
To mark the parallel between the period above named and the past
four years, it is only necessary to recapitulate the following summary
of imports, exports, and revenue, namely :
Tear ending
June 80.
1850,
1851,
1852,
1853,
1854,
Import*.
$178,188,000
216.224.000
212.618.000
267.978.000
804.562.000
Exports.
$186,946,000
218,888,000
209.641.000
202.965.000
274.981.000
Duties.
$89,668,000
49.017.000
47.889.000
58.981.000
64.224.000
Lands.
$8,707,000
8.295.000
2.889.000
1.667.000
8.461.000
These figures in themselves, are sufficient to show that our foreign
trade has been unsound — that large balances have been created against
us, notwithstanding the large exports of gold to Europe.
The establishment of the Clearing-House in New-York, in October
1853, and the publication of the weekly bank statements in August or
the same year, had both contributed to a stringency of the money
market in the autumn ; but the year 1854 opened with a fair prospect.
Rents were high, real property had advanced in value, wages were
advancing, business was active, credits good, stocks were high, and .
every thing combined to lead our people to expect a favorable year.
The bank loans in this city amounted early in August, 1853, to
$97,000,000, with specie $9,746,000. In three months (November 5)
the loans were reduced to $83,000,000, although the specie had in-
creased to $11,771,000 ; but the banks gradually expanded until their
discount line on the 1st of January, 1854, was $90,133,000. These
fluctuations are further illustrated in the following table :
185&
Feb. 26, $95,274,000 $3,991,000 $9,274,000 $57,666,000 $5,279,000
Jane 11 95,520,000 12,174,000 9,084,000 69,078,000 7,546,000
Aug. 6, 97,900,000 9,746,000 9,610,000 60,994,000 8,406,000
Sep. 10, 91,108,000 11,880,000 9,697,000 67,645,000 8,907,000
Oct. 8, 89,128,000 10,266,000 9,678,000 67,985,000 9,400,000
Not. 6, 88,092,000 11,771,000 9,492,000 65,500,000 6,408,000
Dec. 8, 85,824,000 12,880,000 9,188,000 58,486,000 4,788,000
Jen. 7,1854, 90,188,000 11,506,000 9,075,000 60,886,000 2^00,000
The Month of January. — The first unfavorable feature of the year
was the immense losses by our insurance companies. This was a
serious abstraction of capital, and affected instantly the market values
of insurance stocks. The principal stock operation of the month was
the negotiation of $1,478,000, seven per cent bonds of the Panama
Railroad Company, at prices ranging from 97.50 to 92.01. (These
bonds, in March following, rose to 111, and are now, December 20,
worth 75 a 78.) Railroad stocks were in demand, and rated high at
the Board. Michigan Southern Railroad shares, for instance, ruled
at 116 a 118, and the following shares, were above par, Panama R.R.,
N. Y. Central, Michigan Central, Boston & Maine, Fall River R.R.,
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UNIVERSITY OF CHICAGO
502
Financial Review of the Year 1854.
115
Boston & Worcester, Nashua & Lowell R.R. State stocks ruled
high and were in active demand. The failure of the State of California
to pay the interest on her loan on 1st January, had created much sus-
pense. The coupons were finally provided for, but not until the lapse
of four months.
February. — Merchants engaged in the California trade, or who had
sold largely to dealers in that State, were now much incommoded by
the losses and failures at San Francisco, Sacramento, etc. The delays
in remittances to Atlantic ports, and the severe losses arising from an
overstocked market, were among the leading causes of difficulties,
which commenced about this time among our commercial circles.
Virginia and North-Carol ina were now in the market with proposed
loans in behalf of new and extensive railroad enterprises. The princi-
pal stock movement of the month, was the North-Carol ina State six per
cent loan of 8500,000, for which bids were received to the extent of
12,500,000. The accepted bids ranged from 104.05 to 105.52, and
averaged 104.25. From Europe, the principal item of note was the
advance of the rate of interest by the Bank of France, from 4 to 5
per cent, following the loss of fifteen millions of francs in gold by export
since October preceding. Exchange on London, during the latter part
of the month, ranged from 84 to 9. Public sentiment in Europe still
leaned to the opinion that the Eastern war would not be much longer
•prosecuted. The Secretary of the Treasury at Washington had offered
a premium of twenty -one per cent for the loans of 1847-8.
March . — Greater activity prevailed in the money market. An ac-
tive demand for capital arose in consequence of the extensive lines of
railroads projected and in course of construction throughout Virginia,
Ohio, Indiana, Illinois, Kentucky, etc. Money was, however, abund-
ant at a minimum of seven per cent in Wall street. The loan of the
New-York & Erie Railroad Company on their third mortgage bonds,
was finally completed this month, through Messrs. DcLaunay, Iselin
& Clark, and Messrs. Geo. Peabody & Co., London. The Company
declared at this time a dividend of 3£ per cent, The Baltimore &
Ohio Railroad Company also negotiated the remainder of their bonds
due in 1885, 8500,000, at 87 per cent.
Seventeen new banks had been recently chartered by the Legislature
of Massachusets, and a large increase of capital granted to thirty-five
of the old ones. A large number of new banks were also in process
of formation in this State, and in Maine, Rhode-Island, etc. During
the latter part of the month, sterling bills ranged from 8£ to 8J, with
an export of 81,400,000 in specie, and bank loahs extended to 93 or
94 millions.
April. — The demand for money now, for account of the new railroad
enterprises of the South and West, was very pressing. Prime business
paper was quoted in Wall street at 10 a 12 per cent. Several failures
were reported among firms engaged or involved in the California and
Australia trade. These aided to disturb the market. The banks
suddenly curtailed their loans from 94 millions (March 4) to 90 mil-
lions, (April 22,) and exchange on London advanced to a 9£
L Google
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UNIVERSITY OF CHICAGO
116
Financial Review of the Year 1854.
503
premium for bankers’ bills at sixty days’ sight. Large shipments of
coin were made to Europe, under the more adverse state of the ex-
changes. On the 15th of this month, the Cochituate Bank at Boston
suspended, and w’as soon placed in the hands of receivers. Proposi-
tions were brought before Congress for the reduction or abolition of
the duty on railroad iron ; or, as a modification, to allow railroad
companies five years to pay the duties. These measures were opposed
by public sentiment and by Congress.
In the New-York Legislature a law was now passed to compel the
redemption, within three years, of the bills of those banks whose
charters shall expire.
Another loan for the State of North-Carolina was taken, mostly by
New-York capitalists, for $500,000, at 104.05 to 105.52. During
this month the underwriters sustained immense fire and marine losses.
May. — The increased demand for money had now severely affected
the stock market. * A decline of 2 to 10 per cent 9was noted in the
leading securities at the Board. County bonds, issued for railroads,
had become very dull, and greater difficulty existed in negotiating
railroad loans and in obtaining advances on such securities. Rents in
New-York had now attained such enormous prices, that large numbers
of our merchants were induced to remove to streets above the Park.
Expensive buildings were commenced for various banks in the city,
and long leases were taken at the advanced rates for stores and dwell-
ings. In fact, up to the first of this month, the community had not
begun to feel seriously the unfavorable reaction which a few weeks
further demonstrated.
June. — The foreign exchanges continued against us, and the ship-
ments of gold to Europe during the month amounted to $5,168,188.
Bills on London at sixty days’ sight were quoted at 9$ to 9$. An
active demand for money was felt throughout the month, and the
banks reduced their loans from $91,916,000 on the 3d, to $88,608,000
on the 30th June. The enormous quantities of dry goods imported
during the preceding six months, under the anticipation of continued
high prices, had overstocked the market, and the western and southern
towns were thereby too crowded for their own wants. The demand
for capital on account of western railroads was still pressing upon the
market, notwithstanding the increased bank circulation of the West-
ern States. It now became apparent that too many roads had been
undertaken, and that some of them must stop operations for want of
capital.
The principal financial movements of the month were : 1st. The six
per cent loan of $1,500,000 for account of the New-York & Harlem
Railroad Co. This was negotiated at an average of 94$ per cent.
2d. The New-York State six per cent loan of $1,000,000, authorized
for the extension of the canals. This loan was taken on the 29th
June, at 116.50 a 120.06 with an average of 117.53: and, finally, the
conclusion of a treaty with Mexico, whereby this government agreed
to pay ten millions to that country in return for a cession of lands.
The inflated condition of our foreign trade was shown in the feet
Digitized by
Gck igle
Original fro-m
UNIVERSITY OF CHICAGO
504 Financial Review of the Year 1854.
that the Custom-House duties collected at New- York aloni
six months ending 30th June, were $41,658,000.
It is remarkable, however, in the foreign financial his
half year, that no special advance occurred in the marl
money in England. Although the war with Russia 1
several months, there had been no serious abstraction of <
Great Britain, nor did her capitalists seem to entertain ai
a continuous drain upon her financial resources in aid <
That abstraction and that dread were left for developr
latter half of the year ; consols had temporarily fallen on
May to 87£, but the government and the people were sl<
up their minds for the war, and no indications prevailed o
production among British manufacturers. The proposi
Chancellor of the Exchequer for the issue of exchequer 1:
amount of six millions sterling, was not well received,
issue of £2,000,000 was contracted for by Messrs,
redeemable in fivd years and upon terms equivalent to fo
interest. The minimum value of money in Lombard st
the month was about five per cent. A strict blockade oi
and Black Sea ports was announced in England early in J
The Massachusetts law requiring weekly statements by
banks, and monthly statements by those of the country
operation on the first week of this month.
Among the failures of this month was that of Wright, 1
Co., cotton factors, Ncw-Orleans.
July. — This month proved to be one of the most rema
most lamentable in the commercial history of New-York.
blow was struck on the 5th of July, when it was officially
that Mr. Robert Schuyler, President of the New-York & 1
Railroad Company, and Transfer-Agent also of the Cot
fraudulently issued stock of the Company to the extent of
millions of dollars. The credit of New-York has thereby
an extent which will require many years to remedy. Bef
of the week, fraudulent entries by Mr. Kyle, the Seen
discovered also in the stock-ledger of the Harlem Railroat
to the extent of about $470,000 ; and frauds were disc
to a large amount in Parker Vein Company stock, and in t
Vermont Central Railroad shares to a large number,
ledge of these frauds had an instantaneous effect upon
market, and produced a rapid decline in nearly all secur
instance, New-York Central Railroad shares declined betw
26th July, from 100^ to 88 : Erie Railroad shares from <
Michigan Southern Railroad shares were now first quoted
Among the numerous suspensions of the month were ]
Launay, Iselin & Clark, stock brokers ; Messrs. R. & G
ler -, Messrs. Clark, Watson & Co., silk house, New-Yorl
Willis & Co., bankers, IT. M. Holbrook, James W. Baldw
Co., Boston ; Mr. J. Tucker, President of the Readin
Company, Philadelphia.
Original from
UNIVERSITY OF CHICAGO
118
Financial Review of the Year 1854.
505
Notwithstanding these unfavorable features of the market, the bank
loans were extended from $88,608,000 July 1st, to $92,011,000 July
22d. The specie funds paid over to the agent of the Mexican govern-
ment were partly deposited in the city banks on interest.
Early in July, the Austrian government announced a new loan to
the extent of 350 to 500 million florins. It was also known that
France would soon require a loan to the amount of 250 million francs,
and Russia was also in the market for a loan.
The British government gave notice officially, that British subjects,
contributing to a loan in behalf of Russia, would be guilty of high
treason.
The foreign exchange market for the month, closed with sixty-day
bills at 9} a 9$.
There had been a downward tendency of prices at the Stock Board
until the end of the month.
August. — The month of August opened with loans by the banks of
this city to the amount of $93,723,000. The demand for money was
still very pressing. The failure of Messrs. Gilbert, Coe & Johnson,
bankers, and of Messrs. Alfred Edwards <fc Co., in this city, were an-
nounced. The Mexican minister gave notice to the banks holding his
deposits of coin, that it would be required at the end of ten days from
the 4th. The failure of Messrs. Henry Sheldon & Co., was also an
nounced and created much surprise. This firm had been under heavy
acceptances for cotton shipped, and promised to be shipped, from
Texan ports. It was announced on the 15th, at New-York, that the
Governor of Texas had awarded to Messrs. Walker, King, and asso-
ciates, the contract for the construction of the Pacific Railroad through
that State.
An obvious improvement had marked the London market for the
first week in this month. Consols had advanced to 93, and the Bank
of England on the 3d reduced the rate of discount from 5£ (to which
it had been raised on the 11th May preceding) to 5 per cent.
It was early in August that the first indications were given of
weakness on the part of the Indiana banks. Unfortunately for them-
selves, and for their permanency, they had neglected to select and
establish a central point of redemption, which would have secured to
their bills a wider circulation and greater confidence. If this had
been done, their paper would have become a permanent circulation
in Ohio and Missouri, as well as Indiana.
The stringency of the money market fit this period and the contrac-
tion of bank circulation compelled several banks to suspend. These
were : I. The Bank of Carthage, New-York. II. The Drovers’ Bank,
Ogdensburgh. III. The Farmers & Merchants’ Bank, Memphis,
Tennessee. IV. The Bank of Milford, Delaware.
Up to this time no less than thirteen new banks had been organized,
since January 1, in the State of New-York. The limited amount of
capital enjoyed by these new concerns would not enable them to do
much good in the communities where they were established. Four-
teen new banks also commenced business in Massachusetts, under
special charters ; and six in Maine.
Digitized by
Gck igle
Original from
UNIVERSITY OF CHICAGO
Digitized by
506 Financial Review of the Year 1854. 119
The loan of $1,250,000 f >r the State of New-York was taken on the
last day of this month at 12.00 to 10.80 per cent premium. The bids
amounted to about $3,600,000, ranging from 103 to 110.80.
The Treasury department at Washington, by circular dated August
20, gave notice that the redemption of the public stocks of the United
States would continue : at a premium of 3 per cent for the loan due
November, 1856; 11 percent for that due December 31, 1802 ; and
10 per cent for that due in 1S07 and 1808 ; adding interest from the
1st July, 1854.
ScptonLcr, — The money market exhibited at this time no change
for the better. The shipments of specie to Europe during the month
from New-York alone, were $0,547,000, and sterling bills at sixty
days ruled as high as 0 J to 10 per cent.
A panic in the stock market early in the month, drove Erie Rail-
road shares down to 2iH, at which many holders were forced to sell.
Several failures were the consequence, although the stock rapidly
recovered in a few days, and sold at 44} on the 22d.
The shipping interest at this time in New-York and in the Eastern
States, began to suffer from the diminished demand for new vessels
and from the reduced commerce with foreign countries. The bank-
ing institutions in the Eastern ports sutfered numerous losses from
mercantile failures.
Among the prominent failures of the month, was that of the Pro-
tection Insurance Company, at Hartford, Ct. This Company, in com-
mon with the underwriters of all the large cities, had sustained heavy
losses from fires in the West. The marine companies were also su£
ferers to an extent never before known in this country.
A distressing mortality prevailed during the months of August and
September at New-Orleans and Savannah, which seriously interrupted
trade at those points. The shipments of cotton, which are usual at
this season of the year, from the Southern ports, were thus delayed, and
the usual supply of bills on Europe from these quarters was thereby
interrupted. The wreck of the steamer City of Philadelphia this
month, added another to the severe losses sustained by the under-
writers of the Atlantic cities. The wreck of the Collins steamer
Arctic on the 27th of this month, proved also a very serious loss to
the marine companies of this city.
October . — The stringency in the money market had now continued
for several months, and increased in severity from month to month.
Commercial disasters succeeded each other rapidly, and the banks
of the large cities and of the interior, sulfered severely thereby. The
export of coin from New-York for the ten months of the year, had
reached $33,410,000, being fourteen millions more than that of the
same period in 1853, and eleven millions more than that of 1852.
The drain upon New-York for capital, in behalf of Western railroads,
had contributed, more than any other cause, (the specie export ex-
cepted,) to the disturbance of the money market. The rapidly
increased circulation of the Indiana banks was now returning upon the
points of issue, and caused the suspension of several of them. Three
Original from
UNIVERSITY OF CHICAGO
120
Financial Review of the Year 1864.
507
of the New-York City banks ■were forced into suspension early in the
present month, by the contraction of circulation and deposits.
Another distressing feature of the money market at this period,
was the discovery of frauds on three of the banks of the city, namely,
one on the Ocean Bank of |(75,000, one on the American Exchange
Bank of $138,000, and one on the National Bank of $75,000.
At Cincinnati, the pressure upon the market was, perhaps, felt with
more severity than at any other point. The repudiation of Indiana
bank-bills, and the scarcity of Ohio bank paper, had cut off, for the
time, the usual sources of circulation, and the bankers had no resource
for their depositors, in time of urgent need, beyond their bills receiv-
able. In this severe crisis, a run took place on the leading banking
houses at Cincinnati, but they withstood the pressure on this occasion,
although they were forced into suspension in the following month.
The panic that prevailed at Cincinnati, soon extended to Louis-
ville, Chicago, Cleveland, Columbus, and Pittsburgh, in each of which
places there were several suspensions. During the month of October
the New-York City banks reduced their loans from $9*2,000,000 to
$84,000,000. This rapid curtailment operated severely upon every
class of borrowers, but was more felt by manufacturers than by other
classes, as they were thus compelled to place thousands of men,
women, and children out of employment. The inflation which marked
the year 1853, and part of 1854, in this country, was equally preva-
lent in England, and was followed by a similar reaction. Tho failures
of Messrs. James McHenry & Co. and Mr. Edward Oliver, at Liver-
pool, and Messrs. Allen, Anderson & Co., London, were announced
early in the month — the latter firm on tho 6th. Notwithstanding
these unlooked-for and heavy failures, consols were worth 97 in the
middle of October. On the 17th, the final payment of £400,000, on
account of £2,000,000 Exchequer bills, was made by Messrs. Koths-
child.
The Erie Railroad Company this month announced their determin-
ation to issue new bonds to the extent of $4,000,000, the redemption
to be secured by a sinking fund of $35,000 per month.
Tho legal opinions delivered this month by Messrs. Kirkland, Bron-
son, O’Conor, and Lord, in reference to the frauds upon the New-
Haven Railroad Company, and in support of the claims of the frau-
dulent stock, were acceptable to the commercial community and were
fully indorsed by monied men.
The Assay Office of the U. 8. commenced business on the 9th of this
month, and has been in steady operation since. Its advantages to the
community arc obvious in the fact that depositors of gold dust can avail
themselves of the value of such deposits within twenty-four or forty-eight
hours, at a nominal cost, (say six cents per hundred dollars;) whereas,
heretofore the holders of gold dust were compelled to wait four or
five days for returns from the Mint at Philadelphia, and then be sub-
jected to a charge of one half of one per cent for coinage, in addition
to the ordinary charges for transmission to and from Philadelphia by
express.
Digitized by
Gck igle
Original from
UNIVERSITY OF CHICAGO
508
I
Financial Review of the Year 1854.
The stoppage of the Eighth Avenue Bank, Knickerbocker, an
Banks, in this city, created some alarm among the working
and the circulation was rapidly returned for redemption.
On the 14th, the report of the Examining Committee of l
Railroad Company was made and published. The Commi
carefully examined into the condition of the Company, and
mended for adoption : 1. To close the construction account,
increase the rates of transportation. 3. To omit dividends
floating debt of the Company shall be cancelled. 4. The cr<
a sinking fund ; and, finally, that the President and Vice-Pres
the Company give its affairs their whole time and attention.
On the 20th of this month, the new six per cent loan for i
of North-Carolina, $200,000, was taken at an average prei
1£ per cent.
The only favorable feature at the close of the month, was tl
exhibit that only $3,359,000 in specie had been exported fr<
York, against $0,547,000 in September.
November. — The financial disasters of the past ten months
yet reached their termination. At the opening of this m
New-York banks showed reduced means for their custon
aggregate loans being reduced to $83,300,000. The balance
held here for account of Southern and Western bankers,
become materially reduced, and a panic seized upon the coi
at the West, that found the bankers unprovided for. On the
firms of Smead, Collord & Hughes, Ellis & Sturges, and ot
at Cincinnati, were compelled to stop payment. Numerou
also occurred at Cleveland, Columbus, Chicago, Pittsburgh
and at other places — arising from a contracted bank cii
Three banks at Chicago, one at Buffalo, one at Columbus, C
and another at Toronto, suspended, in consequence of the
for redemption of bills.
On the 28th of this month, the Department of State annot
blockade of the Baltic and White Sea ports, by the allied foi
December. — A favorable reaction in the money market w&
strated early in December, by a sudden fall in sterling bills
to 8 a 8£ per cent. The export of cotton from the South
commenced with greater activity than usual, and thus fur
large amount of bills on England and the Continent. For
time for twelve or eighteen months, bankers’ bills on Lone
days, could be had as low as 8. The cessation in the expor
to Europe was another feature which served to assure the coi
of a better state of things approaching.
Several heavy failures were announced ; among these Mcs
Carpenter & Co., Providence, J. W. Blodgett & Co., Bo
Glendon Iron Works, East-Boston.
The run upon the savings banks of this city was renewed o:
inst., and considerable sums were withdrawn. The immedia
was that a large amount of government six per cents held
institutions as investments, were remitted to Washington for
§ \
gle
\ Original from
\ UNIVERSITY OF CHICAGO-
122
Financial Review of the Year 1854.
509
tion according to the liberal terms offered by the Treasury, namely,
a premium of sixteen per cent for the loans of 1847-8, and accrued
interest.
In forming an estimate as to the business of the coming year, and of
the financial condition of the country at large, there are certain
criteria before us which have never failed to precede a favorable
reaction. In the first place, there is a cessation in the export of coin
to Europe, preceded by a large decline in the rates for sterling bills.
Bankers’ bills on London, at sixty days’ sight, have ranged throughout
the year at 9 a 9f, and at short periods were as high as 10 per cent
premium. Early in December, they declined suddenly from 9f to 8f ;
on the 15th to 8f , and by the 26th to 8 per cent, and with sales as low
as 7$. At the same time a commensurate decline occurred in the
price of commercial bills on Europe; with large operations at
6 a 7£. Sixty-day bills, with bills of lading attached, were abundant
at 6J. The Southern market for sterling bills also declined, in conse-
quence of the large shipments of cotton and bread-stuffs.
The cotton crop for 1853-4 showed a decline as compared with
1852-3 ; and at the same time a material decline in prices, namely,
from Ilf a Ilf in September, 1853, for middling Orleans, to 9f a
9£ in September, 1854. The changes in this important staple for the
past fivo years arc fully demonstrated by the annexed table of the
product and foreign export for each year ; and the growing import-
ance of the British market to our Southern States.
Tabular Statement of the Crop and Foreign Export of Cotton, and Stock on hand, at
the end of each year; September 1850, ’51, ’62, 63, and ’64.
1849-50. 1850-61. 1851-62. 1858-68. 1858-64.
Total crop, 8,091,000 2,855,000 8,015,000 8,863,000 2,988,000
Export, Great Britain, 1,107,000 1,418,000 1,669,000 1,787,000 1,604,000
“ Franco 290,000 801,000 421,000 427,000 874,000
“ Northern Europe, 72,000 129,000 169,000 171,000 105, COO
« Other foreign porta, 122,000 139,000 185,000 198.000 176,000
Foreign Export, 1,691,000 1,9S9,000 2,444,000 2,628,000 2,819,000
8toek on hand, - 142,000 89,000 72,000 107,000 117,000
Owing to the protracted war in Europe, there will probably,
throughout the year 1855, be a foreign demand for the surplus wheat
and Indian corn produced in the United States. Cotton and bread-
stuffs will thus go far to liquidate the large balances held against us
in Europe.
The extreme stringency of the money market in the Atlantic cities
during the past six months has served to induce, in fact to force , our
merchants to curtail their obligations and bring their business down
to the level or supply of the currency. The stringency has been
accompanied by a large export of coin, and concurrently by a reduc-
tion of bank circulation. The causes and effects thus follow each other
with invariable precision. The same events marked the commercial
history of the years 1836-7 and 8, namely, overtrading — specula-
tions and high prices in real estate — expansion of bank circulation—
establishment of numerous banks, followed in a few months by a large
export of coin — a reaction in prices — drain upon the banks, and cur-
Digitizetf by
Gck igle
Original from
UNIVERSITY OF CHICAGO
510
Financial Review of the Year 1854.
128
tailmcnt of their loans to the extent of 20 or 25 per cent — with
numerous failures where the obligations were too expanded for the
capital employed.
The increase of banks in the city of New-York has been too rapid
since 1850, and their capital too limited to secure a profitable busi-
ness. The last bank chartered by the Legislature was the Bank of the
State of New-York, in May, 1830. The general banking law was
adopted in 1837, and the first bank organized under that law was the
American Exchange Bank. The total up to this time in this city has
been thirty-nine, including the Tradesmen’s Bank and the Mechanics’
Bank, both of which commence operations under their new organiza-
tion on 1st January, 1855. The whole number established under the
general law was as follows :
Tear.
No.
Capital.
Year.
No.
OapUmL
1638,
2
$2,000,000
1851,
12
$8,150, S00
1S89
1
682,000
1S52,
7
8,513,000
1847,
1
856,650
1858,
9
4000,000
1349,
. 8
2,400,000
1854,
1
100,000
1850,
422,700
1855,
2
2,600,000
The Clcaring-Hpuse in this city has exercised a conservative influ-
ence, and will eventually serve a very useful purpose. It is believed
that our merchants and manufacturers will now, in the improved con-
dition of the money market, resume business operations to a limited
extent, and with more safety and profit than marked the year past.
Upon a full consideration of the events of the year, and of the pros-
pects for the coming one, we cannot but caution our commercial friends
to be more careful in their operations, and not to be led too far into
the vortex of credit. With due regard to the laws of demand and
supply, the business of the whole country will be reestablished upon
a proper basis, and result to the advantage of the whole community.
The following table has been compiled with much care, and exhibits
the imports, exports, excess thereof, Custom-House duties, average per
centage of duties, and proportion of imports per head, during each ten
years since the commencement of the government, and for the last
five years, ending June 30, 1854. It shows very clearly the increased
rate of consumption in 1850-1854, as compared with the previous
ten years, when the business of the country was managed with more
discretion than since the gold discoveries in California.
Proporfn Jm •
each year .
1789 tf 1799. . 500,592,68(3 410,997,883 69,595,848 50,821,525 10# 8,929,827 12.74
13(H) <7 1309.. 983,516,273 751,150,299 132,865,979 120,957,109 13 7,289,614 12^0
1810 alS19. . 819,069,274 586,958,905 282,110,869 157,411,864 19* 9,688,181 &50
1820a 1829.. 802,206,480 761,590,913 40,615,567 191,606,899 23^ 12,S66,920 6.23
1880a 1889. .1,266,411,483 1,084,105,465 282,306,013 218,126,802 161 ;* 7,069,453 7.4S
1840a 1849.. 1,196, 786,983 1,240,747,504 ♦48,060,521 217,497,496 18 28,267,493 6.14
1350 a 1854. .1,184,071,983 810,830,606 69,12S,996 259,1G2,591 22 26,511,384 8.93
Total,. . . .6,712,655,167 5,595,931,080 802,161,756 1,210,0S8,786 18
We close our review of the year by the annexed summary of the
fluctuations in stocks :
* Excess Exports.
Digitized
Original from
UNIVERSITY OF CHICAGO
Digitized by
124
Stock Fluctuations for 1854.
511
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Gck >glf
Original from
UNIVERSITY OF CHICAGO
512
United States Statistics.
125
Digitized by
COMMERCE, TONNAGE, DEBT, REVENUES, Etc., OF THE
UNITED STATES, 1789-1854.
Yean.
Tonnage.
Import*.
Exports.
Debt.
Rerenue.
Expenditure*.
Population.
1789-91
179*2
1798
1794
1795
179(5
LT9T
1793
1799
1800
1801
1802
1803
1804
1305
1306
1807
1808
1309
1810
1811
1912
1818
1814
1815
1816
1817
1813
1819
1820
1S21
182*2
1823
1924
1825
1826
1827
1823
1329
1630
1881
1832
1888
1834
1885
1S36
1887
1933
1839
1840
1841
1342
1843
1844
1845
1846
1847
1848
1S49
1850
1851
1852
1S53
1854
502.146
664,437
491,780
628,817
747,964
681,900
876,913
898,828
946,408
972,492
1,088,219
892,101
949.147
1,042,404
1,140,369
1,203,735
1,208,643
1,242,595
1,850,281
1,424,78 8
1,232,502
1,269,997
1,666,628
i.i'v 9
1,863,127
1,872,218
1,899,91*2
1,225,184
1,260,751
1,280,166
1,298,958
1,824,969
1,886,506
1,889,168
1,4*28,112
1,584,191
1.620.603
1,741,892
1,260,798
1,191,776
1,207,347
1,439,450
1,606,151
1,758,907
1,824,940
1,882,103
1,896,686
1,994,640
2,096,880
2,180,764
2,130,744
2,092,891
2.155.603
2,280,095
2,417,002
2,562 085
2,839,046
8,1.54,042
8,334,015
8,535,454
3,772,4139
4,138,441
4,407,010
4,802,902
$
29.200.000
31.500.000
81.100.000
84.600.000
69,756,263
81,486,164
75,879,406
68,551,700
79,069,148
91,252,763
111,368,511
76,383,333
64,666,666
85,000,000
120,600,000
129. 410. 000
138.500.000
56.990.000
59.400.000
85.400.000
58.400.000
77.080.000
22.005.000
12.965.000
113,041,274
147.103.000
99, 250, 0(H)
121.750.000
87,125, (XX)
74.450.000
'
63,241,511
77,579,267
60,549,007
96,840,075
64,974,477
79,484,068
88,509,824
74,492,527
70,876,920
108,191,124
101,029,266
108,118,811
126,521,382
149,895,742
189,980,035
140.989,217
118,717,404
162,092,182
107,141,519
127,946,177
100,162,087
$04,753,799
108,485,085
117,254,564
121,691,797
146,545,083
154,996,923
147,S57,439
178,138,319
220,779,855
212,613,282
267,978,647
804,562,881
$
19,012,041
20,758,099
26,109,672
83,026.238
47,989,472
67.064.097
56,S50,206
61.527.097
78,665,522
70,971,780
94,115,925
72,488,160
65,800,088
77,699,074
101,586,963
108343 150
22,480,960
62,203,233
66,757,970
61, 816, *<88
88,627,286
27,855,997
6,927,441
52,557,753
81,920,452
67,671^509
93,231,138
70,142,521
69,691,669
64,974,882
72,160,281
74,699,030
75,986,657
99,585,888
77,595,322
82,824,827
72,264,686
72,858.671
78,849,508
81,810,588
87,176,943
90,140,483
1(4,336,973
121,698,577
123,663,040
117,419,376
108,436,616
121,028,416
182, OSS, 946
121,851,808
104,691,534
$34,846,480
111,200,046
114,6-46,606
118,488,516
158,648,622
154,032,131
145,755,S20
151,898,720
218,898,011
209,641,625
280,452,250
274,981,211
$
75,463,476
77,227,924
80,352,634
78.427.406
80.747.587
83,762,172
82,064,479
79,223,529
78,408,670
82,976,294
88,088,051
80,712,682
77,054,686
36.427,121
82,812,150
75,728,271
69,213,399
65,196,313
57.028.192
53,178,217
48.006.587
45.209.788
55,962,828
61,487,8-40
99.338.660
127,884,984
123,491,965
108,466,684
95,529,643
91,015,566
89,987,428
93,546,677
90,875,877
90,269,778
88,788,433
81,054,060
78,987,857
67,475,044
58,421,414
48.565.406
89.128.192
24,3*22,235
7,001,699
4,760,082
87,788
87,513
1,878,224
4.857.660
11.988.788
5,125,078
6,787,898
15,028,486
26,898,958
26,143,996
1C,801,647
24,256,495
45,659,659
65.804,450
64,704,693
64,228,238
62,560,895
65,181,692
56,886,157
47,180,506
$
t4,41S,913
8,661,932
4,614,428
5,128,432
5,954,534
7,187,529
8,808,560
7,820,575
7,475.773
10,777,709
12,846,580
18,668,238
11,064,097
11,826,807
18,560,698
15,559,931
16,398,019
17,060,661
7,778,478
9,884,214
14,428,529
9,801,182
1 1)840,409
11,181,625
15,411,634
47,408,204
82,7S6,S62
21,002,568
28, S7 1,276
16,779,881
14.815.790
19,481,961
20,049,586
18,908)669
21,812,906
24,763,345
21,280,641
24,243,504
24.224.979
24,280,888
27,452,697
81,107,040
83,008,844
21,076,774
34,168,685
48,288,219
18.082,846
19,372,984
30,899.048
16,993,858
15,957,512
19,648,967
$8,065,826
2 s, 504, 51 9
29,769,184
29,499,247
26.346.790
85,486,750
81,074,347
43.875, 79S
52.312.979
49,723,886
61,337,674
73,540,705
1
tl, 71 8,129
1,766,077
1,707,848
8,600,343
4,350,596
2,581,930
2,888,590
4,623,223
6,480,166
7,411,869
4,981,669
8,737,079
4,002, S24
4,452,858
6,357,234
6,080,209
4,984,572
6,504,888
7,414,672
6,311,082
5,592,604
17.^29,498
28,(»S2,396
80,127,686
26,953,571
28,878,482
15,454)610
18,808,674
16,800,278
18,184,580
10,728)479
9,S27,642
9,784,155
15,830,145
11,490,459
18,062,816
12,254,897
12,606,041
12,651,489
18,220,584
13,863,768
16,514,088
22,049,298
18,420,466
17,005,419
29,655,244
31,798,587
81,578)765
25,488,547
23,827,772
26,196,840
24,861,337
10,698,1391
19,960,055
21,870,049
26,318,290
55,929,098
42,811,970
67,681,667
48,002,163
48,005,879
46,007,896
54,026,818
51,018,800
$
4.049.600
4,178,024
4,800,210
4,481,272
4,566,8*29
4,706,504
4,348,919
4.996,705
5,1 4S, 994
5,305,925
6,473,407
5,6461,76
5,824398
6)OOS,246
6,197,897
6,898,584
6,595,8 40
6,808,528
7,018,282
7,289,814
7,449,960
7,666,206
7,888)729
8,117,710
8y353,888
8,595,806
8,845,812
9,102,060
9,866,261
9,688,181
9.920.600
10,211,848
10,510,618
10,818,659
11,185,727
11,462,088
11,798,013
12.148.788
12,499,687
12,866,020
13,284,931
18,614)420
14.004.789
14,406,850
14)819,425
15,244,844
15,681,447
16,181,087
16,598,630
17,069,453
17,600,752
18,148,5S9
18,718,479
19,295,971
19,890,674
20,515,871
21,154,444
21,812,893
22,491,805
28,191,876
23,878,717
24,575,604
25,298,126
26,000,000
t From March 4, 17S9, to Dec. 81, 1791. J 9 months of 1848.
Go gle
Original from
UNIVERSITY OF CHICAGO
\
pigitized by
i
150
British Statistics .
513
I. VITAL STATISTICS.
Y re.
UNITED
KINGDOM.
ENGLAND AND WALES.
Population of
the United
Kingdom.0
Population
Marring**
in England anJ
Wales.
Births
in England and
Wales.
Deaths
in England and
Wales.
Inhabited
i
ii
1
Population
per square miie.J
of England
ami W«ln
only.f
No.
Decen.
aver-
agep’r
cent. of
Pop.
No.
Dueen.
aver-
age p’r
cent. of
Pop.
No.
Decen.
aver-
age p»r
cenl.of
Pop.
Houses
in England
and Wale.
1801
*16,338,102
8,872,980
67,288
287,029
204,434
1,575,928
563
1801
1802
16,559,064
90,396
273,837
199,889
Engl'di Wales.
1S08
16,780,026
94,379
294,108
208,728
158*48
1804
17,000,987
85,738
294,59*2
1S1,1 77
1805
17,221,949
79,596
292,202
181,240
49*09
1S06
17,442,911
80,754
291,829
188,452
1807
17,663,872
83,923
300,294
19S,S51
1S08
17.884,834
82,248
296,074
200,768
1809
18,105,796
83,369
299,989
191,471
1810
18,826,758
84,470
•S3
298,853
2*89
208,184
1*96
1811
1811
♦IS, 547, 720
10,150,615
S6,8S9
304,857
188,543
1,797,50*2
5*64
Engl’dA Wales.
1S12
18,812,294
82,066
301,954
190,402
175*58
1818
19.076,868
88,860
314,432
186,477
1814
19,841,441
92,804
878,806
206,403
1815
19.606,015
99,944
344,931
197,408
1816
19,870,589
91,946
880,199
205,959
1817
20,135,163
89,234
331,583
199,269
1818
20,399,736
92,779
831,584
218,624
1819
20,664,310
95,579
888,261
213,564
1820
20,928, S84
96,933
•84
343,660
802
208,849
1*83
1821
1S21
*21,193,458
11,978,878
100,668
365,307
*212,352
2,088,156
5-73
EnglVlA Wales.
1822
21,504,784
98,978
872,571
220,415
207*20
1823
21,816,110
101,918
869,760
*237,886
1824
22,127,436
KM, 723
871,444
244,074
66*92
1825
22,438,762
110,428
875,055
266,018
1826
22,750,089
104,941
380,418
208,161
Ireland.
i bvt
23,061,415
107,130
874, 1S6
251,871
263 06
1828
28,872,741
111,174
392,454
255,888
1S29
28,684,067
104,816
380,245
264,280
1830
23,995,393
107,719
•81
882,060
2-92
*254,067
1*91
1831
1831
*24,806,719
13,697,187
110,989
885,262
275,897
2,481,544
5*60
Kngl’ddt Wales.
1832
24,550,784
115,468
388,991
295,183
240 88
1838
24,799,958
118,947
895,916
287,594
Scotland.
1884
25, 05 24 1
120,674
401,662
280,206
78^21
1835
25,818,634
118,414
400,877
*278,692
1886
25,573,186
119,631
400,861
278,763
Ireland.
1837
26,856,200
111,599
458,058
333,437
238 90
1838
26,139,350
118,067
458,787
842,647
1839
26,427,587
128,166
492,574
888,979
1840
26,720,911
122,665
•79
602,808
2-89
859,684
2*07
1841
1841
*27,01 9, 55S
15,906,829
122,496
512,518
343,847
2,941,491
5*40
Engl'dife Wales
1842
27,051,867
118,925
517,739
349,619
275*14
1843
27,084,276
123,sr8
346,446
1844
27,116,590
182,249
540,768
856,950
Ol/UVIBUUa
86*65
1815
27,148,863
148,748
543,521
349,866
1846
27,180,172
145,664
572,625
390,815
Ireland.
1847
27,206,007
185,845
539,965
428,864
251*45
1848
27,231,842
I88J80
568,059
399,800
1849
27,257,677
141.893
578,159
440,853
1850
27,883,512
152,285
•80
598,567
3-26
369,679
2*28
1851
1851
♦27,309,846
17,922,768
154,206
•86
616,865
3*43
395,174
215
8,276,975
5*46
EnglMAWalcsi
810*02
Scotland.
\
94-94
Ireland.
200*41
• The asterisk denotes the result of Decennial Censns : the remaining figures are estimated
from the average rate of increase. t Exclusive of o Array and Navy.
X Number of sgnare miles in England and Wales, 57,812; Scotland, 30,288; Ireland, 25,128,
Gck igle
Original from
UNIVERSITY OF CHICAGO
I
II. FOOD, (No. 1.)
Yr».
1801
1802
1808
1804
1805
1806
1807
1808
1809
1810
1811
1812
1818
1814
1815
1816
1817
1818
1819
1820
1821
1822
1823
1824
1825
1826
1827
1828
1829
1880
1881
WHEAT.
rniCK. of • a man wheat run, quaete*.
Annual.
Decennial.
Extrema Range.
Extreme Range.
Aver-
«*•
of ten
years.
Per
Cent, of -
Flue- ®
tuation
from
Lowest
to
Highest
Highea.
Lowest.
Year’s
Average.
Highest
Lowest.
8. D.
8. D.
B. D.
8. D.
0. D.
& D.
154 0
70 b
115 11
76 0
58 8
67 9
67 1
49 0
60 6
97 8
87 1
76 9
65 7
78 1
78 11
109 6
81 6
94 5
114 10
• •
103 8
154 0
49 0
81 5
814
106 8
87 4
92 5
155 0
105 1
122 8
122 8
78 6
106 6
72 1
70 8
54 8
63 8
108 11
58 1
76 2
112 7
74 0
94 0
91 8
78 1
88 8
78 11
61 2
72 8
87 9
58 11
65 10
155 0
53 1
64 11
292
70 7
46 2
54 5
60 7
83 0
43 8
62 6
89 11
51 9
67 7
58 11
62 0
69 8
61 6
66 0
61 4
54 1
56 11
61 9
52 0
56 9
75 8
51 6 1
60 5
75 8
56 8
66 8
72 11
56 1
64 8
75 8
88 0
58 2
198
78 5
60 5
66 4
m i
52 5
58 8
55 5
49 10
62 11
49 6
41 5
46 2
i 42 10
86 8
89 4
I 61 9
80 0
43 6
60 1
52 C
55 10
i 77 0
52 0
64 7
f 81 6
65 6
70 8
i 72 10
58 10
66 4
77 0
86 0
56 11
214
76 1
60 0
61 4
! 65 8
46 10
61 0
1 61 2
45 5
61 4
l 56 5
45 1
51 5
> 60 1
45 0
49 2
1 G4 4
45 6
58 8
' 102 5
49 6
59 0
* 56 10
46 10
61 10
> 49 1
88 9
89 5
) 47 6
87 9
40 4
102 fl
. 37 9
1 52 8
l 271+
FOB BIG K
WHEAT.
Eiwh
above
Exports.
Quarter*.
,896,859
498,859 1
297,145)
898,067
842,879 1
280,776
879,838
424,709
244,885
4*25,559
681,838
MEAT.
BCTCIIER .
MEAT.
Per 8 tone.
Paid At
St. Tbomas’i
Hospital.
Soutliwark.
225.2031
122,188
84.272
2
12,187
15,777
min
815,892
572,788
842,050
,864,220
1,701,885
1.491.681
825,486
82,846
04,653
28,488
80,107
244.272
1,848,475
2,711,723
2,401,436
2,648,808
2,977,802
982,287
1.021.681
813,245
fOEEtOH CATTLE
AMD SHEET.
Imported after
Repeal of tka
Prohibition,
July 9, IMS.
4,856,088‘ 2
Beef.
Mutt’n
Catttle.
Sheep.
8. D.
5 8
8. D.
5 8
5 0
5 4
4 8
5 0
4 8
4 10
1 5
4 5
4 9
4 10
4 8
6 0
4 9
4 10
5 4
5 2
5 8
5 6
..
••
5 8
5 8
6 0
6 0
# #
6 4
6 4
6 0
G 6
4 11
5 0
4 0
4 8
8 8
4 4
• •
, ,
4 4
4 10
4 10
5 8
4 8
5 4
••
••
3 10
4 4
2 8
8 5
2 11
8 7
8 4
8 8
4 2
4 8
# #
t #
4 0
4 6
# %
m #
4 0
4 4
# 9
8 8
4 0
##
8 5
8 11
2 10
8 4
••
8 4
4 2
8 2
4 0
8 4
4 0
..
, .
8 0
8 8
,,
i 8 0
8 8
8 5
8 9
,,
, ,
8 4
4 0
, .
. ,
8 2
8 8
3 6
8 10
.
8 6
3 10
••
8 10
4 2
8 4
8 8
4,264
*644
2 10
8 2
1,521
217
2 8
8 2
4,Ssfl
2,817
8 0
8 8
16,88?
1 15.957
8 6
4 2
45,04?
1 94.624
8 9
3 8
4 5
4 4
75,267
62.7*3
’ 142,720
\ 180,581
8 0
8 8
58,449 129,266
2 8
3 4
66.462 1 50,785
* Abundant Home Supply. ... . ~ „
t If w© strike the famine year of 1847 out of the Decennial Average irom 1^41 to 1850, the fl c-
tuation from the lowest to the highest price of English Wheat will be only 101 per cent, Instead
of 271 per cent.
Digitized by
Go gle
Original from
UNIVERSITY OF CJ^jAGO
152
British Statistics,
615
III. FOOD
, (NO. 2.)
Year*.
SUGAR.
TEA
COFFEE.
Sugar
Im;M*rtC‘l and
Retained for
Home
Consumption.
Pecen.
averse
Con-
•umpt’n
per
1 Ie*<i of
lJop.
Nett
Revenue i
from Sugar
Duties.
Tea
Imported and
Retained for
Homo
Consumption.
Decen.
average
Con-
sumpt'n
pef
ll'-ad of
Fop.
Nett
Revenue
from
Tea Duties.
Coffee
Imported and
Retained for
Home
Consumption.
Decen.
at era >
Con-
sumpt’n
per
Heud of
Fop.
Nett
Revenue
from Coffee
Dm tut.
Owta.
lba.
£ j
Cwta.
lba.
£
Ibe.
lbs.
£
1 SO 1
2,773.795
2,782,232
23,787,554
1,428,660
750,861
106,076
1802
2,25 >,811
2,2U>,sl0 1
24,725,020
1,632,467
829,485
72,183
18 <3
1,492,565
1,551,453
24,985,859
1,929,618
905,532
72,093
1804
2,144,869
2,458,125
21,839,086
2,599,739
1,061,327
151,898
1805
2,076,11)8
2,489,795
24,293,092
8,886,524
1,201,786
120,178
180fi
2,s-U.747
3,097.591
22,906.496
8,346.670
1,157,014
152,759
Is *7
2,277,005
8,153,7.5.3
22,794,441
8,520,174
1,170,164
161,245
1 s< »s
2. 842, S 1:1
4,177.916
24,566,700
8,9)15,295
1,069,691
161,246
]9tl9
2,5-4,507
8,273.995
23,260,797
3,592,705
9,251,887
245,986
IslO
3,4*9,312
1G
8,117,331 j
22,015,812
1-35
8,647,787
5,803,096
•12
175,567
1811
3. 226,757
3,339.218 !
24,220,193
8,752,111
6,890,122
212,890
Is 12
2,6 '4,o 19
8,939,9 40 i
23,776,750
8,826,990
8,118,734
255,194
lslH
2,2- «9.oo:i
8,447,560
22,795,520
♦
8,798.601
*
1814
1,997,999
3,276.513 1
22,611,166
8,959.053
6,324,267
215,514
1815
12,211,299
8,454, -m
25,S4o,12l
4,058,690
6,117,811
259,762
lsl<>
2,529 931
8,612,193 |
23,236,72 4
4,862,497
7,557,471
290,934
ls!7
. ■*' 041
4,433,926
23,963,971
8,431,364
8.699,726
299,540
IMS
1,. • s96
2,751,U *7
26.23o, 60S
3,872,694
8,3' »s, 627
25)',Kifi
1S19
2.820,900
8,966,5 43
25,869.9«V>
8,6s9,s05
7,790,78:3
292,152
1S20
2,901,804
8,925,887
25,602,394
1*28
8,527,192
7,108,609
•ss
34)1,223
1821
3,056,882
4,188 958
26,396.873
8,739,462
7,593,001
871,252
1 s*>2
2,989,o57
4,o6o,444
27,737,850
8,945,592
7,699,851
874,597
1S24
3,22 s, 991
4,407,410
27,180, IsO
8, M3, 128
8,954,900
416,324
1 8*24
3.:*» >7,424
4,641,904 !
27,172,3-17
8,865,477
8,262,923
407,544
1 S25
8.079,848
4,170,655 1
23,719,673
4,081,019
11,082,970
807,204
Is-JG
3,573,490
4,450,991
29,045,852
8,789,044
13,208,328
824,667
1 827
3,81»,!>*27
4,650J92
29,931,178
8,705,689 ’
15,566,376
394,995
ls2S
8.6ti 1,U9
•V -02.297
29,305,757
8,177,179
17,127,033
425, 3*9
1 s20
8,509,821
4,s96,242
29,495.205
8,331,722
19,476.338
499,951
18:11
8,722,044
16X
4,767,842
80,016,935
1-26
3,8s7,<‘79
22,669,258
*59
579,363
1831
3,731,011
4,650,590
29,997,055
3,444,919
22,715,807
583,751
1S52
3,655,534
4,894,3:48 j
3 1.548,3s 1
8,5- '9,939 j
2-4,268, 197
598,033
1988
3,»i5 1,804
4,414,302 j
81,929,020
8,444,102
22,74 l,9S4
591,241
1934
8,741.579
4,559,392
34,969,051
8,414,102 1
2-3,795,095
614,4:44
, lS'^T
8,856,562
4,667,9oO j
86,574,< MU
8,5-9,865 ;
2-3,295,046
652,124
1S.-JT,
8,4ss.899
4, Is 4,165 ,
49,142,236
8, ■'32.482 i
24,947,690
691,616
Wi;
8,954.810
4,760,565
3- ), 625,206
3,319,665
26,894,066
699.679
lSJiS
4.372,978
5,247,516
32,851,593
3,863,963 1
25,919 613
686.314
is:;a
3,s25,599
4,5S6,936
35, 12 7,2 s7
3,)if>-,s00
26,982,269
779,114
1349
8,606,894
16X
4,465,020
! 52,252,628
1-35
8,473,951 .
28,723,7:35
*93
922,968
1811
4.657,628
5,114,390
, 30,681,877
3,973,669 !
28,870,857
887,747
1 S 1*2
4,86s, 466
4,874,812
37,355,91 1
4,))9S,957 |
28,519,646
76s,s$6
is |.5
4,028,307
5,076.326
| 40,293,393
4,407,642 j
29,979,404
697,376
is 14
4,129,994
|
5,208,222
, 41,863,770
4,524,193 |
31,852,892
681,616
1845
4,87.6,604
3,574,471
44,193,4:13
4,930,177 i
84,293,190
717,871
1 sift
5.231,4 48
3.SS8.106
1 4fi.72S.2o9
Ml 1,069 1
86,791,891
757,413 *
ls-17
5,791,7*3
4.3-2.469
! 40,324.299
5,066.960 1
87,470,579
747,105
1 Isis
6,162,621
4,518,517
: 48,735,971
5,329,:S59
87,106,292
7D>, 292
184!)
5,922,154
1
8,s55,92$
! 50,02 4, fis9
5,471.641
84,431,074
648,210
1850
6,112,821
20%
8,880,391
1 51,179,215
j
1*62
5,556,998
31,226,840
1-21
571,896
1*51
6,254.651 |
4,159,M0
■ 53,965,112
5,900,624
82,564,194
444,670
1852
! 6, 92s, 850
4,057, 9o5 1
' 54,725.615
5,994 172
85,044.876
487,22$
i
t
i
• Records burnt.
Digitized by CjQuQie
Original from
UNIVERSITY OF CHICAGO
516 British Statistics . 153
STIMULANTS, (No. 1.)
WINE.
Foreign An«l Colonial Wine for
Home Consumption.
Yoar».
Wine Measure
from 1801 to 18*25.
Buahels
Rates of Duty per Bushel.
Imperial
Measure. 1 8*8,
and all after.
Duty Paid.
charged with
duty.
Duty paid.
En«?lftnd*
Scotland.
Ireland.
Gallons.
£
£
S. D.
n. n.
a- o.
1801
7,006,810
1,992,097
19,742,741
1,817,776
1 4*
0 8*
1 6*
18(»2
6,855,749
1,981,872
34,760,441
2,988,682
2 5
1 BS
....
1803
8,181,466
2.U1.8.V5
84,710,084
8,977,869
4 5X
1 9*
1S04
4,840,719
1,814,323
24,753,023
6,240,085
8 9*
2 9*
1806
4,566,551
2,008,366
25,568,183
5,865,800
....
2 8*
18<K>
5,986,285
2,820,428
30,710,947
6,514,46.3
....
....
a 6*
1801
5,922,887
2,334,197
27,791,064
5,986,568
1808
6,408,584
2,858,736
25,873,119
5,876,042
....
....
....
IS' (9
5,808,087
2,861,118
25,852,369
6,409,614
....
....
....
1810
6,805,276
2,818,615
•35 gals.*
2,169,871
26,889,188
5,741,992
1*53 bshla.*
....
....
....
1311
5,860,874
29,676,827
6,382,857
a a a a
• • ■ •
1812
6,136,490
1,911,852
21,288,628
4,493,704
....
1813
4,718,668
— t —
25,854,208
5,401,9:4
....
....
1814
4,941,66.3
2,082,840
29,743,642
6,41 1, Mi
....
8 8*
1816
5,968,435
2,095,299
80,209,038
6,707,446
....
8 8*
1816
4,420,807
1,610,299
24,200,093
4,741,812
2 5
1 8*
4 5
1817
5,614,622
2,0*23,790
28,884,780
2,769,188
2 4*
1818
(
2,241,380
26,204,089
8,296,229
1819
4,978,600
1,802,997
25,815,254
4,076,436
8 Vi
8 7*
a a a a
1820
5,019,960
1,818,896
*26 gals.*
1,797,491
1,794,018
26,860,121
1-S8t*hla*
8 t>X
1821
5,01 6,569
29,893,411
4,297,581
1S22
4,975,159
29,848,080
4,082,888
2 7
2 7
2 7
1828
5,291,410
1,907,466
28,164,497
8,609,501
8 7*
1824
5,479,732
1,967,958
81,511,743
4, 1 72,453
1825
8,658,995
1,815,058
36,205,450
4,631,324
4,177,278
1826
6,450,814
1,270,118
1,426,550
82,468,779
• •••
• •••
1827
7,262,110
29,615,501
8,809,988
....
....
1828
7,580,625
1,506,122
86,854,206
4,781,585
....
....
1829
5,421,748
1,292,402
29,152,777
8,748,616
....
1880
6,676,771
1,851,607
•27 gals.*
1,356,208
82,964,454
4.231,997
l-39bshla*
....
....
1881
5,458,639
89,252,269
5,086,669
*L!
1882
5,265,542
1,806,112
87,890,635
4,799,058
....
1888
6,207,770
1,519,643
40,072,895
5,140,759
....
....
1884
6,480,544
1,705,688
41,145,591
6,275,44/8
....
....
1885
6,420,842
1,691,522
42,892,058
6,499,888
....
....
1836
6,809,212
1,798,963
44,837,780
6,699,879
....
• •••
1887
6,568,182
1,784,967
40,550,748
6,216,864
....
....
....
1883
7,200,876
1,904,386
40,555,666
5,151,888
1839
7,289,567
1,915,648
89,928,829
4,189,804
ST
1840
6,840,537
1,S72,110
•25 gala*
42,406,862
5,592,477
l.OObshls*
....
....
....
1341
6,184,960
1,720,479
86,164,285
4,889,248
2 7
2 T
2 T
1842
9,815,422
1,409,205
1,705,525
85,871,894
4,843,581
and 5 per
and 6 per
and 5 per
1848
6,088,987
85.698,890
4,827,950
cent.
cent
cent.
1344
6,888,684
1,866,291
87,187,186
5,027,071
5,588.088
1845
6,786,131
1,824,708
86,545,990
42,097,085
1846
6,978,608
1,959,620
5,691,278
****
1847
6,810,586
1,778,244
35,307,815
4,775,691
!!!!
1843
6,868,909
1,799,637
1,885,071
87,545,912
5,076,233
....
....
1349
6,487,639
88,935,460
5,266,779
1350
6,684,657
1,824,457
•28 gals.*
40,744,750
5,511,440
*72 bshls.*
....
....
....
1351
6,554,488
1,776,247
40,887,412
5,030,869
....
«...
....
1862
41,071,636
5,828,985
....
....
M.J.
wine duties: PER GALLON.
Years.
Spanish and
Portuguese.
Sicilian.
French.
Rhenish.
Cape.
Year*.
Spanish and
Portuguese.
Sicilian.
French.
Khenisb.
Cap-;.
B.P.
8. .
S. D.
8. D.
9. D.
8. D.
8. D.
8. D.
6. D.
8. P.
1301
e n
8 8
10 6*
9 OX
....
1S15
• • • •
....
8 0
1308
8 4
• • • •
12 7*
10 11
....
1825
4 io
4 io
1 8
•i’io
2 5
1804
....
• • • •
12 9
11 8
....
1881
5 6
5 6
5 6
5 6
2 9
1805
9 1
••y..
....
....
....
1840
5 9
5 9
5 9
5 9
2 11
* Decennial average annual consumption per head. t Records burnt.
Digitized by
Go gle
154 British Statistics. 517
STIMULANTS, (No. 2.)
SPIRrTS.
TOBACCO.
For Home Consumption.
Year*.
Natiro Proof Spirit* for Home
Foreign and Colonial Spirit*
4|i .
Consumption.
for Home Consumption.
round*
Im orted and
Duty Paid.
Gallon*.
Duty Paid.
Gallon*.
Duty Paid.
Retained.
iSsl t
1801
8,206,957
£728,992
16,904,752
£1,209,337
1802
9,388,086
1,829,753
18,443,820
1,288,416
1808
11,918,S18
2,510,447
17,863,0SI
1,294,509
1804
9,111.796
2,672,254
Decennial
18,087,991
1,374,327
1805
10,239,705
8,121,181
Average.
16,815.265
1,391,187
1806
9.761,991
2,875,342
5,750,000
17,517,221
1,515,697
1807
12,992,621
8,860,289
16,961,083
1,652,060
1808
11,643,166
8,822,186
18,728,535
1,852,269
1800
7,868,816
1, >78, 116
20,002,532
1,776,433
1810
8,409,351
2,503,405
20,329,S39
2,548,575
1*04
1811
11,072,871
* *88
2,969,186
21,876,267
2,253,980
1812
8,953,795
8,402,514
8,970,862
20,940,265
2,377,199
1813
7,044,388
3,022,546
19,593,062
— t —
1814
10,920,851
4,119,370
4,366,970
£3,833,454
15,478,221
2,235,894
1815
11,388,879
4,895,428
4,156,454
3,171,015
17,955,397
2,504,767
1816
9,221,548
8,904,804
8,196,565
2,513,314
17,547,898
2,736,619
1817
9,626 985
8,845,375
3,158,860
2,479,682
13,871,558
2,916,316
1818
10,229,881
4,508,049
8,235,635
2.524,450
18,023,593
2,838,050
1819
8,766,692
8,908,433
8,465,032
2,650,481
16,519,515
2.900,044
1820
8,299,270
4,169,470
A -RQ
3,446,459
2,776,750
15,716,368
8,117,419
•92
1821
8,698,620
4,183,462
8,837,713
2,732,822
15,076,496
8,122,588
1822
8,754,291
4,898,9.84
8,347,341
2,767,539
1 6,352,593
8,253,171
9,102,819
8,408,442
4,540,880
2,942,475
17.185,085
8,425.517
1S24
15,114,8:19
8,925,190
8,809,930
8,096,S9S
16,921,735
8,87?>,544
1825
18,6S7,845
8,884,829
8,505,277
2,874,138
18,761,193
8.253.906
1826
18,280,859
4,125,597
5,855,261
8,851,660
18,402,835
2,766,972
1827
19,634,423
4,17.8,507
4,661,762
2,986,662
18,324.986
2,828,877
1828
23,413,770
4,933,551
4,65 8,898
2,943 535
18,644,456
2,794,826
1829
22,690,269
4,918,780
4,713,758
2,946,953
18,965,666
2,858,974
1830
22,744,271
5,209,599
4,964,560
8,067,023
19,298,501
2,924,265
•79
1831
21,554,290
r U-*
4,318,614
4,8S8,590
8,044,942
19,584,926
2,960,810
1882
20,778,458
4,975,444
5,147,602
8,406, S72
20,818,615
8,081,198
1888
21,874,455
5,2.53,514
4,879,967
8,120,989
20,770,906
8.155.550
1834
23,216,272
5,243,075
4,867,118
8,093,528
8,24 1 ,455
1S85
24,763,188
5,098,110
4,765,706
8,047,659
21,116,759
8,854,459
18*36
26,745,300
5,435,832
4,617,020
2,948,911
22,309,475
8,897,102
1887
24,493,539
5,006,235
4,411,805
2,818,618
22,6*19,398
8,440,845
1833
5,451,431
4,357,296
2,785,444
23,546,598
8,535,5 < 5
1839
25,190,843
ft£6MS0
4,017,508
2,604,337
28,167,711
8,495,536
1840
21,878,916
6,213.291
$i.n\
8,685,441
2,432,475
28,006,231
8,616,061
•85
1841
20,642,333
^ 1 111
5,161,611
8,464,074
2,417,166
22,095,146
8,550,825
1842
18,841,890
5,04631 1
3,201,015
2,233,262
22,238,494
8,595,436
1848
18,864,882
4,908,202
8,161,957
2,190,397
22,749,045
8,711,227
1844
20,608,525
5,171,131
8,242,606
2,246,815
24,856,647
8,952,420
1845
23,122,588
5,749,794
8,599,830
2,420,263
26,161,969
4,245,789
1S46
23,527,317
6,934,857
4,254,237
2,416,435
27,001,909
4,886,168
1847
20,080,968
5,221,995
4,396,582
2,490,841
26,752,051
4,278,934
1848
22,280,784
5,496,429
4,619,787
2,3S5,236
27,267,407
4,865,284
1849
22,961,079
5,729,733
5,259,467
2,803,558
27,635,637
4,425,084
1850
23,862,585
5,932,135
4,791,522
2,517,064
27,784,796
4,430,017
•93
1851
24,543,657
w J-*
6,017,218
4,756,859
2.515,252
28,062,841
4,496,469
1852
25,270,262
6,226,736
4,851,465
2,580,929
29,558,989
4,500,741
tobacco: dutt per pouxp ob.
Year*.
A neri* an
Spanish or
Portuguese.
Year*.
Vnuricnn.
Spanish or
Portuguese.
Year*.
Amsr'< an.
Spanish vr 1
PortugacM.
1901 and 2
1803
1904
1805
1806 to 9
1 7
1 7
1 8)4
1
2 2 >4
4 6
4 6)4
4 10)4
4 11
5 5
1809 to 12
HI 2
1$18 to 15
1915 to 19
1819 to 25
2 2 H
2 5
2 8
8 2
4 0
4 1)4
4 6
4 11)4
5
6 0
1825
ls26 to as
1 SJtS to 42
1942 to 51
8 0
8 0
2 9
8 0
5 0
8 0
8 0
8 0
♦ Gallons, Homo and Foreign Consumed per Head of Pop., Deccn. Average, t Records burnt.
Digitized by Got 'gle
OripirkBl from
UNIVERSITY OF CHICAGO
Digitized by
518 British Statistics. 155
TEXTILE MANUFACTURES.
COTTON.
SILK.
WOOLLEN.
LINEN.
Years*.
Cotton Wool
Imported for
Cotton Man u-
footurcKxp’rt’d.
Raw, Woate.
and
Silk Mann-
Wool,
Foreign and
Wool.
Average
Woollen
Manufac t.
Manufac-
tured Gouda
Home Con-
Value,
Thrown Silk
far turv*
Colonial
Price of
Exported .
Exported.
Value.
9umptiou.
including
Twut A Yam.
Imported.
Exported.
Imported.
South-
down.
Value, excl.
of Yarn.
Ibe.
Official Value.
£
Ibe.
Declor. Value
£
Ibe.
per lb.
8. P.
Offlc. Value.
£
Offlc. Value.
£
1901
M, 208, 488
7,050,809
880,489
7,871,774
1
T
7,821,286
1,009,194
1802
56,615,120
7,624,505
282,445
7,669,793
5,9(4,740
1
7
6,487,268
895,156
1808
62,251,231
7,018,441
154,741
1
8
5,291,441
561,810
1804
61,834,158
8,746,772
Decennial
7,921,595
1
10
••
• •
1305
6S, 873, 163
9,584,465
Average
, .
8,069,798
2
8
• •
• •
1806
67,524,416
10,489,049
Importa-
tion.
. .
6,775,686
1
10
• •
• •
1807
72,748,363
10,809,765
. .
11,487,050
2
0
• •
• .
1808
41,961,115
88,461,177
12,986,096
960,000
. .
2,234,482
1
9
• •
• •
1809
19,445,966
, ,
6,758,954
8
0
• •
• •
1810
128,701,826
18,951,994
..
10,914,137
2
4
..
••
1811
90,309,669
12,018,149
Average
4,782,732
1
5
rVel.Yalne.
5,778,749
1812
61,285,024
16,517,690
of 8 years.
1,180,000
, .
6,983,575
1
8
4,876,497
..
1313
50,966,000
. .
*
1
11
5,024,921
••
1814
58,777,S02
Declared Value.
20,088,182
2,119,974
15,492,311
2
2
..
Ded. Value.
1315
92,595,951
20,620,956
1,475,399
18,640,375
1
11
9,881,426
• •
1316
86,915,021
15,577,892
1,038,884
480,522
7,517,886
1
6
7,942,769
1,452,667
1317
116,767,526
16,012,001
1,686,659
408,528
14,061,772
2
7
7,178,785
1,708,632
1818
162,129,705
16,767,517
1,922,887
499,175
24,749,570
2
6
8,140,767
1,949,815
1819
14,699,912
1,348,553
876,793
16,100,970
1
7
5,994.130
1,891,245
1820
152,829,688
16,516,748
2,027,685
874,114
9,775,605
1
5
5,5S6,188
|1,6S8,S04
1821
137,401.549
16,098,787
2,829,808
878, 93S
16,622,567
1
8
6,462,866
1S22
142,428,127
17,219,724
2,441,568
8S1.455
19,058,080
1
8
6,488,167
2,192,772
1828
186,811,070
16,826,604
2,468,121
850,830
19,866,725
1
3*
5,686^80
2,095,674
1824
141,088,74 8
18,452,987
<011,043
442,582
22.564,4.95
1
2
6,048,051
2,442,440
1825
2(2,646,869
19,859,526
8,604,058
996,677
48,816,966
1
4
6,185,649
2,180,705
1820
162,889,012
14,098 369
2,258,518
169,458
15,999,112
0
10
4.966,879
1,489,641
1827
249,804.396
17,687,165
4,218,153
286,092
29,115,341
0
9
5,245,649
1,895,186
1823
208,987,744
17,244,417
4,547,812
255,755
80,286,059
0
8
5,069,741
2,000,088
1829
909,097,087
17,585,006
2,-02.19 »1
967,192
21,516,619
0
6
4,587,608
1 ,885,881
1880
269,616,640
19,428,664
4,698,517
619,918
82,805,814
0
10
4,728,666
1,926,256
1881
273,249,658
17,257,204
4,812,880
578,260
81,652,029
1
1
5,232,018
2^01,808
1882
269,412,468
17,898,892
4,392,078
529,808
28,142,489
1
0
5,244,278
1,665,478
1S88
293,682,976
IS, 486,400
4,761,688
787,404
89,076,418
1
5
0,294,432
2,289,030
1884
808,602,401
20,518,585
4,522,851
086,419
46,455,282
1
7
5,786,870
2,679,658
1835
888,048,464
22,129,804
5,788,458
972,081
42,604,6*>6
1
6
6,84' i,541
3,208 ,778
1886
868,634,282
24,632,059
6,266,160
917,822
64,239,977
1
8
7,639,854
8,645,097
868,445,085
20,596,128
4,819,576
508,673
49,879,708
1
8
4,685,977
2,606,752
1888
455,036,755
24,147,726
4,887,456
777,280
52,594,355
1
4
6,795,069
3,566,485
1889
852,000,277
24,550,875
4,755,958
068,11s
57,879,928
1
4
6,271,645
4,288,452
1340
628,142,748
24,668,618
4,895,204
792,648
49,710,396
1
8
5,327,858
4,128,964
1341
487,098,861
28,499.478
4,757,171
788,894
52,862,020
1
0
5,748,678
4,820,021
1842
478,976,400
21,679,849
6,044,583
590,789
44,022,141
0
U*
5,185,045
8,872,800
1348
681,808,105
23,447,971
25,805,348
6,871,896
667,952
46,443,022
0
11*
6,790,282
3,702,062
1844
554,196,602
6,085,688
736,455
63,154,699
1
2
3,204,836
4,075,476
1845
Total Import*.
721,979,958
26,119,881
6,828,159
766,405
76,813,865
1
4
7,698,118
4,104,986
1846
467,74S,624
25,600,693
6.785,881
837,557
65.255,462
,,
6,885.002
8,706,212
1847
478.678,049
28,889.590
22,698,924
6,597,268
978414
62,180,307
m .
6,S96,083
3,619,772
1348
712,554,080
6,494,896
585,088
70,864,847
. ,
5,788,8 28
8,292,701
1349
7.55,469, (X 8
26,S90,794
5,61 S, 918
1,000,857
76,768,647
,,
7,342,728
4,108,468
1850
664,696,306
28,252,878
5,427,518
1,265,451
74,826,778
••
8,584,859
4,845,080
1851
757,879,728
80,088,886
4,608,8.36
1,830,898
81,298,773
..
8,877,188
5,067,096
1852
l
928.248.232
29,956,622 1
5,882,551
1,456,711
91,001,953
—
••
8,725,645
5,867^71
1S25 Import Doty on Raw Silk reduced to a nominal Amount; on manufactured Silk to 80 per
cent ad valorem*
1827 Australian Wool imported, 1,574,186 Ibe.
1889 Australian Wool imported, 10,128,774 lbs.
1845 Import Duty on Raw Silk totally repealed; on manufac. Silk reduced to 15 p. c. ad valorem.
Ditto Cotton Wool ditto no recoM therefore distinguishing the Amounts retained
or re-exported.
1850 Australian Wool imported, 85,879,171 lbs. * Records burnt
Go gle
Original from
UNIVERSITY OF CHICAGO
%
156
British Statistics.
519
IMPERIAL PARLIAMENTS
•
DATES OF MEETING, DISSOLUTION, AND DURATION.
SPEAKERS OF
THE HOUSE OF
COMMONS.
GEORGE III.
Began to Reign,
25 October, 1760
1801-2
First Imperial
Parliament
Met 22 January, 1801
Dissolved 29 Jam, 1S02
Duration 1 year 7 days
H. Addingfon.
Sir J. Mitford.
1802-6
Second Imperial
Parliament of
Great Britain
and Ireland
united,
Met 11 August, 1802
Dissolved 24 Oct, 1806
Duration 4# years
Charles Abbott
1806-7
Third Imperial
Parliament
Met 15 December, 1806
Dissolved 20 April, 1807
Duration 135 days
Charles Abbott.
1S07-12
Fourth Imperial
Parliament
Met 22 June, 1807
Dissolved 29 Sept 1812
Duration 5# years
Charles Abbott
1012-18
Fifth Imperial
Parliament
Met 24 November, 1812
Dissolved 10 June, 1818
Duration 5# years
Charles Abbott
C. Manners Sutton,
June 2, 1817.
1818-20
Sixth Imperial
Parliament
Met 4 August, 1818
Dissolved 29 Feb., 1820
Duration 1# years
C. Manners Sutton.
■
1820-26
Seventh Impe-
rial Parliament
Met 28 April. 1820
Dissolved 2 June, 1826
Duration 6 years 1 month
C. Manners Sutton.
GEORGE IV.
Regent, February, 1811
King, 29 Jan., 1820
1826-30
Eighth Imperial
Parliament
Met 14 November, 1926
Dissolved 24 July, 1880
Duration 8X years
C. Manners Sutton.
WILLIAM IY.
Began to Reign,
26 June, 1880
1S80-31
Ninth Imperial
Parliament
Met 26 October, 1880
Dissolved 22 April, 1831
Duration 6 months
C. Manners Sutton.
1881-32
Tenth Imperial
Parliament
Met 14 June, 1831
Dissolved 8 Dec., 1882
Duration 1 year 5 months
C. Manners Sutton.
1833-84
Eleventh Impe-
rial Parliament
(1st Reformed)
Met 29 January, 1883
Dissolved 30 Dec., 1833
Duration 11 months
C. Manners Sutton.
1884-87
Twelfth Impe-
rial Parliament
(2d Reformed)
Met 19 February, 1834
Dissolved 17 July, 1837
Duration 8 years 5 mo.
J. Abercromby.
VICTORIA.
Began to Reign,
29 June, 1637
1837-41
Thirteenth Impe-
rial Parliament
(3d Reformed)
Met 15 November, 1837
Dissolved 23 June, 1S41
Duration 8 years 7 mo.
J. Abercromby.
C. Shaw Lcfevre,
May 27, 1839.
1841-47
;
Fourteenth Impe-
rial Parliament
(4th Reformed)
Met 19 August 1841
Dissolved 28 July, 1847
Duration 5 years 11 mo.
C. Shaw Lefcvro.
1847-52
Fifteenth Impe- j Met 13 November, 1847
rial Parliament Dissolved 1 July, 1S52
(5th Reformed)^
Duration 4 years 7 rao.
C. Shaw Lcfevre.
1S52
L=
Sixteenth Impe- | Met 11 November, 1852
rial Parliament
(6th Reformed)
• • • •
G. Shaw Lcfevre.
Digitized by Gougle
Original from
UNIVERSITY OF CHICAGO
Digitized by
520
Ministries of the Crown — their Chief Acts.
157
Yr*.
MINISTRIES OF THE CROWN.
CHIEF ACTS OF THE GOVERNMENT.
1801
180*2
l6'»8
18M
1605
1806
1807
1608
18:
islo
1811
1812
1818
1614
| 1815
1S16
1617
1618
1M9
1620
1621
1822
1623
1824
1625
1626
1827
1S29
1629
1830
1831
1832
1633
1884
1885
18-36
1837
1838
1639
1840
1641
1642
1843
1644
1845
1846
1847
1648
1849
1650
1651
1852
1658
William Pitt’s First Premiership
The Addington Ministry •
March, 1801, to May, 1S04
Wm. Plft’s Second Premiership
12 May, 1804, to Feb., 160&
The Grenville Ministry
Feb., 1606, to March, 1807.
The Portland Ministry .
March, 1807, to Dec., 1809.
The Percival Ministry .
Dec., 18o9, to Jane, 1811
1 802. Pesoe of Amiens signed with France.
1803. Property Tax reimpoeed.
1S07. Abolition of the Blare Trade.
The Liverpool Ministry
Jane, 1612, to April, 1827.
1815. Corn Law passed. Property Tar repealed.
1817. Habeas Corpus Act susp. Savings' Bank Act
1819. The Six Acta.
1619. Currency Bill.
1822. Irish Insurrection Act.
Canning’s Premiership
April to August, 1827.
The Goderich Ministry
August to December, 1827.
The Wellington Ministry
January, 1628, to Nov. 1880.
Tho Grey Ministry
November, 1830, to July, 1884,
1928. Test and Corporation Act repealed.
1829. Catholic Emancip. Act Corn Law Amend. Act
First Melbourne Ministry •
July to December, 1684.
First Peel Ministry
Dec^ 1834, to April, 1885.
[The Second Melbourne Ministry
1 April, 1685, to Sept, 1841.
Sir R. Peel’s Second Premiership
September, 1841, to July, 1846.
1982. Parliamentary Reform Act 7 June.
1883. Abolition of Slavery. 28 August and of Last
India Company’s Trade Monopoly.
1884. Poor Law Amendment Act 14 Aug. Central
Criminal Court established.
The Russell Min!
July, 1846, to F<
*, 1851.
The Derby Ministry
February to December, 1852.
The Aberdeen Ministry
1985. Municipal Reform Act 9 September.
1S86. Registration Act Births, Deaths, and Marriages,
17 Aug. Commutation of Tithes Act 20 Aug.
1887. Melioration of Criminal Code. Amendment of
Law of Wills.
1840. Penny Postage introduced. 10 per cent added to
Assessed Taxes, and 5 p. cent to Customs, Ac,
1842. Income Tax imposed, 22 June. Com Law
Amendment reduced Sliding Scale.
1843. Reform of the Tariff.
1845. Bank Restriction Act. Further Reform of Tariff
1846. Repeal of Cora Laws, Reduction of Customs'
Duties, 26 June. County Courts’ Act 26 Aug.
1847. Reduction of Sugar Duties, 4 Sept. Health of
Towns’ Bill, 81 Aug.
1849. Consolidation of Boards of Excise, Stamps, and
Taxes. N a vi gallon Laws repealed, 26 J une.
1850. Mercantile Marine Act 14 August
1858. Boap and Advertisement Doties abolished. In-
come Tax Act modified. Tea Duties reduced.
East India Charter renewed. Successors to
Real Property made subject to Legacy Duty.
Gck igle
Original from
UNIVERSITY OF CHICAGO
Digitized by
158
Principal Ministers of the Crown.
521
S
CHANCELLOR
HOME
FOREIGN
COLONIAL
LORD HIGH
ATTORNEY
J*
OP TH8
EXCHEQUER.
SECRETARY.
SECRETARY.
SECRETARY.
CHANCELLOR.
GENERAL.
1S01
Wm. Pitt
9 9
#
# ,
Earl Roeslyn
Sir J. Mltford
1802
Addington
Lord Pelham
LHawkesbury
Ld. Hobart
Earl of Eldon
Sir E. Law
1808
S. Perceval
1804
1806
Wm Pitt
* j
Ld. Harrowby
Ld. Mulgrave
Ld. Camden
• •
L. Castlereagh
1806
Ld. H. Petty
Earl Spencer
O. J. Fox
WJL Windham
LordErakine
Sir W. Pigott
1807
8, Perceval
LHawkesbury
Ld. Howick
L. Castlereagh
Earl of Eldon
Sir W. Grant
1808
G. Canning
tiU April, 1827.
1809
1810
1811
• •
R. Ryder
Ms. Wellesley
B.afI4vetpool
• •
Sir Y. Gibba
1 1812
N. Yansittart
Ld. Sldmonth
L. Castlereagh
Earl Bathurst
, ,
Sir T. Plainer
1818
! 1814
• •
. .
, ,
Sir W. G arrow
! 1816
| 1817
• •
# .
9 9
m
# 9
SlrS. Shepherd
. ISIS
1 1819
1820
. ,
9 9
© 9
• &
Sir R. Gifford
1821
1822
, .
Robert Peel
G. Canning
1823
F. J. Robinson
, .
, .
,
Sir J. S. Copley
| 1824
: 1S26
. 1826
r G. Canning
S. Bourne
Ld.Dndley and
Ld. Goderich
Ld. Lyndhurst
!
£
1
g
no
1827
\
Ward
i J. C. Herries
M. Lan&doTgne
• •
W. Huakisson
• •
Sir J. Scarlett
; is2s
H. Gonlbonrn
SirR. Peel
E. of Aberdeen
Sir G. Murray
SiKXWetheraQ
J 1829
.
.
• .
.
Sir J. Scarlett
1 1830
1831
1832
Vise. Altoorp
Y. Melbonm
Y. Palmerston
Yisc. Goderich
Ld. Brougham
SlrT. Denman
Sir W. Homo
1SS8
i
•
•
•
Lord Stanley
! !
Sir J. Campbell
i
I
( • •
Y. Dunoannon
•
T. Spring Rice
1834
( Sir R. Peel
H. Gonlbonrn
D. Wellington
E.of Aberdeen
Ld. Lyndhurst
Sir F. Pollock
1835
T. S. Rice
Ld. J. Russell
Y. Palmerston
Lord Glenelg
In Commission
Sir J. Campbell
1886
•
• •
•
.
L. Cottenham
1887
1888
1889
1840
F. T. Baring
M. Normanby
•
Ld. J. Russell
1841
H. Gonlbonrn
Sir J. Graham
E. of Aberdeen
Lord Stanley
Ld. Lyndhurst
Sir T. Wilde
1842
Sir F. Pollock
1848
1844
t
# §
BirW.Fdnett
1846
.
.
.
W.E.Gladstone
.
Sir F.Thealger
1846
Sir C. Wood
Sir G. Grey
Y. Palmerston
Earl Gray
L Cottenham
Sir J. Jervis
1847
1848
1849
1850
Lord Truro
Sir J. RemHly
1861
. .
.
Earl Granville
•
.
Sir J.Cockbnm
1852
B. Disraeli
IL S. Walpolo
E. Malmesbury
Sir J. Packing-
L St Leonards
Sir F.Tbeslgcr
ton.
1.853
W.E.Gladstone
Y. Palmerston
Ld. J. Russell
D. Newcastle
Ld. Cranworth Sir J.Cockbnm 1
E.of Clarendon
_ 1
Gck igle
Original from
UNIVERSITY OF CHICAGO
Francis L, Emperor
Navoleon, First Consul
Battle of A lexandiia
Peace of Amiens
War renewed, 14 May
Frederick
Hi., King
William
Paul , Czar. Alex-
ander, Czar, Mar.
200,000 1. Subsidy pd.
63,000/. Subsidy
All. ag. France, 8 Apr.
Alliance against France
500,000/. Subsidy
Battle of Trafalgar
Berlin decrees, 21 Nov.
Milan decrees, 17 Dec.
Battlo of Vlmlera.
War docl.,7 Apr. Allia.
ag’st France, Oct. 6.
180,000/. Subsidy
New All. do., 6 Oct.
614,818*. Subsidy.
War decL, 1 NoV.
Hostile declaration, 18
Feb.
Walcheren Expedition,
Battlo of Corunna
Battle of Talavcra,
Battlo of Busaco
Battlo of Salamanca
Battle of Vittoria
Alliance ag'st France
857,500/. Subsidy
2,169,9S2/. Subsidy
Alliance against France
Subsidy
1,064,882/. Subsidy
Alliance ag’st Franco
Bat. of Toulouse Louis
XVIII., King Peace
of Paris, 200,000/. pd
WAr. Bat. of WaterUx
2d Peace Paris, 20 Nov.
Confirmatory Treaty,
Trca. of Vlcnna,28 Mar.
Trca. of Vienna, 28 Mar.
Tr. of Vienna, 28 Mar.
Confirmatory Treaty,
10 June
Treaty of Paris, 10 June
Trea. of Paris,10 June
10 June
Evacuation of French
Territory
Charles X., King, 16
Sept.
Conv. agreeing to accept
2.500,000/. in lieu of our
claim of 80,000,000/.
Navigation
Nicholas. L, Ciar, 1
Boundary Conven-
tion N. W. America
Treaty of Commerce
and Navigation
Navigation
Reciprocity Treaty of
Treaty for Greek In-
dependence
Louis Philippe , King
Treaty for Greek In*
dependence
Navigation
Ferdinand I., Emperor
Treaty of Commerce
and Naviga ion
Treaty of Intervention
between Turkey and
Frederick Wm. IV.,
King. Treaty of In-
tervention between
Turkey and Egypt
Treaty of Interven-
tion between Tor-
key and Egypt
Trea. Com. A Navlg.
Conv. ag’st Slave Trade
Francis Joseph^ Em*
peror, 2 Doc.
Louis Na‘
ident, 2<
| Louis Napoleon, Emp.
Original from
UNIVERSITY OF CHICAGO
Digitized by
522
British Statistics. 159
FOREIGN
POTENTATES, AND BRITISH RELATIONS
WITH FOREIGN POWERS.
Yrt.
AUSTRIA.
FRANCK. PRUSSIA. RUSSIA.
Digitized by
160
British Statistics.
523
FOREIGN POTENTATES, &c.,— continue^
Yu.
1801
1802
1808
1804
1806
1806
1807
Charles 1Y King
Battle of Trafalgar
1S09
1810
1811
1S12
1818
1814
18151
1816
1817
18181
1819
1820
1821
1822
1828
1824
1825
1826
1627
182S
King. Alliance
with the Cortes
.,497,S78/. Subsidy
529,0-89/. Subsidy
402,8752. Subsidy
220,690/. Subsidy
,000,000/. Subs]
,000,000/. Subsidy
t50, 000/. Subsidy
Ferdinand V 1 1
. . [Kin
iTr.of Paris,! 6 Junel
SPAIN.
1829
1680|
1881
1882!
1888
1884
1885
1S86
1887
1888
1889
1840
1841
1*42
1 1848
1844
lb45
1S46
1847
1848
1849
1850
1851
1852
chants, 26 June
Maria
Inter, in Basque VT ar
SWEDEN.
rURKEY. —
Gustavus IV., &
elim III., De
King
Sultan
War on account of
• .
Armed Neutrals
Peace signed,l Aug.
. . v
20,119/. Subsidy
. . 88
A Ilian, offen. & def.
. . 35
. 95
• • •
. . . 1
Mustapha E
1
IV., Siilt'n
Treaty of Peaco
• • 04
1,100,000/. Subsidy
I
r
5300,000/. Subsidy
Charles XIII., K.
Kng Com. interd.
War decla., 9 Nov.
r Peace sign., 6 July
276,292/. Subsidy
v Couv.Peterwarden.
• •
1,820,000/. Subs.
. 800,000/. Subsidy
. . T
B
. . w
.
. . *
Chas . John XI Y.,
[King
• • •
• • X
*
• • *
. . I
Treaty of Navigat
• •
Battle of
ns
Navorino
• • •
•
• • •
• •
• • •
• • J
•
• • •
a
• •
lu.
ar
• • •
Tr.of Com.
Abdul
• • •
Medjidfll
Oscar II., King
• • •
• •
• • •
• •
• •
• • •
• •
• • •
• •
MINOR EUROPEAN STATES.
NORTHERN.
SOUTHERN.
Subsidy to
vjmd Hesse
urk. Copen-
hagen bombarded
[Treaty with Denmark
William Fred.. K
of Netherlands
Tiliiam , King
Wirtemberg
690.114/. Subsidy
85,451/. Subsidy
Sicilian Alliance |
500,000/. Subsidy
900,000/. Sub. Sicily |
and Portugal.
1,707,668/. do.
2,146,728 /. do.
2,628,277/. do.
2,444,068/. do.
2,48$,585Z. do., Ac.
and Germ. States
Antwerp bombarded
Ernest , K. Hanover
Christian VIII., K.
of Denmark
Frederick VTm.II,
K. ol Netherlands
Chas. Felix , K. Sard.
Leo XII., Pope Rome
| Francis L, K. Naples
Louis I., K. Bavaria
Portuguese interven.
Pedro and Miguel
| Maria II., Q Portug.
Grecian interven.
Pius VIII., P.Romc
Ferdin. K. Naples
Chas. A/6cr/,K.Sard. ,
Greff. XV L, P. Home
Otho , King of Greece
Naples- Disputes on
Sulphur Trade
rius IX. Pope Rome
Fred.VU.JZ. Denmk Maximil . II , K.Bav.
K.Nctherl’ds Victor Bm ll K.Sar.|
. . [Blockade of Greece
Geo. V., K. Hanover
Gck igle
Original fro-m
UNIVERSITY OF CHICAGO
Digitized by
524
Britith StatUtia.
161
FOREIGN POTENTATES, be.,— continued.
Y n.
1S01
1802
1803
1804
1805
1806
1807
1806
1809
1810
1811
1812
1818
1814
1815
1816
1817
1818
1819
1820
1821
1822
1823
1824
1825
1826
1827
182*
1829
1880
1831
1882
1888
1884
1S85
1886
1887
1888
1839
1840
1841
1842
1843
1844
1845
1S46
ASIA.
War with Mahrmttas
Assaye and Argaum
War with Holkar
Treaty with Holkar
Java oonqnered from
the Dutch
War with Nepanl
Embassy to China
Treaty with Nepanl
Plndanie War
Slave Trade abolish'd!
• •
Mauritius taken
1,9627. Sub. to MOT*.
14,4192. Sub. to Mor.
Algiers bombarded
Submiss, of Plndarries]
Burmese War declar.
Peace with Burmese,
who pay 1,000,0007.
1847
1848
1849
1850
1851
18521
1858
Intervention in Cabal
Opium disputes with
China
Intervention in Syria.
Chinese War
War in Afghanistan
Reverses and Victories!
In Cabul
Peace with China,
Conquest of Scinde
Sikh War in Pui\janb
Treaty with Sikhs at
Lahore
Sikh War. RsmnuggarJ
Siege of Mooltan
Battles ofChillianwal-
lah and Goojerst
AFRICA.
Battle of Alexandria
Defeated by Ashan
tees
Ashanteee overcome!
Kaffir War
Egypt blockaded !
Kaffir War
UNITED STATES OF
NORTH AMERICA.
T. Jqferson, Preeidentj
British Manufactures
prohibited. Treaty
of Commerce
J. Madison, Preeident]
• • •
War declared, 18 June
Peace of Ghent, 24 Dec.|
• • •
James Monroe , Pres.
Kaffir War
J. Q. Adams, Pres.
Indemnity Convention
for W«r of 1819.
Andes. Jackson , PresJ
M. Van Suren, Pres.
Canadian Insurrection
Gen. Morrison, Pres.]
John Tyler , Pres.
Bound Dispute settled|
by Aahburnham Trca.
J, K. Polk, President
Oregon Bound Disp.
Each. Taylor, Pres.
MUFd FiUmore, Pres.
Gen. Pierce, Pres.
SOUTH AMERICA.
Monte Video
Treaty of Alliance and
Comm, with Bimfl
Beciproc. Treaty with
Columb. and La Plata
Independence of South
American Republics
acknowledged
Beciproc. Treaty with
Brazil for Slave Trade
abolition
Gck igle
Original from
UNIVERSITY OF CHICAGO
British Statistics.
Digitized by
162
525
NATIONAL DEBT OF GREAT BRITAIN.
FUNDED NATIONAL DEBT,
in January Melt Year.
DECENNIAL AVERAGES OF NATIONAL
DEBT.
Yam,
Principal.
Ann’l Charge.
Unfunded Debt
in Exchequer
Bill* in Jan.
Mch Ymt.
Annual
Charge of
Unfunded
Debt.
Principal hi
£ starling.
Per Head
of Popnln.
In Quarter* of Wheat at
the Ix*cennial Average.
Quarter*.
Prioe per
QnarUr.
£
£
£
£
£ S. D.
S. D.
1801
447,048,489
20,144,586
17,590,800
1,612,816
1802
522,231,786
22,544,564
21,179,170
1,121,890
1908
529,260,642
1804
54)5,808,318
17,976^483
19,067,600
801,787
1805
578,529,982
19,193,564
25,258,500
624,859
1806
593,694,2S7
19,970,218
27,180,400
1,478,316
1807
601,733,078
20,702,844
27,207,500
1,810,687
1809
604,297,474
20,999,010
81,942,900
1,574,861
1809
614,789,091
20,9S2,421
40,098,200
1,610,568
1810
624,301,896
21,218,828
89,164^100
1,662,944
561,567,449
8T 710
119,482,486
81 5
1811
685,588,443
21,778,227
88,286,800
1,815,105
1812
661,409.959
22,290,086
41,491,800
1,556,785
1818
740,023,685
28.124,618
45,406.400
1,835,869
1814
762,857,236
24,397,267
41,516,800
2,081,529
1815
816,811,940
29,588,696
57,941,700
2,566,707
1816
796,200,196
80,458,207
41,441,900
8,014,003
1817
776,742,408
29,842,014
46,650,800
2,196,177
1813
796,867,314
29.310,454
56,729,400
1,710,119
1819
794,990.480
29,934,294
48,655,400
2,148,476
1820
801,565,310
29,789,658
86,900,200
687,027
757,254,182
33 6 9
178,175,101
84 11
1821
795.812,767
80,149,920
80,965.900
1,769,219
1822
796,530,144
29,985,216
81,566,550
2,159,602
1828
791,701,612
28,596,866
86,281,150
1,885,424
1824
781,123,222
29,079,570
84,741,750
1,131,121
1825
778,129,265
28.872,206
32,398,450
1,067,284
1826
783,801,739
: 28,267,272
27,994,200
629,498
1827
776,476,890
| 28,556,908
24,565,850
681,207
1828
772,822,540
29,899,869
27.516,850
873,247
1829
771,251,932
29,245,584
27,657,000
949,480
-
1830
757,486,997
29,285,900
25,495,500
878,494
790,418,611
84 10 7
268,188,405
68 9
1881
754,100,549
27,674,754
27,271,650
798,081
1832
751,659,333
27,658,299
27,188,850
649,888
1888
743,675,229
27,703,483
27,273,000
659,165
1884
748,695,839
27,782,116
27,906.900
776,769
1835
750.69*2,299
27,783,455
28,521,550
691,294
1886
759,549,966
28,403,805
29,007,950
740,211
1887
761,422,570
29,583,192
28,155,150
726,824
1889
762,275,198
28,524,739
24,044,550
936,687
1889
761,847,690
28,585,503
24,026,050
720,928
1940
766,548,680
28,748,794
20,951,950
856,701
I
*
29 8 8
8
of
E>
66 11
1841
766,871,725
28,556,824
21,626,850
642,997
1842
772,530,758
28,701,458
18,293,000
896,464
1848
778,063,840
28,609.708
18,132,100
725,009
1844
772,169 092
28,516.882
18,407,300
581.844
1845
769,193,6*44
27,839,244
18,404,500
426,606
1346
766,672,922
27,702,880
18,880,200
421,482
1847
764,608,284
27,603,224
18,810,700
436,293
1848
772,401,851
27,7.53,668
17,974,500
608.328
1849
774,022,688
27,699,740
17,794,700
606,025
1950
778,168,817
27,686,458
17,758,700
408,706
770,420,747
28 6 5
298,985,843
69 e
1851
765,126,582
27,614,418
17,742,800
402,718
1852
761,622,704
27,471,849
17,742.500
408,652
1817. English and Irish Exchequers consolidated.
1822. £149,627.825, 5 per cent Slock, converted
Into £157,109.218 4 per cent Stock. An-
nual saving of Interest, £1,197,422.
1821 £70,105,408, 4 per cent Stock, reduced to
same amount of 8X per cent Stock. An-
nual saving of interest, £850,897.
1880. £151,021,728, 4 per cent Stock, converted
to £150,844,061, 8# per cent, and £474^74,
6 per cent Stock. Annual aavlng of Inter-
est, £755,110. a ^ a
1881 £10,621,911, 4 per cent Stock, reduced to
same amount of 8X per cen* Stook. An-
nual saving of Interest, £58,116.
1886. West-lndia compensation of £20,000^000 far
Abolition of Slavery.
1847. Irish Famine, £1,525,000 advanced for Its
relief by Government
Gck igle
Original from
UNIVERSITY OF CHICAGO
Digitized by
526
British Statistics .
163
BRITISH NATIONAL INCOME AND EXPENDITURE.
Year*.
1801
1802
1808
1804
1805
1806
1807
1808
1809
1810
1811
, 1812
I 1818
1814
1815
1616
1817
181S
1819
1820
1821
1822
1828
1824
1825
1826
1827
182S
1829
1880
1881
1882
1888
1884
1835
1886
1887
1888
1889
1840
1841
1842
1848
1844
1845
1846
1847
1848
1849
1850
1851
1852
INCOME.
Net Produce
of Taxation
paid into the
Exchequer.
£34,118,146
86,868,149
88,609,892
46,176,492
50,897,706
55,796,086
59,889,821
62.998.191
68,719,400
67,H4,M2
65.178.545
65,087,850
68.748.368
71,184,504
72,210,512
62.264.546
52,055,918
58,747,795
52,648,847
54,282,959
55.584.192
55,668,650
57,662,999
59,862,408
57,278,869
54,894,989
54,982,518
55,187,142
50,786,682
50,056,616
46,424,440
46,9s8J55
46,271,826
46,425,268
45.898.369
45,591,180
46,12S,4S9
47,286,867
47,975,753
47,195,091
46,798,451
45,858,121
61,062,922
68,447,285
53,060,853
52,950,202
51,546,265
42,422,889
52,810,768
48,610,249
48,042,914
48,803,283
Total Net
Income from
Taxation,
Loans, and
extraordinary
sources.
£61,418,417
51.006.403
47,362,153
60.747.255
67,747,507
71,881,480
69.772.255
75,098,285
76.017,779
74,986,986
65,593,842*!
84,817,498
80,828,547
108,897,645
106,698,106
92,452,819
62,778,605
52,055,913
58,747,795
52,648,847
54,282,958
75,620,823*
55,884,192
56,668,650
67,672,999
59.862.403
57.278.869
54.894.989
54,932,518
55,187,142
60,788,682
50,056,616
65,166,506*!
46,424.440
47.822.744
46,271,326
46,425,268
45.898.869
48,591,180
62,895,297
52,884,168
52.949.744
48,975,735
48,808,827*
58,898,588
58.868.989
52,648,742
59,984,608
59,427,120
59,874,807
64,318,850
69,560,129
58,048,080
62,810,880
67.392,524*
52,233,006
58,210,071
Interest of
public Debt-
Funded and
Unfunded.
£19,945,624
19.855.588
20.699.864
20,726,772
22,141,426
28,000,006
23,862,685
28,158,982
24,218,867
24,246,946
24,977,915
25,546,508
28,080,289
80.051.865
31,576,074
82.988.751
81,486,245
80,880,244
80,807,249
81.157.846
81,955,804
29,921,498
29,215,905
29,066,850
28.060.287
28,076,957
28.289.847
28.095.506
29,156,612
29,118,S58
28,841,416
28.828.751
28.622.507
28,504,096
28,614,610
29,248,598
29,489,671
29.260.288
29,454,062
29,831,718
29,450,148
29,428,119
29,269,159
80,495,454
28,258,872
28,077,987
28,141,501
28,568,617
28,828,961
28,091,590
2S,017,127
27.984.588
War
Expenditure,
Army, Nary,
and Ordnance.
EXPENDITURE.
Civil
£87,216,268
25,016,408
23,590,767
88,895,097
89,389,450
40,6.88,986
40,529,841
44.750.440
48,210,956
47,868,788
62,859,029
56,615,577
71,686,707
54,644,178
27,298,064
17,608,777
15,554,890
16,687,229
16.424.905
16,429,852
18.749.487
14,329,471
15,142,152
14,995,887
16,707,601
16,205,812
15,198,9S5
15,180,861
13,914,677
14,879,096
18,805,026
12,265,108
12,066,057
11.657.487
12,112,968
15,229,927
16,018,289
17,493,545
17,846,292
18.167.440
19,118,786
19,480,458
17,458,176
18,890,816
IS, 418,226
18,502,147
18,746,695
15,888,587
15,892,944
14,878,858
16.505.905
Miscellane**!*
Expenditure,
including
charge* of
collection.
£4,167,287
4,677,211
4,707,609
4,754,409
5,683,442
5,252,219
8,720,516
6,283,665
4,141,199
4,749,866
5,898,279
6,595,289
6,597,058
5,094,188
6,059,983
4,987.956
6,286,216
6,918,444
7.962.081
6,874,496
10,435,858
11,408,886
10,662,085
11,782,657
11,S89,825
11,490,154
11.891.160
10,849,750
9,886,989
8.985.082
8,990,958
8, 779, Ml
8,878,714
8,652,968
8,615,641
6,599,615
6,447,221
6,492,680
6,716,043
6,924,770
6,762,1*22
7,150,016
■
9,091,812
12,586,766
11,684), 524
11.828.161
11,444,001
11,112,009
10,788,923
Total,
exclusive of
LMML ,
including
charges of
collection.
£61,829,179
49,549,207
48,998,280
59,876,203
67.169.818
68,941,211
67,618,042
78,143,087
76,566,018
76,365,548
88,735,228
88,757,824
105,948,727
92,280^80
66,169,771
56,281,288
58,848,578
56,406,509
54,457,247
58,821,014
55*079,816
64.197.411
55,941,159
54,895,949
56,274,712
66.886.819
64,144,241
54.228.412
52,013,617
51,711,465
50,908,828
49,166,814
49,223,116
48,787,638
50,819,805
51,819,113
51,720,748
58,440,287
58,444,058
54,465,818
66,471,675
55,501,739
M, 108,646
53,878,062
55,688,025
69.230.413
68,990,786
M, 4SO, 659
54,938,585
54,002,994
M, 929, 367
Average
of
Expenditure.
£64,956,104
76,121,206
55,198,265
61,054,087
55,868,881
i
>*
Civil Gor»t,
Civ. List, and
Privy Purse.
Jusllte.
Diplo-
macy.
Public
Works.
Crown
Miscel-
laneous.
1S43
1849
1850
1851
£1,594,944
1,686,197
1,602,105
£2,327,641
2,405,464
2,899,185
+2,335,956
£326,852
820,912
329,692
£706,248
600,478
601,864
£152,084
128,376
129,985
£2,845,026
8,150,44$!
2,214,876:
* Decennial average of Income from all sources. t Namely,
Courts, £716,469; Police and Prosecutions, £S40,087; Correction,
£779,450.
SUBSIDIES AND LOANS TO
FOREIGN POWERS.
1801
1802
1808
|1804
1S05
1306
1807
1808
[£690,114
286,451
212,2751
108,428,
85,341
595, 847 i
869,062]
.12,897,8781
1S09
1310
,1811
1812
1813
1814
1815
1616
£2.579,089
2,110,548
2,867,418
8,908,521
6,786,022
8,442,678
11,085,248
Go )gle
164
British Statistics.
527
NATIONAL TAXATION.
Yn.
Nrtl Prod.
and EzeiM.
Nett Prod,
of Stain[«
And Taxes.
Nett Prod,
of Paetag©
of Letters.
Sundries A
Charges of
Collection.
Total Taxa-
tion raid by
the People.
PRODUCE OF ITEMS OF TAXATION,
12 months, ending 5th January, 1B52.
£> £>
1901|19,830,S67 11,906,967
1802 23,624,708 12,267,484
1808 27,587,958 9,051,728
18048 1,642, 842 12,571,688
1805188,908,947 14,885,972
180685,947,585 16,422,720
1 807 86,504,655 21,070,648
1808»7, 064,168 28,1 14,812
1809 36,008, 865 25,717,811
1810 88,800,069 26,805,800
1 81 1 137,468,568 25,528,685
1 8 12 186,285, 388 25,493,89 1
1818 88,281,158 27,413,514
1 SI 4 40,560,412 28,010,779
1815 11,759^40)27, 991 «500
1816184,282,820 25,552,514
1817 U2,7 4 1 ,687 J 1 6,863,91 8
181836, 830, 802' 15,286,841
1 S 1 9 85,766,801 j 1 4.52 1 ,958
1820 '87, 767, 112 14,365,257
1821)88,765,814 14,828,288
1822 87,947,025 18,851,890
1 328 86, 84 1 ,590 j 1 8,008,887
1824 88,095,781 12,166,112
1825(87,546,01 1 12,488,885
1826 86,452,781 1 1 1 ,405,894
1827 86,888,112 11,579,499
1S2S 87,995,094 1 1,957,253
1829 36,751,841 11,997,871
1880! 86,1S4J07|12,171, 526
188182,819,296 11,812,17*2
188? 88,406,029 11,895,810
188882,752,658 11,S20,867
1884 88,294)552 1 1,567,840
188583,015,273 10,676,746
1 - 2.^5
183788,958,420 10,547,693
1S88 84,478,217 10,605,400
1889 81,794.465 10,236,268
1S40 35,586,468 11,115,069
1841185,577,680 11,618,129
184288,542,791 18,887,599
1848 88,911,246 16,887,884
1844 85,812,372 16,565,373
184588,782,489 16,961,094
1346 34,557,219 17,172,980
1847 82,903,108 17,812,904
1843 85,153,137 16,805,841
1849 84,692,234 16,579,557
1S50 84,753,154 1C,301,54S|
1 85 1 37,507,495 15,759,363
1852 87, 92*, 755 16,188,695)
£
648,976
972.547
915,870
952,-94
1,127,451
1,151,876
1,150,717
1,1443,600
1,213,050
1,883,583
1.832.588
1,400,385
1.494.615
1,582,158
i ,62 1 ,8*0
1.499.000
1 895,281
1,385,154
1.528.588
1,448,m77
1.388.588
1,428,231
1,462,692
1.520.615
1,595,461
1.570.000
1.468.000
1 .511-, OH'!
l,4Si,00;i
1,466,012
1,580,206
1.461.000
1.513.800
1,490,400
1.540.800
1,622,700
1,658,479
1,676,994
1,659,087
600,789
561,249
600, 541
610.217
719,957
775,986
889.548
984,496
740,429
S40,737
808,898
1,007,438
965,422
£
8,888,266
5,885,480
5,474,012
7,122,01 S 5
4,994,667 “
6,04-8,771
6,640,490
7,374,867
9,488,965
8,880,890
18,318,889
10,581,768
9,607,884
8,819,798
18,782,927
24^506,189
24,068,880
10,016,685
18,347,748
9,095, 640 1
10,295,875 (>4,773,51 6
12,706,909 65,982,555
£
40,415,096
42,6^1,213
42,979,068
1,359,442
154,502.037
59,670,402
,65,366,510
[68,716,947
72,878,191
•174,920,297
73.760,932
76,797,171
79,923,142
85,155,542
85,888,028
75,069,166
68,018,482
65,164,540
62,676,086
8,184,9SS
8,047, 1S8
6,364,748
58,498,157
59,829,691
57,945,105
6,200,959j55,628,793
6,184,534
5,980,888
5,704,241
5,110,0451
55,510,145
57,391,285
55,984,968
54,932,290
8,488,084 M,6U,708
4,040,249 '50,808,087
4,592,577i
4,479,979|
50,679,897
50,881,271
4,576,260 50,408,579
4,391,962
4,499,766
4,4>14,9i*9
8,642,970
'52,949,897
50,66.3,358
51,375,520
147,882,790
4,825,753 51,978,079
4,421,532 52,179,590
3,650, 794|49, 631, 825
4,485,901
4,905,080]
4,741,618
55,425,148
57,908,282
56,261,082
4,859,586 57,429,838
4,939,81*4 56, 1 44,8 1 2
4,7 99,981 56,989,489
4,968,784 57,006,412
4,504,044 56,458,544
4,496,384 '59, 860,700
4,486|-S55 59.464,727
£
( British 6,082,324 )
Spirits Foreign 1,427,832 V
( Colonial 1,079,920 )
Wine
Malt . . . 5,030,869 )
Hops . . . 426,241 f
Sugar and Molasses .
Tea
Coffee
Tobacco and Snuff
Butter . . . 166,780 )
Cheese . . . 88,242 f
Currants and Eaisins .
Corn
Silk
Paper
Soap
Candles and Tallow .
Glass
Timber ....
Excise Licences .
Post Horse Duties
llackney Carriages
Stage
Railways ....
Miscellaneous Customs and
Excise ....
£
8,557,576
1,776,247
5,456,610
4,159,810
5,900,624
444,670
4,466,469
250,022
. 521,765
. 504,921
. 218,710
. 984,567
1,043,027
. 67,840
. 10,973
. 521,872
1,160,570
. 145,482
. 89,080
. 217,052
. 287,832
. 665,941
Total Customs and Excise . 87,597,495
Fire Insurance . . . 2,184,589
Newspaper and Advertisements 396,514
Receipt Stamps . . . 174,744
Probate and Legacy Duty . 2,286,258
Charges of Collecting Revenue 2,708,426
DECENNIAL AVERAGE OF TAXATION.
1801-10
Total.
£
57,278,820
Per Head of
Population.
£ a. d.
5 12 2
1811-20
74,556,411
8
15 6
1821-30
58,637,654
2
12 9
1831-40
61,171,619
2
0 6
1841-50
55,542,842
2
0 11
1837 Coat of Post Office Management £687,814
1639 14 44 756,999
1842 “ 44 977,504
1944 44 44 995,111
1647 44 44 1,196,520
1850 “ 44 1,460,786
Gross Customs Revenue . . 28,802,598
Charges of Collection, &c. . . 1,288,804
Leaving Nett Customs Revenue 22,019,784
Gross Excise Rove nue .16
Charges of Collection, Ac., £4 16 8M per
£100 In GL Britain ; £10 16 10 in Ireland.
1851 Charge of Collection of Revenue £2,708,426
1352 Cost «f Post Office Management 1,468,884
Post Office, number of chargeable let
ters distributed in United Kingdom
in 1889 preceding first general re-
duction of Postage, 6th Dec, 1889,
Franked Letters ....
75,907,627
6,563,024
82,470,551
Number of Letters distrib. In 1852, 379,501,490
Digitized by Goi gle
Original from
UNIVERSITY OF CHICAGO
528 British Statistics . 165
NATIONAL TAXATION — continued.
Years
ESTIMATED ANNUAL PRODUCE OF TAXES
IMPOSED.
ESTIMATED ANNUAL AMOUNT OF TAXES
REPEALED, EXPIRED, OR REDUCED.
Custom*.
EzcLm.
Stamp*,
Taxi**, and
Postage.
TOTAL.
Custom*.
Excise.
Stamp*,
Taxi*, and
Postage.
TOTAL.
£
£
£
£
£
£
£
£
1801
255,000
485,000
1,026,000
1,720,000
..
1802
1,000,000
2,000, 0(H)
1,000,000
4,000,000
• •
..
1808
2,000,000
6,000,000
4,500,000
12,500,000
,,
..
1804
1,000,000
1,000,000
„
• •
180ft
80,000
490,000
960,000
1 ,560,000
. ,
1806
864,000
136,000
5,000,000
6,000,000
• •
• •
1807
..
a.
1808
, ,
. .
200,000
200,000
..
1809
• •
1810
..
• •
• -
••
##
-
1811
866,600
751,100
1,617,600
1812
760,000
785,000
1,495, IKK)
aa
1818
850,000
180,000
930,000
,,
1814
238.685
288.6S5
932,327
..
0)2,827
181ft
176,772
176,772
222,749
. .
222.749
1816
1 44,656
230,000
400
875,058
62,888
2,863,000
14,681,477
17,547.365
1817
6,691
U90
7,991
804
4,000
81,681
36,495
1818
56
1,800
1,856
. ,
9,(H)0
504
9,504
1819
1,137,902
1,957,000
7,400
8,102,802
10,913
14,000
244,571
269,484
1S20
4,602
115,000
••
119,602
••
4,000
4,000
1821
44,842
44,842
19,932
451,877
471,809
1822
, .
153,146
1,745,000
240,955
2.189,101
1828
'8,900
14,796
18, '.OS
846,592
1,456,000
2,368,148
4,lSft,785
1824
45,605
, ,
4,000
49,605
1,514,344
, ,
286,489
1.801,883
182ft
43,000
6,100
43,100
2,304,857
586,000
885,882
8,676/239
1826
133,725
, ,
1SS,725
766,615
1,184,200
C6.4O0
1,967,215
182T
21,402
9 #
,
21,402
1,788
82,300
84,^88
1828
1,963
9 9
8
1,966
36,827
. ,
15,671
51,999
1829
,,
126,406
. .
. .
126,406
1830
85,004
611,000
• •
696,004
551,470
8,506,000
18,272
4,070,742
1881
626,206
1,880
627,586
1,081,112
629,000
27,940
1,5*8,052
1S82
22,976
9 9
21,550
44,526
247,746
476,500
23,018
747.264
1888
9 9
,,
846,740
626,000
559,888
M9MSB
1884
17,894
181,000
#
198,894
805,817
OOtyOOO
1,258,500
2,0*4,517
188ft
7ft
# 9
5,500
5,57ft
81,877
181,000
. .
162,877
1836
797
9 9
2,924
8,271
148,116
536,600
842,170
1,021,7S6
1837
100
9 9
100
284
, ,
# .
234
1888
9 9
1,788
1,733
68,289
. ,
, ,
68,2S9
1889
# 9
, .
, .
6,958
66,800
1,000,000
1,068,258
1840
1,160,226
784,000
811,447
2,155,678
••
••
18,959
16,959
1841
27,170
27,170
1842
200,000
4,110,000
4,810,000
1,526L000
70,000
1,696,000
1848
# #
, ,
. .
9 9
171,821
240,000
, ,
411,821
1844
# #
. ,
9 9
9 9
2S6,48l
70,000
102,879
468,810
184ft
19,000
4,720
23,710
8,614,394
1,185,000
, ,
4,749,394
1846
2,000
120
9 9
2,120
1,151,790
1,151,790
1847
9 #
9 9
99
9 9
280,000
280,000
1848
f #
' 84
9i9
84
440,000
440,000
1849
# 9
9 #
9 9
9
835,000
, ,
.
885,000
18ft0
••
••
••
••
835,000
450,000
600,000
1,285,000
lSftl
• •
..
600,000
600,000
2,679,864
1862
• •
—
••
••
••
••
••
••
Digitized by
Go gle
Original from
UNIVERSITY OF CH
IS
Usury Laws of the States .
529
Digitized by
TIIE USURY LAWS OF THE STATES.
I. Maine.
I. Interest . — The legal rate of interest in Maine is six per oent, and
HO higher rate is allowed on special contracts. R. S. 317.
II. Penalty for Violation of the Usury Laws. — Excess of interest
not recoverable, nor costs where excess of interest has been taken ; but
the defendant may recover costs of the party taking the excess. Excess
of interest may be recovered back by the party having paid it, provided
the action is commenced within a year from the transaction. K. S. 317.
III. Damages on Bills . — The damages on bills of exchange nego-
tiated in Maine, payable in other States, and returned under protest,
are as follows, (R. S. 510 :)
1. NewJIampshire, Vermont, Massachusetts, Rhode-Island, Connec-
ticut, New-iork, * . 3 per cent.
2. New- Jersey, Pennsylvania, Delaware, Maryland, Virginia, District
of Columbia, South-Carolina, Georgia, . . .6 per cent.
3. All others, namely, North-Carolina, Alabama, Arkansas, Florida,
Illinois, Indiana, Iowa, Kentucky, Louisiana, Michigan, Mississippi,
Missouri, Ohio, Tennessee, Texas, Wisconsin, California, 9 per cent.
IV. Foreign Bills . — The damages on foreign bills of exchange re-
turned under protest, are 10 per cent.
V. Sight Bills. — Grace is allowed on bills, drafts, checks, etc., pay-
able at sight , but not on those payable on demand. R. S. 264.
Decisions.
The legislature of a State may constitutionally impose a tax on the capital stock,
etc., of a bank previously incorporated by it, unless the right has been express It
relinquished. Portland Bank vs. Apthorp, 12 Maas. 252 ; Providence Bank vs. Bill-
ings, 4 Pet. 614; Judson vs. State, Minor, 150.
When the interest on a note is payable annually, so much as has accrued more
than six years before the commencement of an action thereon, will be barred by the
statute of limitations, if the note be not witnessed, though the note, being payable
on time, be recoverable, with the interest which has become due within six years.
5 Green R. 81.
The law does not authorizo the recovery of interest upon interest, though a pro-
missory note is made payable with interest annually, (7 Green. R. 48 ;) but tho
taking compound interest is not usury. 1 Fairfield’s R. 315.
A creditor who usually sells upon six months’ credit, with interest afterwards,
can recover interest only on proof of an agreement to pay it, or of a demand of pay-
ment. 22 Me. R. 11G.
It is not essential to the validity of a bill of exchange that it should be payable
to order, or bearer, or at any particular time or place ; nor that it should have tho
words value received. 16 Me. R. 131.
A bill of exchango drawn by a person residing in one State of the Union upon a
person residing in another, and payable there, is a foreign bill, (15 Me. R. 136;
18 ib. 292 so are all bills payable out of the State. 20 Me. R. 139.
A bill or exchange drawn by one upon himself is to bs regarded as accepted.
12 Fair. R. 466.
35
Gck igle
Original from
UNIVERSITY OF CHICAGO
580
Usury Lam of the States.
49
Digitized by
II. Nkw-Hampbhire.
Interest. — The legal rate of interest in New-Hampshire is six per
cent, and no more is allowed on contracts, direct or indirect.
II. Penalty for Violation of the Usury Laws. — The person receiving
interest at a higher than the legal rate, shall forfeit for every such
offence three times the sum so received.
HL Damages on Pills. — No statute in force in New-Hampshire.
IV. Foreign Pills. — No statute in force in New-Hampshire allow*
ing damages on foreign bills returned under protest.
V. Sight Pills. — No bill of exchange, negotiable promissory note,
order, or draft, except such as are payable on demand \ shall be pay-
able until days of grace have been allowed thereon, unless it appear
in the instrument that it was the intention of the parties that days of
grace should not be allowed. (Revised St. 389, § 10.)
Decisions.
A protest by a notary at the place of payment, duly authenticated, is the regular
evidence of the dishonor of a foreign bill ; but a protest is not competent evidence
of the dishonor of an inland bill of exchange. 9 N. II. R. 658.
The dishonor of a promissory note need not bo proved by a protest, even if the
maker and indorser reside in different governments. 10 N, H. R. 526.
Interest. — Any interest on money lent was, at common law, unlawful ; but that
doctrine has never been adopted hero, and no rate of interest is unlawful here at
common law unless so great as to bo unconscionable. 2 N. H. R. 42.
When a promissory note has been paid and discharged, it ceases to bo negotiable.
2 N. H. R. 212 ; 6 ib. 63. The principle of the case in 2 N. H. R. 212 is to be re-
strained to cases where the party to the bill or note is prejudiced by a subsequent
transfer. 7 N. H. R. 202. But the note ceases to be negotiable, except against
those by whom a new indorsement has been made, and those who are bound to
pay at all events. Ibid.
A promissory note imports a consideration until the contrary appears, (6 N. H. R.
511 ;) and tho acknowledgment of value received in a note not negotiable is primd -
facie evidence of a consideration. 6 N. H. R. 316.
The time when a note payable on demand shall bo considered as dishonored, de-
pends on tho circumstances of tho caso ; but in general it will be considered so in
ten months from its date, (5 N. H. R. 169 ;) and a note indorsed four months and
twenty-two days from its date was treated as dishonored. 6 N. H. R. 369.
Although a note be payable at a particular time and place, no demand is neces-
sary at tho timo and place. 3 N. H. R. 333 ; 10 ib. 433.
The want of a demand upon the maker may bo excused by evidence of a diligent
inquiry for him without success. 3 N. H. R. 346.
A note payablo on demand, with interest after sixty days, is payable on demand,
and the words u after sixty days’1 refer only to the interest. 6 N. H. R. 99.
A noto payablo on contingency, may be declared upon as a note strictly nego-
tiable. 5 N. H. R. 315 ; 10 ib. 447.
A contract for the delivery of specific articles cannot be declared on as a bill.
3 N. H. R. 299. See also 5 ib. 316; 10 ib. 447.
Bills drawn upon inhabitants of other States are foreign bills. 9 K H. R 558.
A negotiable promissory noto will not bo a discharge of a preexisting debt, unless
there be an express agreement to receive it as such in payment. 10 N. H. R. 505.
If the holder of a note receive an acceptance, to bo collected and applied hi pay-
ment, he must exercise reasonable diligence in the collection ; and if ho docs not,
his debt will bo discharged. 8 N. H. R. 66.
Gck igle
Original from
UNIVERSITY OF CHICAGO
50
Damages on Bills.
531
Digitized by
IH Vermont.
I. Interest. — The legal rate of interest in Vermont is six per cent,
and no higher rate of interest is allowed on special contracts, except
upon railroad notes or bonds, which may bear seven per cent.
II. Penalty for Violation of the Usury Laws. — The excess of interest
received beyond six per cent may be recovered by action of assumpsit.
III. Damages on Bills of Exchange. — There is no statute in force in
Vermont in reference to damages on protested bills of exchange.
IV. Foreign Bills. — There is no statute in force in Vermont in
reference to damages on protested foreign bills of exchange.
V. Sight Bills. — Grace is not allowed on bills, drafts, checks, etc.,
payable at sight. (B. S. xxiii. § 1, annexed.)
Revised Statutes. Chop. 73.
Sec. L All bills of exchange, drafts, and promissory notes, executed in any
other State, and payable in this State, and all such bills, drafts, and notes, executed
in this State, and payable in any other State, shall be entitled to the usual mercan-
tile privilege of three days’ grace.
Sec. II. The provisions of the foregoing section shall not extend to any con-
tract payable on demand, or in any way but in money.
Sec. III. Whenever any bill or note, or other contract, not subject to grace,
shall fall due on the Sabbath, the same shall, for every purpose, be taken and con-
sidered as due on the Monday next following.
No. XXIII. An Act relating to (he Time of Payment of Bills of Exchange, Drafts,
Checks , and Notes. Approved November 6, 1850. Took effect January, 1, 1851.
Sec. I. The provisions of the first section of the seventy-third chapter of the
Revised Statutes shall not extend to any contract, made after this act shall take
effect, payable at sight.
Sec. II. The following days, to wit, the first day of January, commonly called
New Year’s day; the fourth day of July; the twenty-fifth day of December, com-
monly called Christmas; and any day appointed or recommended by the Governor
of this State, or by the President of the United States, as a day of fast or thanks-
giving, shall for all purposes whatsoever, in regard to the presenting for acceptance,
or payment, and to the protesting and giving notice of the dishonor of bills of ex-
change, drafts, checks, and promissory notes, made after this act shall take effect,
be treated and considered as is the first day of the week, commonly called Sunday.
Sec. III. Whenever any bill or note or other contract not subject to grace,
made after this act shall take effect, shall fall due on either of the days designated
by the second section of this act, the same shall for evexy purpose be taken and
considered as due on the first day next following, which shall not be Sunday, or
one of the days designated as aforesaid.
Decisions.
A note under seal becomes a specialty, and no action can be maintained upon it ,
in the name of an indorsee. I D. Ch. 244.
A promissory note, given and received in payment of an antecedent account, is
a bar to an action on that account, whether the note bo paid or not, if there be no
fraud or deception in giving the note. 4 Yt. 649.
Usury. — A bond-fide dobt, or demand, contracted upon a legal consideration, is
not destroyed by being mingled with an usurious transaction, or being made in
whole or in part the consideration of an usurious contract 6 Vt 65L
The insolvency of the maker will not excuse the indorsee from giving notice to
the indorser. 2 Aik. a
Gck igle
Original from
UNIVERSITY OF CHICAGO
582
Usury Laws of the States.
51
IV. Mabsachubbttb.
I. Interest. — The legal rate of interest in Massachusetts is six per
cent, and no higher rate is allowed on special contracts.
IL Penalty for Violation of the Usury Laws. — No contract for the
payment of money with interest greater than six per cent shall be
void ; but in an action on such contract the defendant shall recover
his full costs, and the plaintiff shall forfeit three-fold the amount of
the whole interest reserved or taken.
III. Damages on Bills of Exchange. — The damages on bills of ex-
change negotiated in Massachusetts, payable in other States, and re-
turned under protest, are as follows :
1. Bills payable in Maine, New-Hampshire, Vermont, Rhode-bland,
Connecticut, or New-York, 2 per cent.
2. Bills payable in New-Jersey, Pennsylvania, Maryland, or Dela-
w are, . . • . . . . . .8 per cent.
8. Bills payable in Virginia, District of Columbia, North-Carolina,
South-Carolina, or Georgia, 4 per cent.
4. Bills payable elsewhere within the United States or the territo-
ries, 5 per cent.
5. Bills for one hundred dollars or more, payable at any place in
Massachusetts, not within seventy-five miles of the place where
drawn, 1 per cent.
IV. Foreign Bills. — The damages on foreign bills of exchange re-
turned under protest are as follows :
1. Bills payable beyond the limits of the United States (excepting
places in Africa beyond the Cape of Good Hope, and places in Asia
and the islands thereof) shall pay the current rate of exchange when
due, and five per cent additional.
2. Bills payable at any place in Africa beyond the Cape of Good Hope,
or any place in Asia or the islands thereof shall pay damages, 20
per cent.
V. Sight BiUs. — Bills of exchange, drafts, etc., payable at sight or
at a future day certain, within this State, are entitled to three days’
grace. But not bills, notes, drafts, eto., payable on demand.
VI. Notes on Demand. — In order to charge an indorser, payment
must be demanded within sixty days from its date, without grace, on
any note payable on demand.
Decisions and Statute.
Interest is to be computed at the rate established by the law of the place where
the debt of which it is an incident is contracted and is to be paid. 9 Metcalf) 210.
Money lent without any stipulation for interest does not necessarily draw interest
until noglect or refusal of payment, after demand made, or some other default of
the borrower. Ibid. 124.
Whenever any bank shall charge or receive more than six per cent per annum,
and the existing rate of exchange, the Bank Commissioners, upon information, shall
report such fact to the Treasurer, who shall forthwith prosecute said bank. — 1840.
Digitized
bv Google
Original from
UNIVERSITY OF CHICAGO
52
Damage* on MU*.
533
Digitized by
' V. Rhodi-Ibland.
I. Interest — The legal rate of interest in Rhode-Island is six per
cent, and no higher rate is allowed on special contracts.
II. Penalty for Violation of the Usury Laws. — Forfeiture of the
excess taken above six per cent.
III. Damages on Bills . — The damages on bills of exchange, paya-
ble in other States and returned under protest, are uniformly 5 per cent.
IV. Foreign Bills. — The damages on foreign bills of exchange, re-
turned under protest, are 10 per cent.
V. Sight Bills. — There is no statute in Rhode-Island upon this sub-
ject. The banks do not allow grace on bills, drafts, checks, etc., pay-
able at sight.
Remarks.
If any action shall be brought upon any bond, mortgage, specialty, agreement,
contract, promise, or assurance whatever, which shall be made within (hit State, and
the defendant shall allege by a special plea, that a higher or greater interest than
the rate aforesaid was taken, or was therein or thereby secured or agreed for, the
court shall and may admit the defendant as a legal witness, upon the issue joined,
and also, on motion of the plaintiff, admit such plaintiff as a legal witness in like
manner ; and if on the whole evidence such agreement shall be found usurious, the
plaintiff shall have judgment for the principal sum of money, or real value of the
goods, wares, or other commodity, with legal interest thereon, with costs. “ Pro-
vided always that nothing in this act shall extend to the letting of cattle, or other
usages of the like nature in practice among farmers, or to maritime contracts among
merchants, as bottomry, insurance, or course of exchange, as hath been heretofore
accustomed.”
In an action for usury, the defendant may be admitted as a legal witness, upon
issue joined in such action or suit, to testify relative to the nature and circumstances
of such agreement, and on motion of the plaintiff, the court shall also admit him in
like manner. Public Laws of R. L 286.
If any bank, or any officer of any bank, or other person in behalf thereof shall,
directly or indirectly, knowingly demand or receive from the maker, indorser^ or
holder of any promissory note or bill of exchange, or obligation of any description,
for the payment of money at a future day, upon the discount thereof; by or on ac-
count of such bank, any greater interest or discount, under any form or pretence
whatever, than at the rate of six per cent per annum, the officer or other person
knowingly demanding or receiving in behalf of such bank such excessive interest
or discount shall forfeit and pay for each offence the sum of five hundred dollars, to
and for the use of the State; to be recovered by action of debt in the name of the
General Treasurer before any court proper to try the same ; provided, however, that
it shall not be construed to be any violation hereof to demand or receive interest or
discount for periods less than one year, at the rate of six per cent for three hundred
and sixty days; provided, further, that nothing in this act shall prohibit any bank
from demanding or receiving the existing rate of exchange on drafts bills of ex-
change, promissory notes, payable at other places than the town wherein the bank
discounting the same shall be located. Ib. 293.
Damages . — It shall be lawful for any person having a right to demand any sum
of money upon a foreign protested bill of exchange as aforesaid, to commence and
prosecute an action for principal, damages, interest, and charges of protest against
the drawers or indorsers, jointly or severally, or against either of them separately ;
and judgment shall and may bo given for such principal, damages, and charges, and
interest upon such principal after the rate aforesaid, to the time of such judgment,
together with costs of suit R. S. 287.
Gck igle
Original from
UNIVERSITY OF CHICAGO
584
Usury Laws of the States .
53
Digitized by
VI. Connecticut.
I. Interest '. — The legal rate of interest in Connecticut is six per cent,
and no higher rate is allowed on special contracts. Banks are for
bidden, under penalty of $500, from taking directly or indirectly oyer
6 per cent. Law passed May, 1854.
IL Penalty for Violation of the Usury Laws . — Forfeiture of all the
interest received. In suits on usurious contracts, judgment is to be
rendered for the amount lent, without interest.
HI. Damages on Bills. — The damages on bills of exchange nego-
tiated in Connecticut, payable in other States, and returned under pro-
test, are as follows :
1. Maine, N ew- Hampshire, Vermont, Massachusetts, Rhode-1 sland,
New-York (interior,) New-Jersey, Pennsylvania, Delaware, Mary-
land, Virginia, District of Columbia, . . .3 per cent.
2. New-York City, 2 per cent.
8. North-Carolina, South-Carolina, Georgia and Ohio, . 5 per cent.
4. All the other States and Territories, ... 8 per cent.
IV. Foreign Bills. — There is no statute in force in Connecticut in
reference to damages on foreign bills of exchange.
V. Sight Bills. — Grace is not allowed by statute or usage on checks,
bills, etc., payable at sight.
Decisions.
Bills of Exchange and Promissory Notes. — Bills or notes, to be negotiable, must
be drawn payable to the payee or order, or bearer, or to the order of the payee.
By statute, notes to be negotiable must be for the payment of thirty-five dollars
or upwards.
A bill or note payable to a mini’s own order is payable to himself if he did not
order it paid to any other. Hosmer, Ch. J.f 4 Conn. R. 247.
A parol acceptance is sufficient ; and this may be express or implied. Baldwin,
J., 6 Day, 615.
As between the original parties to a bill of exchange, the want of a considera-
tion, total or partial, may be shown, and though a subsequent holder bond fide, and
for value paid, shall not be affected by a want of consideration between the prior par-
ties, yet if he received the bill without consideration, he is in privity with the first
holder, and the want of consideration is equally provable and available against him.
6 Conn. R. 521.
If a partner of a firm draw a bill in his own name upon the firm of which he is a
member, for the use of the partnership concern, it is in contemplation of law an ac-
ceptance of the bill by the drawer in behalf of the firm ; and the holder of the biU
may sustain an action thereon against the firm as for a bill accepted. 5 Day, 511.
An agreement to pay interest upon interest, which has become due, is not usu-
rious. 11 Conn. R. 487.
A parol promise to pay more than lawful interest, made at the giving of a note,
and to induco the creditor to take it, and which is part and parcel of the contract,
will make the note usurious and void. 2 Root, 37.
Where an instrument contaminated with usury is taken up, and a new one sub-
stituted by the parties to secure to the creditor the original debt, the substituted as
well as the original security is usurious and void. 5 Conn. R. 154. And it makes
no difference whether the party in whose name the substituted security is given
was privy to, or ignorant the original corrupt agreement Ibid.
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VII. New-Yohk.
I. Interest. — The legal rate of interest in New-York is seven per
cent, and no higher rate is allowed on special contracts.
II. Penalty for Violation of the Usury Laws. — Forfeiture of the
contract in civil actions. In criminal actions, a fine not exceeding one
thousand dollars; or imprisonment not exceeding six months; or
both.
All bonds, bills, notes, assurances, conveyances, all other contracts
or securities whatsoever, (except bottomry and respondentia bonds
and contracts,) and all deposits of goods, or other things whatsoever,
whereupon or whereby, there shall be reserved or taken, or secured,
or agreed to be reserved or taken, any greater sum, or greater value .
for the loan or forbearance of any money, goods, or other things in
action, than seven per cent, shall be void. (Rev. Stat. Vol. II., p.
182.) For the purpose of calculating interest, a month shall be con-
sidered the twelfth part of a year, and as consisting of thirty days;
and interest for any number of days, less than a month, shall be esti-
mated by the proportion which such number of days shall bear to
thirty.
III. j Damages on Bills. — The damages on bills of exchange, nego-
tiated in New-York and payable in other States, and returned under
protest for non-acceptance or non-payment, are as follows :
1. Maine, New-Hampshire, Vermont, Massachusetts, Rhode-Island,
Connecticut, New Jersey, Pennsylvania, Delaware, Maryland, Vir-
ginia, District of Columbia, or Ohio, . . .3 per cent.
2. North-Carolina, South-Carolina, Georgia, Kentucky, or Tennes
see, 5 per cent.
3. If drawn upon parties in any other State, . . 10 per cent.
The following days, namely, the first day of January, commonly
called New-Year’s day; the fourth day of July; the twenty-fifth day
of December, commonly called Christmas day ; and any day appointed
or recommended by the Governor of the State, or the President of
the United States, as a day of fast or thanksgiving, shall, for all pur-
poses whatsoever, as regards the presenting for payment or accept-
ance, and of the protesting and giving notice of the dishonor of bills
of exchange, bank checks, and promissory notes, made after the pas-
sage of this act, be treated and considered as is the first day of the
week, commonly called Sunday. (1849, ch. 261.)
IV. Foreign Bills — The damages on foreign bills of exchange, re-
turned under protest, are 10 per cent.
V. Sight Bills. — Grace is not allowed by the banks of the city of
New-York and of the interior, upon bills, drafts, checks, etc., payable
at sight.
Decisions.
A bank, limited by law to six per cent upon all discounts, can recover at the rate
of seven from the time the debt becomes due. 9 Wend. 471.
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VIII. NxwJirset.
I. Interest. — The legal rate of interest in New Jersey is six per
cent, and no higher rate of interest is allowable on special contracts,
except as provided in the following act :
The Legislature of New Jersey passed the following Special Act in
March, 1852, supplementary to an act against Usury, approved April
10, 1846 :
Be it enacted, rfs.t That upon all contracts hereafter made in the City of Jersey City,
and in the township of Hoboken, in the county of Hudson, in this State, for the loan of
or forbearance, or giving day of payment for any money, wares, merchandise, goods,
or chattels, it shallbe lawful for any person to take the value of seven dollars for the
forbearance of one hundred dollars for a year, and after that rate for a greater or less
sum, or for a larger or shorter period, any thing contained in the act, to which this is
a supplement, to the contrary, notwithstanding : prodded, such contract be made by
and between persons actually located in cither said city or township, or by persons not
residing in this State.
II. Penalty for Violation of the Usury Laws. — The contract is
void, and the whole sum is forfeited.
III. Damages on Bills of Exchange . — There is no statute in force
in reference to damages on bills of exchange.
IV. Foreign Bills. — There is likewise no statute in force in refer-
ence to damages on protested foreign bills.
V. Sight Bills. — Grace is not, either by statute or usage, allowed
on bills, drafts, etc., payable at sight.
Decisions.
When thebe have been partial payments, the interest must be calculated to the
time of payment, then deduct the sum paid from the amount, and calculate the
interest on the rcsiduo to the next payment. 1 Hal. R. 408.
The sale by one person of the note or bond of another, at any rate of discount,
is not usurious ; but if the note or bond was made for the express purpose of
being sold at greater discount than legal interest, it is usurious and void. A note
void for usury when made, is void in the hands of an innocent holder. Chan. Wil-
liamson, July Term, 1825.
Where a bank discounts a note, upon condition that tho person offering it shal1
take post notes payable at a distant day as cash, tho note is usurious and void
But if part of the usurious note bo paid and a new note given for the balance, the
new note is good. 2 Hal. 130. A contract to take for a loan of money more thar
legal interest, though none is actually taken, is usurious and void ; but the leudei
does not subject himself to the penalty of the statute unless he actually receives
more than legal interest, and it is immaterial whether the illegal interest is secured
by tho same instrument as the principal debt, or by another. 3 llal. 233. And a
note antedated for the purpose of securing more than legal interest is usurious anu
void ; but the taking such a note will not destroy the antecedent debt not affected
with usury. 3 Gr. 255.
The law of the place where the contract Is made determines the rate of interest
when the contract specifically gives interest, ahd this will be the case though the
loan be secured by mortgage on lands in another State, unless there be cireum
stances to show that the parties had in view the law of the latter place in re.spea
to interest. 3 Gr. 328.
Notes . — A promissory note is not negotiable so that an action can be brought c
it in the name of an indorser, unless it be payable to order or assigns. 1 Gr. 26*
If payable to bearer, it is negotiable or assignable by delivery only, and any bona
Me holder may sue on it in his own name. 1 Gr. 246.
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IX, Pennsylvania,
I. Interest . — The legal rate of interest in Pennsylvania is six per
cent, and no higher rate is allowed on special contracts.
II. Penalty for Violation of the Usury Laws . — “ Shall forfeit the
money and other things lent ; one half thereof to the Governor for the
support of the government, and the other half to the person who shall
sue for the same.” (March, 1723.)
III. Damages on Bills . — The damages on bills of exchange nego-
tiated in Pennsylvania, payable in other States, and returned under
protest, are as follows :
1. Upper and Lower California, ^New-Mexico, and Oregon, 10 per cent.
2. All other States, 5 per cent.
IV. Foreign Bills. — The damages on foreign bills of exchange, re-
turned under protest, are as follows, (May 13, 1850:)
1. Payable in China, India, or other parts of Asia, Africa, or islands
in the Pacific Ocean, 20 per cent.
2. Mexico, Spanish Main, West-Indies, or other Atlantic islands,
East Coast of South-America, Great Britain, or other parts of Eu-
rope, 10 per cent.
3. West Coast of South-America, . . . .15 per cent.
4. All other parts of the world, ..... 10 per cent.
V. Sight Bills. — Grace is not allowed by the banks upon bills,
drafts, checks, etc., payable at sight; nor on checks, etc., payable at a
specific day mentioned in the body of the check.
Decisions.
Where more than legal interest is included in any specialty or note, the whole
amount cannot be sued for and recovered ; but the plaintiff is entitled to a verdict
for the just principal and interest. 2 Dallas, 92.
The rule of law is, that interest is allowed on goods sold and delivered, and on
all open accounts, where, by tho usual course of dealing, or by express agreement,
a certain time is fixed for payment ; on money lent and advanced ; on arrears of
rent, unless it would bo inferred by the landlord’s conduct that ho did not mean to
insist upon it, or he demands more than is due, or there aro other special circum-
stances which might make the charge of interest improper ; and, generally, wherever
one person detains the money of anothor, without any right and against his con-
sent 6 Binney, 162; 1 Ser. k Raw. 176; 1 Binnoy, 488; 1 Dallas, 315, 349;
2 ib. 193 ; 4 ib. 289.
A dormant partner is liable for interest, upon tho receipt of the money, by an
acting partner, without his privity or participation. 1 Dallas, 343, 2d edit
Although interest upon interest is generally unlawful, yet there are cases in
which interest is considered as changed into principal, and permitted to carry inter-
rest ; as where a settlement of accounts takes placo after interest has become due,
or an agreement is made after interest becomes due that it shall carry interest. An
original agreement, that if tho interest is not paid at tho time it shall be due, it
Bhall carry interest, though it would not amount to usury so as to render tho con-
tract connected with it illegal and void, yet the party cannot recover such interest
either at law or in equity. 1 Johns. Ch. R. 14; 6 ib. 313. See 4 Yeates, 220 ; 6
Barn. k Aid. 34; 7 S. and Lowb. 15 ; 11 Yesey, Jr. 93 ; 3 Wash. C. C. R. 350,
396. It is doubtfUl if this rule of charging interest on interest relates to real secu-
rities. See 9 Yes. Jr. 228, though in 4 Yeates, 320, it was so held.
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X* Delaware.
I. Interest . — The legal rate of interest is six per cent, and no more
is allowed on direct or indirect contracts.
II. Penalty for Violation of the Usury Laws . — Forfeiture of the
money and other things lent, one half to the Governor for the support
of government, the other half payable to the person sueing for the
same.
III. Damages on Bills . — There is no statute in force in Delaware in
reference to damages on domestic or inland bills of exchange.
IV. Foreign Bills . — The damages upon bills of exchange drawn
upon any person in England, or other parts of Europe, or beyond the
seas, and returned under protest, are .... 20 per cent.
V. Sight Bills . — There is no statute with reference to bills, drafts,
checks, etc., at sight. They are not, by usage, entitled to grace.
Decisions.
Interest — Seven per cent interest was allowed on a note drawn in New- York. 1
Harring. 232. Interest on damages is discretionary with tho jury. 1 Harring.
234. 449.
The principle of calculating interest and deducting payments on bonds, running ac-
counts, and for and against administrators or guardians, is stated in 3 Harring. 469.
Interest is allowable on the ground of contract, or by custom, (3 Harring. 528;)
but where there is no contract, usage, time fixed for payment, or account rendered,
it is not usual to allow it Ibid, it may bo allowed on money due for work and
labor. Ibid.
The sheriff held liablo for interest on money levied by a salo of land from the
time it was payable. 3 Harring. 25.
Bills or Notes. — A partial failure of the consideration of a bill of exchange cannot
be set up as a defence to an action on the bill ; but a total failure may. 2 Har-
ring. 32.
Fraud will vitiate tho contract ; and to show fraud, the worthlessness of the article
bought may bo proved in an action on a bill accepted for the price of it. Ibid.
Bank-notes, though not money, have a certain legal character as money, and
though not a legal tender they are a good tender unless objected to. 2 Harring. 235.
If at the time of the contract a bank-note be paid without indorsement, guarantee,
or agreement, it is received as money, and the risk of tho solvency of the bank is
on the receiver. 2 Harring. 235.
Where a negotiable note is taken in the usual course of trade, before maturity, by
an innocent party, bond fide, and for a valuable consideration, without notice, neither
fraud nor want of consideration, as between the original parties, can be set up as a
defence against tho indorsee. 3 Harring. 385. A party cannot recover on an
altered negotiable noto without explaining the alteration. 3 Harring. 404. Tho
payment of an antecedent debt is a good consideration for the assignment. Ibid.
Notice. — Notice of protest through the post-office is not sufficient if the indorser
reside in the same town, unless there be a penny-post by which he is in the habit
of receiving letters. 3 Harring. 419. The notice ought to be personal, or by
writing left at the house or place of business. Ibid.
Demand. — If a noto is payable at a certain place, demand at tho place must be
averred. 1 Harring. 10, 331. Demand must bo made on the last day of grace.
1 Harring. 331.
A bank depositor must make an actual demand for his deposit before suit is
brought 1 Harring. 117, 496.
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XI. Maryland.
I. Interest. — The legal rate of interest in Maryland is six per cent,
and no higher rate is allowed on special contracts.
IT. Penalty for Violation of the Usury Laws. — There is no longer
any penalty. The law of 1804, imposing one, was repealed on the
10th of March, 1846. A contract for interest beyond the legal rate
of six per cent is not void, but if the ftct be specially pleaded, all ex-
cess of interest beyond the rate is abated from the recovery in the
case. The act of the 10th of March, 1846, embraces all contracts
made even before its passage, if not at that period actually in suit.
III. Damages on Bills. — The damages on bills of exchange nego-
tiated in Maryland, payable in other States, and returned under pro-
test, are uniformly 8 per cent.
Ibe claimant is entitled to receive a sum sufficient to buy another
bill of the same tenor, and eight per cent damages on the value of the
principal sum mentioned in the bill, and interest from the time of pro-
test, and costs. The protest of an inland bill must be made according
to the law or usage of the State where it is payable.
Practice includes the District of Columbia in this law of damages,
'(Act of Assembly, 1785, ch. 38 ;) but it is questionable whether the
District be within the law, which provides only for States.
IV. Foreign Bills. — The damages on foreign bills of exchange re-
turned under protest are 15 per cent.
The claimant is to receive a sum sufficient to buy another bill of
same tenor, and fifteen per cent damages on the value of the principal
Bum mentioned in the bill, and interest from the time of protest, and
oosts.
V. Sight Bills. — Grace is not allowed by the banks on bills, drafts,
checks, etc., payable at sight.
Decisions.
Under the statute of Maryland of 1837, ch. 253, the certificate of a public notary
is primd-facie evidenco of the presentment by him of an inland as well as a foreign
bill of exchange or noto, and of his protest of a bill for non-acceptance or non-pay-
ment, and also of the sending or delivery of notice in the manner stated in the
protest 1 Gill, 127.
If a party receive notice of the dishonor of a bill in duo time, he cannot object
to the mode of conveyance. Ibid.
In Maryland, interest is not only given in all cases where it is in England, but in
many others also. 2 Bland’s C. R. 306.
It is not usurious in a bank to take interest in advance. 10 G. and J. R. 299.
Compound interest may be charged in three kinds of cases ; first where, with
the knowledge and permission of the debtor, his whole debt principal and interest
has been paid by a third person, or his surety ; secondly, whero the holder of money
has been directed or undertakes to invest money in his hands to make it productive,
and fails or refuses to do so ; and thirdly, where a trustee has received rents and
profits, and retains and uses the money as his own, he will bo charged with the
profits or with interest considering each year’s interest as an addition to the capi-
tal sum. 2 BL 166.
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XII. Virginia*
L Interest . — The legal rate of interest in Virginia is six pei1 cent,
and no higher rate is allowed on special contracts.
II. Penalty for Violation of the Usury Laws. — All contracts fora
greater rate of interest than six per cent per annum are void.
III. Damages on Bills . — The damages on bills of exchange nego-
tiated in Virginia, payable in other States, and returned under protest,
are uniformly 3 per cent.
IV. Foreign Bills. — The damages on foreign bills of exchange, re-
turned under protest, are uniformly . . . .10 per cent.
V. Sight Bills. — Grace is not allowed by statute or by usage on
bills, eta, payable at sight.
Decisions.
A trustee accountable for rents and profits, is chargeable with interest thereon.
3 Grattan, 518.
It is not usurious for a bank to take interest for the first day on which a note is
discounted, and also for the last day on which it is payable, inclusive. 6 Leigh, 251.
Where one resorts to equity for relief against usurious debt yet unpaid, he shall
be required to pay only the principal advanced to him, without even lawful interest,
according to the statute ; yet where debtor seeks, in equity, an account ofj and de-
cree for, money already paid on usurious contract, the measure of relief is the ex-
cess paid abovo principal and lawfUl interest ; and if his payments exceed principal
and lawful interest, the surplus, with interest, shall be decreed to him. 1 Leigh,
141 ; 5 Leigh, 478; see also 1 Paige, 429.
What interest is allowable upon any contract, is always a question of law; and
it is sometimes an intricate question as it respects the time or the place of the con-
tract 1 Rand. 35. And the court may instruct the Jury with regard to the inter-
est G Call, 16.
Trnset tied and disputed accounts ought not, in general, to bear interest 1 Wash.
172 ; 2 Call, 3GG.
A legacy carries interest (no time for payment being specified) only from the end
of the year alter the death of the testator. 3 Munf 10.
As to compound interest, etc., under what circumstances it may be taken.
4 Yates, 220-230.
The practice in Virginia is favorable to the recovery of interest ; and it was held,
in an action on a penal bill, payable on demand, not nocessary to aver a special
demand. An obligation to pay money on demand is evidence of a present debt,
payable instanter, and the writ a sufficient demand to entitle plaintiff to the pen-
alty, and interest is allowed, not because of the forfeiture of the penalty, but be-
cause the debt was due and payable from the beginning. 6 Rand. 101.
Notary Public . — A certificate of a notary public, of a sister State, duly certified
according to the usual notarial form, that a release was acknowledged by a party
to bo his act and deed, will not be received in evidence of the feet in the courts of
Virginia. The deposition of the notaiy, or some equivalent testimony, should be
produced. 1 Rand. 456.
BiUs. — A protest of a foreign bill of exchange, in a foreign country, is proved
by the notarial seal ; but the protest is only primd /ocic, not conclusive evidence of
the dishonor of the bill. 7 Leigh, 179.
It is not enough to charge the indorser on a bill of exchange, whereof tho drawer
has refused acceptance when presented, and payment when demanded, to prove
protest for non-payment and due notice thereof to indorser ; it is necessary to prove
due notico to him of the dishonor of the bill by the non-acceptance. 2 Leigh, 321 ;
4 Wash. C. C. R. 467.
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xm. N OBTH-CaBOXJN A.
l. Interest. — The legal rate of interest in North-Carolina is six per
cent, and no higher rate is allowed on special contracts.
II. Penalty for Violation of the Usury Laws. — A forfeiture of the
principal and interest ; and if usurious interest is collected, a liability
to pay double the amount of principal and interest paid— one half of
the amount recovered for the use of the State, the other half for the
claimant.
m. Damages on Bills. — The damages on bills of exchange nego-
tiated in North-Carolina, payable in other States, and returned under
protest, are uniformly 3 per cent.
IV. Foreign Bills. — The damages on foreign bills of exchange
returned under protest are as follows :
1. Bills payable in any part of North- America, except the North-west
Coast and the West-Indies, 10 per cent.
2. Bills payable in Madeira, the Canaries, the Azores, Cape dc Verd
Islands, Europe, and South-America, ... 15 per cent.
3. Bills payable elsewhere, 20 per cent.
V. Sight Bills. — By virtue of an act of the legisfature, passed in
January, 1849, grace is allowed on bills at sighty unless there is a
stipulation to the contrary. Prior to that date the usage was not to
allow grace on such bills.
Decisions.
Where a note was made in North-Carolina, and a loan raised on it in Georgia, it
was held , that it bore interest according to the law of Georgia. 7 Iredell’s Rep. 424.
Whenever one person has the money of another, and knows what sum he ought
to pay, he must pay interest for the same. 1 Hay. 4, (1791.)
Interest must be calculated according to the law of the place where the contract
was made. 2 Hay. 6, (1797.)
Where money is payable on demand, interest does not accrue until a demand is
made ; when no time is appointed, the money is payable immediately without a
demand, and interest accrues immediately. 2 Hay, 32, 49, (1798.)
In equity, as a general rule, interest upon interest is not allowable. But when
the sum is oscertained, and the annual payment of it forms part of the contract ;
where it is so specific that an action of debt may bo sustained and interest recovered
by way of damages for the detention, and particularly where the payment of the
principal sum is postponed to a very distant period, upon the faith of the regular
and punctual discharge of the interest, interest upon interest ought to bo allowed.
Con. R. 357, (1801.) S. C., Tay. 231.
A bond-fidt holder of a bill or promissory note, in which the name of the payeo
has not been inserted, has a right to fill up the blank left for the payee’s name with
that of an indorser ; he may subject the indorser upon a count for his indorsement,
or as the drawer of a bill of exchange upon the maker. 2 Dov. 473, (1830.)
A note made payable at the Bank of Cape Fear must bo demanded at the bank
in order to render the indorser liable. 1 Car. S. R. 482, (1814.) Also at tho State
Bank. N. C. Term, R. 72, (1817.)
If in ordinary cases the maker has become insolvent, has absconded, or refuses
to make payment, this will be sufficient to charge the indorser, upon due notico of
tho fact. Ibid.
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XTV. South-Cabolina.
I. Interest. — The legal rate of interest in South-Carolina is skvkn
per cent, and no higher rate is allowed on special contracts.
II. Penalty for Violation of the Usury Laws. — Loss of all the
interest taken.
III. Damages on Bills. — The damages on bills of exchange nego-
tiated in South-Carolina, payable in other States, and protested for
non-payment, are uniformly 10 per cent.
together with costs of protest.
A bill drawn in South-Carolina, payable in another State, is deemed
a foreign bill, and damages may be claimed, although such bill be not
actually returned after protest.
IV. Foreign Bills. — The damages on foreign bills of exchange,
negotiated in South-Carolina, are as follows :
1. On bills on any part of North-America other than the United
States and on the West-Indies, .... 12J per cent.
2. On bills drawn on any other part of the world, 15 per cent
V. Sight Bills. — The statute of 1848 enacts that “ bills of exchange,
foreign or domestic, payable at sight, shall be entitled to the same
days of grace as now allowed by law on bills of exchange payable on
time.”
By a statute passed in 1831, it is enacted that if money or other
commodity be lent or advanced upon unlawful interest, the plaintiff
shall be allowed to recover the amount or value actually lent, but
without interest or cost.
By an act passed in 1839, it is enacted that a debtor by bond, note,
or otherwise, about to leave the State, the debt not being yet due,
may be sued and held to bail. The plaintiff must swear to the debt,
and that he did not know the debtor meant to remove at the time
the contract was made. But the writ must be made returnable to
the term next succeeding the maturity of the note, etc.
Decisions .
Where a sealed note was given for the payment of $2500, three years after date,
“ with interest from the date, to be paid punctually at the end of each year,” it was
held, that the interest which fell due at the end of each of the three years, and
remained unpaid, became principal also, and boro interest ; but not so the annual
interest which accrued afterwards, because there was no express or implied con-
tract to that effect. 1 Strobharl , 115.
Wliero one contracts to pay a certain sum and interest on a certain day, the
interest on that day becomes a part of the principal, and bears interest from that
time. 3 Richardson. , 125.
Judgments do not bear interest at common law. But in debt on a judgment,
interest may be recovered by way of damages. 3 Richardson , 37G.
Where the drawee of a bill, payable at sight, accepted it, “if presented at a particu-
lar time, ho will be liable on it although not presented at that time.” 3 Rich, 311.
The drawer of a bill of exchange, having no funds in the hands of the drawee, is
not entitled to notice of non-acceptance. 3 Richardson, 413.
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XV. Georgia.
I. Interest. — The legal rate of interest in Georgia is seven per cent,
and no higher rate is allowed on special contracts.
II. Penalty for Violation of the Usury Laws. — Forfeiture of all the
interest paid.
HI. — Damages on Bills. — The damages on bills of exchange, nego-
tiated in Georgia, payable in other States, and returned under protest,
are uniformly •••••••• 5 per cent.
IV. Foreign Bills. — The damages on foreign bills of exchange, re-
turned under protest, are 10 per cent.
V. Sight Bills. — Grace is not allowed by the banks upon bills,
drafts, checks, etc., payable at sight. There is no statute in Georgia
upon this subject.
Decisions .
The indorsee of a negotiable promissory note, drawn in Georgia, payable in New-
York, and returned protested for non-payment, is entitled to charge five per cent
damages against the indorser, as provided by the act of 1823 in cases of protested
bills of exchange. Howard v. Central Bank, 3 Kelly's Reports, 374.
A note for valuable consideration, transferred before duo, and without notice of
any equities, as collateral security for an existing debt, is not liable, in the hands of
the transferee, to any of the equities between the maker and the payee. Gibson v.
Conner, lb. 47.
Bills and Notes.— The holder of a bill may, in default of payment, sue all the par-
ties liable thereon at the same time, and may maintain an action against the
drawer without previously sueing the acceptor. 1 R. M. Cliarlt. B3.
The Georgia statute of 1709, in making promissory notes negotiable, whether
given for money or other things, ipso facto made them exempt from the necessity
of proving consideration. Dudley, Geo. 157.
Failure of consideration is no defence to an action by a bond-fid* holder without
notice, unless the note is transferred after due. Geo. Decis. Part II. 153.
Usury. Usury may be set up in defence to a proceeding to foreclose a mortgage.
1 Kelly 302
Where a surety on a debt tainted with usury pays the same knowing the debt
to be usurious, he cannot recover the amount paid from the principal. But he
may recover it back from the creditor. 1 Kelly, 140 ; 3 Kelly, 162.
The maker of a usurious note is a competent witness for the defendant to prove
usury, in an action by an indorsee against an indorser, on being released. 1 Kelly,
108..
A note void as being given m direct violation of statute, is \alid against the
maker in the hands of an innocent indorsee, and the original consideration cannot
be inquired into. Dudley, Geo. 249. _
Renewals of a usurious contract cany the taint of usury with tin m. 1 Kelly,
108.
An attorney is liable for interest on money collected by him from \h • time it is
demanded of him, and if he has Med to give notice to his client of t: > » receipt of
it or applied it to his own use, from tho time when he collected it, 1 K*-Uy, 275.
1 As a general rule, specific legacies of a productive nature bear inter i trom the
death of tho testator. 5 Kelly <fc Cobb, 301.
But a note given for tho actual amount and legal interest advanced on a ionner
usurious note is valid. 1 Kelly, 392. . , . .
Interest— A demand need not be in writing in order to be liquidated, so as to
bear interest in Georgia. 2 Kelly, 370.
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XVI. Alabama.
l. Interest — The rate of interest in Alabama is eight per cent per
annum.
II. Penalty for Violation of the Usury Laws . — All contracts made
at a higher rate of interest than eight per cent are usurious, and can-
not be enforced except as to the principal.
m. Damages on Bills . — Damages on inland bills of exchange pro-
tested for non-payment, are 10 per cent; on foreign bills of exchange,
15 per cent on the sum drawn for.
IV. All bills drawn and payable within this State are termed
inland bills ; those drawn in this State and payable elsewhere, are
considered foreign bills.
V. Sight Bills. — Grace is allowed on bills, drafts, etc., payable at
sight.
Decisions.
Usury . — The offence of usury is not complete, so as to enable a common informer
to sue for the penalty given by the statute of Alabama of 1819, until the money, etc.,
has been taken, accepted, or received. 4. Alabama, 124.
Tho statutes of usury confer a personal privilege upon the borrower, which he
may waive, and if he does no third party can take advantage. 3 Alabama, 643.
Interest. — In Alabama, interest will be allowed as well upon debts contracted
abroad, if tho lex loci contractus authorizes it, as in the Stato. 7 Port 110.
A note discounted by tho Bank of Mobile carries the legal rate of interest, eight
per cent, after its maturity. 7 Alabama, 490.
Where a partial payment is made and indorsed upon a promissory note before
maturity, interest will not run upon the payment up to the maturity of the note,
without a special agreement, express or implied. 7 Alabama, 859.
Bills and .Votes, — The statutes of Alabama require tho negotiability and character
of bills of exchange, foreign and inland, and promissory notes, payable in bank, to
bo governed by tho general commerical law. 4 Howard's U. S. R. 404.
It is incumbent on an indorser of negotiable paper, if he would prevent usury
from being set up against him, to show that he became tho innocent holder of the
paper for a valuable consideration, before its maturity. 9 Port. 9.
Successive acconmodation indorsers of a bill are not co-sureties, in the absence of
any agreement to that effect, and any circumstance raising such presumption. 5
Alabama, 083.
An indorser of a bill of exchange is not discharged by the mere forbearanoe of
the holder to sue tho acceptor for any length of time. 8 Port 108.
A promise, in writing, to accept a bill of exchange not in esse, is in law a suffi-
cient acceptance, if tho bill be taken on the faith of such promise; and a collateral
written or mere verbal promise to accept it, made after it was drawn, may also
amount to an ■acceptance. But a mere verbal promise to accept a bill of exchange
not yet drawn is not such an acceptance as will in law bind the acceptor, even if
made to the person in whose favor it is drawn. 8 Port 263.
Wrhere a bill is made payable at a particular place, presentment for payment at
that place is sufficient to hold the indorser. 9 Port 186.
Where the holder of a bill of exchange and the parties sought to be charged upon
its dishonor reside in different towns, notice of non-payment may be given through
the post-office, although tho agent of the holder and the party to be notified resides
in the same town. 7 Alabama, 324.
In Alabama, damages other than interest cannot be recovered of an acceptor of
a bill, as acceptor merely. 8 Port 539.
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XVH. Arkansas.
I. Interest . — The legal rate of interest in Arkansas is six per cent.
Special contracts in writing will admit an interest not to exceed ten
per cent All judgments or decrees upon contracts bearing more
than six per cent shall bear the same rate of interest originally agreed
upon. (R. S.j chap. 90, § 1, 2, etc., 1848.)
II. Penalty for Violation of the Usury Laws. — All contracts for
reservation of a greater rate of interest than ten per cent are void.
The excess taken or charged beyond ten per cent may be recovered
back, provided the action for recovery shall be brought within one
year after payment. ( R . A, chap. 90, 1848.)
III. Damages on Bills . — The damages on bills of exchange drawn
or negotiated in Arkansas, expressed to be for value received , and pro-
tested for non-acceptance , or for non-payment after non-acceptance,
are as follows, ( R . S. 1848, chap. 25:)
1. If payable within the State, .... 2 per cent
2. If payable in Alabama, Louisiana, Mississippi, Tennessee, Ken.
tueky, Ohio, Indiana, Illinois, or Missouri, or at any point on the
Ohio River, 4 per cent.
3. If payable in any other State or territory, . . 5 per cent.
4. If payable within either of the United States, and protested for
non-payment, after acceptance 6 per cent.
IV. Foreign Bills. — The damages on bills of exchange, expressed
for value received , and payable beyond the limits of the United States,
(R. S. 1848, chap. 25,) are 10 per cent.
V. Sight Bills. — There is no statute in force in Arkansas in refer-
ence to grace on sight bills. Section 15, Digest of 1848, p. 218, says,
“ Foreign and inland bills shall be governed by the law merchant as
to days of grace , protest and notices.
Decisions and Statutes.
Protest — The protest made by the notary public, under his hand and seal of office,
shall bo allowed as evidence of the facts therein contained. Digest, 1848, p. 217.
But the certificate of a notary who protested a bill, though under his notarial seal,
is no evidenco of the fact. Real Estate Bank v . Bizzell, 4 Ark. 189.
Interest. — Where a note is given, bearing interest at the rate of ten per cent per
annum, the payment of the interest as well as the principal, must be negatived in the
breach, or it will bo too narrow. 3 Pike’s Arkansas R. 261.
In Arkansas, a promissory note, payable on demand, draws interest from date,
without a demand. 4 Pike, 210.
Whore there is a legal liability to pay interest on a money bond or note, by the
non-payment thereof according to its tenor, such liability need not be alleged in an
action on the bond or note. 2 Pike, 875.
The 4th section of ch. 80 of the Revised Statutes of Arkansas, which provides
that judgments shall bear the same rate of interest as the contract upon which
they are recovered, gives such rate of interest upon the damages recovered as well
as upon the original debt 4 Pike, 160.
In an action upon a note bearing interest at a rate greater than is allowed by
law, except on special agreement, it is necessary to allege that the interest as well
as the principal has not been paid. 3 Pike, 261.
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XVIIL Florida*
L Interest. — The legal rate of interest is six per cent. On special
contracts eight per cent may be charged.
II. Penalty for Violation of the Usury Laws. — Forfeiture of the
whole interest paid.
III. Damages on Bills. — The damages on bills of exchange, nego-
tiated in Florida, payable in other States, and returned under protest
for non-payment, are uniformly .... 5 per cent.
IV. Foreign Bills. — Damages on foreign bills of exchange 5 per cent.
V. Sight Bills. — Graco is not allowed on bills, drafts, etc., payable
at sight There is no statute in Florida upon this subject
Decisions.
Usury. — In Florida, where illegal interest is reserved in a contract, it is void to
the extent of the whole interest reserved, including as well legal as illegal interest.
1 Branch’s Reports, 856.
A contract not usurious is not invalidated by a subsequent receipt of a contract
for illegal interest. But whero a usurious contract is substituted for ono not
usurious, in an action on the substituted contract, the plaintiff will be entitled to
recover only according to the terms of tbo original contract. Ibid.
In respect of usury, a contract is to have effect according to the law at tho time
when it is made. Ibid.
Where a usurious contract is made void by statuto at tho time it is entered into, a
subsequent repeal of tho statute does not make the contract valid. Ibid.
The actual receipt of illegal interest is necessary to subject one to the penalty for
usury under the statute of Florida. Ibid.
A contract to pay more than legal interest for past forbearance is usurious. Ibid.
Notes . — It seems that notice of protest to an indorser would be good if it be suffi-
cient to put the party on inquiry, and prepare him to pay it or to defend himself
Even if there bo some uncertainty in tho description of tho bill or noto, if it does not
tend to mislead the party, it will bo good. 1 Branch, 301.
The original protest of demand and non-payment of a note made by a notary,
where the notary testifies that it was made at the time of the demand of payment,
and that he believes the facts stated therein are true, and have occurred, is admissi-
ble in evidence, although tho notary does not remember any of the facts stated
therein, independently of tho protest. Ibid.
A part payment of a noto by tho indorser, not explained or qualified by any
accompanying circumstances, will be held sufficient evidence of waiver of notice.
But where the payment is made with tho money of the maker, and by his request,
tho indorser acts as mere agent of the maker, and the transaction is so qualified
aaid explained as to preclude all idea of an actual or intended waiver on the part
of the indorser. 1 Branch, 25.
A plea filed under oath, in accordance with tho Florida statutes, alleging the
failure or want of consideration of a bond, noto, or other instrument of writing,
throws tho onus of proving the consideration of tho instrument sued on upon the
plaintiff; but the consideration can be inquired into only between such parties as it
might have been at common law. 1 Branch, 94. As between the indorsee and
the maker, the consideration cannot be inquired into. Ibid.
A noto in tho words, “ On demand, the first day of January next, I promise,”
etc., is payable on demand, and the clause, “the first day of January,” applies only
to the time when interest was to commence. 1 Branch, 447.
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XIX. Illinois.
I. Interest . — The legal rate of interest in Illinois is six per cent,
(Act of March 3, 1845.) Sec. 38 of the general banking law, adopted
1851, provides : That any such association or banker, doing business
under the provisions of this act, shall not be authorized to take or
receive exceeding seven per centum per annum as interest on any real
or personal security ; which interest may, in all cases, be received in
advance; and in the computation of time, thirty days shall be a
month, and twelve months a year.
II. Special Contracts . — On contracts for money loaned, ten per
cent may be charged where the parties agree thereto. (Act of Janu-
ary 30, 1849.)
III. Penalty for Violation of the Usury Laws . — When usury is
proved, the defendant recovers his whole costs, and six per cent in-
terest.
IV. Damages on Bills. — The damages on bills of exchange nego-
tiated in Illinois, payable in other States or territories, and returned
under protest for non-payment, are uniformly (by act of March 3,
1845) 5 per cent, in addition to the interest.
V. Foreign Bills . — The damages payable on foreign bills of ex-
change, returned under protest, are (by act of March 3, 1845) 10 per
cent, in addition to the interest.
VI. Sight Bills . — There is no statute in force in reference to bills,
drafts, etc., payable at sight. There are no banks in the State. Cus-
tom amongst merchants and brokers does not allow grace.
Decisions and Statute .
Bills of Exchange. — In addition to tho damages on bills of exchange allowed by
the act of March 3, 1845, six per cent interest is payable from the maturity of such
bills, together with cost and charges of protest ; provided tho bill expresses for value
received.
A note and agreement, made at the same time, must bo taken together as form-
ing one entire contract. 3 Scammon, 12.
Although no particular form is necessary to make a noto, yet the writing must
show an undertaking or engagement to pay, and to a person named in it, or to
bearer, or holder of tho instrument. Breeso’s Rep. 2.
The legal effect of a bond or note payable on or before the day, is different from
one payablo on tho day, in tho one caso the obligor having the right to pay before
the day, but not in tho other. 2 McLean, 402.
By the rule of tho common law, a note under seal imports a valuable consider-
ation, and no inquiry could be had in relation thereto. So a noto not under seal,
expressing on its face to have been given for value received, imports a sufficient
consideration, and leaves it open to be impeached by the defendant. 1. Scam. 208.
A note payable in cattle on a certain day, if not paid on tho day, becomes pay-
ablo in cash. 3 Scam. 389.
Interest. — Held, that when a judgment is obtained upon a contract, that contract
ceases to be, and is merged in the judgment, and such judgment, as regards tho
interest, is operated upon and controlled, not by tho contract, but by tho statute.
Breese, 52.
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XX. Indiana.
I. Interest . — The legal rate of interest in Indiana is six per cent.
No higher rate of interest is allowed on special contracts.
fl. Penalty for Violation of the Usury Laws . — A fine in five times
the interest unlawfully bargained for, taken or reserved upon the con-
tract ; in an action brought upon an usurious contract, the plaintiff
shall recover only his principal, without interest, and the defendant
shall recover costs, and if interest shall have been paid thereon, judg-
ment shall go for the principal, deducting interest paid. If interest
be paid at a higher rate than allowed by law, the payer, or his personal
representative, may recover such interest, with ten per cent damages
thereon, by suit, if commenced within one year after payment thereof
III. Damages on Bills. — Damages, payable on protest for non-pay-
ment or non-acceptance of a bill of exchange, drawn or negotiated in
Indiana, if drawn upon a person in another State, are 5 per cent.
Beyond such damages no interest, or charges accruing prior to pro-
test, shall be allowed, and the rate of exchange shall not be taken
into account.
IV. Foreign Bills. — The damages payable on protest for non-pay-
ment or non-acceptance of a foreign bill of exchange, are, on the prin-
cipal of such bill, 10 per cent. No damages beyond the cost of pro-
test are chargeable against the drawer or the indorser of either species
of bill, if, upon notice of protest and demand of the principal sum, the
same is paid.
V. Sight Bills. — Grace is allowed on all bills of exchange payable
in Indiana, whether sight or time bills.
Decisions, etc .
Notes payable to order or bearer in a bank in this State, shall be negotiable as
inland bills of exchange, and the payers and indorsers thereof may recover as in case
of such bills.
Upon any instrument of writing, made within this State or elsewhere, containing
a promise to pay money without relief from valuation laws, judgment shall be ren-
dered, and excution had, accordingly ; otherwise, property seized upon execution
must be sold for two thirds of its appraised value.
It is no defence to a note in the hands of a bond-fide assignee, that it was origin-
ally given for an illegal consideration. The assignment is a contract which primd
facia imports a good consideration. 1 Blackford, 256.
The law is very well settled with regard to promissory notes payable at a par-
ticular place, that the place of payment is a substantial part of the contract : that
before suit is brought, a demand of payment must be there made ; and that such
demand must bo averred in the declaration, and proved at the trial. 1 Blackford,
329. The same doctrine applies to bills of exchange with acceptances to pay at a
particular place. Ibid.
Interest. — Whenever a payment is made, the interest must bo discharged first;
but if a sum less than the interest is paid, the balance of the interest does not thereby
become principal 3 Blackford, 21.
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XXL Iowa.
I. Interest. — The legal rate of interest in Iowa is six per cent Ten
per cent may be charged on special contracts.
IL Penalty for Violation of the Usury Laws . — Forfeiture of the ex-
cess of interest paid.
III. Damages on Bills. — The damages on bills of exchange negotiated
in Iowa, payable in other States, and returned under protest for non-
payment, arc uniformly 5 per cent.
IV. Foreign Bills. — No statute exists in Iowa as to damages on
foreign bills of exchange.
V. Sight Bills. — Grace is not allowed on bills, drafts, eta, paya-
ble at sight.
Decisions.
Bills of Exchange and Notes. — A person cannot be rendered liable on a bill of ex-
change or promissory note, unless Ids name, or the style of the firm of which he is
a member, is attached to some portion of it as a party. 1 Green’s Iowa, R. 231.
A bill of exchange drawn in one State upon a person residing in another State
is treated as a foreign bill. 1 Iowa, 388.
When no time of payment is mentioned in a note, it is in contemplation of law
payable on demand. 1 Iowa, 552.
The lex loci contractus will govern the liability of indorsers, and it will be pre-
sumed that the lex mercatoria prevails in those States, rendering the indorsers liable
on demand and notice, without suit against the makers. 1 Iowa, 388.
Where a lost promissory note, which was made payable to bearer, is the ground
of an action in chancery, to enable the complainant to recover, he must indemnify
the defendant by bond and security against all claims on the note ; such indem-
nity may bo required by decree of the court, and the complainant authorized to
recover on compliance therewith, and on payment of costs. 1 Iowa, 48.
Where a person, not a party, writes his name on the back of a negotiable pro-
missory note, the law presumes that he is a strictly commercial indoreer, even
when his indorsement cannot be made operative without the aid of another. 1
Iowa, 331.
Interest . — By a provision of statute, an account bears interest from the time of
its liquidation ; and that will be presumed from the day the account was presented
for payment, if no objection is made to its correctness. 1 Iowa, 336.
In order to recover interest on an account, it should be averred in the declara-
tion, and specified in the bill of particulars. Ibid.
Under the statute authorizing parties to contract for interest not exceeding
twenty per cent per annum, it was legal to make a note drawing twelve per cent,
and if not paid when due, fifteen per cent. It will not bo considered by a court of
equity as a contract for a penalty, but for interest after a given day. 1 Iowa, 180.
Where a note is made payable at a future day, “ with interest if not paid when
duo,” interest is to be computed from tho date of the note. 1 Morris, 294.
Usury. — A usurious contract, under the statute of Iowa, is not void. 1 Iowa,
44, 128.
Where a person not a party to tho note refused to assume the liability of a
maker or surety, but merely to indorse, he will bo considered a second indorser,
and a recovery cannot bo had against him in the name of the payee on special
counts as tho maker, or as guarantor of the note. But if tho payee had indorsed
mid put tho note in circulation, a subsequent indorsee might recover against such
party as aeoond indorser, had the maker failed in payment 1 Iowa, 331.
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XXII. Kbxtuokt.
' I. Interest. — He legal rate of interest in Kentucky is six per cent.
No higher rate of interest ih allowed even on special contracts. All
contracts made, directly or indirectly, for the loan, or forbearance of
money, or other thing, at a greater rate than legal interest, (6 per
cent per annum,) shall be void for the excess of legal interest.
IL Penalty for Violation of the Usury Laws. — If any discount or
interest, greater than the legal interest or discount, is taken by any
bank, or other corporation, authorized to loan money, the whole con-
tract for interest shall be void, and any thing paid thereon for interest
may be recovered back by the person paying the same; or any
creditor of his may receive the same by bill in equity.
Banks, or other monied corporations, or individuals, are not pre-
vented, in discounting bills of exchange, from taking a fair rate of
exchange between the place where it is bought and the place where it
is payable, in addition to the discount for interest. But such privi-
lege of buying bills of exchange at less than par value, shall not be
used to disguise a loan of money at a greater rate of discount than
the legal interest or discount.
III. Damages on Bills. — No statute is in force in Kentucky upon
the subject of damages on inland bills of exchange.
IV. Foreign Bills. — Where any bill of exchange, drawn on any
person out of the United States, shall be protested for non-payment
or non-acceptance, it shall bear ten per cent per year interest from
the day of protest, for not longer than eighteen months, unless
payment be sooner demanded from the party to be charged. Such
interest shall be recovered up to the time of the judgment, and the
judgment shall bear legal interest thereafter. Damages on all other
bills are disallowed. Revised Statutes, pages 193 ana 194.
V. Sight Bills. — Grace is allowed on bills, drafts, etc., payable at
sight.
Decisions.
Where a bill is payable to the drawer’s order, and indorsed to his agent, the
indorsement is virtually to himself) and no averment of his having paid it is neces-
sary. 8 Dana, 133.
In an action upon a foreign bill, the protest is competent evidence to prove pre-
sentment of tho bill to the acceptor, and non-payment. 3 B. Monroe, 10.
Protest of a foreign bill is necessary to a recovery thereon against tho drawer, or
indorsers ; and in Kentucky the demand and noting for protest must bo made by
tho notary himself; it is not sufficient that this was dono by his clerk, unices it
appear that such delegation of authority is sanctioned by tho custom of the place
where tho presentment was mado 6 B. Monroe, 60.
Notice of tho dishonor of a bill, if forwarded the next day after the dishonor, is
sufficient to bind the indorser. Each indorser of a bill has one day, after notice of
its dishonor, to forward notico to his indorser. 7 B. Monroe, 17.
A bill of exchange drawn by a person in one State of the Union upon a person
residing in another, and payable there, is a foreign bill. 8 Dana, 133.
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XXIII. Louisiana.
I. Interest. — The legal rate of interest in Louisiana is five per cent.
Eight per cent per annum may be charged on special contracts.
II. Penalty for Violation of the Usury Laics. — Forfeiture of all the
interest received or paid. Usurious interest may be recovered back.
HI. Damages on Bills. — The damages on bills of exchange nego-
tiated in Louisiana, payable in other States, are uniformly 5 per cent.
IV. Foreign Bills. — The damages on foreign bills of exchange, re-
turned under protest, are uniformly ( Statute of 1838) . 10 per cent.
V. Sight Bills. — There is no statute upon this subject in Louisiana.
A decision has been made in one of the inferior courts allowing three
days’ grace on sight bills, but the usage is to pay on presentation.
Decisions.
By the laws of Louisiana, a notary is required to record, in a book kept for that
purpose, all protests of bills made by him, and the notices given to the drawers or
indorsers, a certified copy of which record is made evidence. 5 Howard’s U. S. R. 53.
Under these laws, therefore, a deposition of the notary, giving a copy of the
original bill, and a copy of Jiis record, stating a demand of payment, subsequent
protest, and notico to the drawers and indorsers respectively, is good evidence. Ib.
Where a bank in which a note has been deposited for collection places it, in case
of non-payment, in the hands of the notary to whom its own business is uniformly
intrusted, to bo protested, it will not be responsible for the failure of the notary to
protest the note, or to notify the proper parties, having shown the samo care and
attention in the management of the business intrusted to it which men of common
prudence bestow on their own affairs. Baldwin v. Bank of Louisiana, Supreme
Court La. 1846.
If the principal be sued for and recovered, the interest cannot be afterwards
claimed in a soparato suit 2 Martin’s R. 83.
Interest on interest cannot bo allowed. 5 Louisiana R. 33.
Interest cannot bo allowed on an unliquidated claim, and a claim is unliquidated
when no act of one of the parties alono can render it certain. 5 Martin’s R. 6 ; 1
Martin’s New Series, 130; 6 ib. 715, 10; 7 Louisiana R. 699, 134.
A parol agreement to pay conventional interest is not void ; parol proof cannot
be offered to prove such a convention ; but if a party, when interrogated, confess
that ho did make such a convention, it will bind him. 6 Martin’s R. 279.
Interest must be allowed on bills of exchange and promissory notes from tho
dato of protest. 6 Martin’s New Series, 672.
Banks cannot in any case take more interest than at tho rate fixed by their
charters. Where the bank-charter fixes the rato of interest at nine per cent, and
ten is agreed upon, it will bo reduced to tho rate fixed by tho charter. 8 Louisi-
ana R. 261.
Whero a noto is made payablo at a particular place, payment must bo demanded
thero beforo recovery can bo had of the maker ; but it need not bo made on tho
very day it falls due in order to charge the maker, (3 Martin's New Series, 423;)
but if a noto be made payablo at tho house of A B, a demand either at his dwelling-
house or at his office is good. 3 ib. 687.
The obligation against tho drawer of a bill is fixed by the non-acceptance, pro-
test, and notice, and it is immaterial whether any demand and protest for non-pay-
ment was made or not. 13 Louisiana R. 421.
Demand of payment must bo made personally, or at the domicilo of tho drawer
of a noto, in order to bind tho indorser, w hen no particular placo is designated for
payment 11 Louisiana R. 489.
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XXIV. Michigan.
I. Interest . — The legal rate of interest in Michigan is seven per
cent. But it is lawful for parties to stipulate in writing for any sum
not exceeding ten per cent.
II. Penalty for Violation of the Usury Laws . — Parties suing upon
contracts reserving over ten per cent interest, may recover judgment
for the principal and legal rate of interest. There is no provision for
recovering back illegal interest paid, and no penalty for receiving it.
Bona-fide holders of usurious negotiable paper taken before maturity,
without notice of usury, may recover the full amount of its face.
ID. Damages on Bills . — Damages on bills drawn or negotiated in
Michigan and payable elsewhere and protested are as follows :
1. If payable out of the United States, 5 per cent.
2. If payable in Wisconsin, Illinois, Indiana, Ohio, Pennsylvania,
or New-York, 3 per cent.
3. If payable in Missouri, Kentucky, New-England, New-Jersey,
Delaware, Maryland, Virginia, or District of Columbia, 5 per cent.
4. If payable in any other State or Territo^r, 10 per cent
IV. Sight Bills . — Grace is allowed on all paper not payable on
demand.
Decisions.
The following instrument is not a promissory note :
[$60.] Plymouth, July 11, 1841.
“ Two years from date, for value received, we, or either of us, promise to pay
E. W., or bearer, sixty dollars with use. Said W. agrees that if fifty dollars bo
paid on the 1st day of January, 1843, it shall cancel this note.1’ Signed by the
makers. Froleck et al , vs. Norton, et al , 2 Mich. Rep. (Gibbs.)
The law of the place where a promissory note is made payable, determines the
time and mode of presentment and of proceedings upon non-payment, but notice to
the indorser must be according to the law of the placo where the indorsement was
made. Snow vs. Perkins, 2 Mich. Rep. (Gibbs,) p. 238. %
When the law of a State in which a promissory note is made payable, authorizes
its protest for non-payment, notice to the indorser residing in another State in which
the indorsement was made, that it lias been protested for non-payment and that tho
holder looks to him for payment, is a sufficient notico of presentment and non-pay-
ment to charge him as indorser. Snow vs. Perkins. Ibid.
Tho case of Platt vs. Drake, (1 Doug. Mich. Rep.,) noticed and commented
upon.
A mistake in describing a promissory note in a notice of protest, os in amount^
eta, does not necessarily vitiate the notice ; tho question in such case being
whether or no the indorser was misled by the mistake. Ibid.
The object of a notice of protest of a promissory note is to inform the indorser of
the non-payment of it by the maker, and that the indorser is liable for the payment
of it; and if the notice accomplishes this object it is sufficient, although it mis-
describe tho note in some particulars. Ibid.
A draft made payable to the bearer , no payee being named therein, is, neverthe-
less, an order for money in the meaning of the Revised Statutes of Michigan.
People vs. Brigham, 2 Mich. Rep.
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Damages on Bills.
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XXV. Mississippi.
I. Interest . — The legal rate of interest in Mississippi is six per cent.
By the act of 1853-4, ten per cent may be charged on special con-
tract for money bona-fide loaned.
II. Penalty for Violation of the Usury Laws . — Forfeiture of the
excess of interest paid.
III. Damages on Bills . — No damages are allowed for default in the
payment of any bill of exchange drawn by any person or persons
within the State on any person or persons in any other State. On
all domestic or inland bills (drawn on persons within the State) and
protested for non-payment, five per cent. (See act of May 11, 1837.)
IV. Foreign Bills. — The damages on bills of exchange drawn on
persons without the United States, returned under protest are 10 per
cent, with all incidental charges and lawful interest.
V. Sight Bills . — Grace is not allowed on bills of exchange, drafts,
etc., payable at sight .
Decisions .
Under the statute of Mississippi, protest of an inland bill of exchange is not neces-
sary to enable the holder to recover the amount of it of the drawer ; that is necessary
only to enable him to recover interest and damages. 6 Howard’s S. C. R. 23.
It is not necessary that the notary should make out his formal protest of a bill at
the time of presenting it for acceptance, or payment, which is refused ; but it is
sufficient if ho makes a note of the facts at the time, and draws up his protest after-
wards. Ibid.
Bills. — An order payable out of a particular fund is not a bill of exchange. ]
Smedes & Marshall, 393.
An indulgence granted to the acceptor until the drawer should be heard from, based
upon a sufficient consideration, exonerates the indorser. 6 Smedes <fc Marshall, 433.
An accommodation indorser is not discharged upon notice to the holder of tho
paper to sue tho drawer, and proof of his failure to bring suit until after the drawer
became insolvent. 6 Howard, 689.
Whero tho dwelling-house or place of business of the drawee of tho bill is shut
up, it seoms that there must be inquiry in the neighborhood, in order to excuse
presentment. 7 Howard, 294.
The notary who fills up and certifies the protest must present the bill himself; it
cannot be done by an agent 4 Howard, 567.
A bill of exchange payable at a certain time need not be presented for acceptance
until maturity ; but if it is, notico and protest are necessary if acceptance bo refused.
4 Howard, 567. Seo also 12 Verm. 401 ; 8 Miss. 268.
It seems that demand and protest must bo made according to the laws of the
place where the bill is made payable. In Mississippi, a demand of payment of a
foreign bill is not good unless made by the notary himself. 7 Howard, 294.
An agent of tho holder is allowed one day to give notico to his principal of a
default, and the principal is entitled to one day, after he receives notico, to give
notice by mail to the drawer or indorser. 7 Howard, 294.
The last indorser of a bill, in order to hold the prior indorsers, must give notice
to thorn of its dishonor on the next day after he himself receives such notice. 4
Smedes & Marshall, 177.
Interest . — The rate of interest is to be determined by the law of the place where
tho contract is to be executed. 4 Smedes & Marshall, 667.
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Usury Laws of the United States .
73
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XXVI. Missouri.
I. Interest. — The legal rate of interest in Missouri is six per cent.
No higher rate of interest is allowed on special contracts. (Formerly
the law allowed ten per cent.)
II. Penalty for Violation of the Usury Laws. — Forfeiture of the ex-
cess of interest paid, and to be appropriated to the school fund.
HI. Damages on Bills. — The damages on bills of exchange nego-
tiated in Missouri, payable in other States, and returned under protest,
are uniformly 10 per cent.
On bills payable within the State, .... 4 per cent.
IV. Foreign Bills. — The damages allowed on foreign bills of ex-
change are 20 per cent.
V. Sight Bills. — A statute of 1853-4, provides that on bills of
exchange payable at sight, grace shall not bo allowed.
Decisions.
Bills. — A bill payable in currency is not a bill of exchange in Missouri. 7 Mis-
souri, 695.
The notary’s protest is evidence of presen traent and refusal to pay in Missouri.
4 Missouri, 62.
A bill of cxchango payable at a time certain need not be presented for acceptance
until maturity, but if it is, notice and protest are necessary. 8 Missouri, 268. But
if the bill is presented for acceptance before that time, and acceptance refused,
notice must be given in order to fix the liability of indorsers. Ibid.
In demanding payment of a bill, it should be produced 4 Missouri, 62. And
in Missouri demand of payment is properly made on the third day of grace. A
demand made at the counting-room of the acceptor of a bill of exchange, by the
clerk of the holder, is sufficient, without showing a special authority in the clerk
for that purpose. Ibid
It is not indispensable for the notice of the dishonor of a bill to be sent to the
post-office nearest to the residence of the party, nor even to the town in which he
resides, if it bo in fact sent to the post-office to which ho usually resorts for his
letters. 8 Missouri, 443.
To hold an indorser, personal notice of the dishonor of the bill, or notice left at
his dwelling-house or place of business, is necessary, where the parties reside in the
same place. 7 Missouri, 467.
To entitle a party to damages upon a protested inland bill of exchange in Mis-
souri, the bill must express to be for value received . 7 Missouri, 438.
The Missouri statute making promissory notes assignable vests the legal property
in the assignee, and a suit cannot be maintained in the name of the payee for the
use of an assignee. 6 Missouri, 433.
The statute provision in the Revised Code of Missouri of 1835, that the holder of
a negotiable note, in order to fix tho liability of an indorser, shall, with due dili-
gence, institute proceedings against tho maker, was intended to supersede the
necessity of demand and notice. 6 Missouri, 338.
A note bearing “ ten per cent interest from date” will be construed as bearing ton
per cent interest per annum. 9 Missouri, 841. And a note payable “in the cur-
rency of this State” is payable in gold or silver coins, or tho notes of tho Bank of
Missouri. Ibid. 697. But a note payable “in tho current money of Missouri” is
payable in gold or silver alone. Ibid.
Usury. — A contract tainted with usury is not void in Missouri ; it is valid as to the
residue of the amount, after deducting the penalty for the usuiy. 10 Missouri, 506.
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Damages on Bilk.
555
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XXVII. Ohio.
I. Interest. — The legal rate of interest in Ohio is six per cent.
On special contracts, ten per cent or less.
IL Penalty for Violation of the Usury Laws . — Forfeiture of all
the interest paid above six per cent. This is the rule established by
the courts. The statutes prescribe no penalty.
HI. Bills of Exchange . — The damages on bills of exchange nego-
tiated in Ohio, payable in other States, and returned under protest, are
uniformly (by Act of February 15, 1881) . . # 6 per cent.
IV. Foreign BiUs. — The damages on foreign bills of exchange,
returned under protest, are . . . . 12 per cent.
V. Sight Bills . — No grace is allowed on bank-checks payable at
sight. A statute is in force, providing that “ all bonds, notes, or bills,
negotiable by this act, shall be entitled to three days’ grace in the
time of payment.” The practice throughout the State is not uni-
form. In some plaoes the banks tdlow grace on bills drawn upon in-
dividuals and payable at sight.
Decisions.
Where the drawer of a bill of exchange has paid the bill to the payees, after the
acceptors have refused to pay it, he has the right to sue the acceptors, in the name
of the payees, for his own benefit. 3 McLean, 891.
A protest must be made by the notary, and if his name is used by his clerk, it
is improper, and cannot make the protest valid. 3 McLean, 481.
A bill drawn in another State, payable in Ohio, is entitled to grace, and a demand
and notice on the second day of grace is not sufficient. 10 Ohio, 496.
A note for a certain sum, payable in bank paper, is negotiable under the statute.
1 Ohio, 189.
The putting a seal to a note does not change the commercial character of the pa-
per. 5 Ohio, 222.
In an action by the assignee against the maker of a single bill, under seal, the
indorsement is necessary to be proved. 1 Ohio, 262.
Every indorsement of a bill of exchange is a new contract, and each indorser
becomes to the subsequent holder a new drawer. 10 Ohio, 180.
Where a note is payable at a certain place, no demand is necessary in order to
charge the maker ; but if the maker be there, ready to pay the money, and no one
be there to receive it, the duty to pay still remains, but no action can be sustained
until a subsequent personal demand be made. 1 Ohio, 483.
No protest of the dishonor of a bill drawn by a citizen of one State on a citizen
of another is necessary, except to recover statute damages. 10 Ohio, 496.
A bill drawn on a person in Ohio, payable in New-York, and protested for
non-payment, docs not entitle the holder to the six per cent damages under the
statute. 8 Ohio, 292.
Where a bill is drawn in New-York upon a person residing in that State, and is
subsequently indorsed in Ohio, and suit brought by the holder against the indorser,
the plaintiff is entitled to six per cent damages ; and in such case a protest is ne-
cessary, and is competent to prove a demand. 10 Ohio, 180.
Interest — Where one agrees to pay interest annually, but fhilfl to do it, the in-
terest itself becomes principal, and bears interest from the time it becomes due.
4 Ohio, 373.
Compound interest is not allowed. 6 Ohio, 260.
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556 Usury Laws of the States ♦ 75
XXV11L Tennxssxx.
I. Interest — The legal rate of interest in Tennessee is six per cent,
and no higher rate is allowed on special contracts.
II. Penalty for Violation of the Usury Laws . — Liable to an indict-
ment for misdemeanor. If convicted, to be fined a sum not less than
the whole usurious interest taken and received, and no fine to be leas
than ten dollars. The borrower and his judgment creditors may also,
at any time within six years after usury paid, recover it back from the
lender.
III. Damages on Bills . — The damages on bills of exchange nego-
tiated in Tennessee, payable in other States, and protested for non-
payment, are 3 per cent*
IV. Foreign Bills. — The damages allowed on foreign bills of ex-
change, returned under protest, are as follows :
I. If upon any person out of the United States, and in N orth- America,
bordering upon the Gulf of Mexico, or in any part of the West-
India Islands, 15 per cent.
2. If payable in any other part of the world, . . 20 per cent.
V. Sight Bills . — The legislature has passed an act providing that
bills at sight shall not be entitled to days of grace. By law, all nego-
tiable paper due July 4, December 25, January 1, or on any day
appointed by the Governor as a day of Thanksgiving, or as a public
holiday, shall be payable the day preceding either of those days.
Decisions.
The certificate of a notary that he gave due notice to an indorser is not admissible
evidence, unless it be made at the time of the protest, and be made in or on the
protest 4 Humphreys, 51.
Interest. — The rule of calculating interest in Tennessee, where payments have
been made, is to calculate the interest upon the sum due from the time it was due
up to the time payment was made, and to deduct the payment from the principal
and interest at that time, and so till the whole is paid. 5 Yerger, 310.
Promissory Notes. — A duo bill is in legal effect a promissory note, and as such
assignable, and, where for a money demand, negotiable. 4 Humphreys, 247.
Where there are joint promisors, a release of one, to effect the discharge of the
others, must be a release under the seal of the party, and must be pleaded by the
party wishing to discharge himself by such act of the plaintiff 4 Humphreys, 449.
Where a note is made payable in property at a given day, the tender must be
made in good faith, and in pursuance of the terms of the contract. Any substan-
tial variation from its terms will subject the payer to the payment of money. 5
Humphreys, 423.
A note for money, which may be paid in cotton, is not a negotiable instrument
in Tennessee, and the indorser or assignor of such paper is not liable on hia indorse-
ment. But if such a note is not discharged in cotton at the stipulated time, it
becomes a money demand, and debt and detinue will lie against the maker. 5
Yerger, 436.
In Tennessee, whore a note under seal was given, and a covenant entered into
by the payee for the delivery of the articles which were the consideration for which
the note was given, it was held, that the maker of the note, under the act of 1817,
a 16, could inquire into its consideration. 6 Yerger, 515.
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7«
Damages on Dills.
557
XXIX. Texas.
I. Interest . — The legal rate of interest in Texas is eight per cent.
On special contracts, twelve per cent per annum may be paid or
charged.
II. Penalty for Violation of the Usury Laws . — Forfeiture of all the
interest paid or charged.
El. Damages on Bills. — An act giving damages upon protested
drafts and bills of exchange drawn upon persons living out of the limits
of the State, passed December, 1851.
Section 1. Be it enacted by the Legislature of the State of Texas ,
That the holder of any protested draft or bill of exchange, drawn
within the limits of this State, upon any person or persons living beyond
the limits of this State, shall, after having fixed the liability of the
drawer or indorser of any such draft or bill of exchange, as provided
for in the act of March 20, 1848, be entitled to recover and receive
10 per cent on the amount of such draft or bill, as damages, together
with interest and cost of suit thereon accruing. Provided , that the
Srovisions of this act shall not be so construed as to embrace drafts
rawn by persons other than merchants upon their agents or factors.
IV. Sight Bills. — By usage, grace is allowed on bills, drafts, etc.,
payable at sight.
Statutes , etc.
Banking . — Be it enacted, etc., that any corporation, company, or association of
individuals who shall use or exercise banking or discounting in this State, or who
shall issue any bill, check, promissory note, or other paper in this State, to circulate
as money, without authority of law, shall be deemed guilty of a misdemeanor, and
shall be liable to a fino of not less than two (nor more than five) thousand dollars.
Chap. 156, March 20, 1848.
BiUs of Exchange. — The drawer of any bill of exchange which shall not be ac-
cepted, when presented for acceptance, shall be immediately liable for the payment
thereof upon legal protest of the same, and may be sued for the same before the
District Court. Chap. 134, March 20, 1848.
Grace . — Three days’ grace shall be allowed on all bills of exchange and promis-
sory notes assignable and negotiable by law. Ibid.
Bills of Exchange. — Whenever the amount of any bill or promissory note, due and
unpaid, shall be within the jurisdiction of a justice of the peace, the holder thereof
may secure and fix the liability of any drawer or indorser thereof, by instituting
suit within sixty days after the right of action shall have accrued Chap. 134,
March 20, 1848.
The holder of any bill of exchange or promissory note may secure and fix the
liability of any indorser or drawer thereof, without suit against the acceptor, drawer,
or maker, by procuring such bill or note to be regularly protested by some notary
public of any county, for non-acceptance or non-payment, and giving notice of such
protest to such drawer or indorser, according to the usage and custom of merchants.
Dud.
BiUs and Notes. — A note made payable to A as administrator of B is a note pay-
able to A. The words, “ as administrator of B,w are merely descriptio persona, and
may be treated os surplusage. Gayle vs. Ennis, 1 Texas Reports, 184.
The person who appears to be the legal holder of a promissory note may maintain
an action thereon, although the actual ownership is in another. Ibid 87.
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Usury Laws of the States.
77
Digitized by
yYX- Wisoownr.
I. Interest . — The legal rate of interest in Wisconsin is sivnr per
cent But any rate of interest agreed upon by parties in contract not
exceeding twelve per cent, specifying the same in writing, shall be
legal and valid. (Act of 1851.)
II. Penalty for Violation of the Usury Laws,— By the act of 1861
the entire debt is forfeited, and an action may be brought, within one
year, in case the interest has been paid, by the borrower, or his repre-
sentatives, against the lender and his representatives, to recover back
treble the amount of the excess over seven per cent.
III. j Damages on Bills of Exchange . — The damages on bills of ear-
change, drawn or indorsed in Wisconsin, payable in either of the
States adjoining that State, and protested for non-acceptance or non-
payment, are 5 per cent*
If drawn upon a person, or body politic or corporate, within either
of the United States, and not adjoining to that State, the damages
are 10 per cent*
IV. Foreign Bills . — The damages on bills of exchange, drawn or
indorsed in Wisconsin, payable beyond the limits of the United States,
and protested for non-acceptance or non-payment^ are (R. S., 1849,
p. 263) 5 per cent*
Together with the current rate of exchange at the time of demand.
V. Sight Bills — On all bills of exchange payable at sight, or at a
future day certain, grace shall be allowed, (R. o. 1849, p. 263.) But
not on bills of exchange or notes payable on demand,
Decisions and Statute.
Promissory Notes — Where in an action brought upon a promissory note, executed
by the defendant, as trustee of a company, whereby he promised to pay, and also
upon another note which ho subscribed with his own proper name, but adding his
representative namo of trustee, a general demurrer to the declaration will not
bo sustained. Rupert vs. Madden, 1 Chandler’s Supreme Court Reports, I860,
p. 146.
The addition in the body of the notes, as appended to the name of the maker sub-
scribed thereto, is a mere descriptio personae of the party making tho note, and can-
not be so construed as to exempt him from personal liability. The description
which he gives of himself, either in the note or in subscribing the same, is to bo
regarded as merely descriptive of his person ; but cannot be construed as relieving
him from personal liability. Ibid.
Partnership. — Whore a partnership exists between two persons, one of whom is
a dormant partner, and tho creditors of tho firm have obtained judgments against
the ostensible partner, founded upon debts created upon the partnership accounts,
upon which executions have been issued nvlla hondy a bill in equity, against both
partners, will be sustained upon tho allegation that the dormant partner had, by
fraudulent connivance of the ostensible one, obtained the possession, and laid claim
to all the partnership assets, in fraud of the creditors : the relief which equity will
give is to subjoct the whole assets to the payment of such debts. Ibid., Yol. II.
p. 222.
\
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The Money Market of Europe
- n
THE MONEY MARKET OF EUROPE.
Prom the London Spectator.
The money difficulties at present experienced in the city have not
been altogether unexpected. We find the last number of the Bank-
ers' Magazine explaining the reasons for the “ tightness” in the money
market, and for not obtaining that relaxation in the rate of discount
which might have been expected after so favorable a harvest. Evcd
before this authority addressed himself to his task, a comparison had
been made with the period of three years ending in 1847, as bearing
some resemblance to the same period now closing. The data for this
long comparison consist mainly in a steady decline of the bullion and
of the reserve in the Bank of England, while the amount of discounts
was increasing.
In the former period, taking the weekly returns, and speaking in
round numbers, the bullion decreased from £15,380,000 to
£8,880,000 ; the reserve, from £9,000,000 to £4,948,000 ; while the
discount rose from £12,400,000 to £18,740,000. In the period end-
ing with the present season, the decline of bullion is from £21,867,000
to £13,321,000; of the reserve, from £13,914,000 to £7,700,000;
while discounts advanced from £11,325,000 to £14,719,000. In each
period there was a decrease in the deposits of private customers of
more than a million sterling. These resemblances were noted before
the present failures took place, and they are not without interest ; but
the differences are still greater than the resemblances, and we should
draw very erroneous conclusions if we were to presume the same
sequel in 1854 that we had in 1847. The proximate cause of the
difficulty in 1847 was the railway speculation — an enormous expendi-
ture of money without present return, and in a great proportion of
cases without any security for the future. A throwing away of cash,
accompanied by glaring insolvency, naturally called up many claims
that might otherwise have been treated gently, and so aggravated the
consequences of miscalculation.
The war expenditure is now made to do duty in accounting for the
extreme and general want of money, instead of the railway expendi-
ture ; but it has no resemblance to that expenditure, aimlessness or
in scale ; and we shall presently have proof how little it affects the
market. £20,000,000-— a very large allowance — what is that sum
spread over the wholo nation, in comparison with the sum dragged
out of a comparatively limited number of pockets during an amount
and scarcely miss it, whereas the large holes thus created in the money
market cut up the whole surface of the commercial world. Instead
of baseless speculation, there are plenty of facts to account for the
!>resent tightness of the money market, to justify the caution which
or the moment aggravates that tightness, and also to justify hopes of
a recovery at no distant date.
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The Money Market of Europe.
117
The corn market gives us one scries of influential causes. The
harvest, it was reported, would be in such fine condition that the new
wheat would do without a mixture of the old wheat ; a rash specula-
tion with regard to English corn, and it was not substantiated.
Hence, the old corn suddenly rose in value ; and the fact that the
corn market has its “ bulls,” as well as the money market, helped
to enhance the rise. Thus, more uncertainty was introduced into the
operations of that department. The check, however, was not alto-
gether to be regretted ; there had perhaps been somewhat exaggerated
anticipations as to the cheapness of corn during the ensuing twelve
months. Moderate prices no doubt there will be ; as compared with
the state of the market last year, the public will certainly save
millions in bread only. But very great cheapness of corn does not
result in this country from a good harvest ; one good harvest after
another is necessary to give us the prices of 1836. A slight reaction,
therefore, on the expectations of extravagant cheapness is natural,
and not unwholesome.
The state of our manufacturing districts, and of the countries abroad
with which they are in immediate relation, furnishes another class of
reasons. All is caution and dullness at Manchester ; at Nottingham
there is only a slight increase in the transactions, still some depres-
sion ; and in the Irish linen market, notwithstanding the complaint
that the raw material had been cut off in Russia, “ stocks are accumu-
lating.” The reasons are only too evident. The last reports from
Australia confirm those which have previously been received — mar-
kets are overstocked with goods, prices still dull. The sudden exten-
sion of the Australian trade with the discovery of the gold, had pro-
duced the usual effect of overstocked markets there, and over-stimu-
lated production and exports in this country. Manchester — which
had abused the relief then afforded to an overstrained trade — now
feels the reaction. India, too, reports dull markets. In the United
States, where they always trade fast, there has been a railway specu-
lation ; that speculation has been aggravated by frauds in great share-
holding companies — the creation of imaginary shares to an immense
extent ; and the partial deficiency of a grain crop— exaggerated, wc
believe, by reckoning that the deficit will amount to one third or one
fourth of the average crops — suggest apprehensions that our Ameri-
can correspondents will not be able to substantiate their liabilities
within the usual period of commercial transactions. Immense prices
are given there for money — ten, twelve, and even eighteen per cent;
prices which indicate distrust, and suggest a fear that wc have not
yet seen the last of the difficulties. Inis must tell severely upon
our manufacturing districts, whose wares are already to some extent
forcing a market by sacrifice of prices. It explains the absence of an
American demand in Nottingham. It helps to explain an American
decline in the deliveries of cotton for consumption in Lancashire. In
regard to trade generally, however, while the money market is tight
— while great houses at Liverpool are failing, and those in Manches-
ter and London are sympathetically shaking, there is, upon the whole,
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The Money Market of Europe.
5 61
no general depression in any business or employment ; a fact which
we must in part ascribe to the sound state of our agricultural busi-
ness— blessings on free trade that created it! — and to the sound
state of the industrial market — blessings on the emigration that
helped it !
In addition to these causes for real difficulty in the operations of
trade, there is another which tightens the screw. The close of the
year is approaching ; the bankers and the bill-brokers, as the j Bankers'
Magazine observes, usually exercise closer vigilance ; and that peri-
odical prudence must, of course, be strengthened by the peculiar cir-
cumstances at which wc have already glanced. The mere anticipa-
tion that the war expenditure would create a demand for money — an
apprehension much exaggerated — has also lent its help in making the
tightness still tighter. We are now able to understand that there are
substantial reasons for proceeding with more than usual caution — sub-
stantial caution for the present difficulties ; and grounds not less sub-
stantial for anticipating that, with the sound state of production which
really exists in the principal countries corresponding with our manu-
facturing districts, and in our own land, the difficulty will be gradually
and perhaps not slowly worked through. A grand difference between
the triennial period ending in 1847 and the present, lies in the state of
the consol market, which is indeed remarkable, though any thing but
intelligible. Of the former period, although there were considerable
fluctuations, it might be said broadly, that the price of consols declined
from 100$ on the 4th January, 1845, the highest price of that year,
to 78J on the 19th October, 1847, the lowest price of that year.
We now come to the present triennial period. The lowest price
of 1852 was marked on the 24th January, and it was 95$ ; by the 9th
December it had advanced to 101$. The subsequent fluctuations
have been considerable ; at the end of April and beginning of May,
1853, the price stood at 101 ; the lowest price of the year was marked
on the 27th September, and was 90$. The actual declaration of war
begot a transitory panic, and for a moment the bears seemed to have
it all their own way. Consols were down to 85$ on the 30th March,
1854 ; but when the folly of the sacrifice became apparent, consols
rallied ; and on Saturday last they were as they had long been, steady
above 95, with a rising tendency. Then came “ the news,” and a
sudden burst upwards was expected — by all but those who kept their
regard fixed upon the broader influences at work on the commerce
and “ the city.” The last price on Saturday, the 30th September,
was a little below the highest of the day, and stood at 95-$ to $ ; the
opening price on Monday, the 2d of October, was 95$ to 96 ; “ some”
purchasers ventured $ higher, but the closing price was 95$ f — $
above placid Saturday ! What should we infer from this novel exhi-
bition of firmness, if not that the men at the head of the money mar-
ket know how this little empire is affected by the vicisitudes of a
weaker power such as Russia — know how sound, generally speaking,
is the state of commerce — how sound the financial government of the
country ? ^
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Coins, Coinage, and Bullion.
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COINS, COINAGE, AND BULLION.
United States Coinage. — Statement of deposits and coinage at
the Mint of the United States, Philadelphia, during the month of Octo-
ber, 1854:
Gold Bullion Deposited. Value.
From California, $550,000
Other sources, 60, 000
Total gold deposits, $600,000
Silver bullion deposited, including silver purchases, $200,000
Total gold and silver, $800,000
COINAGE EXECUTED.
Denomination. Gold . Value.
Dollars, $323, 743 00
Fine bare, 1,822,767 97
Total $2,146,610 97
Silver. Value.
Half-dollars, ; $84,000
Quarter-dollare, 1 6, 000
Dimes, 50,000
Half-dimes, 35,000
Total, $176,000
Copper. Value.
Cents, $4,862 46
RECAPITULATION.
Gold ooinage, $2,146,610 97
Silver coinage, 176,000 00
Copper coinage, 4,862 46
Total value, , . . . . $2,326,373 43
Summary of coinage executed at the Mint of the United States
and its branches, from January 1st to September 30th, 1854:
GOLD.
Denomination . 2fo. of Pier e*. Value.
Double-eagles, 750,813 $15,016,260 00
Eagles, 177,574 1,775,740 00
Half-eagles, 614,697 9,673,485 00
Throe dollars, . 129,988 389,984 00
Quarter-eagles, 667,769 1,669,397 50
Dollars, 1,002,303 1,002,303 0C
Fine bars, 9,476,646 63
Unparted bars, 4,086,479 00
Totals, $3,243,144 $35,890,205 12
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SILVER.
Dollars,
33,140
$33,140 00
Half-dollars,
3,384,000 00
Quarter-dollars,
2,949,000 00
Dimes,
383,000 00
Half-dimes,
290,000 00
T rimes,
12,000 00
Total,
COPPER.
$1,051,140 00
Cents,
31,115 89
Total coinage, . . . .
$43,019,121 10
California Gold — Tho following have been the semi-monthly
shipments, for the first nine months of 1853 and 1854 respectively,
from San Francisco :
1858. ISM.
January 16 1,144 399 1,129,532
February 1, 2,430,000 1,155,488
February 15, 2,890,558 2,081,129
March 1, 2.0GG.338 1,549,011
March 16, 2,419.400 1,816,124
April 1, 2,234,308 2,206,189
April 16, 2,596,650 2,312,424
Mayl, 2,130,138 2,149,681
May 16, 2,511,986 2,341,4-14
June 1, 2,604,583 2,685,615
June 16, 2,223,810 2,245,213
July 1 2,004,149 2,061,816
July 16 2,128,052 1,966,953
August 1, 2,462,488 2,159,318
August 16, 2,243,094 3,155,898
September 1, 2,416,109 2,383,551
September 16 2,193,864 1,951,456
October 1, 2,569,636 2,801,138
Total, $41,860,132 $31,858,016
Decrease tho present y ear, .... 4.002,656
To offset this deficiency, we have the following amounts deposited
at the Branch Mint in this city for coinage, since that establishment
went into operation in April last :
April,
May
Juno,
July,
August,
September, . .
Total,
GOLD DEPOSITED FOR COINAGE.
Grout Weight.
07.. 36,393 09
43.388 22
23,853 10
25,104 12
56,580 62
53,049 25
oz. 248,369,66
Value.
$661,991 25
116,322 60
431,629 02
457,175 10
1,042,51 1 95
1,124.938 42
$4,521,168 34
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By adding, therefore, the amount deposited for coinage to the
amount manifested by steamers, wo have $42,385,244, or $524,512
more than was shipped during a corresponding period of 1853.
California Gold. — Among the important items from California
by the steamer, is the information that extensive gold and silver mines
have been discovered in Southern California, and about one hundred
miles from St. Diego. The discovery was made by a party consist-
ingof six Spaniards and one American.
The Leader gives the following description of valuable mines, dis-
covered on the Peninsula :
44 General Rafael Espinosa, Governor of Lower California, has
recently discovered rich gold and silver mines near San Jos6, Lower
California. One silver mine of immense richness is spoken of, the
mouth of which was closely covered with decayed wood, showing
that it had been worked at some remote period. Near the mine
stands an old dilapidated house, the walls of which arc ornamented
with specimens of antique painting in Indian colors, and inside the
walls is a huge tree towering in solitary majesty. A coal mine of
uncommon richness, has recently been discovered this side of Cape
St. Lucas. The discoverer is taking steps to secure it from the
Mexican government, when he proposes to form a company for the
purpose of working it. It is within eight days1 sail of San Francisco,
and near a good landing.”
These discoveries will probably lead to the emigration by masses
from California and New-Mexico to the Southern Peninsula of Cali-
fornia.
Export of Com and Bullion. — As a matter of history and for
future reference, we annex a summary of exports of coin and bullion
for the past five years :
EXTORTS OF SPECIE FROM NEW-YORK TO FOREIGN TORTS.
1850. * ISM. 1S52. 1ST, 3. 1854.
January, $90,361 $1,266,281 $2,868,958 $747,679 $1,815,682
February, 278,708 1,007,689 3,551,543 1,121,020 579,724
March, 172,087 2.368 861 Cl 1.994 592.479 1,466,127
April, 290,407 3,482,182 200,266 7G7.055 3,474,525
May, 741,735 4,506,135 1,834,893 2,162.467 3,651,626
June, ... 860,434 6,462,367 3,556,355 3,264,282 5,168,183
July, 1,518,080 6,004,170 2,971.499 3,924.612 2,922,452
August, 1,441,736 2,673,444 2,935,833 1,183,973 4,548,320
September,... 1,033,918 3,490,142 2,122,495 1,214,101 6.547,104
October, 1,421,328 1,779,707 2,452,301 4,757,972 3,359,398
November, 905,394 5,033,996 809,813 3,855,775 3,538,001
December, 1,208,760 6,668,235 1,180,305 3,131,851
$9,982,948 $43,743,209 $25,096,255 $26,753 356
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565
Philadelphia Mint. — We learn that the officers of the Philadelphia
Mint have contracted with Messrs. Cooper & Hewitt, of this city, for the
substitution of solid rolled iron beams for the wooden ones with which
that establishment was originally built The object is to render the
buildiDg more secure against fire ; as there are ordinarily exposed, in a
single apartment, precious metals in a state of fusion, to the value of
$1,000,000, which would be greatly damaged in case of a conflagration.
The proposed improvement is to be undertaken immediately. The
expense will probably come out of the profits of the Mint, as Congress
has made no appropriation for this object — N. Y. Journal of Com-
merce.
Counterfeit Silver Coin. — We call the attention of the public to
a counterfeit quarter of a dollar, which is the closest imitation in appear-
ance of the genuine coin, which ever fell under our notice. It was taken
at the Post-Office, and paid into the Sub-Treasury, where it was detected
by Mr. Edward H. Birdsall, the weigher and tester of coin, whose pro-
ficiency in this art has already been noticed in our paper. This counter-
feit appears to be made of zinc, or other bright metal ; is cast to resemble
exactly the genuine coin, and is afterwards 44 galvanized” with pure silver.
It is dated 44 1853,” is about ten grains lighter than the genuine, and is
very brittle . By the latter characteristic, it may easily be detected, as it
will readily break by a blow from a hammer; the specimen we saw was
broken by Mr. Birdsall between his thumb and fingers. There are
probably but few now in circulation, and receivers of money will do well
to be on their guard against them.
The Precious Metals in England. — At a time when the extrac-
tion of gold in England occupies so much attention, the following
account of the presence of silver in England may prove interesting.
An immense silver mine was worked in the vicinity of Abcrystwitn,
in the reign of Elizabeth, by which a company of Germans enriched
themselves ; after whom Sir Hugh Middleton accumulated £2000 a
month out of one silver mine at Bwlch-yr-Eskir, by which produce
he was enabled to defray the expense of bringing the New River to
London. After him, Mr. Bushnell, a servant of Sir Francis Bacon,
gained from the same mine such immense profits, as to be able to
present Charles I. with a regiment of horse, and to provide clothes
for his whole army. Besides this, he advanced, as a loan to his
Majesty, no less a sum than £40,000, equal to at least four times the
amount of the present currency : and he also raised a regiment
among his miners at his own charge. — London Mining Journal.
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Tiie Golden Wealth op New-Granada. — The attractions of New-Granada are
not easily enumerated, for they embrace all the productions common to temperate
and tropical regions. Gold has been hitherto exported chiefly in the form of “ dust,”
but large nuggets havo been found. The annual production of the Vice-royalty was
once estimated at nearly 700,000fL The yield of the same ground is now larger.
A single copy of a chart of Antioquia, one of the provinces, exists, ** Par Jose Manuel
Rest repo, 1319,” and rectified by A. Leleaux, colonel of engineers in the service of
Colombia, in 1823. If it were lithographed and published, it would reanimate the
stock-jobbing world ; for it is dotted over with yellow spots, designating gold-find-
ings. We reckoned over 300 of these auriferous comers, and leftof£ wearied with
the work, in regret that gold, so plentiful in some quarters, should be so rare in Bri-
tain, and oven bo mado tho object of idolatry. Wo have a manuscript copy of a
report on tho gold and mining resources of Choco — that province of New-Granada
intersected by the Atrato and its tributaries — which was drawn up on the spot by
Mr. Halsey, an English engineer, employed in 1851 on tho service. Ho died in the
country, or on his return ; and the document, fortunately for Australia, has not been
published ; for it roveals the existenco of fabulous wealth within twenty-four days?
direct steaming of our ports. Gold, in our opinion, is a secondary or a tertiary ob-
ject ; and wre shall only take a few extracts from this curious document, which is con-
fined to the upper banks of tho Atrato, and one of its tributaries. Mr. Halsey says
that the deepest sliaft ho saw was 3 ft. high, and 40 to 60 ft. long, into the face of
tho rock ; from which a negro and his children had taken 25 lbs. of gold, which at
501, tho value in tho country, was worth 12501. They were afraid to dig further,
and stopped there. A single bowl of ore, from these rock-veins, he adds, frequently
yields one pound of gold. Black sand and gravel ho considers tho surest mate-
rial to work upon ; but as tho researches of the miners havo never extended more
than 300 yards from tho river’s banks, nothing is known of the interior. Stamps
and steam-engines are unnecessary to wash out tho black sand, which forms, for
hundreds of miles, a prevalent element in tho river’s deposits. But in tho moun-
tains, between tho Andagueda and tho Cauca, numerous mines havo been appro-
priated, and havo been partially wrought Tho largest lump of gold yet discovered
weighed 15 lbs. One person collected 1 \ lbs. of gold dust in a single day, of which
tho value was 751. No failuro having ever occurred on tho Andagueda, the infer-
ence is, that tho rock veins of gold form a regular stratum, extending to many hun-
dred miles. Tho deposits aro quito open to two or three able-bodied laborers
in company. Provisions are cheap, and they can bo increased without any approach-
able limit The climate is healthy, and the mosquitoes do not extend to tho upper
parts of the river ; but tho direct navigation by steamers can be effected for 400 or
500 miles when tho river is high, and 350 at any season. We refer to navigation
by tho first-class steamers. The country abounds in platina and silver mines, per-
haps more valuable than thoso of gold. We havo not copied some statements from
this report, because, if they aro true, tho facts would revolutionise our present stand-
ards of value. They fonn romances of gold,, or “ Arabian Nights” tales of geolo-
gy'. But, at this point, although unconnected with tho provinco of Choco, wo may
add that, on the upper bank of the Amazon, in 1853, several diggers had gained 25
lbs, of gold for each person, by the labor of a few weeks. In another province of
New-Granada 6400 lbs. of gold-dust passed through tho Post-Offico within a com-
paratively short period. Its value at 501 per pound, was 320,000£ Many silver
mines aro wrought within tho republic. Mines of cinnabar, probably moro import-
ant than tho auriferous deposits, have been found in Antioquia, in Santa Rosa, and
in the mountain of Quindiu. Platina was first discovered in Choco, and its value
for chemical purposes is highly appreciated. Tho salt of New-Granada is unusually
pure; and tho mines aro sufficient to supply South- America for ages to come. Coals
have been procured in the province of Bogota, 8000 ft. above the level of the Paci-
fic. Copper ore is wrought for all home consumption, and will yet form an article of
export. Ironstone exists in tho mountains, and, after the development of coal mines,
will be extremely profitable. The emeralds of Peru are proverbial, and yet entirely
fictitious. Emeralds have never been yot found in Peru. The emerald mine is 50
miles from Bogota, and it supplies all these precious stones. This unique rock is
tho only quarry of emeralds in the world. The dust of land is literally gold ; and
among its stones are diamonds, amethysts, and jacinths.
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I. PUBLIC DEBT OF GREAT BRITAIN.
Thb following is a brief description of the several stocks which
constitute the public debt of the British Empire ; which summary we
find in Fenn’s Compendium of the English and Foreign Funds :
South-Ska Stock and Annuities. — The several stocks and annui-
ties which belong to this Company had their origin in the notable
scheme of 1711, which was established under the pretense of
trading to the South Seas and on the Western Coast of Africa;
but the real object was to relieve the government from the finan-
cial embarrassments of that day. The original capital amounted
to £9,177,967 15». 4 d., which was lent to government at 6 per
cent interest, and the sum of £8000 per annum was allowed for
management. And in 1720, the debt was increased to upwards of
£35,000,000. This amount, however, was subsequently reduced by
paying off a part, and by conversion into government stock ; out of
this arrangement the Old and New South-Sea Annuities were created ;
and in 1751, another stock was created by a loan to pay off the
dissentients from the reduction of interest to 3 per cent per annum,
when the interest was reduced to that rate upon all the stocks. The
following is the amount of these securities as they stood on the 5th
of January, 1853, but have since been paid off, or converted into other
securities, of which we shall speak hereafter.
£ s. d.
Capital Stock of the South-Sea Company,* 3,GG2,784 8 6£
Old South-Sea Annuities, 2,786,478 9 10*
Now South-Sea Annuities, 2,010,284 9 5
South-Sea Annuities, 1751, 463,800 0 0
Total Amounts, £8,923,347 7 9-}
Three per Cent Consolidated Annuities. — This stock commonly
known as the Three per Cent Consols, originated in 1751, when
several descriptions that had been previously kept separate were
consolidated into one, bearing a uniform rate of interest at 3 per
cent per annum. This stock constitutes the most important portion
of the public debt. At the period of its consolidation, it amounted
only to £9,137,812 5«. lrf. ; but on the 5th January, 1853, it stood
at £370,655,463 Is. 3d.
Reduced Three per Cent Annuities. — This stock was formed
at the same period as the one just described, when it amounted only
to £17,701,323. On the 5th of January, 1853, tho amount stood
at £116,589,419 19*. 2d.
* The whole of this stock belonging to tho Company has been paid off; and of
the others only a part, while tho remainder has been commutod into other
securities.
/
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Public Debt of Great Britain.
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Bank Annuities. — This stock was created in 1726, by lottery, and
originally amounted to £1,000,000. This sum was raised to pay off
exchequer bills, which had been issued to defray certain charges,
which had accumulated on the civil list.
Debt Due to the Bank or England. — This debt consists of
various sums which have been borrowed by the government from
the Bank, at different periods since its first establishment in 1694,
when it amounted to £1,200,000. On the 5th January, 1853, it
amounted to £11,015,100. The details of this debt will be found
under the history of the Bank of England.
The sum of the above stocks comprehends the amount of capital
chargeable with the uniform rate of 3 per cent per annum interest,
exclusive of Irish stock, and on the 5th January, 1853, stood at
£507,860,623 6#. 9d.
Three and a Quarter per Cent Annuities. — This stock originated
in 1880, by the conversion of the new 4 per cents, which had been
formed in 1822 from the navy 5 per cents. The holders had the
option of receiving £100 of this stock, or £70 of 5 per cents, or of
being paid off at par. The stock created in 3£ per cents in 1830,
amounted to £150,119,609, and £469,398 of the 5 per cent annuities,
hi 1844, the rate of interest was reduced to 3^ per cent, and the stock
consolidated with several others, amounting to £248,860,663. The
amount of stock paid to dissentients was £103,352, leaving the
capital stock at £248,757,311, effecting thereby a saving of interest to
the amount of £621,893 per annum. The present rate of interest on
this stock is to continue until the 10th of October, 1854, and then to
be reduced to 3 per cent per annum, without being liable to any
further reduction until alter the 10th of October, 1874. The amount
of stock on the 5th January, 1853, was $217,274,390 16*. 7 d.
New Five per Cent Annuities. — This stock originated from the
conversion of 1830, referred to above, the holders of which were
guaranteed against any further reduction in the rate of interest for 45
years, or until after the 5th of January, 1875. The amount of this
stock on the 5th of January, 1853, stood at £431 076 3*. 2d.
The Irish Funds. — The total amount of the Irish funded debt is
about £39,000,000, and is made up of the following stocks :
1. The Consolidated Three per Cent Annuities, which amounted to
£5,565,457 14*. 5 d. on the 5th January, 1853.
2. The Reduced Three per Cent Annuities, amounting to
£118,681 1*. 5 d.
3. The Three and a Quarter per Cent Annuities, amounting to
£30,657,624 17*. 2d.
4. Debt due to the Bank of Ireland, amounting to £2,630,769 4s. 8 d.y
at 34 per cent interest.
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Debts of European States.
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Digitized by
5. The New Five per Cent Annuities , amounting to £2,673 11*. 2d.
The total of the above stocks on the 5th January, 1853, was
£38,975,206 8s. lOrf.
That portion of the national debt which consists of terminable
annuities of various descriptions, is not included in the statements of
the principal stocks, but is given in the annual charge. Amongst
these are the following :
Long Annuities. — These annuities originated in 1780, and have
since received several additions, but all terminating in January, 1860.
These annuities have been principally granted as premiums or
bonuses to the subscribers to loans. On the 5th January, 1853, the
amount was £1,172,555 16s. 6rf.for Great Britain, and£120, 170 15*. Gd.
for Ireland.
Annuities for Terms of Years. — These annuities have been
granted at various dates, and expire at different periods : they are
created under the 59 Geo. III., cap. 34 ; the 10 Geo. IV., cap. 24 ; and
the 3 Will. IV., cap. 14, in exchange for stock or money transferred
to the commissioners for the reduction of the national debt. The
amount on the 5th of January, 1853, was £836,668 5s. lOrf.
Life Annuities. — These annuities are created under the Acts 48
Geo. III., cap. 142; the 10 Geo. IV., cap. 24; and 3 Will. IV., cap. 14,
and are payable at the National Debt Office, Old Jewry. The com-
missioners grant annuities in exchange for stock or money, on single
or joint lives, according to the age of the respective parties, at rates
set forth in the last-mentioned act.
In 1829, Mr. Finlaison, the government actuary, found that the
tables, which had been used in calculating these annuities, occasioned
an annual loss to the publio of about £100,000, owing to the
improved value of human life ; the consequence was, the introduction
of the tables now in use. The amount of these annuities chargeable
upon the publio revenue, on the 5th of January, 1853, was
£1,058,511 2*. Qd.
The Dead Weight Annuity. — This is an annuity of £585,740,
paid by the public to the Bank of England, and arose out of the
pensions due to the army and navy, at the termination of the war in
1815, which then amounted to nearly £5,000,000 per annum. It was
estimated that the whole of these pensions would terminate in forty-
five years, by a gradual decrease annually. By the Act 4 Geo. IV.,
cap. 22, an annuity was authorized to be contracted for to the amount
of £2,800,000. The Bank of England agreed to take a part of this
annuity, to the amount of £585,740 per annum, for which they paid
between 1823 and 1828, inclusive, £13,089,419. The annuity expires
in 1867.
The remainder of the government annuities consist of tontines and
life annuities granted under various acts of parliament.
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131
In addition to the several stocks which are here briefly described,
are two others, which, though they do not come under the denomina-
tion of the government securities, are ranked among the principal
stocks in which investments are made ; of these, the first is —
Bank Stock, — Which is the capital of the corporation of the Bank
of England, as a banking company, the origin of which is given else-
where, and amounts to the sum of £14,553,000, The dividends
payable on this stock, during the last seven years, have ranged
between 7 and 9 per cent per annum.
Another stock, which holds a prominent position amongst the
securities in the money market, is that of the East-India Company,
known as —
East-India Stock. — The capital stock of this corporation amounts
to £0,000,000 sterling. The Company obtained their original charter
in the same manner as the Bank of England, namely, by a loan to the
extent of £2,000,000 to the government, which has been increased at
different times to its present amount. The corporation ceased to be
a commercial company under the 3 and 4 Will. IV., c. 85, and only
act as a political body in connection with government. The dividend
is fixed at 10 J per cent on the capital stock, or £630,000 per annum,
which is paid out of the revenues of India.
East-India Bonds. — These securities are issued by the East-India
Company, as security for debt due to the public, in sums of £100,
£200, £300, £500, and £1000 each, and are payable to the Company
at par, when 6 months’ interest has accrued upon them, which is com-
puted up to the day they are negotiated, and is payable on the 31st
March and the 30th September.
The Unfunded Debt : Exchequer Bills. — That part of the public
debt which comes under the above denomination, consisted at one
time entirely of exchequer bills, and now constitutes the greater
portion. This description of public securities was first introduced to
supply the wants of a circulating medium, occasioned by the scarcity
of metallic money during the groat re-coinage of 1695. Montague,
the Chancellor of the Exchequer, has the credit of the invention of these
securities. And they wTerc of great public convenience, being issued
for sums as low as £5, and carried an interest of per cent.
But like most other securities of that day, through the abuse of pub-
lic credit, by the interest not being regularly paid, they fell to a heavy
discount ; and the Bank of England being empowered to increase its
capital, subscriptions were allowed to be made partly in exchequer
bills, of which the Bank held a considerable amount, and on which
they received interest from the government. These bills are now
issued for sums varying from £100 to £1000, and bear interest at so
much per day. At the end of twelve months they are renewable at
the option of the holder, or he may receive the amount in money, with
the interest, which ceases at that period if the bill be not presented.
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Public Debt of Great Britain.
571
The amount of exchequer bills in circulation has varied consider
ably at different periods, according to the exigencies of the govern-
ment for the time being. The highest amount in circulation since the
war was in 1817, when it was £56,729,400; and the lowest was in
1853, when it was £16,029,600.
The interest on these securities varies according to the state of the
money market, and ranges between 1 \d. per day and 3d. per day for
bills of £100. In March, 1853, Mr. Gladstone, the Chancellor of the
Exchequer, reduced the rate of interest to Id. per day ; and such was
the effect of this step upon these securities, that they fell in one week
from 57s. premium to 12s. premium, which was ascribed to the
impolicy of reducing the rate of interest at a time when the value of
money was advancing. In times of political excitement, or of com-
mercial panic, exchequer bills fall greatly below par. In February,
1847, at 1 hi. per day, they were at 4s. to 8s. premium. On the 23d
of October in that year, they fell to a discount of 37s., with interest
at 3d. per day. As the value of these securities in the market is sub-
ject to considerable fluctuations, the government not unfrequently
cause operations to be made in them to keep up their price in the
market.
Exchequer Bonds. — This is a new description of public securities,
which was introduced by Mr. Gladstone, the Chancellor of the Exche-
quer, in his scheme for commuting some of the public stocks in 1853,
pursuant to resolutions and orders of the House of Commons in that
year. The object of Mr. Gladstone was to pay off the capital stocks
standing in the name of the South-Sea Company, and also to convert
a portion of the permanent debt into a terminable one, by giving the
public the option of receiving, in lieu of such capital stocks as were
named in the resolutions, three descriptions of new securities, reserv-
ing to the South-Sea Company the right of being paid off in money at
par. These new securities were as follow :
1. For every £100 of capital stock of 3 per cents, a new stock of
£82 105., or three and a half per cent annuities, to be paid at that
rate until the 5th of January, 1894, and then subject to redemption
by Parliament.
2. Or, for every £100 of capital stock of 3 per cents, the sum of
£110 in a new stock of two and a half per cent annuities, to be paid
at that rate until the 5th January, 1894, and after that date to be
subject to redemption by Parliament.
3. Or, for every £100 of capital stock of 3 per cents, an exchequer
bond for the same amount, carrying an interest at the rate of £2 15*.
per cent per annum, payable half-yearly on the 1st day of March,
and the 1st day of Suptembcr, in a year to be named in the bond,
and not later than the 1st day of September, 1864, inclusive, and
thenceforward £2 10$. per cent per annum, payable in like manner
the 1st day of September, 1894, inclusive; and thereafter to be sub-
ject to redemption at par, at the option of the holder, or at the option
of the commissioners of Her Majesty’s treasury as shall be named in
the bond.
Digitized by
Gck igle
Original fro-m
UNIVERSITY OF CHICAGO
572
Government , State , and City Bonds,
[January,
n».v- ji
n.;> » i 5 14
II-' , 119
11H-* i 119
U*'» i 119
1U8 [109
108
112
1(>5
10*1
1110
jioo jlo3
■1CX) ,
iik) ho-3
loU/2 M2
*J9 |100
U.M.Cov.Seciirie«l IXT~ PATABlli joyy'n | »• R.Co.’tu
Loan, 6 per cent 1850 Jan. July.
do. do do.
do. do In, 7j do.
do. do do.
do. do Coup, b’s 1* '8 do.
do. Cperct. do. 18 i5| do.
State Securities, |
N. Y. 6 per ct lN'-O -V.l -*i>2 \ Jnn. April.
do. do. ls>'4-Y,:, \ July, Oct.
do. do. 1*72 Jan. July.
do. 6l/a p**rct 1809- V.l |
5 per cl Js^1-
do. do ik,w; [ July , Oct.
do. 41/2 P°r ct. 1s58-’39-’i4 j
Canal Certified, 6 p. ct...l*01 jan. July.
Ohio, do. 1 x'*»; do.
do. do. do.
do. do. 1H70! do.
do. do. lw75 cjo.
do. 6 per cent 1*13 do.
Pennsylvania. 6 per ct Feb. August.
do. 5 ppr ct. coup. .1877. do.
•Massachusetts, a p *r <*t I
+ ^ l.'.l lU.'ll
98
98
,1'H)
'190
Kentucky, *5 p.ct.bM.W-72 Jan. July.
Illinois, Int. Imp. »i p. c t . 1^47.
do,
do.
do.
do.
do.
do. tl per cent, lutcrestl
Indiana State. 5 per ct r
do. 21 2 Per ct
do. Canal Loan, 6 per ct.
do. Canal Pref. 6 do. ,
Maryland, 6 do.) iJan. April.
do. 5 do.) July, Oct.
Alabama, 5 do. (May, Nov.
Tennessee, 5 per ct. bonds. . Jan. July.
do. 0 do. do. long
Virginia, 6 do. do..!***'!
Missouri, 6 do. do.. 1*72:
; 80 W 81
I 83 84
9fil o K0
78 I 80
50 I 65
7*il 2 *8
44 1 47
98 Vi 101
do.
do.
do.
do.
do.
do.
N. Carolina 6 do l*7:»j
Georgia, It do 1*72'
California, 7 do I870i
City Securities.
New- York 5 per ct.. JftT*-V.O > ^fiy
do. do. . . . 1 ^ « 9- I-) i \iiit Nov
•Albany. Bmi.I, C p. cl-TI>l {>!>. An«.
•Alb-ichany do. <lo. July.
Baltimore do. < lo. ls<0- W jtt. Ap. ju, 0c.
Boston tlo.oio April. Oct.
Brooklyn do. udo i.,r, i„i„
•Cleveland do.\V.W7p.c.l879|'
•Cincinatl do. 6 p. c
Chicago A Rock-Isl’d 100,
Baltimore A Ohio. . . . Hx»!
('in.. 11am., A Dnytnnl'W
Cleveland, Col. A Cin.lto
Clove. A Pittsburgh. .59
Cleveland A Toledo... 50
Erie MO
Galena A Chicago... .199
Ha rleui 5o
do. preferred 50
Hudson Uiver M>
Illinois Central MV
Little Miami 5n
M aeon A Western 1",
Mad. A Indianapolis..'*!
Michigan Central lit*
do. Southern .. 1"0
do. do. con. st.l<>9
New Jersey fto,
Northern Indiana .. .M>
do. con.st.lui
N. Haven A Hartford. i*H»
New- York Central 199
N. Y. A New Haven 190
Ohio A Pennsylvania. 50
Panama inn
Pennsylvania 50
Reading 5)
Rome A Watertown. .100
Miscellaneous.
73
93
Sr - L
2
; 271/2
;
vo
Vil
90 ;
i 831 V
1 7*1 2
"9
79 2
9M 2
44
53
»' 4
, 1 NT. r VY CL. OFF I>. /»
-Frh. Aug. "3 : 2
April. (Jet.
Feb. A ug.
Jan. July.
dn.
MYh. Sept. 51
April. Oct.
Feb. Aug.
do.
.Tan. July.
May, N-v.
Jan. Jo'y.
June. D*c.
Fa b. Aug.
Jan. July.
Dec.
Jan. July,
do.
Feb. Aug. H4; '2
Jan. July, i*1 ~±
I do. .'|l. i.
’Apr. Oct.
Fob. Aug. » V/i
15 Fe Io Au CA
Jan. July, i W
May 15 No.| *!Uj
J.an. July. ' ;0 ]
Feb. Aug. ) *°
93
70
71
•lsi*
S(j
71
llES
81
82
75
>3
84
'.*0
80
87
5*0 1, '•j 91
89 1 •* 90
94 l 2 95
94 i 90
85 bO
do.
,y-.v.A;' Divers.
•Chicago do. do. 1*<3- 7< j,.„ iu|y
•Detroit W,W. 7p.c.'73 -78 -**i F‘b Au«f
•Jersey C. do. 0 do 1*77 Jam July.
•Louisvilledo. 6 do...l889-'H3 Divers
IJJilw’kie <lo. 7 <lo If -; March.' Slept.
•Memphis do. 6 dm. 1**2 Jan July
•Norfolk do. 6 do l*t»’i \Dri| n0t
•N. Orl’n* do. 6 do...l8n2-^j , jaiy
Philadelp. 6 do. . .1*79-^, jo. y*
•Pittsb’gh do. 6 do. ’G9-’78 >31 nivera
•RochestYdo. (> do 18781 do.
•St. Louis do. H do *
•Sacramento 10 do lbo2-’73, Jj0*
*3. Francisco 10 .lo 1*71 May'. Nor
* do. 7 do dJ.
County Bonds*
•8t. Louis, Mo. fi p. c. . . . 1 8*t»i T j T
•Fayette, Kv. C.io.eon.lHx|iJ*}1- Jul^
•Bourbon. Ky. fido.do.81’81 3®*
•Mason, Ky. 6«lo.do.81-’K*»l
•Alleghany, Pa.O tlo 1878:
Railroad Ronds*
N Y. Central 7 p. ct...l^83 May. Nor.
95 97
98 1100
97 I 98
I 72
89V 2 8'.* ).
199
100 1/2 193
191 102 V":
Hid, 4 99
llOl *102
'98 I 97
84 1 «5
74^/2 75V;
721/j' 77
I 85
821/2 M
7H/2 73
92V 2! 94
83 H5
I 74 I 75
lUUl 2 193
trie 1st mort. do
do. 2<1 do.conv.do.
do. 3d do. do.
do. Income do.
do. Con>rertiblesdo.
do. do. do.
..In, 7 do.
. .lK’*f» March, Sept.
..!**; do.
. . 1 *55 Feb. Aug.
..1*71 do.
. .18*12 Jan. July.
Hud’n E. 1st m or. do. IHti'J /O Feb. Aug.
do. 2d do. do. . J8.0 id Ju. 18 Dec.
do. conv. do. . .1897 May. Nov.
Michigan South, do. ..1*^) do.
North. Indiana do. . .l$MFeb. Aug.
75V 2;
70
70 I
98
67
803 4
91 :
I 791/2
; 95
I lWl/2
I 70 I
I 941/2
1 77i 2
I ('>6 I
J
i 88
761-2
75
75
70
70
81 L;
91
so; '
9b
70
72
95
80
70
90
90
1 N. Y. Life A Trust Co.luo 10
Feb. Aug.
145
150
Ohio do.
iiio 8
Jan.
July.
70
N. Y. Gas-Light Co..
..5o K‘
>liiy
Nov.
135
!HT
i Manhattan do.
..50 10
Jan.
July.
12-J
I«5
Dela. A Hud. C <n. C<
* 1 * K» 9
June
. Dec.
Ut'1'2
K'7
Pennsylvania Coal C
>..Y> 10
Kb.
Aug.
i «
0‘1
, U. S. Bank
190,
In luidati n
Boston Ranks.
Div’dn.
1
par
1854.
Atlantic
|t)0
4
4
KHV^
105V
Atlas
.u-i 4
nv
Ml
Blackntonc
....19”
4
4
97
1*9
B >ston
.... *>(•
4
4
57
5 S
KnyNton
Kill
5
6
109
113
J, Broadway, (S. Boston). .. KM
J01
M2
< ity
mo
31/2 31. >»
inO
101
Columbian
...Jon
312 m 2
I (»0
M2
Commerce
190
4
4
97
Eagle
Inn
4
4 .
102V4 194
Eliot, (new)
199
3
4
'AT
Exchange
... .l(Ki
4
4
ll*i
lu7
Faneuil Mall
....1(19
4
4
104
104
V reeman’s
Inn
6
6
HO
113
Globe
....109
4
4
111
112
Granite
inn
4
3Gv
97
98
1 Grocers'
inn
4
4
94
95
1 Hamilton
.... 1 no
4
4
110
110
1 Howard, (new)
... .too
4
4
91
92
Market
79
5
6
*3
M
| Massachusetts
....25d
3
3 1-5
2:4)
25)
i Maverick
— inn
new.
94
95
1 Mechanics’, (S. Boston). . 100|
4
161 2
K*4
105
1 Mercliants
... .100
4
4
UH
M4
! National, (new)
.... 1* MJ
4
4
KHI
101
! New-Kngland
199
4
4 1
KKit/j luTl
! North
Inn
4
9*)
BUT
1 North America
. . . J iM
4
4
100
Ml
Shawmiit
KH)
4
4
M0
Slme and Leather loir
( St «te b():
Suffolk lo<>:
, Traders* luu,
! Trades man’s, (Chel.) lrtt
! Treinont llh)
Union 10*i
• Washington loo
( Webster, (new) 100
lixcliangew.
4
5
4
4
4
31/2
4
f*
4
107
ia
' 12.3
1(K)
L!*i
Uk>
!"7
5*8
6
4
4
31/2 iOU
lli«*
*vl
128
l'l
!(•*>
UlM 2
2
loo
192
I
London, TO day*’ st. 10J3 4 ina
| Paris,.
Amsterdam..
Frankfort,...
1 Bremen
I Hamburg,. .,
1 Antwerp
62H i 51b 1 j
! 41 41 i 2
j 41 1 4 4 1 •** s
! 78V '2 7*- 4
I H
<6221 2 51 s:t 4
N. B. All Slocks not specified as Ronds are transferable by inscription. All Bonds (except Hudson 1st and
2d Mortgage and Erie Convertibles) arc payable to bearer. "•” denotes Ex. interest or Ex-Dividend.
Digitized by
Goa igle
Original fro-m
UNIVERSITY OF CHICAGO
1855.]
Bank Items.
573
BANK ITEMS.
Nkw-York. — We have to report the suspension of the Empire City Bank, on the
9th inst. On that day the Bank was suspended from the Clearing-House, which,
under present circumstances, is tantamount to a suspension, as no bank in this city
can transact business advantageously without availing itself, directly or indirectly,
of tho membership of that body. On the 12th inst., the “ Central Bank of the City
of New-York,” was also suspended from the Clearing-House operations, and will
now proceed to close its affairs.
New Banks. — Tho following banks have recently commenced operations in iho
interior, but were not included in the last quarterly statement
I. Medina Bank, Medina, Orleans county. President, Hemy Flagler ; Cashier,
John M. Kerman ; circulation, $54,000.
II. Onondaga Bank, Syracuse; President, Amos Benedict; Cashier, George J.
Gardner; circulation. $94,000.
III. Oswegatchio Bank, Ogdcnsburg, St. Lawrence county ; President, A. Chap-
man; Cashier, E. Merriarn; circulation, $75,000.
Winding Up. — The following five banks are closing their affairs, in addition to
others before (‘numerated. I. Bank of tho Union, Belfast II. Camden Bank.
III. The Dunkirk Bank. IY. The Valley Bank, Boonville. Y. The Drovers’
Bank, Ogdcnsburg.
Rochester. — George H. Mumford, Esq., lias been elected Vice-President of the
Union Bank at Rochester, and is made its financial officer.
Chartered Banks. — The charters of nine banks in this State will expire in 1856.
Tho dates of incorporation and amount of capital are annexed :
Nam*.
Chartered.
Will expire.
Capital.
Bank of Albany,
April, 1829
Jan., 1855
$240,000
Broome County Bank,
April, 1831
44
100,000
Central Bank, Clu-rry Valley,
April, 1829
<4
120,000
Mechanic*' Bunk, N. Y.,
Feb., 1851
14
1,440,000
Tradesmen's Bank. N. Y.,
Jan., 1831
U
400,000
Greenwich Bank, N. Y
April, 1S80
June, 1855
200,000
Hudson River Bank, Hudson,
44
150,000
Livin^rston County Bank, Geneaeo,. . . .
April, 44
July, 1855
100,000
Bank of Lansin^burg,
Feb., 1832
44
120,000
Tho Mechanics’ Bank will commence business as an associated bank, on tho lsP\
January, 1855, with a capital of $2,000,000. j
Tho Tradesmen’s Bank will also commence business, under articles of association, 1
at the same time. I
The American Exchange Bank will increase its capital to $3,000,000 in January, j
1855. Owing to the late defalcation, tho stock has fallen to 94 a 95. ]
Ohio — Dr. John Ludlow was, on tho 11th Deccrrtber, elected President of tho
Springfield Bank, in place of Judgo 0. Clarko, deceased.
RiroDE-IsLANn — Earl P. Mason, Esq., was, on tho 21st December, elected Frosi-
dent of tho Arcade Bank, Providence, in place of Paris Hill, Esq., resigned.
Bank Fraud. — Tho First Teller of the National Bank of Ncw-York, was
detected, early in December, in abstracting a largo amount of bills. From Mr.
Gallatin we learn his suspicions were aroused from observing a singular discrepancy
in the circulation, amounting to $58,000, in making up the weekly account, as com-
pared with tho account the previous week. He was confident that this change
could not have occurred in the ordinary eourso of business, and therefore he called
tho Directors together, and a committee was appointed to examine tho Teller’s
Digitized by
Gck igle
Original from
UNIVERSITY OF CHICAGO
Digitized by
574 Bank Items. [January,
accounts. Mr. Howland was immediately taxed with something wrong, which at
first lie stoutly denied, but subscqently acknowledged there was a large amount of
notes in the pockets of his overcoat, which ho surrendered. He was instantly
requested to resign, which ho did. The rumor in the street was that the default
amounts to £70,000, but the bank officers deny that there is any deficiency. The
Teller has been in the bank as first and second teller for twenty-two years.
Market Bank. — A fraud has been practised upon another of our city banks.
The criminal in this case is \V. P. Sackett, Receiving Teller of the Market Bank, and
the amount of his frauds is $25,000. The discovery was made by the Assistant-
Receiving Teller, who having accidentally occasion to add up the columns of the
deposit-book, discovered that the footings wero too small by $25,oOO. The money
it is understood, has been spent in high living, betting on races, and stock specula-
tions. The manner in which ho concealed his peculations since they became of a
respectable amount, was by erroneous footings of his deposit-book, and forcing the
figures on the last day of each month, when the general balance of the account was
made, so that the general ledger account would balance with tho dealers’ ledgers.
The entries in tho deposit-book wero the correct amounts, but the footings were
made as much leas than tho actual additions of tho columns as would equal the
amount of tho abstractions. These abstractions have been going on, it is supposed
for two years past. II is bonds are $10,000, which, it is thought are good, which
will reduce tho loss of tho Bank to $15,000.
The fraud in this case has been practised for some months, without detection, in
consequence of the erroneous system of keeping tho books. The deposits from day
to day were posted from the Tellers own deposit register, instead of being posted
from the book-keeper’s transcript. The additions occasionally would be short of the
real amount, so as to agree with the short cash handed over' to the first teller. At
the end of the month, tho deficit would bo temporarily made up by including such
sum, so that the bnkmco of deposits on tho general ledger would agree with the
aggregates on tho individual ledger. Wo think that each book-keeper should have
his own cheek-book and deposit-book, which should bo a record of every check
paid and of every deposit made. This would not only prevent such a fraud as was
recently practised on tho Market Bank, but would serve to correct occasional errors
in the footings by the teller or by the book-keeper.
American Exchange Bank. — The Paying-Teller of this institution has also proved
a defaulter, and for a sum much larger than that of the Ocean Bank, the Market
Bank, or the National Bank. The amount now stated is $138,000, which was lost
partly by speculations in real estate. A portion of this sum will be recovered by
the Bank.
Vermont. — Tho St. Albans Bank, at St. Albans, Franklin county, commenced
business on tho 1st September last, with a nominal capital of $150*000, of which
upwards of $105,000 was paid on or before December 1st. President, II. B. Fowler,
Esq. ; Cashier, II. llowes, Esq., recently Cashier of tho Missisquoi Bank, Sheldon.
New Banks. — At tho recent session of the Vermont Legislature, the following
new banks wero chartered: I. Lamoille County Bank. IL Bank of Lyndon.
III. Waloomsic Bank, at Bennington.
Tho following bank charters wero rejected: I. Northern Bank of Vermont, St.
Albans. II. Fairfax Bank. III. Bank of Watervillo. IV. Bank of Lamoille, at
Johnson. V. Bank of South-Hard wick. VI. Bank of Cabot. VII. Wilmington
Bank. VIII. Windham County Bank, Brattleboro. IX. Eagle Bank, Castleton.
X. People’s Bank, Brandon. XL Western Vermont Bank, Fairhaven. XIL Wi-
nooski Bank. XIII. Hinesburg Bank. XIV. Bank at Newfane. XV. Bank of
Richmond. XVI. Bank of Waterford. XVII. West-Randolph Bank.
Re-chartered. — Bank of Caledonia, Danville. . Orange County Bank, Chelsea.
Wisconsin Banks. — The Western banks are gradually strengthening them-
selves; and such as have weathered the recent storm are now giving alf the aid
Gck igle
Original from
UNIVERSITY OF CHICAGO
1855.]
Bank Items.
575
they can to their depositors and customers. We learn that the Merchants & Me-
chanics1 Bank, at Chicago, has resumed operations this week. Messrs. G. Papen-
diek A; Co., bankers, Milwaukee, have also resumed payment
The following correspondence will show the manner in which the banks are forti-
fying themselves and protecting their bill-holders.
Comptroller's Office, Madison, (Wis.,) Dec. 1.
In consequence of the great and continued decline in the value of State stocks, in
the New-York market, and more particularly in the stocks of the States of Missouri,
Virginia, North-Carolina, Tennessee, and Louisiana, I have thought proper to
request of your bank to forward to this office at any time during the present month,
ten per centum of the whole amount of circulating notes which have been counter-
signed and issued to you by the Bank Comptroller, for the purpose of having the
same cancelled ; or, you can, at your option, deposit in lieu thereof a like amount of
State stocks, at their current market value, all of which will be passed to your credit
on the books of this department
The present unsettled state of the money market might well justify a far larger
call, but not wishing to embarrass the business of the banks, or to withdraw from
active employment a larger sum than is absolutely necessary, I have, upon consul-
tation with several of the prominent bankers of the State, concluded, at present, to
make a call of but ten per cent
Several of our banks have already, unsolicited by this department, deposited in
this office ten per cent additional stocks, to further secure their circulation, and
others have intimated their readiness and willingness to do the same ; and it is con-
fidently expected that no institution organized under our banking law, will decline
to comply with this reasonable request, which will not only fully indemnify the
public against all possibility of loss for their circulating notes, but will greatly
increase the confidence already reposed in the solidity of our banka
Germania Bank of G. Papendiek & Co., )
Milwaukee, Wis., Nov. 20, 1854. )
We hereby beg to hand you $2019 (two thousand and seventy-nine dollars)
circulating notes of this bank, for which please return us your receipt at earliest
convenience.
We tako this step not only for our own satisfaction, but especially for the greater
safety of our bill-holders, who are, moreover, aware that you hold in your possession,
$25,000, (twonty-five thousand dollars,) Missouri and Tennessee six per cent bonds,
as the security for the circulation of this bank, which is at present only $22,900,
(twenty-two thousand and nine hundred dollars.)
Yours, very respectfully,
Geo. Papendiek, President.
C. H. H. Papendiek, Cashier.
Hon. Wm. M. Dennis, Bank Comptroller.
Milwaukee, Nov. 20, 1854.
Dear Sir: I have received your favor of this day, together with a package con-
taining two thousand and seventy-nine dollars in the notes of the Germania Bank,
which you return for the purpose of being destroyed. The wholo circulation of your
bank is now twenty-two thousand and nine hundred dollars, which is secured by
twenty-five thousand dollars of Missouri and Tennessee State six per cent stocks.
This praiseworthy act of yours shows a disposition to fully secure the circulation
of your bank, which I have no hesitation in stating, is as well secured as any insti-
tution in the State. Hoping that you will soon resume business with increased
confidence, I remain yours, Wm. M. Dennis, Bank Compt.
Geo. Papendiek, Esq., Pres. Germania Bank.
Georgia. — The Marine Bank of Savannah, and the Planters' Bank, of the same
city, on the 5th inBt., each declared a semi-annual dividend of five per cent. At a
meeting of the Board of Directors of the Central Railroad and Banking Company, on
the same day, a mixed dividend of stock and money, equivalent to four per cent
upon the profits of the preceding six months, was declared.
Digitized by
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Original from
UNIVERSITY OF CHICAGO
576
Notes on the Money Market.
[Jan., 1855.
Digitized by
Notffi on t$e JKones Jttaritet.
New- York, December 30, 1854.
Exchange on London at sixty days' sight , 7J a 8 per cent premium.
Tnn Ion" stringency that has prevailed In this market has at length given way, and some little relief
is felt under the improved condition of the banks and of the foreign and domestic exchange* Tho
rates for loans on prime business paper are still very high, ranging from 12 to 15 per cent ; and 10
a 12 per cent for loans on call, with adequate collateral securities*. The stock market exhibits evi-
dent signs of improvement, and we think the months of January and February will bring essential
relief to borrowers. Our manufacturers have, during tho past four months been compelled to dis-
charge large numbers of workmen, and thus tho latter have drawn froely upon their savings funds
and upon the charities of tho more wealthy.
Rents in New- York have declined from 20 to 25 per cent since 1st October, and wages are also
much reduced. There Is not a commensurate decline In the value of real property in this city.
Few engagements are now made with our shlp-buildors, the work In tho ship-yards being almost
entirely on account of old contracts. An examination of these yards, a few days since, shows the
astonishing fact that only 1500 men are now employed in them, whereas a year ago there were
over 2800.
The principal feature of tho stock market during tho month of December, was tho large sales of
Virginia State Mx per cents, at prices varying from bS to 95. This stock was held in large amounts
by the free banks of Indiana, many of whom have been compelled, by the sudden return of their
circulation, to sell their securities. Tho Virginia loans were somewhat injured by the following
notice of the agent of that State :
44 The Board of Public Works of the State of Virginia gave notice that the Bonds of the State of
Virginia, which have been hypothecated with you by, or on account of, Messrs. Sheldon, Withers
A (Jo , are the property of the State of Virginia, ami you will be held accountable therefor; and I
hereby warn you not to dispose of them. Arch'd Oka ham,
44 New- York , Dec. 2. Prcs't of tho Board of Public Works of V irginia.*
The failure of Messrs. Selden, Withers A Co., bankers at Washington, with whom large amounts
of the bonds were hypothecated, has produced this ; and its effects upon the Virginia State securi-
ties were immediately adverse.
The six per cent loans of the States of Nortli-C-irolina, Missouri, and Georgia, are also much
depreciated, all hough the quotations are more favorable than four weeks ago. Missouri six per
cents are now quoted at S9H a 90; North -Carolina, 94^ a 95; Georgia, 94 a 96; Louisiana, S5 a
N7 ; Tenne>-’eo, ^7 a 90 ; Kentucky, 90 H a 100. Some Improvement is seen in the prices of county
bonds, for particulars of which see preceding page. Several failures have occurred during the
month, amorm commercial and manufacturing Arms ; but no further suspensions are announced of the
banks or bankers of tho South and West Their circulation has now reached its lowest limit, and
from this time we may look for a gradual increase that shall meet the wanta of the busine® com-
munity.
The savings banks of this city hold on deposit upwards of twenty-five millions of dollars. These
companies will pay in January an average dividend of 2M per cent for six months, namely, East
River Savings Bank, 5 per cent per annum ; Bowery, 5 per cent: Greenwich, 6 per cent; Manhat-
tan, 6 per cent These arc payable on all sums under five hundred dollars, and one per cent less
(per annum) on larger sums.
The effects of a contraction of the currency are most lamentable upon the prices of real estate and
personal property. The circulation of our city banks has been reduced one third within a year, and
tho decline in loans Is fully fifteen millions. Here we we a loss of bank accommodation of about
eighteen millions, and it has affected property more than one hundred millions. So with the real
estate of the whole country, valued at four thousand millions of dollars, and personal ostato valued
at two thou-nnd millions, all of which Is seriously affected in its market values and in its converti-
bility. The depreciation is greater than all the bank capital and circulation put together.
DEATHS.
At Rprinc. field, Ohio, December 7th, in tlic sixtieth year of his age, Judos Oliver Clares,
F resident of the Springfield Bank, from the date of its establishment in 1851, until his death.
Gck igle
Original from
UNIVERSITY OF CHICAGO
BANKERS’ MAGAZINE,
AKD
Statistical fltgisttr.
You IV. Nxw Series. FEBRUARY, 1855.
No. Yin.
STATISTICS OF COTTON.
For the following Tables of the Cotton Crop, Export, etc., we are
indebted to the annual circular of Mr. William P. Wright, cotton-
broker, of New-York. These Tables embrace : I. The weekly receipts
and the aggregate crop for the years 1851, ’52, ’53, and ’54. II. The
weekly and total exports of cotton to Great Britain, France, North-
ern Europe, and to other foreign places, since September, 1850. HI.
The estimated weekly sales of cotton in the City of New-York, with
the prices for middling uplands and middling Orleans cotton, the
rates of freight to Liverpool, and the rates of exchange in New-York
on London and Paris. The downward tendency in prices during the
past year is fully shown. For the present year (September 1, 1854,
to September 1, 1855) the receipts are estimated at about three mil-
lions of bales. The receipts at New-Orleans, from 1st September to
1st January last, (exclusive of the arrivals from Mobile, Florida, and
Texas,) are 486,454 bales, against 462,796 bales to same date last
year ; and the decrease in the receipts at all the ports, up to the latest
dates, as compared with last year, is 16,720 bales. In the exports
from tho United States to foreign countries, as compared with the
same dates last year, there is an increase of 102,209 bales to Great
Britain, and of 36,744 to France, and a decrease of 11,213 to other
foreign ports.
ty Google
Original from
UNIVERSITY OF CHICAGO
578
Cotton Statistics.
167
COTTON STATEMENT
Showing the Weekly and Total Receipts op Cotton into the Ports op the United
States ; also, the Weekly and Total Exports of Cotton to Great Britain, France,
North op Europe, and other Foreign Ports ; together with the Stock on hand
in the Shipping Ports; during the last five years.
Arranged and Published by William P. Wright, Cotton- Broker, New-Tork.
1853-1854.
1852-1853.
Receipts'
S«pt. 21
* 28
Oct. 5
* 1%
Exports.
$ Receipts
Exports.
___ 1 i *
^ A a ^ * f
I
1? 0 10 91 oi 1 21 21 82 o
25 0 1 1 31 1 2, 10 31 85 29
30 0 l251 38j398738
35 1 2 0 5 0 3 6 45 99. 47
46 1 3 1 6j 2, 5 15 60 103; 55
50 2 5 0 6 21 7| 8 68)131 69
57 1 6 1 7 3 10; 12 80 161, ~81
71 4 10 0 7| 0 10 18 98 177 84
2 47 173 7 57 1 6 1 7 3 10; 12 80|161
9 50! 22314 71 4 10 0 7 0 10| 18 98 177
161 66 289 14 85 0 10 3 10 2 12 19 117 214
23 63 35215 100 1 11 0 10 3 15 19 136 245
_30 _70 42212 H2 6 17 2 12 2 17 22 158 273
7 75 ” 497119 131 10( 27 2 14 ~2~i9 ^1~19] 307
14 72 569 24 155 8 35 1 15 4 23 37 228 333
21 90 659 31 186 10 45 0 15 4 27 45 273 352
28 105 764 31 217 7 52 0 15; 3 41 314,408
4108 “ 872 26 243 ~5 57 3 l8j~2j"32 ~36 “350 408
12 99 2,227)57
19 85 2,312 50
26 87 j 2,399 47
_29: 5 49 64
32|3 ~52i~62]
33 4 56 52
34 4 60 63
JfM. 4 108 872 26 243 5 57 3 18 2| 32 36 350408
* 111 87 959 24 267 18 75 4 22 91 41 55 405,495
44 181 76 1,03531 298 15 90 1 23 3 44 50 455 496
44 25 77 1,112 34 332 19 109 6 29 5 49 64 519 507
Kcb. 1 97 L90944 376 12 121 3 ‘32|3 *52 *62 ~58? 5U
44 8J1201 1,329 31 407 16 137 1 33 4 56 52 633:556
44 15129 1,45834 441 24 161 1 34 4 60 63 696605
44 22 140' 1,598 32 473 4 165 7| 4i| 5 «5| 48 744 673
March 1 107 1,705 44 517 17 182 8, 49 ~4 G9i 73 817,692
44 8 106,1,81156 573 3 185 7 56 1 70 C7 884,721
44 15 90 1,90162 635 6 19! 18j 74 2 72 88 972 697
44 22 72 1,973 70 705 90 211 11 85 7 79 108 1,080 645
44 29 83 2,036 76 781 9 220 3| 88 8 87 961,176 618
April 5 72 2,128 59 840 ~9 229 2] 90 ~2 89; 721^48)6 12)
44 12 99 2, 227 57 897 4 233 2 92, C 95 69 1,317 637
44 19 85 2,312 50 947 1 234 4! 96 1 96 56 1,3731646;
44 26 87 2,399 47 994 3 237 0 96 8 104 581,431 671.
May 3 60 2,45945 1,039 3 240 5 101 5409 58 1,489 655
44 10 56,2^17,29 1,068 6 246 6 107 5 114 461,535 645
44 17 441 2,51)1 58 1,120 4 250 4 111 10 124 76 1.611 605
44 24 44 2,60596 1,154 0 250 7 11844128 3 9 1,650 608
44 31 35 2,640 57 11 11 261 4 122 6 134 781,728547
J^uo 7 35 2,675 61 1,272 ~5 266 121 34 *6140 ~84 ^12 492
*i ]4 36 2,71136 1,306 4 270 2 13(1, 5145 471,859 467
44 21 27 [ 2,738 27 1,335 8,278 2138 2147 391,898456
J4 28 29 2,767 53 1,388 15|293 3 141 _3150 74 1,972,391
5 23 2,790 37 1,425 5 298 4; 145 ~3 153 “49 355
* 12 11 2,80126 1,451 8 306 7 152 3156, 44 2,065316
44 19 11 2,812 17 1,468 1 307 2 154 2 158; 22 2,087 297
44 26 17 2,829 19 1,487 5 312 2 156 4 162 3012,117,268
Aug 2 10 2,83933 1,580 9 321 3 150 6U 68 512^217
44 9 12 2,85116 1,536 10 337 2 101 2 170 36 2.204 186
44 16 12 2,863 25 1,561 2 339 2 1C3 2 172 31 2,235 156
44 23 H 2,874 12 1,573 10349 1 164 3,175 962,261128
44 30 13 2,887 14 1.587 13 362 1 165 l1 176 29 2,290108
Cwrtction. 43 2,930|17 1,604 ^374 0 165 ojl7C 29 2,319|117
“Totari 2,0001 I I^coi] J374 llosj"- 176( 2^l9,U7f
81 337 30
84 421 19;
105 526 43,
109 635 59|
116 751 32
113 864 54
138 1,002 55
125 1,127 44
U7 1,24446
114 1,350 66
135 1,493 49
33730 98 0 12 3 4' 4 121 37, 196224
421 19 117, 5 17 1 5 4 16 29 J55262
526 43 160 3 20 2, 7 ; 3 191 51, 206 302
635 59' 219 6 26 1 8 6 25 72 978394
75132,_251 » jfc l _9j> 341 51] 329388
864 54 305 ^ Tl “2 Tf 1 35* 63 392 490
,00255 360 13 54 2 13 4 39 74 466465
127 44 404 6 00 1 14| 1 40 52 518514
,244 46 _45() 6 66 2 16 0 40j4| 572560
otj iui ria'i*! flihi1 m n iu! mix uid
516)15 81 3 19 9 49 93 665562
56517 98 2 21 10 59 78; 743 595
IU 1 7 IQ", f. a.; (» A* o? Kin ATT!
101 1,594 76 641 7 105 5 26 9 68; 97! 840570
114 1,70851 Jj92 5 UOj J ?27 _9| 77\ J6 906 606
116 1,82653 * 750 16 126. oi 36 5 82 88 994621
120 1,946 70 82t>13 139 5 41 5 871 93 1,087619
126 2,072 -6 846 7 140 4 45 6 93' 43 1,130^670
129 2^01 38j 884I111571 9| 47[J) 98l 56|l,186pOI
126 2,327 28 912 17 174 6 53, 8 106| 59 1,945750
103 2,430 46 9581 8 182 12 65 3 109 69 1,314 764
112 2,54236 91M 11 19*.! 0 05 5114 52 1,366 823
69 2,611 41 1,03517210 2 6?j 7121 67 1,433774
JT9 2,690 36 1,071 20 230 3; 70 3 124) 62 1,495 775
72 2,762 29 1,100-25 255] loj K> 0 124; 64 1,559777
59 2,821 41 1,141; 8 28:1 7 87 5129| 61 1,620 757
63 2,884 80 1,22128 291 9 96 1 130 118 1,738679
40 2jW4 41 1,262 17 308 16 112 j 13li 75, 1£13;629
51 2,975 48 1,310 27 335 13 125 11 142| 99 1,912568
41 3,010 45 1,355 19354 4 129 6 148 74 1,986,523
39 3,055 41 1,396 12 3G6 10 139 1 149 64 2,050 488
21 3,076139 1,435 11 377 4 143 2151; 56 2,106 439
28 3»104|40 1,475 2379 4|147 3 154j 49 2,155 417
13 3,117 33 1,508 10 389 4*151 4 158' 51 2,906372
18 3,135 30, 1,53' 13 402 6 157 3 101| 52) 2,258330
15 3,150 31 1,569 0 402 3 160 2 163} 36 2,294 303
13 3,191 10 1,651 0413 3 167 1 170 14 2,401 217
_2 3,193 30, 1^681 5 418 l] 168 4 174 JO A441J172
5 3,198 16 1,697 4 422 0 1® 5 179 2 >| 2,466 150
4 3,202 18 1,715 0 422 0 168 4 183 22 2,488,125
3 3,20610 1,785 0 422 0166 5 188 15,2,503112
101 3,215 7 1,732 0 422 3 171 ullSSi 10 2,513 99
7 34222 5 1,737 ' 5 42: 2 173 3 191| 15 2,528 63
41 3,263 0:1,737. 0 427 171 2 193, 0 2,528107
=LZ J LL JL= Jj=
1 3,‘263 i 1, 7371 ]427i 171 1193. .2,5281107
The figure® represent thousands of bale®.
Original from
UNIVERSITY OF CHICAGO
168
Cotton Statistics.
679
Digitized by
COTTON STATEMENT* CONTINUED,
Showing the Weekly Receipts , Exports to Great Britain , France , etc*, and
Stock on hand for each week , September , 1850, to August 81, 1852.
1851—1853.
84^39
932; 21
1,021 31
295 81110
326 12ll22
1,141 JOBS 394 12 134
427 13 147
1.20133;
U4925
1,447 48
1,504:26
1,656*40
TtoT!57
1,909 65
2,01531
2,13575
2,25370
45217 104, 3
500114 178: 7
526 191197 8
566' 13 210 «
688 5 249 31
719 20|269, 8
7941 7.270 4!
ee4[n 387 11
2,341106; 93015 302 H
2,43 103! 99320 32214
2.516 70 1,063! 7 32911
2,608 77, 1,140 6 3351 o|
2^083 78 1,218, 8 343
2,742 61 1,279 15 358 15
2,78436 l,315j 7 365 5
2, 828' 55 1,370 5 370 9 14f>|
2,860 50 M26! 6 376' 4 150
2789128 1,454' Id 380*5 l55|
2,9151 34 1,488 8 394] 2 157
2,936 49 1,537,11405 3 160j
%mm> 1*560 1 406 1 161
^4] 220
277,252
321(276
362*323
415 360
361 35 1 450 385
38( 46 j 496(413
46 90 586 422
52; 53] 639 479
689 1 509
703 518
827 534
888 537
57 r>o
G2* 74
73; 04
79: Cl
1850-1851.
41 83 101] 989' 559
881 78 1,067,560
92, 63 1 1,130]UI3
95 89 1 219 010
101| 98 1,317(612
78;Id hl 104 l,42l;580
4 1 1 15 101 1 1^522)559
6 121] 94,1.616 542
| _1|12S| _93 V709'527
117j 4 126* 95 1 1 804 493
132 11 *137] 102, 1,906;429
137 -I-’™---
Receipts
]|138 49] 1,955' 4 17
8(146 77 2.032.381
l|l47l_67:2,()99 335
5 152 ‘"48; 2,147:304
0 152 44 2,191 272
9 161; 72; 2.263(201
3464' 281 2.291 189
2,963] 17 1,577 G412 2(1(3 3 167 28 1 2,319] 168
2,972jia 1,589] 3 415 1 164 '
2,9771K 1,607, 3 418 0 104
2,987117 1,624: 0 418] 1 165
2,993 1 1 1,635]
3,001! 14 1,649]
3,000 i 5 13154
3] 1701 19i 2.338' J 55
41174' 25. 2,363] 128
2] 170 20 2.383, 109
Ti^TiToslTi^
1 422] l]l66| 4 183 20] 2,420, 78
0 422 1 j 1 07 * lIlMj 7,2,4271 “
9
3.018
6 1,665 0 422 1168
0184
7]
—
3,015
4 1,669 — 421. 1169
1
185
J
3,015
1 I f f j
“(Tec®- !«ir!fe9
=
185
i
2,439]
1 2,444i 72
0
13
22
26
36
_43
52
46
72
55
70
"do
85
83
92
"94
77
8(i
U2
l05
87,
105
m
~8G
66|
64 1
51
_42|
47
45[
42
_44[
"id
40
40]
27
21
"32|
1C
13
J_0|
10
14
10
J?
0
4
19
32
54
80
116
159
Exports
i
'S_
"o
16
6
17
6
3
211 ]24
257 10
329 19
384 19
454118
520] 15
605 ! 15
688(12
780115
24
20
31
36l
874
951
1,037|
1,149
1,254:34
1,341)41
1,446 22
1.535 33!
K62l|34
1,687]39|
1,751“
1,802] 36]
1,844 52]
1^91(51
1,936; 55
1,978; 53
! 49
Vi
North
Europe
Other
iFortgnl
Port*.
84 5
87] 4!
1111 3,
121 6
140! 9i
159 13
177 14,
192 5 73 2]
207 20 93
219; 9:102
234 18 120
2,062144
2,1(249
2,142 35
2,169 44 1,086
193l27| 1,113
2^25151] 1,104
2,241 52! 1,216
2.254 28] 1,244,
2,204 30; 1,274]
^274 201,294
2.288 16; 1,310
2,298 22! 1,332)
t!' l'-
^312 20- 7,373;
2,3 16| 14] 1,387
2.3201 8) 1,395
2,325 10 1,405
2,331 U| 1,4 16]
2,355! 2j 1,418]
2*)55f
258 10 130|
278| 4 134
309 10 144!
345; 9 153
"379 twind!
420 9482!
442] 6 IR8|
_475 12 200]
509112111
548] 4 215
618,10 225
654 5230
7061 0236
757 10246
812( 2248
805] 5] 253
914] 7 260
6 200
2268
C|274
5 279!
5284
3 287
1 288
2,290]
2 292;
"0]292|
0 292
0 2921
1293;
1,294
1 295
1 (296
4 300
11301,
0301
958
1,007
1,042
t
pi
2! 11
21
13
10
32
18
33
34
38
2| 23] 24
4] 27! 39
5( 32; 20
8 40; 45
87
91
94]
97
5il02]
2| 42
3 45
3‘ 48
4|_52l
2j_54
5 59
3 02
2j W)
4] 08'
3 71]
8 79
5 84’
2! 86|
3i *</
1 90
3 93
-\^L
4:102
3' 105,
11106
4110
0U0
3;1 13[
5jl in|
0118
6] 124*
3T27I
2 129
4,1:0
1 134
55
73
84
105
118
128
89
81
89
88
109
J37
1G(U47
17Sj 106
211 1%
245 12 12
2Kp4l
271
:'05
.58
:-94
307
340]
372,
417
457 431
485] 474
53 !
__582]
To
09'
K39
889
983
l,u:.o
1,100
1,106
1.220]
>] 1.292
" 1,357
56, 1,413
■89
f 54
080
c :W
( 58
784] 071
700
(98
coo
(50
(28
,97
575
37
5<«
;£(
175
406
430
112
377
329
393
271
242
-26
194
176
1,4 18 [ |30l
1,471
I,5l6i
1.5721
1,009]
13*07
1.7:91
l,7ro
K801
25] L8
21 1.847
27! 1.871
20 l.!M (
20 »6
20 1.910- 127
H i l .957 i 1 11
10 1,97 3 ■“
12! 1.9(5
3j 1,988 1
i 7,988]
1(13
89
89
Gck -gle
Original from
UNIVERSITY OF CHICAGO
580
Cotton Statistics.
169
STATEMENT
Shewing the estimated Weekly Sales of Cotton in the City of New-York , the qi*j-
taticmsfor 44 Middling Uplands” and “ Middling Orleans,” with the Rates
of Freight to Liverpool , and the course qf Exchange on London and Paris , for
the Season 1853-4.
Date. |
Sales.
Ml POL wo
Ul-IANO*.
Middling
Orleans.
Freight to Litertool.
| Exchange on
London.
| Exchange on
| Paris.
Sept.
7
10,000
10’A © HK
11*® 11*
iV
®
*
y tb.
109
©
1°9«5.15
® 5.13*
U
13
4,000
10* ® 11*
ii* @ ii*
A
@
*
44
109*
©
109* (5.15
@ 5.13*
44
20
6,000
i««@ ii*
11
© 11*
*
®
X
44
109
®
109* 5.15
(sJ • • • •
M
90
10,000
10*4 ® 11*
11
@ 11*
1T,
®
*
44
109
®
109* 5.15
© 5.13*
Oct.
4
7,500
10* @ 11*
11
@ 11*
n
@
*
a
109*
©
109*
5.1‘J*
® ....
a
10
4,500
10* @11*
11
@ 11*
A
®
*
44
109*
©
110
,5.12*
@ • • • •
a
18
3,000
10 10*
10 * ® 10*
A
®
*
44
109*
©
no
5.12)4
@ ....
44
24
5,000
9* @ 10
9* ® 10*
A
@
*
44
109*
©
109*
5.12)4'
© ....
Nov.
1
16,424
10*
10*
A
®
*
44
109*
©
• •••
5.12)4
© ....
44
7
6.140
10*
10*
A
®
*
44
100*
®
109*
5.12)4
@ ....
44
15
10,502
10
111*
A
@
A
44
100*
®
109*
5.12)4"
© ....
44
21
8,236
10*
10*
A
@
A
44
109*
®
109*
5.12)4
@ ....
44
20
11,003
10*
10*
A
@
A
44
109*
©
i«»v
5.12)4
@ ....
Dec.
2
10,780]
10*
10*
*
@
*
44
109*
©
no
5.12)4
© ....
44
13
16,710
10*
10*
A
@
A
44
100*
©
109*
5.13)4
® ....
4t
19
14,195
10*
10*
A
®
A
44
100*
©
io»X
5.15
@ 5.13*
44
27
11, *86
10*
10*
*
®
• • • •
44
100*
©
1*>V
5.15
© ....
Jan.
3
5,766
10*
10*
*
@
A
44
109*
©
109«
5.16)4
@ 5.15
a
10
11,174
9*
10*
*
®
44
109*
®
10»H
5.17)4
@ 5.16)4
44
10
11,312
0*
10*
*
@
44
109
@
109*
5.18)4
@ 5.16)4
44
24
14.961
0*
10*
*
®
44
108*
©
109
5.20
® 5.17*
4i
30
6,456
9*
10*
*
■
ii
109
@
109*
5.20
© 5.16*
Feb.
7
10,144
9*
10*
A
®
a
108*
©
109
5.20
® 5.17)4
44
13
3,700
o*
10*
%
®
44
10?*
©
109
5.18*
@ 5.17)4
44
20
10,083
10
@
44
108*
©
109
5.18*,'
@ 5.17)4
44
27
15,885
«*
10*
@
A
44
108*
@
109
5.17*
® 5.15
Mar.
7
23,074
10*
10*
A
®
*
44
108*
©
109
5.13)4
© ....
44
13
9,292
®*
mt
10*
A
@
ii
44
108*
©
109
513)4
@ ....
44
21
20,121
10*
X
®
44
108*
©
108*
5.13)4
@ ....
44
27
7,500
m
10*
*
@
’a’
(4
108*
©
108*
5.13)4
@ ••••
April 4
9,204
9*
10*
*
@
A
a
108*
@
lies
5.13)4
@ ....
1*
10
5,792
9*
o*
*
©
<4
108*
@
109
5.13)4
© ....
44
18
11.::-:.
8*
9
A
©
"x
44
109*
@
• •••
5.13)4
@ 5.12*
44
24
8,581
9*
9*
A
®
44
109*
®
....
5.12)4
© ....
Mav
o
8,974
9
9*
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The following is a statement of the movement in cotton since tho 1st Septem-
ber last, as compared with the previous tlireo years :
1855.
Receipts at the Ports, . 854,000
Exports to Great Britain, 364,000
44 France, . . 92,000
44 other For. Ports, 46,000
Total Exports, . . . 502,000
Stock on hand, . . . 364,000
1854. 1853. 1852.
872.000 1,358,000 932,000
243.000 516,000 295,000
57.000 81,000 110,000
50.000 68,000 45,000
350.000 665,000 450,000
468.000 562,000 385,000
Digitized by
Gougle
Original from
UNIVERSITY OF CHICAGO
170
Cotton Statistics.
581
Total Receipts of COTTON into the various Ports of the United States.
1853-4
1852-3
1851-2
1850-1
1849-50
1848-9
1847-8
1846-7
1845-6
1844-5
New-Orleans..
1,346,925
1,580,875
1,373,464
933,369
781,886
1,093,797
1,190,733
705,9791,037,144
929,126
Mobil*
538,684
545,029
549,449
451,748
350,952
518,706
436,336
323,462
421,966
517,196
Florida
155,444
179,476
188,499
181,204
181,344
200,186
153,776
127,852
141,184
188,693
Texas
110,325
85,790
64,052
45,820
31,263
38,827
39,742
8.317
27,008
Georgia
316,005
349,490
325,714
322,376
343,635
391,372
254,825
242,789
194,911
295,440
S. Carolina. ...
416,754
463,203
476,614
387,075
384,265
458,117
261,752
350,200
251,405
426.361
N. Carolina....
11,524
23,496
16,242
12,928
11,861
10,041
1,518
6,061
10,637
12,487
Virginia, tc.. ..
34,366
35,523
20,995
20,737
11,500
17,550
8,952
13,991
16,282
25,200
Total Crop
24)30,027
3,262,882
3,015,029
2,355,257
2,096,706
2,728,590
2,347,634
1,778,651'2,100,537
2.394 503
Total Foreign Exports of COTTON from the United States.
1853-4 1852-3
1851-2
1850-1
1849-50
1848-9
1847-8
1846-7
1845-6
1844-5
To Gt. Britain.
44 Franc*
44 N. of Europe
44 Other F.Pts.
1,603,7501,736,860
374,058 426,728
165,172 171,176
176,168] 193,636
1,668,749
421,375
168,875
184,647
1,418,265
301,358
129,492
139,595
1,106,771
289,627
72,156
121,601
1,537,901
368^59
165,458
156^226
1,324,265
279,172
120,348
134,476
830,909
241,486
75,689
93,138
1,102,369
359,703
86,692
118,028
1,439,306
359.357
134,501
150592
Total
2,319,148 2^28,400
2,443,646
1,988,710
1,590,155
2^27,844
1, 858^61
1,241,222
7T
1
ti
1
Stocks of COTTON on hand in the United States on 31st August.
1854
1853
1852
1851
1850
1849
1848
1847
1846
1845
New-Orleans..
24,121
10,522
9,758
15^90
16,612
15,480
37,401
23,493
6,332
7,556
Mobile
29,278
7,516
2,319
27,797
15^062
5,016
23^584
24,172
7,476
609
Florida
583
523
451
273
1,148
615
507
2,108
1,088
100
Texas
2205
428
317
596
265
452
747
32
1 500
8av’h & Auo’a.
11,518
12,984
6,657
34,011
29,069
25^19
36,603
25,020
15,828
8,655
Charleston...
17,031
15,126
11,146
10,953
30,698
23,806
14,085
SO, 655
8,709
10,879
X. Carolina....
100
Virginia
750
400
450
620
1,000
1,750
444
448
100
2,418
New-Ycrk
32,988
67,675
45,796
35,410
60,720
67,035
41,907
83,259
46,539
43,887
Other N. P’ts.
17,129
20,409
14,282
3,850
15,456
15,250
16,130
26650
19,550
19,922
Total
135,603 |
135.G43
91,176
128,900
107,930
154,753
171,468
214,837 |
107,122 |
94,126
I
Digitized by Gougle
Original from
UNIVERSITY OF CHICAGO
582
Bank Architecture in New - York.
79
BANK ARCHITECTURE IN NEW-YORK.
I. General Remarks. II. The Mercantile Bank. III. The Broad-
way Bank. IV. The Nassau Bank. V. The Bank of the Com-
monwealth. VI. Bank of the Republic. VII. The Metropolitan
Bank. VIII. The Central Bank. IX. The Bowery Savinys
Bank. X. Miscellaneous.
The architecture of a banking house, especially when designed to
assume an important position from the magnitude of its operations,
should be marked externally, internally, and throughout, by stability
as its leading feature. These objects a skillful architect will scarcely
fail to combine with taste, and that adaptability of the means to the
end, which constitutes the great charm in any structure. It is to be
regretted that sufficient care is seldom taken to effect this most
desirable combination, or that the pains bestowed should be so singu-
larly unsuccessful. In many instances, materials have been provided
on a liberal and even lavish scale, whilst, to save a small per centage
on the original outlay, an architect of inferior ability has been
employed, and the whole structure wants that symmetry, accordance,
and architectural beauty, which are compatible with the most solid
and substantial edifice. The most pleasing and attractive building is
not necessarily the most expensive, the difference arising from the
arrangement of its parts and the disposition of the materials ; while
it is a subject of gratulation that an architectural taste is now being
developed and improved throughout the country among all classes,
and that the buildings recently erected present a pleasing contrast to
those of a few years back.
It is known that the probability of an accident by fire, in a bank,
may be very slight; yet the sudden destruction of such buildings
would occasion so great and general inconvenience, that every pre-
caution should be adopted to prevent such a oalamity, by constructing
the building entirely fire-proof. In the choice of materials, much will
depend upon locality, and their cost. The best fire-proof buildings
in this country are constructed either wholly of iron, or of brick or
stone, with iron beams and columns, properly framed and held
together by rods built into the walls ; with brick arches for the floors ;
which arches are supported by, and spring from, the lower flanches
of each beam, and are thus extended in succession on each floor, from
one end of the building to the other. The floors should be laid with
stone-flags, or tiles, upon the arches, after they are properly levelled,
and filled up in the interstices by a concrete of lime, sand, and ashes.
These flags or tiles being well and solidly bedded in mortar, form
a durable and excellent floor. This description of building, when
properly constructed, and supported by an iron roofi is perfectly
impervious to fire. Secondly, in order to prevent fire, whether from
accident or spontaneous combustion, every opening or crevice com-
Digitized by
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♦
Original from
UNIVERSITY OF CHICAGO
80
Bank Architecture in New - York.
583
municating with the external atmosphere should be closed. If these
principles are properly attended to, buildings so constructed will
effect almost perfect security.
The external doors should be of the strongest character ; and if
wood be used, it should be lined with iron, or thickly studded with
rivets of the same material. The shutters should always be of iron.
The recent inventions and improvements in this part of a building,
have constituted a new era in architecture, and add greatly to the
durability and appearance of our modern structures. There are now
several buildings of a costly and substantial character in the course
of erection in the city of New-York, intended for banking purposes.
We propose to describe these as well as several that have been con-
structed within the past three years, and to make a few suggestions in
reference to the construction of such edifices. Considering that health
and comfort so largely depend upon light, perhaps it would be well
to allow a little more window space than is usually deemed sufficient.
The light, airy, well-ventilated iron buildings recently constructed in
this city, present a striking contrast to those of a few years since,
which seem rather to belong to the days of castles than to this
enlightened age of crystal palaces. New-York has suffered so
severely in past years from the destruction of her public buildings by
fire, that it is now highly important that better principles be followed
in our new edifices. Our banking friends as well as our architects
will find numerous suggestions upon this subject in a volume recently
issued from the London press, entitled, “ The Gilbart Prize Essay on
the adaptation of recent discoveries and inventions in Science and
Art to the purposes of Practical Banking. By Granville Sharp, of
Norwich, England.”
This volume is not only a beautiful specimen of book work, but is
an elaborate and highly valuable treatise on almost every branch of
the banking business, so far as it is affected by science and the arts.
The Essay was originally suggested by, and prepared in accordance
with the following notice issued in the year 1831, in the London
Bankers ’ Magazine :
“ Wo arc authorized to announce that J. W. Gilbart, Esq., F.R.S., will present
the sum of One Hundred Pounds to the author of the best Essay which shall be
written in reply to the following question :
* In what way can any of the articles collected at the Industrial Exhibition of 1851
be rendered especially serviceable to the interests of Practical Banking V 11
Mr. Granville Sharp, of the East of England Bank, Norwich, was
the successful competitor for this premium. His Essay was widely
distributed and was republished in the Bankers' Magazine in the
months of January-June, 1852.
The present edition of Mr. Sharp’s Essay is the third that has been
issued, and is now enlarged to a volume of 35G pages, accompanied
with no less than ninety engravings of certain appurtenances of the
banking house and office. Its chief feature to the banking men of this
metropolis is its information and suggestions in reference to bank
Digitized by Gougle
Original from
UNIVERSITY OF CHICAGO
584
Bank Architecture in New- York.
81
architecture, furniture, and stationery. And here the recommenda-
tions of iron and stone for building purposes are very apropos. Mr.
Fairbaim, civil engineer, in his Treatise on Cast and Wrought Iron
says : “ The exact time at which cast iron came into use, appears to
be very uncertain ; but we read of its application for casting cannon
shortly after the invention of gunpowder. During the days of Savery
and Newcomen it was partially used in the construction of their
steam-engines and pumps ; and shortly after Newcomen’s invention,
his cylinders were made of it. Its value was also appreciated at an
early period by Smeaton, who, according to Tredgold, combated the
prejudices against it ‘ upwards of forty years ago,’ in the following
language :
“ ‘ If the length of time of the use of these cast-iron utensils is not
sufficient, I must add, that in the year 1755, that is, twenty-seven yean
ago, for the first time I applied them as totally new subjects, and
the cry then was, that if the strongest timbers are not able, for any
length of time, to resist the action of the powers, what must happen
from the brittleness of cast iron 1 It is sufficient to say that those
very pieces of cast iron are still at work, and that the good effect has
in the north of England, where first applied, drawn them into com-
mon use, and I never heard of one failing.’ ” ,
Heating and ventilation of bank-buildings in large cities are of
primary importance. To maintain a uniform temperature and to
change the atmospheric contents of the different rooms where nume-
rous persons are employed, has been a question of anxious solicitude
among engineers and architects. The walls of the main building
should be perforated for the admission of pure air and likewise for
the discharge of the saturated air ; and in addition to these provisions,
each room should have a double row of steam-pipes, heating the
upper strata of air to a temperature of 60°, and thus causing a
constant circulation of imperceptible currents to be passing through
the rooms.
In order to give perfect security to banking houses, they should be
constructed in accordance with the following well-ascertained prin-
ciples, according to Mr. Fairbaim, whose work on the uses of iron
should be familiar to every builder, (p. 117.)
1st. The whole building to be composed of non-oombustible mate-
rials, such as iron, stone, or briok.
2d. In order to prevent fire, whether arising from accident or
spontaneous combustion, every opening or crevice communicating
with the external atmosphere to be closed.
3d. An isolated stone or iron staircase (well protected on every
side by brick or stone walls) to be attached to every story ; and the
staircase to be furnished with a line of water-pipes, leading to the
mains in the streets, and ascending to the top of the building.
4. That the iron columns, beams, and brick arches, be of strength
sufficient not only to support a continuous dead pressure, but to resist
the force of impact to which they may be subject.
Lastly. That in order to prevent accident from intense heat melt-
Digitizetf by
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Original from
UNIVERSITY OF CHICAGO
82
Bank Architecture in New « York .
585
mg the columns, in the event of fire in any of the rooms, a current of
cold air be introduced into the hollow of the columns, from the arched
tunnel under the floors.
The more general adoption of iron as the leading material in the
construction of the interior of public buildings is urged by consider-
ations of economy, permanency, and safety, either one of which should
induce the employment of iron in preference to wood for such purposes.
Mr. Braidwood, the Superintendent of the London Fire Engine Estab-
lishment, has stated, in his evidence before a committee of the British
House of Lords, that by exposure for a few years to heat, not much
above that of boiling water, timber is brought into a condition some-
what resembling that of spontaneous combustion. A recent heavy
loss by fire was produced by the ignition of the wooden casing in
which the hot-water pipes were inclosed. Assuming these statements
to be correct, the character of the floors through which w'arming
apparatus is generally made to pass, must be a matter of importance.
Mr. Sharp refers to a valuable pamphlet by the celebrated Dr.
Arnott, in which he said that, “to secure, to a man of sound constitu-
tion, uninterrupted health for the full period of human life, there arc
only four things or conditions which he can be ever required himself
to provide or secure, namely, fit air, warmth, aliment, and exercise
OF HIS BODILY AND MENTAL FACULTIES.”
Next to the materials for the banking-house w’alls, the banker should
inquire into the diffusion of light throughout his house ; then ventila-
tion ; and in Mr. Sharp’s volume he may find useful suggestions as to
acoustic tubes, doors, springs, safety-fastenings, blinds, shutters, floor-
cloths, wind-guards and cowls, gas lights, vault-locks, furnaces, stoves,
safes, and many other minor yet important details.
In the minor subjects of inquiry the author furnishes copious infor-
mation, and such as will greatly facilitate the completion of bank
structures, and the fitting np with a view to the personal comfort of
the banker and his subordinates. The engravings, drawings, and speci-
mens refer to bank-note engraving, paper, and printing bank-checks,
bills of exchange, inks, copying-presses, pens, stationery in general.
The suggestions for the prevention of frauds in letters of credit and
bank-bills, deserves careful consideration by American bankers.
Mr. Sharp gives due credit to Mr. Perkins, the eminent American
bank-note engraver, for his important aids in the improvement
of the bank-note, (see Bankers ’ Magazine , vol. iv., pp. 167-170;)
but from what wo can learn, the style of bank-note engraving and
manufacturing in England is far better adapted for safety and free-
dom from fraud than those executed in the United States. The
author also awards to the lock of Messrs. Day & Newell just praise.
He says, “ The only legitimate wray for Messrs. Bramah to obtain satis-
faction from Mr. Hobbs, will be to pick his lock, U. S. A., No. 298,
capable of 1,307,654,358,000 permutations.”
In the construction of bank vaults, the Burglars’ Proof Bank-Safe,
composed of hardened spring-steel and wrought iron, and manufac-
tured by W. W. Bacon, of New-Haven, Corn., can be used with
great advantage.
Digitized by Gougle
Original from
UNIVERSITY OF CHICAGO
586
Bank Architecture in New -York.
83
MERCANTILE BANK, NEW-YORK.
Corner of Broadway and John street.— Erected 1S5‘2.
Designed and constructed by Messrs. Thomas & Sons, Architects, Ncw-York.
This is a fine building, situated on the comer of Broadway and John
street, on a lot having the shape of a trapezoid, with its larger end on
Broadway. The partition walls are so arranged that the banking
apartments are contained in a parallelogram, the wedge-like portion
thus excluded containing the safes at its smaller end, and a stair-case.
These safes arc built in the most substantial manner, of bricks and
iron, resting on a solid foundation of the same material. The entrance
to the bank is from Broadway, through a shallow vestibule ; beyond
the banking room is situated the Directors’ room, well lighted by
windows from John street. The walls are ornamented by wainscot-
ting, and the ceiling and walls shaded in water colors, in a similar
style to the Broadway Bank, in a light gray tint.
The basement and upper stories are divided into offices, etc., with
entrances both on John street and Broadway.
The main doorway of the building is ornamented with engaged
Corinthian columns, supporting an entablature with a curved pedi-
ment above, which is continued around the whole length of both fronts.
Digitized by Go ugle
Original fro-m
UNIVERSITY OF CHICAGO
84
Ba/ik Architecture in New - York .
587
The windows in the Broadway front, which are bold and htmdsome,
are ornamented with pilasters and consoles supporting a cornice, and
moulded sills under them resting on corbells. The side on John street
is divided into five parts, the middle and two extremes of which pro-
ject about six inches. Of these, the middle part has three windows
to each story, with ornaments similar to those on the Broadway front.
The two extreme parts have one window each to every story, orna-
mented with architraves around semi-circular arched openings and
keystones. The two intermediate parts have also one opening each
to every story, which are ornamented in the same manner as the
middle parts, with the addition of a pediment. The upper cornice of
the building is supported on modillions, having their lower sides
curved to an undulating surface.
THE BROADWAY BANK.
Corner of Broadway and Park Place . — Erected 1852.
Designed and constructed by Messrs. Thomas & Sons, Architects, New- York.
This building is situated on the comer of Broadway and Park Place,
and from its size and position, one of the most conspicuous in the city.
Digitized by Gck gle
Original from
UNIVERSITY OF CHICAGO
588
Bank Architecture in New - Yprk.
85
The architectural front is on Park Place, but its main entrance on
the narrow end of the building in Broadway, although there is a large
doorway at the end of the building in Park Place, to afford convenient
access to the upper stories. It is built in the Italian style, of brown
freestone, with highly ornamented windows and doorways, rusticated
basement, and chamfered rustic quoins at the angles.
The main entrance on Broadway opens into a vestibule, at the
further end of which folding-doors, swinging either way, lead into the
banking room. This is a large, well-lighted room, the walls orna-
mented with paneled wainscotting, and tho ceiling shaded in a
beautiful style by Guidicini. Beyond the banking room is situated
the Directors’ room, ornamented in a similar manner, and lighted
from Park Place. These apartments are secured by heavy iron shut-
ters, and are intended to be completely fire-proof.
In tho upper stories and basement are various offices, reached
by easy flights of stairs from tho entrances on Broadway and Park
Place.
The doorways arc ornamented by Corinthian columns, while the
entablature, with the blocking course above it, is continued around
both fronts. The middle windows on the Broadway front, and all the
upper stories, are decorated with pilasters, and consoles, supporting a
comico and pediment over it, within which is an architrave continued
round the opening, under a sculptured frieze. The windows on each
side have architrave, frieze, and cornice, similar to the middle win-
dows, but smaller and plainer. Tho two smaller entrances have plain
architraves around semi-circular head openings, with a highly orna-
mented keystone.
The cornice is massive and handsome, with medallions carved in
the form of consoles, while on Park Placo its length is relieved by a
curved pediment crowning a projection in the centre of the facade.
“ It is, however, as melancholy as it is absurd, to see a fine building,
and one evidently erected at great expense, attempting to deceive the
spectator with an elaborate cornice and pediment made of wood,
painted and sanded in imitation of stone, a stratagem which, if it is
discreditable in smaller buildings or temporary structures, is miser-
ably mean and petty in an erection like the one under consideration.”*
THE NASSAU BANK.
Comer of Nassau and Beekman streets. — Erected, 1854-5.
> The new building for the Nassau Bank occupies a portion of the
site of the old Clinton Hall at the corner of Beekman and Nassau
streets, and has its principal front on Beekman street, 50 feet 4 inches
wide, by 47 feet 6 inches on Nassau street j has a cellar, basement,
and five stories above the basement.
* Putnam’s Monthly Magazino, February, 1853.
Original from
UNIVERSITY OF CHICAGO
Digitized by Go
86
Bank Architecture in New - York.
m
The basement piers are of light-colored granite, forming a pleasing
contrast with the color of the superstructure, and having a very sub-
stantial appearance.
The material used for the superstructure is a light cream-colored
stone, brought from the northern part of France, where it has long
been employed as a building material, having been found durable
and capable of resisting the effects of climate to a remarkable extent.
From its extreme softness it may easily be scraped and cleaned when
discolored. It is now used in construction for the first time in the
United States.
On Beekman street are the two main entrances, one to the banking-
room, the other to the offices, etc., in the upper stories, both alike,
having rustic piers, with moulded bases, imposts, etc., and rustic arches.
The two extreme angles on Nassau street present heavy rustic piers
carried to the first-story cornice. The intermediate spaces between the
two door-ways on Beekman street and the rustic piers on Nassau
street are occupied by windows and piers. AU the piers have
moulded bases, also moulded imposts, from which spring moulded
archivolts, forming circular heads to the windows. All the openings
have an unusual depth, which gives to the piers an appearance of
solidity. A plain, well-defined cornice continues across both fronts
above the first story. The second-story windows have moulded pilas-
ters, carved consoles, friezes, etc. ; pediments, circular and triangular
alternately, and all stand on pedestals, paneled and moulded, and hav
ing moulded caps and bases continued the extent of the fronts.
The third-story windows have pilasters moulded, carved consoles,
friezes, and moulded cornices. The fourth and fifth-story windows
have moulded architraves, and in fourth story, moulded cornices.
Heavy moulded bell-courses are carried across the fronts, and divide
off the stories. All the angles are finished with rustic quoins carried
to the top cornice. The top cornice, of a harder kind of stone, termed
Aubigne stone, but similar in color to the other parts, has a paneled
frieze, lentels, and modillions, and is of bold but symmetrical pro-
portions.
The entrances are secured with wrought-iron doors. The basement
and first-story windows have plate glass.
In the cellar are the furnaces, coal-rooms, etc. The basement has
four offices, separated by brick walls, built with arches, so that any
two or all of them can be converted together, and all have easy access
from the street by iron steps, and are all well lighted and ventilated,
and arc heated by the furnaces ; have fire-proof vaults, water-closets,
and all required conveniences.
The first-story entrances have iron stairs, all of open work, for light
to basement. The floor of the banking room is laid with encaustic
tiles of neat design, and the walls, instead of plastering or painting,
are finished with the same kind of stone as is used for the exterior,
formed into paneled work of appropriate patterns.
The banking-room is 34 X 45 feet on the plan; is 15 feet high,
and is unobstructed by columns ; the floors, partitions, etc., above
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being supported by strong iron girders running from wall to wall,
and being nearly 50 feet in length. The ceiling of the banking-room is
formed into panel work in such a manner as to hide the iron girders.
The directors and officers’ rooms are separated from the banking-
room by a sash partition, with handsome moulded pedestals, base,
etc., arched openings, glazed with ornamental cut and ground glass.
All the ceilings will be painted in fresco of appropriate design.
A roomy vault, built of stone, brick, and iron, all in the most
approved manner, is situated so as not to be seen from the banking-
room, and has a foundation of solid masonry built up from cellar
floor.
The counters, desks, etc., are of oak, and all designed so as to be
in keeping with the character of the building. A large well or
opening is built up from the ceiling of the first story to the roo£ for
purposes of light and ventilation, answering for all the stories from
the basement upward, and is covered by a strong iron sky-light.
Broad and roomy stairs lead to the upper stories, the main stairs
being in the centre of the building and are lit by a large sky-light
and dome. The second story has six, and the third and fourth stories
eight rooms each, all with separate entrances from the hall, and
arranged so as to be let singly or two or more together. Each story
has ample light, ventilation, and means of heating, and water-works
well arranged throughout the building.
The fifth story has the usual accommodations for a keeper, beside
rooms or lofts to let.
The style of this building is the Modern Roman. The architect is
Samuel A. Warner, of this city.
BANK OF THE COMMONWEALTH, NEW-YORK.
Comer of Pine and Nassau streets. — Erected, 1854.
The new building recently erected on the north-westerly corner or
Nassau and Pine streets for the Bank of the Commonwealth, has a
front of 30 feet 7£ inches in width on Nassau street, and a depth of
80 feet 3 inches on Pine street, and contains a cellar and basement,
and five stories above the basement. In the cellar, which is 7 feet
high in the clear, are situated a furnace for heating the offices and
rooms in the basement and first stories, foundations for the bank-
vaults, of solid stone masonry, 12 by 15 feet in dimensions, and suffi-
cient accommodations for fuel for all the offices throughout the
building. The access to the cellar is by a flight of iron steps from
Pine street, the entrances being well guarded by iron doors.
The basement contains five offices. The walls and partitions arc
of substantial brick work, and constructed with arches, so tint two
or more offices may be connected together if desired. Iron steps, of
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Bank Architecture tn New -York.
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easy descent and ample width, lead from the street to each office.
In addition to the furnace, there are flues and fire-places, also venti-
lating flues in all the rooms, constructed on tried and approved
principles. Under Nassau street are situated vaults, well lighted by
patent illuminating tile, and containing water-closets and accommo-
dations for coal for the basement offices. There are also fire-proof
hook-vaults, situated in the interior of the basement, for the use of
the offices.
On the first or principal story are situated the banking-room,
directors and officers’ rooms, also a room separated from the banking
apartments by a brick wall, and having a separate entrance from
Pine street, for letting. The height of this story is 15 feet. Substan-
tial girders of wrought iron extend from wall to wall over this story,
by which all the floors, partitions, etc., above, are supported, thereby
dispensing with interior columns or other means of support by which
rooms of any great magnitude are usually obstructed. The banking-
room is 28 by 44 feet, has two entrances, one from each street,
opening into a handsomely furnished lobby, has seven windows,
finished with moulded casings. The partition separating the directors
and officers’ rooms from the banking-room, has pedestals with sunk
panels, moulded caps and bases, surmounted with columns, with
carved capitals, moulded bases, and semi-circular arches over the
openings, and containing sash, glazed with ornamented cut and ground
glass. The sides of the rooms are finished with moulded, paneled
wainscotting, with moulded caps and bases, and the walls above the
wainscotting neatly paneled. The ceilings are formed into sunk
panel work in such a manner as to disguise the iron girders, and all
finished with mouldings, cornices, etc., of neat design. The officers’
room is situated so as to command a view of the entire banking-room
as well as the entrances thereto from the streets. The vault is of
ample dimensions, and is constructed in the most approved and sub-
stantial manner of stone, brick, and iron, and is considered to be per-
fectly secure against the attempts of burglars, as well as safe in case
of fire. There arc also superior accommodations on this story in the
way of wardrobes, closets, water-works, etc., for the banking,
directors, and officers’ rooms. Means of ventilation have not been
overlooked. An open space, 7 by 14 feet, is carried from the first-
story ceilings to the roof, and is covered by a strong iron-framed sky-
light, the sides with open work with stationary blinds. All the
rooms, water-closets, etc., on the first story, communicate with and
are ventilated by the above opening, as do also many of the rooms
in the upper stories. It also serves as the means of introducing light
into the central parts of the building. The counters, desks, etc., are
of superior style and make, and all the fittings up of the best descrip-
tion. All the first-story entrances have iron steps, with iron open
work risers, for throwing as much light as possible into the basement
There are two principal entrances on Nassau street, one of them
leading to the officers’ rooms above the first story, by a flight of broad
and roomy stairs.
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The second, third, and fourth stories contain eight offices each, all
of them communicating directly with the halls, and so arranged as to
be occupied singly or in pairs. Light, ventilation, and water have
been well provided. The main stair-case occupies a central position,
and over it there is a large dome and sky-light.
In the fifth story there are rooms for the occupation of the keeper
and others, which can be occupied for various uses.
The exterior is of the Modern Roman or Italian style, and is con-
structed of the browm free-stone, from the Chatham quarries on the
Connecticut River. The basement shows strong piers, and appro-
priate openings for doors and windows, and is surmounted by a heavy
find substantial water-table. Iron posts of suitable designs are intro-
duced in some instances in place of the piers, on account of their
affording greater openings, and consequently more light to the base-
ment rooms.
An appropriate and effective exterior, with a proper regard to
variety and proportion ; economy in the arrangement and distribution
of the room in the interior, having utility and convenience in view ;
strength and durability in its construction ; and a judicious expendi-
ture of the funds appropriated for the purpose, have been the objects
aimed at by those concerned in the erection of this building.
BANK OF THE COMMONWEALTH.
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BANK OF T II E REPUBLIC.
Comer of Broadway and Wall street . — Erected, 1851-2.
This is a handsome freestone building, situated on the corner of
Broadway and Wall street, one of the most prominent and valuable
sites in the city, commanding as it does an excellent view on both
sides, and in the greatest thoroughfare on this continent.
The building itself is in good taste, with the exception of the upper
story, which is a defect, rising above the simple and tasteful cornice.
Any cornice, however fine or effective, would be utterly lost beneath
such an addition. The windows are large, and seem to be well
arranged and adapted to the purposes of lighting and ventilation;
while those in the rounded comer of the building are much relieved
in their effect by being deeply recessed. The rounding of the comer
was probably intended to save space in the street.
The doorways arc rather heavy, and the cornice of the main
entrance has a cumbrous and clumsy appearance.
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THE METROPOLITAN BANK. *
Comer of Broadway and Pine Street. — Erected, 1852-3.
Messrs. Thomas & Son, Architects.
The Metropolitan Bank, whose building is one of the finest speci-
mens of bank architecture in New-York, was established by the dry-
goods merchants, for the special convenience of their own branch
of trade. This structure is in the Italian style, faced with brown
freestone, ornamented with Corinthian pilasters to the doorways.
Over the bank entrance is a pediment formed by two scrolls, with an
urn between them.
The banking-room, and two rooms for the President, Vice-Presi-
dent, and Cashier, are situated on the main floor ; the walls handsomely
shaded in water-colors, and wainscoted, with the angles richly orna-
mented with architraves. The rear portion of the banking-room is
inclosed by a counter, within which is the foreign money-department.
In the remaining space are counters on four sides of the room, inclos-
ing a space in the centre, and having a passage on all sides of about
six feet. In front of each entrance are steps, made of cast iron, formed
by frets, so that light may pass through the intervals to the area
underneath.
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The safes are built with brick, stone, and iron, in the strongest
manner, resting on a solid foundation of the same materials.
The openings are secured by iron doors and shutters, and the apart-
ments are heated by hot-air furnaces. The sides of the openings to
the upper stories are ornamented with architraves continued over
them, with a cornice above, supported by consoles to the second-story
windows. The fourth-story openings are ornamented with moulded
architraves.
The second, third, and fourth stories, and also the basement, are
occupied as offices. Under the building is a cellar connecting with
vaults, built under the side-walks, and wen lighted.
The cost of the lot, banking-house, and fixtures was about (280,000.
CENTRAL BANK OF THE CITV OF NEW-TORK.
Corner of Broadway and Chambers Street. — Erected, 1854-5.
The building is twenty-five feet front on Broadway, and ninety-two
feet on Chambers street, and is six stories in height, including the
basement and under-ocllar.
The fronts, from the level of the basement-floor, are from the Danby
Marble Quarry in Vermont, the beauties of which consist in the
whiteness of the stone, Bhaded by streaks of blue, which gives a soft
andpleasant effect.
The height of the stories is as follows : Cellar, 10 feet high ; base-
ment, 9 feet, 6 inches ; first story, 15 feet ; second story, 18 feet ;
third story, 12 feet ; fourth story, 11 feet.
The building has a circular comer, which reduces the width in
appearance of the front on Broadway, but which is amply compen-
sated for by giving a handsome arched door-piece on the circle which
forms the entrance to the bank ; the entablature and cornice of the
door-piece are supported by fluted columns and Corinthian caps.
Another advantage gained by the circular comer is, that it gives a
spacious entranco to the basement (which is nearly level with the
street) on Broadway.
The front of the building on Chambers street is divided into three
parts ; the centre of which projects, showing a wing on each side. The
windows and doors of the basement story have segment heads, and
are put up with large rusticated marble blocks. The first story is
also put up with rusticated marble blocks, and the windows, wnich
have arched heads, are trimmed with moulded architraves and key-
stones. There is an ornamented modillion cornice over the first
story, which continues all around the two fronts. Above this cornice
the building is freed with plain ashlar, with rusticated coins on the
comers.
The windows of the upper stories have moulded sills, arched heads,
and are trimmed with pilasters, which have ornamented caps ; archi-
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traves around the arches, and the tops of the windows surmounted
with arched pediment and bevel cornices, varied so as to make a centre
to each section. The top of the building is surmounted with a hand-
some stone cornice, with carved modillions and trusses, and moulded
panel friezes.
In the cellar are placed two furnaces, which will warm the entire
building.
Attached to the cellar are vaults, built under the side-walk and
street, the whole length of the building on Chambers street, and in one
end of these vaults arc the water-closets for the basement offices. The
vaults are lighted by Hyatt’s illuminating vault-covers. In the cellar
and vaults is ample space for fuel.
The basement is divided into five offices, the entrances of which are
nearly level with the street. In the basement are iron safes for each
office. All the offices are liberally supplied with water and gas-
fixtures.
On the first story is the banking-room, in the rear of which is the
Directors’ room ; and on one side of the banking-room are the iron
safes, which arc supported with solid stone masonry from the foun-
dation.
The three upper stories arc divided into three suites of offices in
each story, which are supplied with water-closets and wash-basins.
The entrance to the upper stories is from Broadway, on the south
side of the building.
The entire building will be lighted with gas. The whole cost of the
building will be about $60,000. Mr. J. B. Snook, Chambers street,
is the architect. The 44 Central Bank of the City of Ncw-York,” for
which this building was erected, has recently failed. The property
will therefore pass into new hands, and will probably be used by
one of the banks of the city.
BOWERY SAVINGS BANK.
In the Bmcery , near Grand Street — Erected) 1862.
The Bowery Savings Bank, situated on the westerly side of the
Bowery, between Grand and Broome streets, is one of the handsomest
banking-houses in New-York. The second story is only half the
depth of the first story, and the rear wall crosses over the middle of
the first story, supported on arches and columns ; and on the roof the
extension is a large dome. A part of the first story, or banking-room,
is partitioned off, and contains a staircase leading to the different
stories ; closets for the use of those employed in the bank ; the safes,
which are of iron, resting on a solid foundation. The rear portion of
the banking-room is divided from the front by a low railing, for the
use of the officers of the bank. In the front portion the counters in-
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BOWERY SAVINGS BANK.
close about one third of the space from side to side, leaving passages
in front of them on three sides, nearly equal to one third of the width
of the room. The walls are decorated with wainscoting, and the
angles are ornamented with architraves. The ceiling and walls are
shaded in water-color. The ceiling is divided into two parts ; the one
toward the rear, from which the dome springs, ornamented with
panels in the angles, and the dome shaded to represent panels and
continued ornaments. The part toward the front is so arranged as
to have a large circular panel in the middle, to correspond with the
dome in the rear, and filled in with lesser panels ; and the angles
outside of the circle are ornamented with panels and decorations.
On the side-walls are represented coupled pilasters supporting the
transom which crosses the ceiling. The remaining surface of the
walls is divided into large panels ; the whole is shaded with a light
tint of raw umber.
The doorway to the middle division of the front is larger than
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those to the sides, and is ornamented with engaged Corinthian columns
resting on pedestals, within which is a pilaster on each side, support-
ing an arch with a keystone. Above the arch and columns' is an
entablature, which is continued through the whole front. Over the
doorway is a curved pediment ; on each side of the doorway is a win-
dow, with scmi-circular arches over them, and ornamented with archi-
traves and keystones, and the piers ornamented with courses of ash-
lar, grooved at the upper edge. The doorways to the side parts have
semi-circular arches over them, and architraves, and very ornamental
keystones. Before each entrance are broad stone steps. The win-
dows of the upper stories over the doorway are ornamented w ith
pilasters and consoles supporting a comice with curved pediment over
it; on each side are windows with semi-circular arches over them,
ornamented with architraves and keystones. Between the second
and third-storv windows is a tablet, on which is cut the name of the
bank, etc. The windows on the sides are ornamented with archi-
traves, trusses, and cornices with pediments over them. Under the
second-story windows, and upon the entablature over the first story,
is a blocking course.
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Bank Architecture in New -York.
CUSTOM HOUSE.
The view on the preceding page represents the north side of Wall
street, between William street and Broadway, with Trinity Church at
the head. At the corner of Wall and William streets is located the
Bank of America, (not visible in the print.) The next building was for-
merly occupied and owned by Messrs. Jacob Little & Co., from whom
it was purchased by the Bank of North- America, by which institution it
is now occupied. Secondly, the Merchants Bank, with fluted columns
in front. Thirdly, No. 40 is the Manhattan-Bank building, the bank-
ing-room being the rear, and the front rooms occupied by private
bankers or insurance companies. No. 38 is the Mechanics’ Banking
Association. No. 36 is the National Bank as it was in 1853, and now
superseded by a four-story bank-building, erected in 1854-5. No.
34 is the Union Bank, with columns in front. Adjoining that is the
United States Assay Office, until recently occupied and owned by the
Bank of the State of New-York and by the Bank of Commerce. The
last building, corner of Nassau and Wall streets, is the Custom-House,
of which the above is a cut.
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Trinity-Church building is conspicuous from the whole of Wall
street. The church clock is plainly seen from both sides of Wall
street, and is a guide to many who have notes to pay. At the corner
of Broadway and Wall street, immediately facing Trinity Church, is
the Bank of the Republic, elsewhere described; and intermediate
between Broadway and Nassau street is the Continental Bank.
On the south side of Wall street are located the following banks :
No. 12, the St. Nicholas Bank ; No. 33, the Mechanics’ Bank ; No.
45, the Phenix Bank. The following cut represents the comer of the
Merchants’ Exchange, comer of William and Wall streets. In this
building are tho banking-rooms of the Bank of the State of New-York,
and also of the Bank of the Commonwealth and the National Bank,
while their new banking-houses are in course of construction. On the
opposite comer is the Insurance Building, a large and massive struc-
ture, occupied by two of our leading insurance companies, and by the
Agency of the Ohio Life & Trust Co., Messrs. E. W. Clark, Dodge
& Co., and others. The Phenix Bank building (No. 45) is also seen,
with its cut brown-stone front. This building, like several others, is
constructed with a view to economy, the bank occupying that portion
of the building on the rear of the lot, while the front is occupied as
insurance and banking-offices.
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Debts of European States.
601
DEBTS OF EUROPEAN STATES.
II. Austria.
The first Austrian loan quoted in the London Official List was con-
tracted in 1823, for £3,500,000 ; and was taken by Messrs. Roths-
child. This loan was issued at 82 per cent, in the form of bonds of
1000 florins, or £100 each, at an interest of 5 per cent, and at a fixed
exchange of 10 florins per pound sterling, the dividends on which are
payable the 1st of May, and the 1st of November, at Vienna; the
coupons, however, may be realized in London, at the current rate of
exchange, at Messrs. Rothschild’s, which reduces them considerably
below their nominal value, consequent upon the depreciated value of
the Austrian paper currency.
The continual drain upon the Austrian exchequer, for the support
of immense armies and an expensive court, has for several years pro-
duced an annual deficit. The following shows the amount in each year,
from 1847 to 1853.
Deficits.
1847, £706,034
1848, 4,511,064
1849, 12,190,580
1850, 5,486,486
1851, 6,222,363
1852, 5,344,733
1853, 6,500,000
Various attempts have been made to diminish the deficiencies, but
with scarcely any success, and the Budget for 1854 gives a deficit under
the head of ordinary expenses, of 45,000,000 florins, or of £4,500,000 ;
and under the head of extraordinary expenses, of 50,000,000 florins,
or £5,000,000 sterling, making a total deficit of £9,500,000.
It is rather difficult to give an exact account of the debt of Austria.
It has been stated at about £120,000,000 sterling in 1850. In Septem-
ber, 1851, a subscription loan wras contracted for 85,569,800 florins
of convention, to ameliorate the course of the paper-money. In May,
1852, another foreign loan was contracted for 35,000,000 florins.
In September of the same year a new voluntary loan was proposed
for 80,000,000 florins, or £8,000,000 sterling, at 95, to bear interest
at 5 per cent. The deposit to be 10 per cent, and the remaining
instalments to be spread over 12 months. The objects for which this
loan was said to bo contracted were the payment of debts due to the
Bank, to appropriate £2,500,000 to the retiring of a further portion
of the paper circulation, to meet the deficiency in the forthcoming
budget, and for the construction of railways.
In March, 1854, a new lottery loan was proposed for 50,000,000
florins, or £5,000,000.
All these schemes, however, have faded to restore the finances of
Austria ; and the impending difficulties arising from the war between
Russia and Turkey have created still further demands for pecuniary
assistance. The latest intelligence from Vienna states that a fresh.
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Debts of European States.
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loan has been proposed for the sum of at least 350,000,000 florins, or
not exceeding 500,000,000 florins, or from £35,000,000 to £50,000,000
sterling. The object set forth in the patent is “ for restoring the
paper currency to its full value, and for covering the extraordinary-
expenditure of the state.”
If we take into consideration the deficits from 1850, and the capital
of the debt in that year at £120,000,000, we shall arrive at the follow-
ing approximate indebtedness of the Austrian government :
Dfjtcils. Loans.
1851, £6,222,000 £8,569,000
1852, 5,344,000 11,500,000
1853, 5,500,000
1854, 9,500,000 45,000,000
Totals, 26.506,000
Debt in 1850,
Total deficits to 1854,
Total loans to 1854,
65,069,000
£120,000,000
26,500, uOO
65,069,000
Estimated total, 211,635,000
The total external revenue of Austria amounts to a very insignifi-
cant sum. The revenue derived from customs, including those on
imports and exports, is about £4,800,000 ; and the remainder, derived
from land contributions and articles of consumption, is about
£22,300,000 per annum.
The natural resources of the Austrian territories are very great.
The productive land, including Hungary, is estimated at 140,000,000
acres ; and the annual value of its principal industrial productions at
about £52,000,000 sterling, or 510,715,000 florins.
IIL France.
The only French government securities negotiated in the English
stock market are the Rentes, which at the present time consist of the
three, four, and four and a half per cents, the five per cents having
been converted in 1852. The dividends on the four and the four
and a half per cents are payable on the 22d day of March and Sep-
tember, and those on the three per cents on the 22d June and the
22d December. These dividends are payable in Paris, but can be
received by an agent possessing a power of attorney from the holder
of the stock, or by depositing with him the original certificate of
inscription. They are generally transmitted to this country by short
bills drawn on London, payable at the exchange of the day, after
deducting the usual charges for commission, which is one eighth, or
2 s. §d. per cent and postage.
In making purchases in the French funds, the practice is to negotiate
for the rente , or dividend, without expressing the capital stock, as in
the English funds. But the mode of determining the amount of capi-
tal represented by each description of rente is very simple. For
instance, in the five per cent rentes, 1 franc represents a capital of 20
francs ; in the four and a half per cents, 22*22 francs ; in the four per
cents, 25 francs ; and in the three per cents, 33*33 francs, when at
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France.
603
par ; these numbers being multiplied by the rate of interest produce
100 ; or are, in other words, the quotients arising from dividing 100
by the several rates of interest, thus :
100 100 100 100
20; 2222; — 26; — 83-33
5 4 3
As we have already stated, the debt of France is given at so much
rente , and the capital of each description may be easily known by
multiplying the rente by the above numbers.
To determine the value of French capital in English currency, it is
necessary to multiply the rente by 20, if the rate of interest is 5 per
cent. Suppose the market price is 110 francs 25 cents ; then if 100
francs are worth this sum, 20 francs will be worth 22*05 francs,
because the price is above par. Should the exchange on Paris be 25
francs, 50 cents per pound sterling, then the value of the 22-05 francs
capital will be 17s. 3d. in English currency, exclusive of brokerage,
which is one eighth per cent.
When purchases are made in the other rentes, the multiplier must
be used accordingly, namely, 22-22 for the 4£ per cents ; 25 for the
4 per cents; and 33*33 for the 3 per cents.
The public debt of France, since the close of the war in 1815, has
undergone some very remarkable changes, which, for the sake of
clearness, we shall divide into three periods. Firstly, the amount
from 1814, to the reign of Louis Philippe in 1830. Secondly, from
1830 to the overthrow* of the Orleans dynasty in 1848. And, thirdly,
from the latter year to the present time.
From the year 1839 to 1851 the annual revenues of France were
insufficient to meet the expenditure, as will be seen from the following
statement for each year since that period :
Years .
Receipts,
Francs.
Expenditure,
Francs.
Surplus.
Francs.
Deficiency.
Francs.
1840,...
1,234,483,099
1,303,711,102
129,228,003
1841,...
],40G,545,218
1,425,239,023
18,694,405
109,980.203
1842,...
1.440,974,148
1843,...
1,445,205,740
67,041,539
1844,...
1,428,133,942-
43,372.426
1845,...
1,393,280,845
1,489,432,101
100,480,580
184G, . . .
1,403,025,885
1,506,525,591
162,899,706
1847,...
1,372,387,450
1.629,078,080
257,290,039
1848,...
1,767,955,090
1^770, 900, 740
3,005,050
1849,...
1,431,678,905
1,640,304,442
214,025
1850,...
1,472,637,238
41,014,767
1851,...
1,461,329,044
1,401,329,044
100,728,869
1852,...
1,740,060,504
15,032,205
1853,
1,452,929,785
28,410,391
The commercial progress of France the last few years has been
very considerable. Divided into quinquennial periods, from 1838 to
1852 inclusive, the official values of the imports and exports were as
follows, expressed in millions of francs :
Imports. Exports. ToUd.
Firnt period, 1838 to 1842. 9,109 mill. 4,976 mill. 10,175 milL
Second period, 1843 to 1847, G.220 “ 5,777 “ 11,997 “
Third period, 1848 to 1852, 5,774 41 7,418 “ 13,192 44
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Debts of European States.
137
Digitized by
The increase in 1852 over the preceding year was 833,000,000
francs, or about 12 per cent, and 583,000,000 francs, or 28 per cent,
above the five previous years.
The total actual values of the imports and exports united in 1852,
amounted to 2,246,000,000 francs.
Coinage or Francs.
Odd.
Franc*.
First Republic,
Napoleon Bonaparte, 628,024,440
Louis XYIIL, 889,333,060
Charles X. 62,918,920
Louis Philippe, 216,912,800
Republic (Inscription Angel for
16 sous gold,) 66,921,220
“ (Hercules for silver,)
“ (Head of the Goddess of
Liberty,) 370,361,640
Louis Napoleon, 12,618,760
SUv«r.
Franc*.
106,237,266
887,682,321
614,668,620
631,914,637
1,760,273,238
269,628,846
199,470,486
62,717,900
Totals,
1,626,090,830 4,612,494,206
Total.
Franc*.
106,287,266
1,415,606,761
1,004,001,680
684,833,657
1,966,186,038
66,921,220
269,628,846
669,833,128
76,336,650
6,138,685,036
or £66,043,633 £180,499,768
The coinage at the Paris Mint in 1853 was as follows
£246,643,401
Dnoription.
Pieces of 20 francs,.,
“ 10 “ .
Total of gold,
Pieces of 6 francs^....
u n u
A • • • •
II 1 II
X • • • «
44 0*60 cents, . .
44 0*20 44 ..
Totals of silver,
Total,
Grand total,
Gold.
Silver.
Copper.
Humber.
16,611,600
1,768,346
Value.
Franc*.
312,830,000
17,633,463
17,374,846
830,463,463
or £13,218,638
Fumbcr.
... 388,968
... 116,996
. . 182,412
. 163,742
, . 748,318
Franc*.
19,448,340
231,992
182,412
76,881
149,053
.. 6,090,236
20,039,678
or £801,591
Humber.
30,869,286
franc*.
1,974,939
53,364,367 352,528,180
or £14,101,127
Thus the total coinage of France since 1795 amounts to
£259,644,528, of which £17,114,593 have been coined under the
sovereignty of the present Emperor.
The total indebtedness of France may be put down in round num-
bers at about £233,000,000 sterling.
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138
Russia.
605
IV. Bubbia.
The Russian debt contracted in this country consists of the loans
known in the market as the Russian five and the four and a half
per cents. The first of these loans was contracted in 1822 for
£3,500,000, at 81 per cent, by Messrs Rothschild, at 5 per cent
interest, payable on the 1st of March and the 1st of September, with-
out deduction, at the fixed exchange of 3». Id. per silver rouble, or
at St. Petersburg in silver roubles. The bonds which represent this
loan were issued in sums of 720 roubles, (£111,) 968 roubles, (£148,)
360 roubles, (£518,) and 6720 roubles, (£1036.) The sinking fund 1
per cent.
The four and a half per cent loan was contracted in London, through
Messrs Baring Brothers, in 1850, for the sum of £5,500,000, at 93
Jer cent, bearing an interest of 4£ per cent, payable on the 1st of
anuary and the 1st of July, at the house of the contractor. The
sinking fund to be 2 per cent per annum.*
There are other Russian loans called Metallic t, that have been
issued at different periods in London and Amsterdam. They received
this denomination from the arrangement to pay the interest in silver
roubles, because a short time previously not a very favorable opinion
was formed by capitalists of Russian paper-money, a great portion of
which was funded in 1817.
The financial position of Russia is calculated to attract more than
an ordinary degree of attention at the present time, as various specu-
lative opinions have been put forward about the limited resources of
the Emperor to carry on the war against Turkey and the allied
Sjwers of Western Europe. But it is not improbable that, although
ussian power may have been exaggerated, her resources may also
have been underrated. We might take our own national balance-
sheet as an illustration. The trifling surplus left in the hands of the
Chancellor of the Exchequer on the 5th of April last, would give but
a faint idea of the power of England to carry on the present contest
It is in men and materials that the strength of a nation is found able
to maintain its position, or to advance against an aggressive antago-
nist. It would be incorrect to say that Russia did not possess both
of these beyond any other power in Europe. The only inferiority
that is manifest in her case is that she is unable to distribute the vast
resources at her command without much labor and delay over the
extensive territories that acknowledge her sovereignty. It would
therefore be exceedingly erroneous to determine the power of Russia
merely by the number of silver roubles at her command. What, we
may ask, did England accomplish during the French Revolution of
1793? Was the gold in the Bank of England the exponent of
England’s power ? Most assuredly not. It was found in the spindles
and looms of Lancashire. It was found in the brawny sinews of ohr
Bons of the soil ; the one supplied the funds, and the other went forth
to the fight. And if that war left a huge debt for posterity to bear,
* £330,000 of this loan is redeemed.
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606
Debts of European States.
139
it also secured to posterity that liberty and power which have enabled
it to enter upon a similar contest against any monarch who may dare
to trample upon the rights and liberties of Europe.
We have made this brief diversion from the principal design of
this work because there prevails in certain quarters a strong disposi-
tion to measure the strength of Russia by the foreign exchanges, than
which nothing can be more erroneous ; and we have referred to our
own position during the French war to prove its incorrectness. The
Chancellor of the Exchequer is to be commended for his disinclination
to add to the national debt, as it is called, to carry on the present war,
and to pay his bills in “ hard cash but, atr the same time, he will do
well to know that our ability to defeat the enemy lies in our industry
rather than in our gold.
It would be presumptuous to imagine that the power of a country
containing a population of 67,247,000 persons, and immense resources
of wealth, can be extinguished by any sudden attack, however gigan-
tic , from the fact that its external revenues are small ; though we
must admit that by putting a stop to the external circulation of
Russian commerce, it can bo materially weakened, if it cannot be
wholly destroyed.
The debt owing by Russia, when compared with its resources, is
of a very trifling amount. By the latest returns at our command,
we find it was as follows :
Public Debt of Russia.
January 1*2, Silver Roubles.0 In Sterling £.
1849, 386,675,853 49,001,378
I860, 836,219,492 50,432,929
1851, 386,309,693 57,946,454
1852, 400,667,799 60,100,170
1853, 401,552,111 60,232,866
The public debt of Russia at the last-mentioned date was composed
of the following items :
Roubles.
Quota of Russia in the old Dutch loan, 33,100,000
Second Dutch Loan, - 24,049,000
Interior terminable debt, . . - . - 1 10,867,055
Perpetual Home and Foreign rentes, 223,861,476
Other sundry debts, 9,674,580
Total, 401,552,111
To tho above debt the recent loan of £8,000,000 sterling has to be
added, making the total public debt of Russia about £68,000,000.
V. Turkey.
Although the Ottoman Empire cannot be ranked amongst the
indebted states of Europe, its financial position has long been far
from satisfactory. The war against Russia, which led to the signing
of the Treaty of Adrianople in 1829, left the Turkish government
♦ The rouble is calculated at 3G d, sterling.
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UNIVERSITY OF CHICAGO
140
Turkey.
607
greatly embarrassed ; and it seems to have been the principal aim
of Russia to involve Turkey in a labyrinth of difficulties, by propos-
ing conditions that it would be impossible to fulfill. By that treaty
Russia not only stipulated to be paid an indemnity of 10,000,000
ducats of Holland for the expenses of the war, but she brought in a
bill against Turkey for “ losses and injuries suffered by Russian sub-
jects and merchants at various times since 1806,” to the amount of
1,500,000 ducats, to be completed in eighteen months. The provinces
of Moldavia and Wallachia were to be “ kept as a security by the
Imperial Court of Russia until the entire discharge of the sum which
the Ottoman Porte ha. engaged to pay as an indemnification for the
war expenses.
The whole tenor of the above language shows that Russia was well
aware that no condition would be more difficult for the Turkish
government to fulfill than a pecuniary one, and none could be pro-
posed by Russia that would carry on the face of it greater plausibility
of fairness ; and hence we find in the treaty of St. Petersburg,
signed in January, 1834, that “ His Imperial Majesty, taking into
consideration the embarrassments in which the treasury of the Turk-
ish Empire has been lately involved, consents to the immediate
reduction of 2,000,000 ducats, which is one third of the amount of the
indemnities for the expenses of the war.”
In 1836, a convention was signed at Constantinople relative to this
money, in which the Sultan expressed a desire to pay at once the sum
stipulated by the treaty concluded at St. Petersburg ; and a further
deduction of 90,000,000 piastres, or £818,181, was made in the
demands of Russia, if paid within five months, when the fortress of
Silistria was to be evacuated.
Russia, therefore, has long known that an embarrassed exchequer
would prove the most powerful ally that she could have to assist in
carrying out her ultimate designs upon Turkey. And it is not at all
improbable that in this sense the Emperor Nicholas regarded Turkey
as the “ sick man,” in conversation with Sir G. H. Seymour the Eng-
lish Ambassador, at St Petersburg.*
We must not, however, attribute the financial difficulties of Turkey
solely to the above circumstances ; they only tended to aggravate a
crisis that had long been impending, the consequences of which were
clearly seen by Russia. One of the most formidable difficulties in
Turkish finance has arisen from the difference between the nominal
and real value of Turkish money, that being equal to 50 per cent ;
in addition to this there has been an emission of 200,000,000 of
piastres in paper money, which has greatly deranged its commercial
exchanges with foreign countries. If it were not for this, the com-
merce of Turkey would be amongst the most successful in Europe.
* “ Stay; we hay© on crar hands a sick man — a very sick man: it will be, I tell
you frankly, a great misfortune if, one of these days, he should slip away from us,
especially before all necessary arrangements were made. But, however, this is not
the time to speak to you on that matter.”— Secret Correspondence of the Foreign
Office, page 2.
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608
Debts of European States.
141
It was to remedy this stace of things, that the project of establishing
a bank at Constantinople was conceived, the terms of which have not
been fulfilled. The object of this bank was to furnish an issue of
paper, the nominal value of which should be guaranteed by the Turk-
ish government; and in order to insure this guarantee, 75,000,000
piastres were to be raised on the tribute of Egypt, the copper mines
of Tokat, and the alienation of certain lands in Bulgaria.
This project, however, failed altogether ; and subsequently a firman
was granted by the Sultan to establish another under the name of the
Ottoman Bank, and certain privileges were conferred upon twelve
Concessionaires to completo the project ; and, upon the terms of the
contract being fulfilled, the parties were to be entitled to a lien upon
the tribute of Egypt, amounting to 30,000,000 piastres, or £282,000
per annum, at the exchange of 107 piastres per pound sterling.
As far as the natural sources of Turkey are concerned, there can be
no doubt that all the elements of wealth abound throughout its terri-
tories; and it is, perhaps, more owing to the influence of its reli-
gious creed upon the population than to any other cause that Turkey
has so long remained isolated from the rest of Europe. The lands
of Turkey are, to the extent of three fourths, under the power of
ecclesiastics, and the produce is appropriated to the mosques and
religious foundations : in addition to which, the state furnishes
12,500,000 piastres for the support of these mosques and charitable
institutions. The lands thus consecrated are termed Vakoufs, while
free lands arc known by the name of Mulk. But it is rather singular
that the annual revenues derived from the administration of the
Vakoufs is not valued at more than 20,000,000 piastres, or about
£170,000 a ye#. But it appears that the appropriation of the lands
in Turkey to religious purposes has fallen into the same abuses that
have been practised in all countries where monastic establishments
have been permitted ; and that the original sums only are devoted to
this purpose, while the actual value has increased twenty-fold : and
every species of fraud is practised to secure the reversion of lands to
these institutions. It will be easily understood that nothing less than
a powerful national convulsion can uproot these customs, where they
have endured for ages undisturbed.
Turkey exists under a most oppressive system of taxation known
as the Salian or income tax, by which the presumed income, movable,
immovable, or commercial, is taxed in different localities, from 10 to
25 per cent, and bears upon all subjects of the Sultan, Mussulmans
or rayahs. This tax is imposed and collected by the municipalities
of Turkey, and paid over to the financial agents of the government.
But as the property of Individuals in Turkey is chiefly in kind, and it
is regarded partly as a religious duty, the impost is borne without
resistance.
The most important source of the revenue of Turkey is the Dime,
or tithe, collected in kind from every production of the land, whether
of cattle, fruit, or grain. In some localities, taxation in kind is com-
pensated by a surcharge, which is sold by auction to the highest
bidder.
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UNIVERSITY OF CHICAGO
142
Turkey,
609
There is another tax in Turkey, known as the Hadrafa or capitation
tax; but this extends only to the non-Mussulman subjects of the
Grand Seigneur, or rayahs, as they are called* Every non-Mussul-
man adult male is subjected to this tax, which is divided into three
classes, in proportion to their incomes : the richest pay 60 piastres,
the middle classes 30 piastres, and the least wealthy class 15 piastres
per annum.
The statistical facts of the Turkish Empire are so scanty, that it is
difficult to obtain an accurate account of the finances of the country ;
but the following statement will give some idea of the revenue and
expenditure :
EXFSVSKa
Piastres*
Civil list of tho Sultan, 75,000,000
Ditto of the Sultan’s relatives, 8,400,000
Army, 300,000,000
Marine, 37,500,000
Materials of war, artillery, eta, 30,000,000
Cost of employes in every branch of administration
throughout tho Empire, 195,000,000
Subvention to the administration of the Vdkoufs
for the maintenance of mosques and religious
establishments, 12,500,000
For the service of arrears of life annuities, 6,000,000
For the interest on treasury bonds without date of
repayment at 6 per cent, called Kaymes, 9,000,000
Life Annuities paid by the treasury as compensa-
tion for ancient Fiefs to tho proprietors who
had been dispossessed of them, known as
Umars ziamets, and moukaias, 40,000,000
Foreign Affairs, Ambassadors, Consuls, eta, 10,000,000
Dotation of tho Treasury, called Kazonfanafia, for
expenses of public utility, such as roads, paving,
and the encouragement of agriculture, eta, * . • 10,000,000
Sterling &
681,818
76,363
2,727,272
340,909
272,727
1,772,727
113,636
54,545
81,818
363,636
90,909
90,909
Total,
733,400,000 6,667,269
Receipts.
Dimes or Tithes,
Salian or Income Tax,
HadrajS or Poll-tax on Rayahs^
Customs,
Tribute from Egypt,. •
“ from Wallachia,
“ from Servia,
u from Moldavia, . • • . *
Imposts indirect from patents, stamps, octroi du-
ties, turnpikes, revenues from mines, posts, eta,
220,000,000
200,000,000
40.000. 000
86.000. 000
30,000,000
2,000,000
3.000. 000
1.000. 000
150,000,000
2,000,000
1,818,181
363,636
781,818
272,727
18,181
18,181
9,090
1,363,036
Total, 731,000,000 6,645,450
i ■ — j» ■
Deficit, 24,000,000
* The exchange is calculated at 110 piastres per pound sterling ; but the actual
rate of exchange on Turkey, is upwards of 180 piastres per pound sterlings in con*
sequence of the depreciation of Turkish paper-money and coinage.
40
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610
Bank of England.
143
As far as the cause for aiding Turkey at the present time is con
cemed, there can be no doubt of its legitimacy. The securities on
which that loan will rest must be left to the contractors to consider.
That the Turkish territories abound in numerous sources of natural
wealth it cannot be denied ; but how far they can be rendered avail-
able for the cost of the present war remains to be seen. There is
little doubt that if European improvements could be introduced into
Turkey, that the agricultural capabilities of the soil would be greatly
unproved. The roads of Turkey in many districts are almost
impassable for a considerable time of the year.
THE BANK OF ENGLAND.
Tax Bank of England has occupied so prominent a position in the
financial history of this country during the last one hundred and fifty
years, that we shall give a brief sketch of it here.
It is not very probable that, even at the period when the Bank of
England was established, such an institution was brought into exist-
ence without some previous conjectures as to the plan of construction.
The continual demands made upon the government, in the reign of
King William III., to carry on the war, appear to have induced it to
levy a tax upon almost every thing in existence that could be made to
yield a revenue, and the continued deficiencies of the exchequer gave
every encouragement to any movement set on foot to relieve the
exigencies of the state. The origin of the scheme is generally
attributed to William Paterson, a native of Scotland, and Bishop
Burnet, a great favorite of the King. Paterson, however, does not
appear to have had any active share in the management of the
Bank, though his name appears on the first list of directors mentioned
in the original charter.
Report says, that the Company having profited by Paterson’s ideas
and advice, treated him with neglect, and deprived him of the honor
which was due to him alone. There does not, however, appear to be
any authority for this left on record. That there were many cool
and calculating heads at work, ready to grasp the anticipated prize, is
likely enough ; but the history of Paterson’s career, as far as it is
known, and particularly in that unfortunate expedition to establish a
colony at Caledonian Bay, on the Isthmus of Darien, seems to indi-
cate that he was a man whose habits and disposition were more
adapted to a life of adventure than to the more sober pursuits of a
mercantile career. We may fairly assume that if Paterson had
possessed the requisite qualifications, that he would not have been
rejected by the Company as a co-worker in the new establishment.
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UNIVERSITY OF CHICAGO
— _ .
144
611
t
f
i
t
i
i
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\
F
f
S
i
i
The Bank of England.
The corporation of the Bank of England was established in 1694,
and its first charter bears the date of 27th July, in that year, when it
was incorporated by the Act of 5 Will, and Mary, c. 20, for the term
of eleven years. The condition upon which this charter was to cease
and determine was not very dissimilar to that by which the charter is
held by the corporation at the present time. It originated in advanc-
ing to government the sum of £1,200,000, for which it received 8 per
cent per annum interest, and £4000 per annum for management.
The above amount of capital was redeemable by Parliament upon
giving twelve months’ notice, after the first of August, 1705. But this
debt, which formed the basis of the original charter, remains, with
accumulated additions, unpaid to the present day, and constitutes one
of the principal difficulties of the government in effecting any material
changes in the privileges conferred upon the corporation.
The total amount of the debt now due from the government to the
Bank of England is £11,015,100, the greater portion of which has
been due nearly 100 years. And it is only by payment of this debt
on the part of the government that the charter can be cancelled. It
is at least to that effect. This debt, as it now stands in the annual
finance accounts, and on which the public pay interest at the rate of 3
per cent per annum, is composed of the following items :
£ 8. d
1,200,000 0 0
400,000 0 0
1,775,027 17 10
2,000,000 0 0
4,000,000 0 0
9,375,027 17 10
1727-8 Deduct sum paid out of the Sinking Fund, 1,775,027 17 10
7,600,000 0 0
1728 Advanced on tho security of duties, 1,750,000 0 0
“ Advanced on lottery, 1,250,000 0 0
10,600,000 0 0
£500,000
1,000,000
1,500,000 0 0
9,100,000 0 0
1,600,000 0 0
986,800 0 0
3,000,000 0 0
14,686,800 0 0
1835 By transfer of £4,080,000 reduced 3 per cents equal 3 coo q q
to one fourth, * ’
11,015,100 0 0
1728 Paid out of Sinking Fund,
1738 11 14
1742 Advanced without interest,
1746 Exchequer bills cancelled,
1816 Advanced at 3 per cent,
1694 Original subscription lent at 8 per cent, ....
1708 Advancod without interest,
41 Exchequer bills cancelled,
1717 “ “
1722 Advanced to pay off Soutli-Sea stockholders,
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UNIVERSITY OF CHICAGO
612
The Bank of England.
145
Digitized by
A Statement or tiie Quarterly Averages of the Weekly Liabilities and
Assets of the Bank of England, from 1810 to 1853, inclusive.
Liabilities.
Quarter ending
Notes In
Circula-
tion.
Deposits.
Total.
£.
£.
£.
March 31,
1*40,
16,918,000
7, 7m, 000
24,022,000
Juno
•je,
44
16,971,000
7,122*000
28,998,000
Sept.
It
17,268,000
7,675,000
24,938,000
Dec.
9,
it
16,446,000
6,337,000
22,788,000
March 30, 1941
16,587,000
7.212,000
23.749,000
June
22,
14
10,682,000
7, 21*, 000
28,850,000
Sept.
14,
II
17,481,000
8,062,000
25^38,000
Dec.
7,
“
16,972,000
7,369,000
24,341,000
March 29, 1542,
16,952,000
8,657,000
25,609,000
Juno
is,
U
17,795,000
8,011,000
25,806,000
Sept.
17,
M
19,880,000
2,864,000
29,734,000
Doc.
81,
•I
19,280,000
9,068,000
28,298,000
March 25,1843,
20,093,000
12,003,000
32,096,000
Juno
17,
U
19,521,000
10,495,000
80,016,000
Sept
9,
II
19,496,000
11,727,000
81,223.000
]>. .•
80,
14
19,095,000
11,751,000
80,849,000
March 23,1844,
21,122,000
18,972,000
85,094,000
Juno
15,
it
21,827,000
18,483,000
34,810.000
8opt.
7,
II
21,451,000
13,918,000
85,309,000
Doc.
It
21,156,000
13,661,000
84,817,000
March 22, 1S45,
21,087,000
14,468,000
85,505,000
Juno
14,
14
2 1,684s 000
15,572,000
87,206,000
Sept.
0,
44
22,095, 000
15.107.000
87,202,000
Dec.
27,
tl
22,151,000
16,112,000
88,268,000
March 21,1846,
21,281,000
21.870,000
42,601,000
Juno
la,
44
20,979,000
21,575,000
42,557,000
Sopt
5,
44
21,215,000
18,877,000
40,092,000
Doc.
26,
41
21,3S6,000
15,993,000
87,879,000
March 20,1847,
20,740,000
15,622,000
86,862,000
June
12,
44
20,185,000
14,472,000
34,657,000 1
Sept.
4,
44
19,311,000
14,851,000
34,162,000
Doc.
24,
It
20,069,000
15^574,000
85,632,000
March 18,1848,
19,258,000
15,929,000
85,182,000
Juno
10,
44
19,104,000
14,729,000
83,833,000
Sept
30,
44
19,820,000
14,110,000
38,480,000
1
23,
M
1S,744,000
15,310,000
84,054,000
March 24,1849,
1 19,172,000
16,1S5,000
85,357,000
June
16,
41
19,686,000
1 5,552,000
85,ias,ooo
Sept.
8,
14
19,721,000
15,896,000
85,117,000
Doc.
29,
U
19,391,000
17,548,000
80,989,000
March
23, 1850,
20,180,000
17,792,000
87,922,000
June
15,
(1
20.784,000
17,048,000
37,782,000
Sept
7,
21,144,000
17,107,000
88,811,000
Doc.
28,
11
20,886,000
IS, 391, 000
88,777,000
March 22,1851,
20,284,000
17,410,000
87,694,000
Juno
H,
44
20,869,000
1 5,783, 000
86,152.000
Sept
6»
II
20,994,000
15,579,000
86,578,000
Dec.
27,
41
20,752,000
17,085,000
37,887,000
March 20, 1S52,
21,867,000
18,118,000
89,480,000
Juno
12,
14
22,499,000
18,576,000
41,075,000
Sept.
4.
U
28,982,000
18 977,000
42,959,000
Dec.
24,
14
23,295,000
19,461,000
48,756,000
March 19, 1858
28,967,000
19,657,000
43,624,000
June
ii,
««
24,286,000
18,326,000
42,562,000
Sept
U
24,561,000
16,312,000
40,878,000
Dec.
24,
44
23,869,000
l
18,232,000
41,601,000
Aflsrre.
Bullion.
Total.
£.
28.113.000
22.402.000
23.407.000
22.078.000
22.328.000
21.601.000
28.567.000
22.768.000
j 22,586,600
1 21,181,000
28.199.000
20.560.000
23.880.000
21.604.000
22.894.000
21.067.000
22.479.000
21.916.000
28.118.000
28.500.000
28.574.000
24.868.000
24.518.000
27.770.000
82.609.000
81.887.000
27.690.000
25.771.000
27.148.000
28.184.000
28.027.000
29.492.000
25.206.000
28,508,200
28.344.000
28.680.000
28.522.000
28.706.000
28.597.000
24.059.000
24.258.000
24.148.000
24.675.000
25.966.000
26.525.000
25.669.000
25.786.000
A108,000
24.868.000
24.192.000
24.829.000
23.562.000
27.761.000
27.241.000
26.822.000
29,402,000
&
4.360.000
4.434.000
4.453.000
8.511.000
4.889.000
5.098.000
4.975.000
4.466.000
6.125.000
7.820.000
9.886.000
10.380.000
11.054.000
11.472.000
12.018.000
12.855.000
15.784.000
15.900.000
15.443.000
14.446.000
15.268.000
16.106.000
15.986.000
18.742.000
18.451.000
14.150.000
15.987.000
15.090.000
12.908.000
10.082.000
9.752.000
9.798.000
13.762.000
18s 875,000
18.740.000
13.856.000
15.167.000
14.644.000
14.789.000
16.045.000
'
16.796.000
16.557.000
15.951.000
14.509.000
13.669.000
14.097.000
15.915.000
18.474.000
20.102.000
21,888,000
21.367.000
19.176.000
18.561.000
17.818.000
15.462.000
4
27.473.000
26^886,000
27.860.000
25*589,000
26.667.000
26.669.000
28.542.000
27.254.000
28.711.000
28^01,000
30,890,0(10
34.884.000
33,076^000
34.412.000
83.922.000
38^63,000
87316.000
88.556.000
87.966.000
88.887.000
40.469.000
40.504.000
41.512.000
46.090.000
46.087.000
48.627.000
40.861.000
40.051.000
38.216.000
37.779.000
39.290.000
88.968.000
87.878.000
87.084.000
87.516.000
88.989.000
88,850,1X10
88.886.000
40.104.000
41.268.000
40.989.000
41.582.000
41.919.000
41.684.000
89.888.000
89.838.000
41.018.000
42.842.000
44.294.000
46.167.000
46.929.000
46.937.000
45.802.000
44.135.000
44.864.000
Gck 'gif
Original from
UNIVERSITY OF CHICAGO
146
The Bank of England.
613
The table which follows shows the annual dividends paid on bank
stock, from 1697 to 1853, inclusive. Also the highest and lowest
* prices of bank stock, in each year, from 1732 to 1853, inclusive. The
average rate of dividend paid on bank stock, from 1694 to 1697, was
8 per cent. The quotations of bank stock are not known with accu-
racy previous to the year 1732.
A Table showing the Annual Dividends paid by the Bank of
England, fbom 1697 to 1853 ; also the Highest and Lowest
Quotations of Bank Stock in each year, from 1732 to 1853,
inclusive :
Tears.
I D4vl-
| dcruL
Stock.
Years.
Divi-
dend.
Stock.
i
Years.
1
Divi-
dend.
Stock.
PerCt
Highest
Lowest
PerCt
Highest
Lowest
1’erOt
Uigbeet
Lowest
1697
8
1750
5
186
131
1808
7
193
136
169S
7
1751
5
142
185
1S04
7
169
146
1699
9*
1752
5
149
141
1805
7
197
167
1700
10*
1753
4*
144
185
1806
7
2‘23
191
1701
9
1754
4*
185
180
1807
10
265
2* '3
1702
12
1755
4*
1C2
119
1808
10
240
224
1708
16*
1756
4*
121
114
1809
10
2S8
235
1704
15*
1757
4*
120
115
1810
10
276
273
1705
15*
..
1758
4*
123
116
1811
10
251
229
1700
18*
1759
4*
123
109
1812
10
282
212
1707
7*
1760
4*
114
101
1813
10
242
211
1708
12*
1761
4*
116
98
1814
10
266
234
1709
8*
1762
4*
119
91
1815
10
262
219
1710
7*
1763
4*
131
111
1816
10
262
215
1711
7
1764
4*
127
112
1817
10
294
220
1712
8
1765
5
136
126
ISIS
10
292
207
1713
8
1766
5
189
185
1819
10
267
210
1714
8
1767
5*
159
142
1820
10
226
215
1715
7*
1768
5*
190
158
1831
10
240
221
1716
8
1769
ft*
175
149
1822
10
262
235
1717
8
1770
ft*
153
105
1S23
8
246
204
1718
8
1771
ft*
155
184
1824
8
245
227
1719
7*
1772
ft*
153
144
1825
8
299
196
1720
7*
1778
5*
148
189
1826
8
228
193
1721
6*
1774
ft*
146
189
1827
8
217
200
1722
6
1775
ft*
146
141
1*2*
8
215
203
1728
6
1776
6*
143
184
1829
8
218
208
1724
6
1777
6*
188
128
1830
8
203
194
1725
6
1778
ft*
120
107
1881
8
204
189
1726
6
1779
ft*
118
106
1832
8
208
185
1727
6
1780
ft*
116
109
1888
8
218
190
1728
5*
t t
1781
119
105
1834
8
225
211
1729
5*
1782
6*
124
109
1835
8
225
208
1780
5*
1783
6
184
112
1836
8
219
199
1731
5*
1784
6
118
110
1887
8
212
208
1782
5*
152
ioo
1785
6
142
111
1838
8
208
901
1788
5*
151
180
1786
6
158
188
1889
7
206
177
1784
6*
140
182
1787
0
160
145
1840
7
179
156
1785
5*
146
138
1788
7
178
158
1841
7
173
157
1786
5*
151
148
1789
7
191
169
1842
7
178
165
1787
5*
151
142
1790
7
188
164
1843
7
185
172
1788
5*
145
140
1791
7
204
178
1844
7
211
185
1789
5*
144
115
1792
7
219
171
1845
7
215
199
1740
5*
144
18 3
1793
7
180
161
1846
7
211
199
1741
5*
148
185
1794
7
169
158
1847
7
206*
180
1742
6*
148
186
1795
7
180
152
1848
7
202
183
1748
5*
148
145
1790
7
180
142
1849
7
200
188*
1744
5*
148
116
1797
7
146
115
1850
7
216
208
1745
6*
147
183
1798
7
188
118
1S61
7
216*
210
1746
5*
186
125
1799
7
176
184
1852
7*
234*
216
1747
5
129
119
1800
0*
175
154
1858
8
230*
208
1748
5
129
117
1801
7
190
148
1854
8
221
204,*
1749
5
140
129
1802
7
207
. 178
Digitized by Gougle
Original from
UNIVERSITY OF CHICAGO
614
The Stock Exchange.
147
THE LONDON STOCK EXCHANGE.
After the charter had been granted to the Bank of England, and
that establishment had obtained the privilege “ of dealing in bills of
exchange, the buying or selling of bullion, gold, or silver, or in selling
any goods, wares, or merchandises whatsoever, which shall really and
bona fide be left or deposited with the said corporation, for money
lent or advanced thereon, or in lending or advancing any of the monies
of the said corporation, and taking pawns or other securities for the
same,” and their interest in the capital stock, and interest, could be
transferred, it may be supposed that a class of dealers would soon
spring up to trade in such securities. It is therefore from this period
that we may date the origin of that spirit of gambling which infested
the city of London at different times, and which gave birth to some of
the most extraordinary frauds and delusive schemes that were ever
ooncocted by man in civilized society. The dealings in these securi-
ties attracted men of capital from all parts; and the Jews from
Amsterdam, and other countries, ever attentive to pecuniary gain,
without engaging in the uncertain profits of trade and industry,
flocked in great numbers to the metropolis, and to the present day
have ranked amongst the richest capitalists and speculators in the
kingdom. These transactions were at first carried on within the walls
of the Bank itself where the system of jobbing was very extensively
practised. The conditions of the bank charter were such, ss to give
the greatest encouragement to every species of speculation, as the
resources of the crown were pledged as a security for the payment of
interest on the original stock. In addition to these, the wars in which
the country was engaged, during the reigns of William and Anne,
afforded fresh scope for the cunning intrigues of gambling speculators ;
and amongst others, none afforded greater opportunities than the
campaigns of the Duke of Marlborough, who was often accompanied
by the wealthy Jew, Medina. This connection between the hero
and the capitalist enabled the latter to gain thousands and tens of
thousands, by means of the rapid dispatches he obtained of the vic-
tories of the former.
It was about the year 1700 that the dealers in public securities
were found to encumber the Bank by their increased numbers, and
they changed their place of meeting to what is now known as “ Change
Alley,” which was for a long time their principal place of resort. Of
course there were no rules or regulations that bound these speculators
together but such as were most conducive to their own individual
§ains. There were, however, two contending parties who frequented
his place, the fortunate and the unfortunate speculators ; and in their
efforts to outwit each other, the most disreputable frauds and practices
were committed with impunitv, till at last the whole country was
roused against the dangerous infection, and stock-jobbing was described
Digitized by
Gck igle
Original from
UNIVERSITY OF CHICAGO
615
172 The Stock Exchange.
as a public nuisance, and more destructive to the nation than a pesti-
lence.
But no abuse prevented the progress of these watchful speculators :
war, public extravagance, and the difficulties of the government, only
gave new life to their hopes and pursuits, until the stock-jobbers
became indispensable to the government itself, although it was com-
pelled to pass several acts to pacify the hatred which had been created
throughout the country by their practices ; and a bill was brought
before Parliament by Sir J ohn Barnard, in 1732, making time bargains
illegal. But the attempt to put down speculation, when the govern-
ment itself encouraged the system of lotteries and other schemes for
raising money, only afforded fresh facilities for gambling. An in-
crease in business and in numbers subsequently induced the jobbers
to remove to Sweeting's Alley, in 1773, when several of the brokers
came to a resolution to engage a room, to be called the “ Stock Ex-
change,” where any man might transact business by paying sixpence.
Such was the history of the Stock Exchange of the above period.
The war which broke out at the close of the eighteenth century
gave a fresh importance to this body ; and the increasing transactions
in which they were engaged gave rise to the formation of a committee,
and subscriptions were raised to erect a building for the special pur-
pose of dealing in the public stocks, and the spot chosen was Capel
Court, where once stood the residence of William Capel, Lord Mayor
of London in 1504. Tho first stone of the building was laid on the
18th May, 1801, which bears the following inscription:
“ At this era, the first year of the union between Great Britain and
Ireland, the public funded debt had accumulated in five successive
reigns to £552,730,924. The inviolate faith of the British nation, and
the principles of tho Constitution, sanction and secure the property
embarked in this undertaking. May the blessing of that Constitution
be sacred to the latest posterity.”
With the erection of tho new establishment free admission ceased,
and only members who were elected by ballot, could be admitted as
members by paying an annual subscription.
It was about this time that the Stock Exchange occupied a very
important position in tho state ; for the enormous loans that were
found necessary to carry on the war after the peace of Amiens, to its
close in 1815, were principally effected through the instrumentality
of its members ; and hence the Stock Exchange became as essential
to the government of the day as the Bank of England.
It might have been supposed that the termination of the war,
which had given scope to tne most unlimited cupidity of speculators,
would have diminished the influence of this body ; but so far from
this being the case, its members, ever active and vigilant, sought out
new fields for enterprise, and the energies which were once directed to
procure the “ sinews of war,” were now turned to the cultivation of
peace, and directed to the development of industry and commerce,
until England stands as preeminent in peace, as she was great and
Digitized by Gougle
Original fro-m
UNIVERSITY OF CHICAGO
616
The Stock Exchange.
173
-notorious in war. No sooner were the armies of Europe disbanded,
than the English capitalists entered into various speculations in
foreign loans, which, for the time, held out the most tempting
inducements to the public. And although we have on record some
of the most flagrant instances of the want of good faith amongst nations,
indebted to the English creditor, yet we may safely affirm, that it
was from British capital alone that the trade and commerce of the
world received its first impetus, after the struggles of a twenty-years'
war.
The members of the Stock Exchange are still occupied with the
same laudable pursuits ; and, we are happy to say, with greater cau-
tion in contracting foreign loans ; and their ramifications extend to
every known portion of the globe. Governed by rules and regula-
tions, which are enforced with equal justice upon each of its members,
their decision upon the character of any public scheme is regarded
with the greatest interest.
Before we proceed to notice the constitution of this body, we will
give a brief sketch of the new building lately erected, for the purpose
of carrying on business in Capel Court, where the one which we have
lately noticed formerly stood.
The new structure was built by Messrs. W. Cubbitt & Co., after a
design of Mr. Thomas Allason. In addition to the sum of about
£10,000 for the cost of the edifice, the sum of £6000 was laid out for
obtaining additional space. And if the difficulties in this respect be
taken into consideration, the New Stock Exchange may be reckoned
as one of the handsomest structures of which the City of London can
boast for transacting business. It stands in the centre of a large
block of buildings, bounded by Bartholomew Lane on the south,
Threadneedle street on the east, and Throgmorton street on the west ;
in the immediate vicinity of the Bank of England, and the Royal
Exchange. The chief entrance is through Capel Court from Bar-
tholomew Lane ; but there are other entrances through Threadneedle
street and Throgmorton street. The area of the house contains about
75 squares, and affords space for 1200 members. The centre of the
building is covered by a spacious cupola, of 39 feet span, constructed
with laminated ribs of iron. The light admitted through this dome
gives a pleasing effect to the whole building. In addition to the
“house,” there are various other offices, such as committee-roomB,
reading-rooms, refreshment-rooms, strong-rooms, etc., the whole of
which are ventilated by two chambers at the basement, fitted up with
coils of warm-water pipe, so that the temperature of the air is regu-
lated, and admitted into the house about six feet from the floors, and
the vitiated air is drawn off by an extracting chamber at the apex of
the dome, heated by a gas sun-burner of 150 jets. This gas is so
managed by day, that it is conoealed by a screen of perforated metal,
which can be withdrawn when required, so as to light up the house
without any additional supply. The building was opened for public
business on the 17th March, 1854.
Digitized
bv Google
Original from
UNIVERSITY OF CHICAGO
174
The Stock Exchange.
617
Table of tbs Highest and Lowest Prices of Consols from the
Year 1789 to 1853, inclusive.
Tears.
Dates.
Prices. |
1780
September
15
SIX
Jan nary
29
TlX
1790
April
May
28
10
80V
TO*
1791
September
6
89*
March
28
75*
1792
March
16
97*
December
8
72*
1798
April
9
81
February
12
TO*
1794
January
December
9
16
72*
62V
1795
December
January
16
23
70*
61
1798
January
December
12
80
70*
68*
1797
*
January
June
17
1
5ft*
*47 X
1798
November
7
58
August
28
+47*
1799
September
8
69
January
29
62*
1900
September
29
67*
January
29
60
1901
October
14
70
January
26
6434
1S02
April
6
79
January
99
64
1803
May
July
6
28
78
60*
1804
December
6
68*
January
6
68*
1905
1S06
January
April
August
14
8
4
62
57
64*
l December
1
58*
1S0T
| November
17
64*
’
January
28
57 X
1808
i June
January
November
17
7
69X
62 X
1809
10
70X
January
19
68X
1810
May
22
71
September
28
68*
1911
<
January
4
66*
1
July
16
61V
1812
J
January
T
68
1
July
10
65*
1818
J
December
24
67X
1
•{u'y
14
64*
1814
April
March
9
81
61*
1815
i
1
January
June
21
15
65*
m
1816
J
May
80
64*
i
January
December
10
59*
1817
i
6
84*
i
January
15
62
1818
April
16
82
August
99
78
1819
January
28
79
May
28
64*
1820
June
2
70*
September
23
65 X
1821
October
22
7S*
January
17
CSV
Year*.
Dates. |
Prices.
1822
i
\ October
26
88
1828
1
J
January
t December
21
21
75X
85V
i
) March
1
72
1824
i
| April
28
96*
1
January
7
84V
1825
j
t January
December
5
20
94*
75
1826
j
November
19
84*
i
February
14
78*
1697
August
1
69*
January
19
76V
1829
September
12
88*
1829
January
December
6
29
80*
94*
January
19
85*
1630
i
January
1 1
94*
i
November
8
77*
1881
i
May
81 I
84V
1
March
9
74*
1889
J
June
1
85V
i
January
21 1
81 X
1888
, i
June
7
91*
1
January
17
84*
1884
J
May
13
98
1
j January
17
87*
1886
J
\ April
24
92*
1
f August
26
89*
1886
j
i January
| December
5
22
92*
86*
1887
J
I December
2
93*
1
| January
6
87*
1888
1
i May
81
95*
i
> January
6
90*
1889
i
1 May
81
98*
1
September
8
89*
1840
i
June
3
93*
October
8
8»V
1841
April
15
90*
October
11
87*
1842
December
9
95*
January
18
88*
1848
March
10
97*
June
9
92*
1844
December
4
101*
January
12
96*
1845
January
4
100X
November
27
91*
1846
February
9
97V
December
16
98*
1847
.January
2
94
October
19
78V
1848
February
19
90
April
6
79*
1849
.
December
11
97*
1850
January
December
5
12
85*
99V
February
14
1851
November
19
August
29
95V
1859
December
9
101 v
January
24
95*
1888$
April
September
25
27
101
90V
1854
October
95*
March
05*
* The Netherlands given up to France on the 14th AprtL
t Battle of the Nile August let, and the French army In Egypt
X Consols continued at this rate from the 25th April to the 3d May.
Digitized by CjQOQle
Original from
UNIVERSITY OF CHICAGO
618
175
The Stock Exchange.
The Stock Exchange, for the purposes of business, is regulated by
a committee of thirty members, including the chairman and deputy-
chairman, who, by rule the 20th, have power to expel or suspend anv
member “ who may be guilty of dishonorable or disgraceful conduct.’’
The Stock Exchange recognize no transactions with any other parties
than its own members ; and every bargain must be in accordance
with the usages of the “ house.”
Technical Terms.
The technical terms made use of in the Stock Exchange are almost
peculiar to its members ; that peculiarity often shows itself in the
abbreviation of words. Amongst the terms frequently made use of
are the following :
Consols is an abbreviation of the term Consolidated Annuities, the
prices of which rule, in a great measure, those of most other public
securities. The annual interest is 3 per cent.
Omnium is a term which signifies the whole of tho stocks, of whkh
a government loan consists, when two or more descriptions are given
for £100 in money ; and which may be made up of consols, reduced
annuities, and long annuities, or of other description of stocks.
Scrip is an abbreviation of the term subscription, and is applied to
each of the stocks given in exchange for a loan, as consol scrip, reduced
scrip, etc, and may be sold separately as such, until all the instal-
ments of a loan are paid up, when the term is no longer applied to
them.
The Members of the Stock Exchange are called Jobbers and
Brokers. The Jobber is the dealer, who takes the price at the
market value. The Broker is the one who buys or sells to the Job-
ber, for his principal, and takes his commission for transacting the
business.
A Bull is one who buys to sell again at a higher price.
A Bear is one who sells to buy back at a lower price. Hence the
constant use made of the phrases “ Bull” and “ Bear” transactions ;
or in other words, speculations for the “ rise” and “fall.”
A Stag is one who is not a member of the Stock Exchange,
but deals outside, and is sometimes called an “ Outsider.” These
gentlemen not unfrequently write in a fictitious name for shares,
and sell the letters of allotments. In the late exchequer bond
afiair, a considerable number of this class are said to have sent in
applications, which had to be cancelled by the Chancellor of the
Exchequer.
Contango is the sum paid per share, or per cent, for carrying over
such shares for a longer period than they were originally bought for,
which is from one account to another. -
Backwardation is when a party who has sold shares or stock,
without having them in his possession to deliver, pays so much per
share or per cent for not being compelled to do so until tho following
account. The price of the shares or stock in either case being fixed
at the market value at that time.
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Mutual Life Insurance.
Options are dealt in with almost every description of stock and
shares, but more generally in consols, and maybe either a “put” and
“ call,” or a “ put” or “ call.”
A Put and Call is when a person gives so much per cent for the
option of buying or selling so much stock, on a certain fixed day, at
a price fixed the day the option-money is given.
A Put is when a person gives so much for the option of selling so
much stock at a certain time, the price and date being fixed at the
time the option-money is given.
A Call is when a person gives so much for the option of buying
stock at a certain time, the price and date being fixed at the time the
option-money is given.
The value of options fluctuates according to the markets, or the
amount of business there is doing, and they can be done from day to
day, or for the whole account.
All option-money ought to be paid by the principal to his broker,
at the t ime the transaction is being done. If the price be the same
at the expiration of the option-time as the price fixed, the person
giving the money is allowed to declare whether he buys, sells, or does
nothing. The time that options expire each day is a quarter before
3 o’clock, and on Saturdays, a quarter before 2 o’clock.
The Account Option Day is the day before the Account Day, or
Name Day.
MUTUAL LIFE INSURANCE.
From a prospectus recently issued by the Mutual Life Insurance
Company of New-York, we select the following summary of the
obvious advantages which life insurance offers beyond those of savings
banks.
While we have at all times strongly urged the importance of sav-
ings banks in their beneficial effects and in their salutary example, we
consider the claims of life insurance as of paramount importance to
the community. Both, in fact, claim the attention and the savings of
every man in the community — particularly of the man in moderate
circumstances, and whose death will leave his family comparatively
helpless. Ho should save for their benefit while he is alive, and
appropriate a portion of his earnings to accumulate for their benefit
at his death.
Persons dependent on a fixed income, like clergymen, salaried offi-
cers, clerks, mechanics, and laboring men, may at ono time, by proper
forecast and economy, conveniently appropriate a certain sum to pur-
chase a policy of life insurance, to sustain their wives and children
when they shall have ceased to provide for them.
A change of condition or circumstances, may, at another time, ren-
der this exceedingly inconvenient, or absolutely impossible.
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For example : "take the case of a clergyman : in one parish he may
be comfortably settled, with a small family, with a just and fair salary,
from which, by economy, he is enabled to pay the annual premium
on a policy of $2000 or $3000, for the benefit of his wife and children.
Or the congregation or friends in it, may be willing, annually, to
contribute the necessary premium, thus providing for the family of
their pastor, and relieving him from painful anxiety for those he is
bound to cherish and protect, while ho is spending his intellectual and
physical life for the benefit of his people.
Suppose a change — not unfrequent in this country — an increase of
family — perhaps an unlooked-for increase of expenses, or a removal to
another parish, where the people are less able, or friendly, or liberal,
or just, or all combined, and the helpless minister must either aban-
don his policy altogether, from inability to pay the premium, or dis-
pose of it to the company which issued it, at a time when more than
ever it seems necessary for his peace of mind and for the welfare of
his family, should he be taken from them.
A change of circumstances and a like result may take place with
the working man, or the salaried officer, where a want of present
means, at a point of time when the premium becomes due, may subject
him to its loss, if the policy is of the kind usually granted, where its
continuance and vitality depend upon the payment of a fixed annual
sum.
To meet these difficulties, the Mutual Life Insurance Company of
New-York have prepared, and will issue, policies in such form as shall
insure the party for life, for a fixed amount by each deposit made , which
payment buys an amount of insurance for the party, independent of
all future premiums.
A scries of these payments can be made as often as the person
desiring it has the funds to appropriate ; and any given amount of
provision may thus be mado for a family. To the officers of the com-
pany, this description of policies will give much additional duty ; but
believing that they will be eminently useful to the public, and know-
ing that the principles upon which they are issued are sound and con-
servative, they will cheerfully accomplish their portion of the labor.
The following table illustrates the operation of accumulative poli-
cies:
TABLE I.
Date of Payment. Age at that time. depoMUd.
1853, April 22, 30 $50
“ Nov. 10, 31 25
1865, May 1, 32 100
1857, May 2, 34 20
T868, June 10, 35 100
I860, April 20, 37 60
Sum aetvred
thereby.
$143 62
70 37
276 02
63 08
260 24
125 09
Sum assured without further payment,
$928 32
To provide for another contingency which may possibly arise, when
pressing necessity may imperiously demand the use of a part of the
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Mutual Life Insurance.
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money appropriated to life insurance, to enable the party to weather
some difficult point in domestic life, we allow persons under this sys-
tem to withdraw such portion of their funds as they may need, reduc-
ing the amount of their insurance in proportion.
We illustrate the operation of a withdrawal as follows :
IABLI II.
DaftficUMrmoal. AgeatfMUmc.
1854, Dec. 10 32 $60 $188 01
1856, June 2, 33 60 185 33
1860, July 1, 67 20 60 04
Total, $323 88
Relative Advantages of Accumulative Policies and Savings Banks.
For purposes of accumulation for a given series of years, we believe
life insurance preferable to a savings bank, and shall proceed to de-
monstrate it, by takingtwo periods of life, of twenty-five years each.
In our first table (No. III.) we start at the age of twenty-five, the aver-
age period when persons in this country begin to have families, and
we end at fifty years, when in most cases the children are so far
grown and educated as to be able to do much to sustain themselves
and each other.
In the following table (No. IV.) we start at 37, the age at which the
average of life insurance is made in this country, and dose at 62, a
period in the domestic history of most families when the children are
educated, matured, and settled in life, with the ability on the part of
some to take a parent’s place toward any who may still be dependent,
and often to sustain the parent also.
Either table carries the parents, in their domestic history, past the
point of their greatest anxiety for their children. Evidently that
resource which will best enable parents to provide for their children,
should they die before their families can sustain themselves, ought to
be, and will be, embraced. If a person is absolutely certain of living
a much longer term than is embraced in these tables, a period may
be reached when the accumulations in a savings bank will exceed those
in a life insurance company; but the risk of this, and the consequences
to a helpless and unprotected family, will determine prudent and
thoughtful parents not to encounter it. They will wisely provide for
their children when young, trusting that when older they will take
care of themselves.
The true American rule is — a family educated is a tamilt pro-
vided FOB.
We will now show, by the tables which follow, the relative advan-
tages of life insurance and savings banks for the period alluded to.
Suppose a person to deposit $1000 with the Mutual Life Insurance
Company of New-York, on the accumulative principle already men-
tioned, and $1000 with a good and responsible savings bank.
We will oompute the accumulations of this company at no greater
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Mutual Life Insurance.
per centage per annum than it earned during the first ten years of its
existence, starting, as it did, with no capital, and obliged to create its
own credit.
The interest from the savings bank we compute at 5 per cent per
annum, added semi-annually, which is greater than that allowed by
some of our largest companies, where the amount deposited is over
$500.
Mark the result running through the 25 intervening years of a per-
son’s life from 25 to 50, as shown in Table 111., or from 37 to 62, as
shown in Table IV.
TABLK III.
HIS TTBTTM will receive from
Jfhe die at
the age of
The Saving* Bank
The Mutual Life In
euranee Company
30,
$3426
36,
3666
40,
3886
45,
4087
60,
3437
TABLK IV.
HIS REPRESENTATIVES RECEIVE FROM
4273
1/ he die at
the age of
The Saving • Bank
The Mutual Lift
Insurance Company
4*.
$2967
62,
2098
3172
61
2686
3361
62
3536
Now, the benefits of savings banks are, that they take money in
deposit in such sums as a party can spare, and keep it safely, and
allow a fixed rate of interest, which is compounded and added to the
principal, and permit the party to draw for it as required.
Now as to our security — the accumulations of the Mutual Life
Insurance Company of New-York are all invested in bonds and mort-
gages on productive and unencumbered real estate, worth in every
instance twice the amount of the loan. These securities are re-valued
from year to year, and if any portion depreciates, the loan is reduced
or called in ; and we therefore have not a loan but is thus kept fully
secured.
Our charter very properly restricts this Company from taking
stock securities, unless they be United States, State of New-York, or
city stocks, and these bear so high a premium that it is not for our
advantage to purchase them for investment.
Our securities are therefore of necessity of the soundest and most
reliable character, and are not inferior to those of any bank or company
whatever.
If, then, with equal security to the depositor, this Company also
gives the opportunity to withdraw funds as they are required, like
savings banks, as is seen in table No. II. ; and in case of death, pays
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Mutual Life Insurance.
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a much forger sum to the family than would be paid by the accumula-
tions of a savings bank, ought not this class of insurance to be greatly
sought after ?
On the contrary, we consider them in a high degree entitled to
public confidence and favor. They foster habits of forethought and
economy, and tend in every way to promote the public good, while
they exercise an important and salutary influence on individual cha-
racter and comfort.
For the young, the unmarried, and those who can only save very
small sums for short periods, no institutions can be devised to take
their place. But. as a provision for families and dependents, who rely
upon the continuance of a life, or the results of the earnings or accu-
mulations of a father or friend, it is evident that life insurance offers
far greater advantages.
Tie case is thus: If you deposit your money in an ordinary
savings bank, all you or your heirs get is the amount deposited, and
the interest upon it.
But for the money paid as a premium for a policy of life insurance,
you secure to your family a very much larger amount at your death.
If you live many years, all the money you pay for insurance, except
the exact amount it costs the Company to insure your life, comes
back to you again in the shape of dividends, and is added to the
amount for which you are insured, provided you insure in a sound
mutual company.
Thus, if you pay $25, and thereby insure your life to-day for $1000,
and die to-morrow, your family get the amount insured ; while, if
you deposit the small amount which this policy would cost you in a
savings bank, your family would get the $25 deposited and the
interest on it, and no more.
We believe that accumulative policies will be highly beneficial to
a large portion of our citizens, ana when properly explained, will be
very popular.
According to a London contemporary, the doctrine of savings has pro-
duced comparatively less effect because it has been practically disregard-
ed ; but some effect it has produced, partly good, so far as it inculcated
prudence and the necessity of creating a surplus; partly mischievous, in
directing effort to objects comparatively sterile. The man who is well
to do is encouraged to save “ a fortune, and the precept has been bene-
ficial in checking the propensity to outspend income, which compels
saving from the most disheartening of purposes, re-payment of arrears;
but society is not much better off for the fortune of any private per-
son, the chief effect of which is to enable him to outbid his fellows in
the market. Society at large does in the main live from year to
year, and states are almost without an exception in arrears. To the
humbler laborer the precept has helped to enforce prudenoe, but it
has in many cases dictated a prudence so dubious that it becomes an
imprudence. The paltry amount of savings in bank shows how diffi-
cult the task has been.
The certain extent has been impossible. If effected at all, savings
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624 Mutual Life Insurance.
I
should only be made out of surplus ; but, by a mistaken prudence,
they are made out of bare income, leaving more necessary objects
neglected. If a pound or two can be saved in the year, as in the case «
of a Margaret Murray, have we any doubt that the sum could be
more profitably spent than in putting it to sleep, or even than letting
the small interest accumulate I Mrs. Murray wanted to utilize two
pounds of her little store, because her husband was ill ; now let
us suppose that the sum had been spent in other ways, and we
shall see how the savings were wasted. A comparatively small pro-
portion of it might have been laid out in an improvement rate to
amend the drainage and condition of the neighborhood in which Mr.
Murray lives ; and a rate during thirty years might have done much
to prevent his sickness. That is a tangible and prompt use of money
which the humblest can understand, and while it would have dimin-
ished a cause which drives many to the public house for stimulants, it
would have reconciled as many to a beneficial use of income which
they do not care to “ save” but spend mischievously. If the parents
of the humble pair had been induced to spend a little more in the
education of their children, they would probably have been less liable
to imposition ; and if one of them had saved a little time instead of
money, to make inquiries, and consider the subject better, they would
not have been misplaced in their insurance. For most purposes of
saving, insurance is the best of all plans. It avoids waste of saving ;
the man who saves for a specific purpose may miss it ; the child for
whom he lays by may die. As almost every species of saving is
liable to a diminution of value, there is a loss on the process, and
exertion has been wasted. As insurance avoids waste by limiting the
amount collected to the specific object, so also it economizes by
another mode ; while minimizing the amount laid apart, it also appro-
priates it as speedy as possible. Taking a given thousand men, there
will be an ascertainable amount of casualties among them, tend-
ing to defeat their savings. Some of their children will die ; some of
the men themselves will fall sick or will die ; but the rest will live,
and work, and produce enough for their families. By insuring for <
purposes of education, medical attendance, sick relief, and provision
at death, they form a fund out of which, if it be rightly constructed,
and we are gradually arriving at a correct knowledge of this principle,
the necessity can be met as soon as it occurs. The child can be put
to school as soon as it is old enough ; the man who first falls sick can
have the money for a “ rainy day” and a doctor ; the man of the thou-
sand who dies to-morrow will leave to his family what he would have
“saved” at the end of a lengthened period. Yet a comparatively
small part of income will have been absorbed, and the rest will go
to assist in feeding the man properly, in improving his home and
neighborhood, and in keeping the instruments of production at their
full efficiency.
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Operations of the Sub-Treasury.
626
OPERATIONS OF THE SUB-TREASURY FOR THE
FIRST NINE YEARS.
Special Report of William M. Gouge , Agent of the Treasury Depart-
ment, to the Excretory of the Treasury.
Wajbhutgtos City, Not. 27, 1864.
Sir : In compliance with the instructions contained in jour letter of
May 26, 1 have examined the treasury depositories at Little-Rock,
Arkansas; Nashville, Tennessee; St. Louis, Missouri; Dubuque,
Iowa; Chicago, Illinois; Jeffersonville, Indiana; Cincinnati, Ohio;
Baltimore, Maryland; Philadelphia and Pittsburg, Pennsylvania;
New-York City and Buffalo, New-York ; Detroit, Michigan; and
Boston, Massachusetts.
From each of these places I addressed a letter to you, giving a par-
ticular statement of the condition of the depository there situated. I
have not yet had time to visit the depositories in the Southern States,
hut as those I have examined contain the far greater portion of the
public funds, and as they show the operation of the system, it will be
proper in me, as the session of Congress is approaching, to give the
general result of my inquiries, as called for in the last paragraph of
your letter.
The first point I was directed to inquire into was,
“ 1. Whether the safeguards against fire, thieves, and burglars are
sufficient in the several depositories.”
When the Constitutional treasury-system was first brought into
operation, it was under great disadvantages. In but few of the places
where public funds are kept had the government buildings of its own,
and where it had buildings, in but few of them were suitabfe provi-
sions for the safe keeping of the public funds. In the whole valley of
the Ohio, rich and populous as it is, the United States had not a build-
ing or a vault in which to deposit a dollar or a paper. In those parts
of the country in which government had buildings of its own, few of
them had vaults and safes of proper construction. Even in the Mint
at Philadelphia there was but one money-vault, one being all that, at
the time that edifice was constructed, was deemed necessary.
Under these circumstances, the Treasury Department appears to
have made such arrangements as it could for the safe keeping of the
public monies. But the funds at its disposal for this purpose were
very limited, and, in not a few cases, the officers of the depositories
had out of their private means to provide for the safety of tne public
money intrusted to their care. The securities they adopted were
such as circumstances forced upon them, and were sometimes quite
original in their character. One depository in the Western country,
that I visited in 1849, reminded me more strongly of what Robinson
Crusoe’s fortifications may be supposed to have been than any thing I
have seen either before or since. A short description of it will be
41
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626 Operations of the Sub-Treasury [February,
proper for the benefit of posterity, if not for the enlightenment of the
present generation.
The chief tavern in the town was the building believed to afford
the best security, and an apartment adjoining the bar-room was made
a depository of the treasure of the United States. Immediate access
from the bar-room to the depository was shut off by closing the door
of communication, and, as further security, the partition wall was lined
with boards ; but as the glass lights in the communicating door were
left uncovered, in order that the keeper of the public treasure might,
when in the bar-room, see into his own apartment, a determined bur-
glar could in a few minutes have forced his way in.
The entrance into the depository was through a back-passage under
a stairway. Every person who attempted to enter had to stoop till
he was almost double, and then he found his further progress ob-
structed by a grated door, fastened by an iron chain in such a way
that it could not be opened except by main fbroe, or with the consent
of the sub-treasurer. When in the depository, the citizen who had
business there found it divided into two apartments by a temporary
partition. One of these was lighted by a single window, defended by
iron grates of no great strength. In this division of the room the
officer kept the chief part of his silver, in boxes, screening the boxes
themselves, as well as he could, from public view, by covering them
with a wooden casing, somewhat resembling in form a giant coffin.
In the other division of the room, being that to which there was en-
trance under the stairway, there was an iron safe, in which the deposi-
tary kept his gold, and so much silver as he could store therein.
Around this apartment ran a low gallery, constructed by the deposi-
tary expressly that, in case of attack, he might, if in danger of being
overpowered below, retire above, and shower down upon his assailants
stone-bottles, and other missiles of this kind, of which he had provided
an abundant store. He slept in this room, and guns, pistols, and
pikes completed his assortment of weapons, offensive and defensive.
In this fantastical fortification was kept for years in succession hun-
dreds of thousands of dollars of the United States money, simply
because Congress had made no appropriation to provide any thing
better. This was not in an obscure part of the country. It was at
J effersonville, Indiana, immediately opposite to Louisville, the largest
city in Kentucky.
In my special reports I have given an exact description of each de-
pository that I have visited. That at Boston is the only one with all
the strength and security which a depository ought to have, when it is
intended to be a place for the permanent safe keeping of millions of
the public money. At the other chief depositories, the provisions for
safety may be said to be good, though such as to admit of improve-
ment. Such improvements as would be of a costly character can be
deferred till the time comes for altering the public buildings in those
places, or for erecting new ones in their stead.
It has been resolved to build a number of new custom-houses. If
in each of these adequate provision be made for the safe keeping of
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for the First Nine Tears.
627
1855.]
such funds as may be there collected and brought there from other
places, a moderate appropriation by Congress will enable the depart-
ment to make all the necessary arrangements for the proper keeping
of the public money in the present depositories.
It is a proposition too plain to require proof, that in the treasury
offices, at least as good provision should be made for the safe keeping
of the public money, as brokers and bankers deem necessary for the
funds in their possession. At present our twenty-four public deposi-
tories contain about half as much specie as our twelve hundred banks ;
but there are in some of the depositories less adequate provisions for
the safe keeping of large sums of gold and silver than the banks deem
necessary for the keeping of relatively smaller sums.
“2. Whether the books, accounts, and returns are kept in that
accurate and uniform manner which the law prescribes.”
In the Treasury Offices the business of account-keeping is much
more simple than it is in large mercantile establishments. The de-
positaries have nothing to do with profit and loss, and other factitious
accounts. All their main books are in reality so many cash-books, in
which the daily receipts are entered on one page, and the daily pay-
ments on the page opposite. In the large depositories where there
are several cash receivers, cash keepers, and cash payers, several cash-
books are required, and these are all so arranged as to serve as checks
on one another. In the smaller depositories, where there is but one
officer, and where the transactions are small, a single cash-book is all
that is necessary.
Besides these cash-books, the officers keep letter-books, registers of
drafts drawn on them, receipt-books, etc. ; but all these are mere
auxiliaries to their cash-books, or records of receipts and payments.
Throughout the depositories one principle is adhered to in keeping
the accounts, though the number of books kept necessarily varies with
the extent and nature of the business done at each. In all that I visited
I found the books and returns kept in such a way as to make their
transactions easily understood, though in some of the smaller ones the
accounts and monies of the officer, as a treasury depositary, were not
kept as distinct as they ought to have been from his accounts and
monies as a collector of customs, or as a land-office receiver.
In the large depositories the cash is balanced daily ; in the smaller
generally about once a week.
“ 3. Whether the examinations which the 12th section of the law
requires, are regularly made, and in such a manner as to fulfill the in-
tentions of the law.”
This section declares that, in addition to the examinations to be
made by special examiners, as provided for in the eleventh section,
“ it shall be the duty of each naval officer and surveyor, as a check
upon the assistant-treasurers, or the collector of customs of their re-
spective districts ; of each register of a land-office, as a check upon the
receiver of his land-office ; and of the director and superintendent of
each mint and branch-mint, when separate offices, as a check upon the
treasurers respectively of the said mints, or the persons acting as
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628 Operations of the Sub-Treasury [February,
such, at the close of each quarter of the year, and as much more fre-
quently as they shall be directed by the Secretary of the Treasury to
do so, to examine the books, accounts, returns, and money on hand
of the assistant-treasurers, collectors, receivers of land-offices, treasur-
ers of the mint and each branch-mint, and persons acting as such, and
to make a full, accurate, and faithful return to the Treasury Depart-
ment of their condition.
At Washington City, D. C., Pittsburgh, Pennsylvania, Cincinnati,
Ohio, Nashville, Tennessee, Richmond, Virginia, and Buflalo, New-
York, there are no officers resident charged with this duty. The
depositories in those places are subject to examination only by
special examiners appointed by the Treasury Department. In the
other depositories visited by me, the periodic examinations required
by the twelfth section, and which by order from the Treasury Depart-
ment are to bo made once a month, are made in such a manner as to
fulfill the intentions of the law, excepting a few of the smaller deposi-
tories, in which this duty has been neglected, but in which, there is
reason to believe, it will be neglected no longer.
“4. Whether the amount of money in each depository corre-
sponds with the amount which the books and returns call for.”
In each depository I found the amount of money which the books
and returns call for, except that at Pittsburg. In that there was a
deficiency of $9956.62, caused by a robbery committed some time
previous.
The money there was kept in an unfinished building, in such a way
as to invite aggression. The architect had placed a vault in the room,
but it was intended only for the safe keeping of books. It was con-
structed of thin walls of brick, unlined with iron. It had two iron
doors, but only the outer one had any fastening, and that was of the
most common construction.
Mr. Hastings, the collector of customs and depositary at Pittsbuig,
as he was on his way, after night-fall, to his home in Allegheny City,
was attacked by footpads, and nearly murdered. They took from him
his watch, nine hundred dollars in money, (his private funds,) and the
key of the vault. On the same night the public money was abstracted,
but as the robbers shut the door of the vault and locked it after they
had attained their object, it was not known till the next morning that
a robbery had been committed.
i Having been informed of the inadequacy of the defences in the
Custom-house at Pittsburg, the Treasury Department had authorized the
Collector to employ two watchmen, though the sum then in the deposi-
tory was not large. Two watchmen were accordingly employed, but
they proved unfaithful to their trust. One of them was drunk and
asleep — perhaps had been drugged ; the other is strongly suspected of
having aided in the robbery.
There will be no loss to government, as the bonds given by the de-
positary will cover the amount abstracted, but the loss will fall heavy
on a worthy man.
Some useful lessons may be derived from this mishap. If the
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double lock and key system, which is in use in the large depositories ,
and some of the smaller ones, had been in use in Pittsburg, the foot-
pads would have had to assail two men instead of one in order to get
possession of both keys, and there is little probability that both of the
holders of the keys would have been at one time in such a place or
places as to invite an attack.
Again, public depositories should be so constructed that the money
in them will be secure, even if the watchmen employed proved unfaith-
ful to their trust. They should be so strong, and constructed in such
a way, as to bid defiance to any attack which may be made upon them
by any combination of burglars, in the length of time burglars would
have to operate. The depository at Boston is the only one that at
present fully answers this description.
“ 5. Whether any thing further can be done to promote the con-
venience of those officers whose duty it is to receive, keep, pay, and
transfer the public money, also the convenience of those to whom
payments are to be made.”
At some of the depositories some inconvenience is experienced
from the want of suitable scales for weighing gold and silver, and
various little conveniences might be supplied to the others which
would greatly facilitate business. To enumerate them here would be
tedious and is unnecessary, as what is wanted at each depository is
mentioned in my special reports. A moderate appropriation is all
that is required for strengthening the present depositories so as to
make them secure from fire, thieves, and burglars, and fit them up
with every desirable convenience.
“ 6. Whether any thing more can be done to facilitate the transfer
of the public funds from place to place, and to lessen the expense
thereof.”
In a well-regulated treasury system, all unnecessary transfers of
public funds will be carefully avoided. At present the government is
occasionally under the necessity of making some transfers simply
because the securities against fire, thieves, and robbers, at the places
where the money is collected, are not deemed sufficient. Transfers
from these motives will be unnecessary, if the depositories be
strengthened in the manner above recommended.
It will probably be advisable before long to establish a depository
in Minnesota, and another high up the Missouri, if the Kansas and Ne-
braska territories shall be settled as rapidly as is anticipated. This
will save the risk and expense of transporting part of the money col-
lected at the land offices in the far West to the present depositories
at St. Louis and Dubuque, and afterwards carrying it back again to
defray the expenses of Indian agencies and other charges against the
United States government in those distant regions.
Where transfers of the public money are actually necessary, they
can, in most parts of the country, owing to the facilities which railroads
and stoamboats afford, be made from one depository to another with
great dispatch and at a very small expense. But even this is, in
many instances, made unnecessary by the use of the transfer-drafts.
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For example, a person in Washington City wishes to pay a sum of
money in New-York. He deposits the gold or silver in the Treasury
Office at Washington, and ^receives an order in return for an equal
amount of gold and silver on the Assistant-Treasurer at New-York.
In this way the government is saved the expense of bringing gold
and silver from New-York to Washington City, and private indivi-
duals the expense of carrying gold and silver from Washington City
to New-York. The government is perfectly secure, for it does not
issue the transfer-draft till the gold or silver is actually paid into the
Treasury Office. The private individual runs no risk, fur the gold and
silver on which the draft is drawn is actually in the Assistant-Trea-
surer’s office. At the same time these drafts are for such amounts
that they do not become a part of the circulating medium. They
are simply contrivances to prevent the unnecessary transportation of
specie from place to plaoe.
To a considerable extent the cost of transporting the public funds
from ono depository to another is already avoided by means of these
transfer-drafts, and will be to a greater extent as soon as the system
is more generally understood.
Immigrants and others are now subject to some risk and expense in
carrying money intended for the purchase of lands for into the interior.
There the money is paid into the land-offices, and then it has to
be brought back by government to some one of the depositories
before it can be applied to the public service. This carting and re-
carting of money might be avoided by a provision that parties wish-
ing to purchase lands might make payment for the same in advance at
any depository, and receive a certificate for the amount, which certifi-
cate should be receivable in full payment at the land-office therein
designated, if presented within a stipulated period. There would be
no more danger of such certificate becoming a “ circulating medium,”
than there is of the soript now issued by the land-offices becoming
such. To a certain extent this principle has already been acted on.
If made general, it would prove a convenience both to the government
and to those wishing to purchase public lands.
This principle might be applied more extensively and has been
already in some cases. Merchants in inland cities — such, for example,
as St. Louis and Cincinnati — may occasionally find it more convenient
to make their payments of duties at the sea-ports through which the
goods are introduced into the country, than at the places where they
actually reside. Those engaged in the construction of railroads, also,
though the iron imported from abroad may be consigned to the far
West, may find it more convenient to pay their duties at the sea-ports
in the East, whence they derive most of the capital for making their
railroads. If allowed to pay their duties at the port of importation,
they would be saved the expense of carrying the money to the West,
and government saved the expense of bringing it back again.
It is a fixed principle of policy with theUnited States government
to grant every facility that can be granted with propriety to those
having payments to make into the publio treasury ; and though much
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far the lint Nine Years.
881
has already been done in this ■way, all, perhaps, has not been done (hat
might be done.
There is one way of making transfers of the public funds which
appears to be highly objectionable. It is that of assigning transfer-
mails to bankers, brokers, and others, apd allowing them the use of
the money for such time as it may be supposed will compensate them
for the expense of transporting specie from one depository to another.
. An experiment of this kind was made during the Mexican war, but
it was followed by such consequences as to give little encouragement
to repeat it In October, 1850, however, this mode of making trans-
fers on time was reduced to. something like a system. In the twenty-
eight months that ensued, the transfers made in this way amounted in
the aggregate to between fifteen and sixteen millions of dollars, and
the money was out of the treasury depositories for an average of
about sixty days. In some cases, security in the form of deposit Of
stocks was taken from the broker or banker employed to make the
transfer, but in other cases no security was required. - <
At the commencement of the system, some seventy or eighty days
were allowed for carrying money from New-York to New- Orleans;
but the time was gradually prolonged, so that from one hundred to
one hundred and thirtydive days were consumed in transporting the
public money from the depository at New-York to the depository at
Washington Gty.
In one instance a Mr. Wm. Minor, the President of an incorporated
company in Ohio, was six hundred and four days in transferring
825,000 from the depository at Boston to the depository at New-Or-
leans. This same gentleman, on the 2d November, 1850, received
$100,000 from the depository at New-York, with the ostensible pur-
pose of transferring it to the depository at New-Orleans ; but the
money has never yet reached the depository at New-Orleans, and it is
to be feared never will.
Under this system, government funds were transferred without
direct cost to government ; but the ordinary expense of transporting
gold and silver by railroad and steamboat is so small, especially when
express companies are the agents, as to make all that can be saved m
this way unworthy of oontiaeration.
The law requires that when transfers of the public money are
ordered, they shall “ be promptly and fhithfhlly made.” There is
nothing in the law to prevent brokers and bankers from being em-
ployed in making such transfers; but if these brokers or bankers do,
when public money is put into their hands for transfer as public
agents, use the said money “by way of investment in any kind of
property or merchandise, or lend it, with or without interest, Or
deposit it in any bank,” they render themselves liable to all the
penalties set form in the 18th section of the act of August 6, 1848.
If any cleric in the department, or other special agent appointed to
convey money from one public depository to another, should stop on
the way, and instead of being six days, be six months in the perform-
ance of this duty— employing in the mean time the public ftmds in Ms
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private speculations — the impropriety would be obvious to all. Not
less is the impropriety when this is done by bankers and brokers,
acting as such agents.
The favoritism to which such a system may lead is also an objection
to it. By properly timing the transfer-drafts, so that one shall lap in
with another, the permanent use of one, two, or three million dollars
might be given to official favorites.
Another objection to this system of transfers on time is, that under
it there is a continual temptation to order transfers ; not because they
are required by the public service, but because the agents employed
in making them will thereby be benefited.
Under the system of creditrtransfers, the monthly amounts appear
to have been about three times as great as they were under the pre-
vious cash system. Under the cash system the transfers to New-Or-
leans were about $38,000 a month; under the credit system they
swelled to $227,000. In like manner were they increased at Wash-
ington City from $135,000 to $225,000 a month.
If the principles of this mode of doing business bo correct, the whole
amount of money to the credit of the Treasurer of the United States
may be kept rolling through the country, exposed to all the vicissi-
tudes that attend tne precarious business of brokers and bankers.
Then every object Congress had in view in passing the constitutional
treasury act will be frustrated.
When the present administration came into power it took the means
to correct this evil. All those persons who had been employed in
making the transfers of the public money on time were required to
pay up. In this way sums, large parts of which might have been lost,
have been secured to the treasury. The only sum now outstanding is
the $100,000 taken from the depository at New-York, more than four
years ago, to be transferred to New-Orleans. For the recovery of
this a suit has been instituted.
It is for Congress to decide whether additional legislation is neces-
sary to prevent at some future day a recurrence to the system of
transfers on time. Perhaps a closer examination would snow that,
requiring certain things to be done, and not at the same time provid-
ing proper means for doing them, has in this as in other instances, led
to a departure from the principles if not the letter of the act of 1846.
There are seasons in which a secretary of the treasury has to exert
great firmness to avoid deviating from the strict line of duty. Owing
to the nature of our paper-money system, our banks are (even the
best of them) occasionally exposed to great pressure. If in such cases
they can, by any contrivance, get possession of the money in the pub-
lic treasury, it will aflord them temporary relief It would be thought
strange if a farmer or mechanic, when hard pressed by his debts,
should apply for the use of the public money. But banks and brokers
think themselves entitled to privileges not enjoyed by formers and
mechanics. Hence in times of money pressures, (produced by the
overtrading of the banks,) the Secretary of the Treasury is liable to
be importuned by committees from these institutions, or their friends,
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1865.]
for the First Nine Tears.
who are load in their declarations of the evils that will ensue to the
country if they be not allowed the use of the public funds. If the
principle of making transfers on time be correct, the banks may be
accommodated with the use of the public money to almost any
amount, and for an indefinite period. But even supposing such a pro-
ceeding to be legal, its policy is questionable. Let it once be under-
stood that the treasury department is to stretch forward a helping
hand to the banks in times of exigency, and those exigencies will be
of frequent occurrence.
Perhaps, in addition to the legal provisions already existing, a reso-
lution requiring the treasurer to give once a year a statement of each
transfer made during the year, with the name of the person and the
time employed in making it, would be all that would be necessary to
prevent the misapplication in this way of the publio funds.
“7. What disbursing officers keep deposits in the depositories,
and what the balance to their credit ; and, on the other hand, if any
disbursing officers neglect to deposit, now they keep the public monies
in their hands.”
In my special reports I gave the names of the disbursing officers
that kept their funds in the depositories that I visited, with the amount
to the credit of each. I found that in those neighborhoods the dis-
bursing officers, with but few exceptions, kept the money intrusted to
their charge in the public depositories. In some instances, as in parts
of Arkansas, officers residing at a distance from any depository kept
their funds in the iron chests of the merchants, with the understanding
that they were not to be used by these merchants. In other cases it
was reported that certain disbursing officers deposited in banks the
public monies intrusted to their care, and checked on them as they
would on their private funds. None of the officers who were said to
pursue such a course were under the control of the treasury depart-
ment.
Under the United States Bank and state bank deposit systems, dis
bursing as well as collecting officers were allowed to employ in their
private speculations the publio funds intrusted to their care. Hie
consequence was, that very large sums were thereby lost to the public
treasury. To prevent such losses in future was one of the objects
Congress had in view in passing the act of August 6, 1846. The
penalties it imposes on disbursing officers who lend the public money,
use it for their private purposes, or deposit it in banks, are just as
severe as those it imposes on collecting officers. But while the law
Srovided suitable places of deposit for collecting officers, it made none
istinctly and explicitly for disbursing officers. These, and other
defocts in the law, were pointed out by Mr. Walker in three of his
annual reports as Secretary of the Treasury; and also by Mr.
Meredith, when he filled the same office. But this produced no new
action on the part of Congress, and as a consequence the disbursing
officers were left to do pretty much as they chose with the public
money. Some of them conscientiously obeyed the law in all its parts,
providing iron chests and other safeguards at their own expense.
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634 Operations of the Sub- Treasury [February
Others complied with the provisions of the law so far only as to them-
selves seemed convenient, or was deemed by them expedient. Not a
few, as there is reason to believe, deposited the money, not indeed in
incorporated banks, but with officers of these institutions, or with
private bankers and brokers, receiving, either directly or indirectly,
some compensation for its use.
If all disbursing officers should pursue this course, the whole of the
publio revenue would, not at one time but in succession, pass into the
Eossession of the banks. It would there be exposed to risk of loss
om bank failures. It would be made the basis of new expansions of
paper currency, which must inevitably be followed by new contrac-
tions. It would lead to the payment of public creditors, not in gold
and silver, but in bank-notes.
It is obvious that, unless disbursing as well as collecting officers can
be made to obey the law, it never can produce the full effect intended.
Duly impressed with the importance of this, the present administra-
tion, soon after it came into power, made provision, by virtue of the
authority vested in it by the sixth section of the act, of suitable places
of deposit for disbursing officers in the depositories in which the trea-
surer keeps his account. They have now therein every proper conve-
nience which the banks could afford them, and have no longer an
excuse for violating or evading the law.
It is true that disbursing officers residing in some distant parts of
the country cannot have the benefit of these depositories, and that the
duties of others are of such a character that they have to carry the
public money with them in their travels. The duty of seeing that
these disbursing officers obey the law will devolve on the heads of the
departments to which they arc respectively attached. Such of them
as keep their funds in the treasury depositories will require no such
close supervision.
The depositories that receive the money of disbursing officers and
pay out tne same, find that they can perform this duty with much
more ease than, without experience, would have been supposed to be
possible.
u 8. Whether the different requirements of the law, and the trea-
sury regulations made in pursuance of tho law, are strictly adhered to,
including that provision which requires publio officers to credit the
United States with any premium received on drafts.”
In none of the depositories that I visited had any drafts been sold
for a premium.
In the large depositories I found the different provisions of the law,
and the treasury orders issued in pursuance thereto, strictly attended
to. In some of the smaller ones they have not been so carefully
observed, but will, it is to be hoped, be more exactly obeyed hereafter.
These treasury orders, the object of which is to promote method in
business, and insure an orderly keeping of the public money, are not of
so much importance in the small depositories as in the large; but
they all form part of one system, and we cannot have different sets of
rules for their government.
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635
Great advantages have been found to result from that treasury
order which requires the specie to be kept in an orderly manner.
Where it is duly observed, the amount of money in a depository,
though it be eight or ten millions, can be determined within a small
sum in a few minutes ; though it of course takes time to verify the
account by counting or weighing the contents of each bag, box, and
parcel.
So careful are the officers of the large depositories to guard against
mistakes, that bags of gold having on them the treasury seal are
received by the banks without counting or weighing them. After
having been out of the depositories for weeks, and after having passed
from bank to bank, they are frequently brought back with their 6eals
unbroken ; but they are never received back into the depository with-
out a recount.
Against losses from fire, thieves, and burglars, the government has
security in the strength of its buildings, vaults, and safes, in the pecu-
liar construction of their fastenings, and in the watchmen employed.
For every receipt and every payment vouchers are sent to Wash-
ington, and every receipt and every payment is duly audited.
Once a week each depositary makes a return to the Secretary of the
Treasury, and also to the Treasurer of the United States, of his
receipts and payments during the week, and the money on hand at the
dose of the week.
Once a month at all the depositories, except those at Washington
City, Nashville, Cincinnati, Pittsburg, Buffalo, and Richmond, the books,
aecounts, and money on hand are required to be examined by officers
designated by law for that purpose, who make their returns to the
Secretary of the Treasury and the Treasurer of the United States.
The depositories at the places where there are no officers resident
required by law to make periodic examinations of them, are, in com-
mon with the other depositories, examined from time to time by
special agents appointed by the Secretary of the Treasury.
Mistakes may occur under any system ; but in such a manner are
the accounts of the officers of the different depositories checked by
the different bureaus in Washington City, that no mistake of any
moment can long remain undetected.
In former years many losses occurred through public officers apply-
ing the public money to private uses, and not being able to repay it
when the speculations in which they engaged proved unfortunate.
Against abuses of this kind the constitutional treasury law provides
severe enactments. If any depositary should be bold enough to trans-
gress them, he would be sure to be detected in the periodic and other
examinations of his office.
If any depositary should, through carelessness or misconduct, lose
any part of the money intrusted to his care, the government has
security in his own bonds and those of his sureties.
Since the law was passed, hundreds of millions of gold and silver
have passed through the depositories, and not one cent thereof has
thereby been lost by government. If any losses have been sustained
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through collecting, disbursing, or transferring officers and agents, such
losses have been occasioned, not by adhering to, but by departing
from, the constitutional treasury system.
This system has now been in operation for between eight and nine
years.
The first act was passed July 4, 1840. At that time the banks, in
the greater part of tne Union, had suspended specie payments. The
public revenue was deficient, and it was necessary to have recourse to
the issue and reissue of treasury notes, in order to complete the public
payments. The government had to contend with all those difficulties
that attend on changes in the fiscal system of a large country. New
places had to be provided for the safe keeping of the public funds, and
new modes of business adopted. The difficulties it had to surmount can
be properly appreciated by those only who know with what tenacity
persons long in office ding to established forms. But, notwithstand-
ing all it had to encounter, including an active opposition from some of
the most powerful interests in the country, the system worked well.
In those parts of the Union, in which the banks continued to pay specie,
the public receipts and payments were made partly in gold and silver,
and partly in convertible paper, in the proportions then prescribed by
law. In those parts in which the banks had suspended specie payments,
the receipts and payments of the government were in gold and silver,
and thus the legal standard was preserved, though the common currency
was degraded below that standard. This measure facilitated a general
return to specie payments.
In August, 1841, owing to party political changes, so much of the
act of July, 1840, as prohibited deposits in banks, and the receipt and
payment of bank-notes, was repealed ; but so much of it was retained
as prohibited public officers from converting to their own use, or lend-
ing in any way, the public money intrusted to their care.
On the 6th of August, 1846, the law of July, 1840, was reenacted
with amendments, but due provision was not made to carry it into
effect. A sufficient appropriation was not made for properly fitting
up the depositories ; and tnough disbursing officers were, in common
with others, prohibited under severe penalties from lending, using for
private purposes, or depositing in banks, the public money intrusted
to their care, or from paying to the public creditors any thing but gold
and silver, no places were specially provided for them in which to
deposit their fbnds. This has led to great irregularities. In not a few
cases the government has been collecting gold and silver from the
people for the benefit of the banks, and through the agency of its dis-
bursing officers, and the banks employed by them have been paying the
public creditors with bank-notes instead of the legal money of the
United States.
Notwithstanding the imperfect manner in which the law was carried
into effect, it did much good. All the receipts for lands, customs, and
other public dues, were in gold and silver and treasury notes ; and all
the payments by the Treasurer of the United States were in gold,
silver, and treasury notes. In this way a circulation of gold and silver
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for the First Nine Years.
was created, a limited one indeed, chiefly from the public depositories
to the banks, and back again from the banks to the public depositories.
But, as the banks are the heart of our practical monetary system,
keeping them sound, or in a state approaching to soundness, is achiev-
ing an object of great moment. The good effects of the constitutional
system are to be judged of, not so much by the amount of solid money
it causes to be retained in the treasury, as by the stream of gold and
silver which, under it, is constantly flowing into the treasury, and the
other stream which is constantly flowing out. The aggregate is the
whole amount of receipts and payments by government in the course
of each year.
It was a time of war ; large loans were necessary. They were all
effected without calling in the agency of bank-notes and bank-credit ;
and all the important and extensive fiscal operations of the United
States were carried on without disturbing in the least the action of the
banks or the merchants. Loans of bank credits to the amount re-
quired in the Mexican war would have deranged every thing.
In other ways the system has done much good. Through the '
increased production of gold and silver, the specie level has been
raised; but in times of prosperity the paper level rises above the
specie, just as naturally as oil rises above water. The banks have
expanded greatly ; and the cause that they have not expanded more
is to be found in the constitutional treasury system. If the public
money had been deposited with them, they would have made it the
basis of new issues and new discounts. Our importations of foreign
commodities would have been much greater than they have been, and
the attempt to pay for them would have drained the country of its
specie. The constitutional treasury system, and that alone, has saved
the country from scenes of inflation and speculation, such as we had
in 1835-36, which would necessarily have been followed by scenes of
distress and disaster, such as we had from 1837 to 1843. This truth is
admitted by many who were once the active opponents of the
system.
Some complain of the money in the treasury offices as lying dead
and unproductive ; the only use to which, in their opinion, gold and
silver should be applied, being that of supporting paper credits. But
the money in the treasury offices is no more dead and unproductive
than arc the goods in the warehouses of the merchants, or the grain
in the granaries of the farmers. In a country such as ours there
ought to be somewhere a reserved fund of gold and silver, and no
more appropriate place can be found for such a reservoir than the
United States Treasury. So much of this money as is appropriated to
mint uses is, in reality, so much devoted directly to commercial and
not to governmental purposes. Through its means some fifty mil-
lions of gold and silver coin are annually thrown among the people,
with a promptness which, under any other arrangement, would be
impossible.
Deduct from the money in the treasury the amount appropriated
to mint uses, and it will be found that no exorbitant sum remains for
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a government whose jurisdiction extends over three million square
miles of territory, and embraces within its bounds twenty-five millions
of people.
It is true that by transferring this money to the banks, the opera-
tions of those institutions would for a time be greatly extended. But
to what extent would the advocates of such a policy desire to see our
paper credits increased! According to their returns nearest to Janu-
ary 1, 1854, the banks had then notes in circulation to the amount of
two hundred and four millions, while their bank-book credits (loosely
called deposits) amounted to one hundred and eighty-eight millions,
and the sum due to other banks to more than fifty millions. All these
arc parts of their current credits ; for the bank-check serves the same
purposes in wholesale trade that the bank-noto serves in retail trade,
and the bank-draft serves the same purpose in adjusting accounts
between traders in distant towns, that the bank-check does among
traders residing in one and the same town. The total of the current
credits of the banks was four hundred and forty millions, all resting on
specie in their vaults of the amount of about sixty millions. If thirty
millions of hard money had been transferred to them from the treasury,
and the banks had increased their issues and discounts in proportion,
we should, instead of four hundred and forty millions of “ promises to
pay,” have had six hundred and sixty millions. Under such an infla-
tion, prices would have been raised so high at home as to make the
exports of domestic products unprofitable, while the import of foreign
commodities would have been greatly increased. Such a drain of
gold and silver would then have ensued that a general suspension of
specie payments would have been inevitable.
No new arrangement or rearrangement of tariff systems can coun-
teract this tendency of an inflated paper currency to encourage imports
and discourage exports. Some of the years in which our excess of
imports has been greatest, have been those in which our duties on
imports were the highest.
In the long run, the banks are more benefited by the public money
being retained in the treasury, than they would be if it were placed in
their own vaults. If in their vaults, it would lead to new inflations ;
if in the public depositories, more or less of it will come to their aid
in times of emergency. If the banks think that the amount of gold
and silver in the public treasury is at any time too largo, all they have
to do is to diminish their discounts. This will diminish imports, and,
at the same time, the amount of duties to be paid to government.
Then the drain of gold from the banks to the treasury ceases, and a
drain from the treasury to the banks commences. This must neces-
sarily be the result, for government will have to continue its daily
expenditures, though its receipts from customs should be daily dimin-
ished.
In other ways has the constitutional treasury system contributed
towards giving banking operations greater stability than they would
otherwise have possessed.
It is an unyielding law of currency that, where there arc two circu-
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It cannot correct the evils that are produced by factitious systems of
credit, having their origin in false principles of banking. It cannot
even prevent expansions and contractions on the part of the banks.
From the nature of things this is impossible. The extent to which
our banks can expand depends on the amount of products we can
sell abroad, added to the amount we can run in debt abroad. The
limit varies with every great change that takes place in the political
or commercial world. So long as we can sell abroad large amounts
of our products at high prices, and so long as our foreign creditors do
not press us for what we owe to them, and are willing even to extend
the amount of credits granted to us, so long there is (beyond the sur-
plus produce of our own mines) little demand for specie for exporta-
tion. So long, then, can the banks go on increasing theTr paper issues,
raising prices, making money plentiful in every man’s pocket, and
inducing every man to run in debt to the greatest amount possible.
But let a change take place. Let our domestic exports bring a low
price abroad, or let our foreign creditors press us for what we owe
them, or even refuse to grant us new and additional credits. Then a
demand for specie for export commences. Then the banks are obliged
to contract. Then prices fall. Then money becomes scarce, and
debts contracted during the previous expansion cannot be paid.
Those who suppose that the fluctuations of a “ mixed currency” are
no greater than those of a purely metallic currency would be, are
under an illusion. Requiring banks to pay specie on demand, acts to
some extent as a check, but is not as effective as many imagine.
There have been periods in our history in which our “ mixed cur-
rency' has been more than doubled, while, under the circumstances
then existing, the variations of a purely metallio currency would not
have amounted to five per cent.
A little reflection will convince any man that it is impossible for a
government to prevent ruinous fluctuations in a currency rating on
such principles. Its varying condition is dependent more on the state
of things abroad than on the state of things at home, and is therefore
beyond the reach of ordinary legislation.
What, however, the United States government has had power to do
it has done. It has withdrawn the support it used to yield to paper-
money banks. By refusing to let them have the public money to
work upon, and by refusing to receive their notes in payment of pub-
lic dues, or to pass them to the public creditors, it prevents expansions
being as great as they would otherwise be, and thus diminishes the
ruinous consequences of the subsequent contraction.
Having separated itself entirely from paper-money banks, the United
States government is no longer responsible for the evils they produce.
For the correction of those evils the people must look to the State
governments by which these institutions nave been created, and by
which they are sustained. The action of the United States government
is necessarily negative in its nature, and consists in having nothing to do
with the fabricators of paper money. The action of the State govern-
ments may be positive, and apply the axe to the root of the evil.
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for the Fv'st Nine Years .
641
t
1855.]
If the State governments will, after giving due notice of the change
intended, simply prohibit the issue of notes of a less denomination
than ten dollars, the wages of working men will be paid in gold and
silver, the specie basis of the banks be widened and strengthened, and
though fluctuations of paper currency may not be entirely prevented,
they will be less sudden, less frequent, and less violent than they have
hitherto been.
Some inconvenience would attend a change from an unsound to a
relatively sound currency, but it would be small compared with the
evils with which the country will continue to be afflicted, so long
as a small-note currency is sanctioned or tolerated. The gold now
hoarded is probably equal in amount to the one, two, three, and five
dollar notes in circulation. Prohibit the issue of notes of a less de-
nomination than ten dollars, and this gold will be drawn from its hid-
ing places. Suppose the amount not sufficient, and wo can supply
what is wanted by detaining in the country the product for only one
half-year of our mines in California.
There is but one way in which we can detain in the country a just
proportion of the gold of California, and that is by creating an active
demand for it. There is but one way in which this active demand
can be created, and that is by prohibiting the issues of notes of small
denominations.
The policy of many of the State governments has, of late years, been
the very reverse of this. It has consisted in encouraging the issue of
small notes by sanctioning the establishment of what are popularly
called “ free banks,” with deposits of stocks and mortgages for the
“ultimate” security of their issues. This w ultimate” security is, it may
be admitted, better than no security at all. The mischief is, that it is
least available when most wanted. The very causes which prevent
the banks from redeeming their issues promptly, cause a fall in the
value of the stocks and mortgages on 44 the ultimate security” of wilich
their notes have been issued. The “ultimate security” may avail
something to the broker who buys them at a discount, and can hold
on to them for months or years ; but the laboring man who has notes
of these “ State security banks” in possession, finds, when they stop
payment, that “ the ultimate security” for their redemption does not
prevent his losing twenty-five cents, fifty cents, or even seventy-five
cents in the dollar.
In a circulating medium we want something more than “ ultimate
security.” We want also “immediate” security; we want security
that is good to-day and will be good to-morrow, and the next day, and
for ever thereafter. This security is found in gold and silver, and in
these only.
If the State governments will persist in encouraging the establish-
ment of banks in places where, as the people have no money to
deposit, and no business notes to offer for discount, there is no room
for legitimate banking; if they will encourage the establishment of
banks, even in commercial places, solely that their founders may get
the profits of small note-circulation, the United States government,
42
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642 Operations of the Sub-Treasury [February.
however it may regret the evil, cannot prevent it, and the laboring
classes in these States must continue subject to all the losses and dis-
advantages to which they are exposed under such a system.
It is marvellous that, with our own mines yielding so abundantly,
no effort is made by the State governments to place our currency on a
better basis. To the working classes the influx of gold has proved a
curse rather than a blessing, because it has led to a new paper-money
inflation, by which the prices of every thing they have to buy have been
raised in a higher ratio than have been the wages they receive.
Leaving it to the State governments to remove the evils which are
of State government creation, the United States government has every
inducement to adhere closely to the principles of fiscal policy it has
adopted.
Of the evils that arp avoided by guarding against improper connec-
tions of bank and State, a striking example occured last summer. A
draft for the unprecedented amount of seven million dollars was issued on
the Treasury Office at New-York,in fulfillment of an appropriation made
by Congress. In one hour and a half the whole amount was paid in
gold, and it could have been paid in half an hour if the parties entitled
to demand it had been ready to receive it.
If the banks had been the fiscal agents of the United States, the
money wTould, in the first place, have been made the basis of new issues
and new discounts to the amount of many millions. Then, after notice
had been given that the government wrould want the money, months
of preparation would have been necessary to meet the demand. It
would have been necessary for the banks to curtail their circulation,
and call in what they had lent to merchants and speculators. By this
process very extensive trains of commercial operations would have
been injuriously affected. But as the money was not in the hanks, but
in the treasury ; as it existed not in the form of paper credits, but of
gold and silver ; as no loans, discounts or paper issues had been based
upon it, this large fiscal transaction had no disturbing effect on com-
mercial operations. If a demand had been made on the banks at that
juncture for seven million dollars to send abroad, it would, in addition
to other demands for export, arising from other causes, have produced
a disastrous convulsion.
Of the excellent workings of the system we have further proof in
what has occurred in paying off the public debt. The United States
Bank never made a loan to government without bringing distress on
the mercantile community, and inflicted even greater evil on the public
at large, w hen it wras made the agent for reimbursing the holders of pub-
lic stoc ks. In the voluminous documents appended to the report made
by a committee of Congress in April, 1832, continual reference is made
to changes in the operations of the United States Bank, rendered neces-
sary by government reclaiming its deposits for the purpose of paying
off the national debt. The mother bank and each of its branches had
to shape proceedings, not according to the demands of commerce in
their respective neighborhoods, but so as to throw funds on particular
points. The whole course of exchanges was thus deranged, and pres-
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for the First Nine Years .
643
sures and semi-panics produced from Boston to New-Orleans. When
the government finally did, through the agency of the bank, make pay-
ment, it made it not in gold or silver, but in bank credits. After the
stocks were redeemed, there was not one ounce more of gold or silver
in the vaults of the bank or the pockets of the people than there was
before. The whole transaction was a mere transfer of credits from one
individual to another, or from one bank to another, and a transfer
which may have done more harm then good; for the creation of a new
bank credit in one city will not atone for the destruction of an old bank
credit in another city.
How different is the action of the United States government in paying
off the public debt under the constitutional treasury system. No one
train of commercial operations is in the least degree injuriously affected
by it. There is no curtailment of circulation, no interference with the
natural course of exchanges, no calling in of loans and discounts.
When payment of the public debt is made, it is made not with mere
credits, but with solid capital, and with capital in its most available
form for general commercial uses, namely, gold and silver coin. With
every portion of the public debt paid off, the amount of gold in the
vaults of the banks and the pockets of the people is increased. In this
way, since the present administration came into power, it has paid out
some twenty or thirty millions in gold and silver.
So in the payment of the interest on public debt. If the banks are
fiscal agents, the whole of the payments amount to nothing more than a
transfer of credits from one account to another. But every payment
of interest on the public debt made under the constitutional treasury
system increases the amount of the precious metals in the vaults of the
banks or in the pockets of the people.
So with the other expenditures of government. If the banks are fiscal
agents they pay the public creditors, not with circulating capital, but
with circulating debt ; for this is the true character of the circulating
medium the banks create. Under the constitutional system the public
creditors are paid with circulating capital, for such is gold and silver.
If it be objected that the government can pay back to the people
nothing but what it has previously received from the people, this may
be admitted. But it is not one of the least merits of the constitutional
system that it has, by its own action, so increased the stock of precious
metals in the country as to sustain not only its own operations, but,
to a certain extent, die operations of the banks, and also of private
individuals.
CAUSES OF PRESENT HARD TIMES.
The present troubles in the money market arc owing chiefly to the
following causes :
1. The rapid extension, under a fresh supply of gold, of a paper-
money banking system, which rests on principles radically unsound,
especially in sanctioning the issue of notes of small denominations.
2. The wars in the East, that have caused capital to flow from
Europe to Asia, instead of taking its usual course from Europe to
America.
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3. The attempts to make, in a few years, numerous and extensive
lines of railroads, which would, in reason, require many years to com-
plete them.
4. Extensive speculations in wild lands, caused by reducing the
price of the public lands, and by other measures, which have thrown
into the market in a few years as much land as will supply the demand
for cultivation for many years.
If there has been any excess of imports, that excess has been caused
wholly and solely by excess of bank issues. It is only a link in the
chain of effects, like extravagance in living, and all the other evils
which are the consequences of paper currency inflations.
Not one of the causes singly, but the whole four combined, have pro-
duced the high rate of interest. To suppose that any mode of manag-
ing its fiscal concerns which the United States government might adopt
could counteract such causes, is a folly of which no rational man will
be guilty. Nothing but the constant influx of gold from California
has prevented general bankruptcy ; and if the regular supply from
that quarter should be interrupted for only a few months, it would, so
tensely has credit been strained, be followed by the most disastrous
results.
It is no more in the power of the general government, by any fiscal
system it may adopt, to counteract causes of such a nature as those
above mentioned, than it w'ould be to correct the evils that result from
the want of industry, economy, and prudence on the part of individuals.
But if the constitutional treasury system is faithfully carried out in all
its parts, it will produce the following effects :
1. It will increase the amount of gold and silver in the vaults of the
banks and the pockets of the people.
2. Though it cannot control the banks, it will to a certain extent,
check them in their expansions, and thus weaken the force of their
subsequent contractions.
3. It will prevent those losses which were so frequent in former
years, and which are the necessary consequences of suffering public
officers, intrusted with the public funds, to apply them to their private
uses.
J 4. It will give the government at all times the control of its own
funds, so that it can apply them to the public service just when and
where it chooses — a control it could not have if it should deposit the
public money in the banks, and the banks should lend it to their cus-
tomers.
5. It will prevent those derangements of banking, exchange, and
commercial operations, which are always caused by governments
effecting large loans in bank credits, and by paying off the public debt
through the medium of bank agency.
6. Though it cannot prevent frequent explosions of banks resting on
insufficient capital, and conducted on wrong principles, it will, it is
believed, unless under very extraordinary circumstances, prevent a
general suspension of specie payments.
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UNIVERSITY OF CHICAGO
1854.]
for the First Nine Years.
645
7. If a general suspension should unfortunately occur, it will afford
a standard by which the depreciation of the currency can be exactly
ascertained, and greatly facilitate a return to a better state of things.
“ The less government has to do with banks, and the less banks
have to do with government, the better for both,” if it be not an adage,
ought to be one. “Every inquiry I have made,” said Mr. William
Jones, the first President of the United States Bank, “ has entirely
convinced me that every formidable difficulty with which the bank
(that is, the United States Bank) has had to contend, has been produced
by its agency for the government, and particularly the too rapid reduc-
tion of more than eighteen millions of the public debt between the
months of June, 1817, and November, 1818.” It was the connection
of bank and State that caused the Bank of England to suspend specie
payments in 1797, and to continue in a state of suspension for more
than twenty years. It was the connection of bank and State that
caused our own banks to suspend specie payments in 1814, and again
in 1837, both which suspensions were followed by many years of
commercial affliction and pecuniary embarrassment. In no country
has a general suspension of specie payments occurred, except such as
has been caused by the connection of bank and State.
The constitutional treasury system has now been in operation for
nearly nine years, under circumstances of peace and war, of payment of
specie by the banks and of non-payment, of deficient revenue and of sur-
plus revenue, of negotiation of loans and of paying off of loans. No evil
that has befallen the banking, the commercial, the manufacturing, the
agricultural, or the other interests of the country, can fairly be attri-
buted to its operation. Each succeeding year has afforded additional
evidence, not only of its feasibility, but of its being the system that is
best adapted to the wants of the government and of the people. We
cannot depart from it without departing from the principles of the
Constitution. Every proper means ought therefore to be taken to
bring it as near perfection as possible, and to make it the permanent
system of the nation.
I remain, very respectfully, yours,
Wm. M. Gouge.
Hon. James Guthrie, Secretary of the Treasury.
Washington City , D. C.
i
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Bank Capital of Citie* and Towns [February,
\
Digitized by
BANK CAPITAL OF CITIES AND TOWNS IN THE
UNITED STATES.
COMPILKD FROM THB LATEST RETURNS.
December, 1854.
Main*.
N EW-H AHPSHIRK.
No, of Bank*, Capital,
No, qfBank*,
Capital,
Augusta,
4
$313,000
Claremont,
.. 1
$100,000
Bangor,
1,350,000
Charlestown, . ...
.. 1
90,000
R/ith1
4
600,000
Concord, .......
.. 3
280,000
"Belfast,
1
isjooo
Dover,
.. 3
320,000
Biddcford, . . .
1
150,000
East- Jeffrey, . . .
.. 1
60^000
Brunswick, . . .
q
135,000
Exeter,
.. 1
126,000
Calais, .......
75^000
Farmington, . . . .
.. i
lOO^OO
China,
1
50.000
Frances town, . .
... 1
60,000
Damariscotta, .
..... 1
50,000
Hampton Fails,.
.. 1
50,000
Wastport, ....
1
15,000
Keene,
.. 2
200 000
Ellsworth, . . . .
2
125,000
Lancaster,
.. 2
100,000
Farmington, . .
,••••• X
100,000
Lebanon,
.. 1
100,000
Gardiner,
2
150,000
Manchester, . . . .
.. 3
375,000
Hallowed, . . .
3
225,000
Merodith,
.. 1
80,000
Kennebunk, . .
60,000
Nashua,
.. 1
125,000
Lewiston, ....
1
16,000
Nashville,
.. 1
100,000
Newcastle, . . .
1
60,000
New-Ipswich, . .
.. 1
100,000
Old Town, . . .
1
60,000
Newport, ......
.. 1
50,000
Orono,
1
60,000
Pittsfield, ......
.. 2
50,000
Portland, . . .
6
1,115,000
Portsmouth, . , .
.. 3
601,000
Richmond, . . .
1
50,000
Rochester,
.. 1
120,000
Rockland, ....
2
250,000
Rollinsford,
.. 1
60,000
Saco,
2
115,000
Sanborn ton, . . . .
.. 1
50,000
Searsport, ....
1
16,000
Sandwich,
.. 1
50,000
Skowhegan, . .
3
125,000
Somersworth, . . .
.. 1
160,000
South-Berwick,
1
100,000
Warner,
.. 1
60,006
Thomaston, . .
2
100,000
Wolfboro,
.. 1
60,000
Topsham, ....
1
60,000
Winchester, . . . . ,
.. 1
100,000
Waldoboro, . .
2
100,000
Watorville, . . .
2
116,000
Total, ...
. . .38
$3,516,000
Winthrop, . . . .
1
60,000
Wiscas8et> . . .
50,000
Wisconsin.
—
Beloit,
.. 1
$60,000
Total, .
67
$6,723,000
Green Bay,
... 2
15,000
Fond du Lac, . . . ,
... 1
25,000
MARYLAND.
Madison,
.. 3
200,000
Baltimore, .. . .
$8,471,796
Milwaukee,
.. 7
660,000
Annapolis, ...
298,000
Mineral Point, . .
.. 1
60,000
Chestertown, .
100,000
Janesville,
.. 1
26,000
Cumberland, . ,
282,014
Portage City, . . . ,
.. 1
25,000
Easton, ......
..... 1
271,615
Kenosha,
.. 1
60,000
Frederick, ....
626,430
Racine,
.. 3
200,000
Hagerstown, .
250,000
Watertown, ....
.. 1
50,000
Port Deposit, .
71,160
—
Westminster, .
2
110,000
Total, . . .
...22
$1,400,000
Williamsport, .,
1
136,000
—
Texas.
Total, . .
.... 26
$10,515,026
Galveston,
... 1
$322,000
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in the United States .
647
Digitized by
New-York. Nkw-York, (cont’d.)
No. of Banks,
Capital.
No. of Banks.
Capital.
Adams,
... 1
$125,000
Kinderhook,
. 2
$350,000
Albany,
... 9
2,921,100
Kingston,
. 3
425,000
Albion,
.... 2
275,905
Lake Mahopac,.. . .
. 1
51,550
Amenia,
.... 1
50,000
Lancaster,
.. 1
60,000
Amsterdam, . . .
.... 1
117,500
Lansingburgh, . . . .
. 3
440,620
Auburn
.... 3
650,000
Leroy,
. 1
200,000
Ballston Spa, . . .
... 1
125,000
Little Falls,
. 1
200,000
Batavia,
... 2
200,000
Lockport,
. 4
405,950
Bath,
... 2
200,000
Lowville,
... 1
102,450
Binghamton, . . .
... 2
300,000
Lyons,
. 1
43,319
Brockport,
... I
50,000
Malone,
. 1
100,000
Brooklyn,
...6
1,150,000
Medina,
. 1
60,000
Buffalo,
,...11
2,241,800
Middletown,
. 1
125,000
Canandaigua, . .
.... 3
260,000
Mohawk,
. 1
150,000
Carmel
.2
152,189
Monticello,
. 1
130,000
Canajoharic, . . . .
... 1
100,000
Mount Morris, ....
.. 1
130,000
Cattskill,
... 2
210,000
Newark,
. 1
100,000
Chester,
... 1
100,400
Newburgh,
. 4
975,000
Chittenango, . . .
... 1
110,000
New-Paltz,
. 1
125,000
Clyde,
... 1
57,685
Newport,
. 1
60,000
Cherry Valley, . .
... 1
120,000
Norwich,
. 1
120,000
Cooperstown, . . .
... 2
350,000
Ogdcnsburg,
3
333,000
Corning,
... 2
154,600
Oneida,
. 1
105,000
Cortland,
... 1
50,000
Oswego,
. 2
371,000
Cuba,
... 1
50,000
Owego,
. 1
200,000
Coxsackie,
... 1
120,000
Painted Post,
. 1
10,000
Cazenovia,
... 1
100,000
Palmyra,
. 1
100,000
Crescent,
... 1
200,000
Pawling,
. 1
175,000
Dansville,
.... 1
150,250
Penn Yan,
. 2
106,700
Delhi,
... 1
160,000
Peekskill,
.. 1
200,000
Deposit,
... 1
56,040
Pino Plains,
. 1
100,000
Elmira,
... 3
500,000
Plattsburg,
. 2
104,488
Farmers Mills, . .
... 1
109,430
Port Jervis,
. 1
120,000
Fayetteville, . . . .
... 1
111,600
Potsdam,
. 1
100,000
Fishkill
... 1
150,000
Poughkeepsie, . . . .
. 4
700,000
Fort Edward, . . .
.... 1
128,600
Pulaski,
. 1
100,000
Fort Plain,
... 1
150,000
Putnam Valley, . . .
. 1
60,234
Frankfort,
.... 1
105,000
Rhinebeck,
. 1
126,000
Fredonia,
... 1
50,000
Rochester,
. 6
1,630,000
Fulton,
... 1
125,000
Rome,
. 4
465,670
Goneseo,
... 2
220,000
Rondout,
. 1
100,000
Geneva,
... 1
200,000
Sacketts Harbor, . .
. 1
200,000
Glen’s Falls,
... 2
248,400
Sag Harbor,
,. 1
20,000
Gloversville,. . . .
... 1
150,000
Salem,
.1
110,000
Goshen,
... 2
215,660
Saratoga Springs,..
. 1
100,000
Greene,
... 1
20,000
Saugerties,
. 1
100,000
Hamilton,
... 1
110,000
Schenectady,
. 2
276,000
Havana,
.... 1
50,000
Schoharie,
. 1
100,000
Herkimer,
... 1
100,500
Seneca Falls,
. 1
60,000
nornellsvillo, . . .
... 1
100,000
Silver Creek,
. 1
92,850
Hudson,
... 2
450,000
Sing Sing,
. 1
146,000
Ilion,
... 1
100,000
Somers,
. 1
111,150
Ithaca,
... 2
320,000
Syracuso,
.10
1,647,500
Jamestown, . . . .
100,000
Tonawanda,
. 1
104,000
James villo,
..! i
67,753
Troy,
.11
2,991,470
Johnstown,
... i
100,000
Unadilla,
. 1
137,600
Keeseville,
... i
100,000
Utica,
. 6
1,735,200
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648
Digitized by
Bank Capital of Cities and Towns [February,
New- York, (cant’d.)
21 To. o/ Banks. Capital.
Union Village, . .
... 1
$150,075
Vernon Village,.
... 1
100,000
Warsaw,
... 1
60,000
Waterford,
... 1
100,000
Waterloo,
... 1
200,000
Watertown, . . . .
... 6
634,884
Waterville,
... 1
120,000
West-Troy,
... 1
260,000
Westfield,
... 2
X15,000
West- Winfield, .
... 1
100,000
Whitehall,
... 2
208,200
Wliitestown, . . .
... 1
X20.000
Yonkers,
.... 1
150,000
48,482,900
New-York City, .
...62
Total, 280
Vkemont.
$84,076,022
Bellows Falls,...
... 1
$100,000
Bennington, . . . .
... 1
100,000
76,000
Bethel,
... 1
Bradford,
... 1
60,000
Brandon,
... 1
75,000
Brattleboro, . . . .
Burlington,
... 1
X50,000
... 4
600,000
Castleton,
a. . • X
X00,000
Chelsea,
... 1
60,000
Danby,
... 1
60,000
Danville,
... 1
76,000
Derby Line, . . . .
... 1
60,000
Iraaburg,
... 1
60,000
Jamaica,
... 1
60,000
Manchester, ...
.... 1
60,000
Middlebury, . . . .
... 1
16,000
Montpelier,
... 2
200,000
Northfield,
,. . . 1
X00,000
Orwell,
... 1
X00,000
Poultney,
... 1
60,000
Proctorsville, . . .
... 1
60,000
Boyalton,
. . » X
X00,000
Rutland,
... X
X60,000
South-Royalton,
.... X
100,000
Springfield,
... X
40,000
St Albans,
... 2
200,000
St Albans Bay, .
... X
100,000
St Johnsbury, . .
... 1
100,000
Sheldon,
... X
100,000
Swan ton Falls,.
.... X
16,000
Vergennes,
... 1
100,000
Waterbury, ....
... X
60,000
16,000
Wells River,.. . .
... X
Windsor,
... 1
50,000
Woodstock, . . . .
... 2
120,000
Total, 41
Louisiana.
$3,570,000
New-Orleans, . .
... 8
$14,702,600
Ohio.
Bo. qf Banks.
Capital.
Ashtabula,
X
$100,000
Athens,
X
X00,000
Bridgeport,
1
X00,000
Cadiz,
1
100,000
Canton,
1
30,000
Chillicothe,
2
400,000
Cincinnati, ...'
8
714,226
Cirdeville,
1
204,000
Cleveland,
6
650,000
Columbus,
2
300,000
Cuyahoga Falla, ....
1
100,000
Dayton,
2
XII, 000
Delaware,
1
93,600
Eaton,
1
X00,000
Elyria,
1
74,675
Franklin Mills,
1
26,000
Ironton,
1
26,000
Lancaster,
1
100,000
Logan,
X
100,000
Mansfield,
1
100,000
Marietta,
1
100,000
Marion,
1
100,000
Massillon,
2
210,000
Mount Pleasant,. • • .
1
100,000
Mount Vernon,
X
100,000
Norwalk,
1
126,000
Painesville,
1
50,000
Piqua,
1
100,000
Portsmouth,
1
100,000
Ravenna,
1
108,000
Ripley,
1
100,000
Salem,
1
100,000
Sandusky,
2
116,600
Springfield, .......
2
160,000
Steubenville,
1
100,000
Toledo,
1
100,000
Troy,
1
100,000
Urbana,
1
25,240
Warren,
1
16,000
Washington,
1
100,000
Wooster,
1
88,000
Xenia,
1
100,000
Youngstown,
1
50,000
Zanesville,
2
200,000
Total, 58 $6,146,141
Georgia.
Atlanta,
... 1
$100,000
Augusta,
... 7
3,175,000
Athens,
... 1
100,000
Eatonton,
... 1
100,000
Macon,
.. 2
326,000
MiUedgeville, . . . .
.. 1
100,000
Savannah,
... 5
3,041,190
Washington,....
.. 1
100,000
Total, ....
..18
$1,041,190
Gck igle
Original from
UNIVERSITY OF CHICAGO
1855.]
in the United States .
649
Massachusetts.
Ko. of Banks. Capital .
Boston,
.37
$32,460,000
Abington,
. 1
160,000
Andover,
. 1
250,000
Athol,
. 1
100,000
Attleborough,
. 1
100,000
Beverly,
. 2
225,000
Blackstone,
. 1
100,000
Brighton,
. 2
350,000
Cambridge,
. 4
460,000
Cambridgeport. . . .
. 1
100,000
Canton,
. r
100,000
Charlestown,
. 2
450,000
Chelsea,
. 1
160,000
Chicopee,
. 1
160,000
Concord,
. 1
100,000
Conway,
. 1
100,000
Danvers,
. 3
650,000
Dedham,
. 1
260,000
Dorchester,
. 2
250,000
Eairhaven,
. 1
200,000
Fall River,
. 3
1,150,000
Fitchburgh,
. 2
500,000
Framingham,
. 1
200,000
Falmouth,
. 1
100,000
Gloucester,
. 1
300,000
Grafton,
. 1
100,000
Great Barrington, .
. 1
200,000
Greenfield,
. 2
400,000
Haverhill,
. 4
630,000
Bingham,
. 1
140,000
Holliston,
. 1
100,000
Holyoke,
. 1
200,000
Hopkinton,
. 1
100,000
Lancaster,
. 1
200,000
Lawrence,
. 2
600,000
Lee,
. 1
200,000
Leicester,
. 1
200,000
Lowell,
. 6
1,460,000
Lynn,
. 3
600,000
Malden,
. 1
100,000
Marblehead,
. 2
220,000
Methuen,
. 1
100,000
Millbury,
. 1
76,000
Milford,
. 1
200,000
Monson,
. 1
100,000
Nantucket,
. 1
200,000
N. Bridgewater, . . .
. 1
200,000
Nowburyport, ....
. 3
610,000
New-Bedford, ....
. 4
2,100,000
Newton,
. 1
150,000
Northampton,
. 2
400,000
North- Adams, . . . .
. 1
200,000
Oxford, * .
. 1
100,000
Pittsfield,
. 2
500,000
Plymouth,
. 2
300,000
Provincetown,
. 1
100,000
Quincy,
. 2
200,000
Randolph,
. 1
160,000
Digitized by Gougle
Massachusetts, (cont’d.)
JSro. of Banks. Capital .
Rockport,
.. 1
100,000
Roxbury,
.. 2
300,000
Salem,
.. 7
1,710,000
Salisbury,
.. 1
100,000
Springfield,
.. 6,
1,350,000
Southbridge,
.. 1
150.000
100.000
South-Reading, . .
.. 1
Stockbridge,
.. 1
150,000
Taunton,
.. 3
900,000
Townsend,
.. 1
100,000
Uxbridge,
.. 1
100,000
250,000
Ware,
.. 1
Waltham,
.. 1
200,000
Wareham,
.. 1
100,000
Westfield,
.. 2
300,000
Weymouth,
.. 1
150,000
Woburn,
1
100,000
Worcester,
.. 6
1,600,000
Wrentham,
.. 1
150,000
Yarmouth Port, . .
.. 1
350,000
Total, ....
.168
66,820,000
Rhode-Jsland.
Providence,
..37
$12,896,460
Bristol,
.. 4
317,500
Burrillville,
.. 1
60,000
Cranston,
.. 2
65,000
Coventry,
.. 2
118,050
Cumberland,
.. 3
316,600
East-Groenwich, . .
.. 2
127,100
Exeter,
.. 1
27,672
Gloucester,
.. 1
60,000
Newport,
.. 8
795,000
South-Kingston, . .
.. 1
150,000
North-Kingston, . .
.. 2
125,000
N orth-Pro vidence,
.. 3
443,300
Scituate,
.. 1
60,000
Smithficld,
.. 4
400,000
Tiverton,
.. 2
400,000
Wakefield,
.. 3
241,170
Warren,
.. 2
299,600
Warwick,
.. 2
125,000
Westerly,
.. 4
451,960
Woonsocket,
.. 2
252,960
Total, 87
Delaware.
$17,712,162
Delaware City, . . .
.. 1
$50,000
Dover,
.. 1
186,000
Georgetown,
.. 1
120,000
Newcastle,
.. 1
138,000
Smyrna,
.. 1
100,000
Wilmington,
.. 4
846,000
Total, ....
.. 9
$1,440,000
Original from
UNIVERSITY OF CHICAGO
N
650
Bank
Capital of Cities and Towns
[February,
CONNECTICUT.
Virginia.
No. o f Rank*.
Capital,
No. of Ba nk*. Ca vital .
Bethel,
$10l),000
Abingdon,
.. X
$150,000
Birmingham, .
1
303,000
Alexandria,
.. 3
929,800
Bridgeport, . . ,
5
1,049,600
Buchanan,
.. 1
150,000
Brooklyn, . . . ,
64,600
Charleston,
.. 1
180,000
Danbury, . . . ,
3
298,500
Charlottesville, . . .
.. 2
254,000
Deep River, . ,
1
80,000
Christianburg, . . .
.. 1
100,000
East- Had dam,
2
171,400
Clarkesville,
.. 1
250,000
Falls Village,.
206,000
Danville,
.. 2
190,000
Hartford
5,826,900
Fairmont,
.. 1
150,000
Jewett City, . .
1
44,000
Farmville,
.. X
150,000
Meriden
1
255,000
Fredericksburg, . .
a. 3
758,000
Middletown, . .
3
856,600
Harrisonburg, ....
.. X
200,000
Mystic,
152,900
Jeffersonville, . . . .
.. 2
277,000
New-Hnven, . .
6
2,845,076
Loosburgh,
.. 1
180,000
New-London, .
4
614,625
IiOwisburg,
.. 4
100,000
New-Milford, .
1
100,000
Lynchburg,
.. 4
1,169,300
Norwalk, . . . .
1
184,200
Martinsburg, ....
.. X
100,000
Norwich
6
1,314,109
Moorficld,
.. X
100,000
Pawcatuck, . . .
75,000
Morgantown, . . . .
.. X
75,000
Saybrook, . . . .
1
86,160
Norfolk,
a. 3
990,000
Seymour, . . . .
100,000
Parkersburg,
,. X
100,000
Southport, . . . .
103,000
Petersburg,
.. 3
1,170,000
Stamford, ....
1
160,000
Point Pleasant, . . ,
,. 1
110,000
Stonington, . . .
160.000
Portsmouth,
,. 1
225,000
Thompson, . . .
1
60,000
Richmond,
. 3
2,114,000
Tolland,
1
86,100
Romney,
. X
130,000
Waterbury, . . .
610,000
Salem,
. X
101,000
Westport, ....
1
100,000
Staunton,
. 2
402,000
Windham, . . . ,
1
72,000
Union,
. 1
100,000
Winsted,
434,000
Weston,
. X
100,000
Woodbury, . . .
1
64,620
Wheeling,
. 4
1,293,500
—
Wellsburg,
. 1
140,000
Total, . ,
16,565,275
Winchester,
. 1
780,000
Tennessee.
Wytheville,
. X
180,000
Athens,
.... 2
$399,150
Total,
.57
$13,448,600
Chattanooga, .
.... 1
200,000
Clarkesville, . .
.... 2
373,931
North-Carolixa.
Columbia,
.... 2
340,130
Asheville,
. X
$125,000
Dandridge, . . . 4
.... 1
100,000
Charlotte,
. 2
275,000
Franklin,
.... 1
150,000
Elizabeth City, . . . .
o
306,678
Jackson
.... 1
200,000
Fayetteville,
. 3
855,000
Knoxville, . . .
. . . . 5
950,000
Greensboro,
. 2
200,000
Lawrenceburg, .
.... 1
100,000
Milton,
. 1
125,000
Lebanon,
.... 1
100,000
Morganton,
. X
100,000
Memphis,
.... 4
450,000
Newbern,
. 2
375,000
Murfreesboro, . .
.... 1
250,000
Raleigh,
. 2
400,000
Nashville,
.... 4
6,341,600
Salem,
. 1
150,000
Pulaski,
.... 1
160,000
Salsburv,
. 1
125,000
Rogersville, . . .
.... 1
254,208
Tarboro,
. 1
160,000
Shelbyville, ...
.... 1
223,931
Wadesboro,
. 1
200,000
Somerville, . . . ,
• # « a X
254,208
Washington,
. 2
325.000
Sparta,
.... 1
223,931
Wilmington,
. 3
1.050,000
Tazewell,
... a X
100,000
Windsor,
. 1
100,000
Trenton,
. a a a X
254,208
Yancoyvillo,
► X
150,000
Total, . ,
....33 $10,415,197
Total,
27
$5,011,678
Original from
UNIVERSITY OF CHICAGO
1855.]
in the United States.
651
Digitized by
PnmsYLTAiriA.
1 To, pf Banks, Capital,
Philadelphia, . . .
..15
$10,618,600
Bristol,
.. 1
92,220
Brownsville, ....
.. 1
200,000
Carlisle,
.. 1
80,000
Chambersburg; . .
.. 1
256,838
Chester,
.. 1
200,000
Columbia, .
.. 1
260,000
Danville,
.. 1
150,220
Doylestown. ....
.. 1
89,680
Easton,
.. 2
680,000
Erie,
.. 1
60,400
Germantown, . . .
.. 1
200,000
Gettysburg, ....
.. 1
123,873
Hanover,
.. 1
36,000
Harrisburgh, . . .
.. 2
290,000
Honesdale,
.. 1
100,000
Lancaster,
.. 4
983,496
Lebanon
.. 1
97,985
Middletown,. . . .
.. 1
102,000
Norristown, ....
.. 1
387,636
Northu mberland,
.. 1
160,000
Pittsburgh,
.. 5
2,743,200
Pottsvillc, ......
.. 2
300,000
Reading,
.. 1
300,360
Washington,. . . .
.. 1
149,280
Waynesburg. . . .
.. 1
100,000
Westchester, . . •
.. 1
225,000
Wilkesbarre, . . .
.. 1
85,785
Williamsport . . .
.. 1
' 100,000
York,
.. 2
600,000
Total, . . .
..55
$19,712,371
District of Columbia.
Georgetown, ....
... 2
$400,000
Washington,. . . .,
... 8
882,300
Total, . . . ,
... 5
$1,282,800
South-Cabouna.
Camden,
.. 2
$400,000
Charleston,
.. 9
10,756,736
Chester,
.. 1
180,000
Columbia,
.. 3
1,300,000
Cheraw,
.. 1
400,000
Georgetown, . . .
.. 1
200,000
Hamburg,
.. 1
600,000
Newberry,
.. 1
300,000
Winnsboro,
.. 1
800,000
Total, 20 $14,336,735
Alabama.
Mobile,
... 2
$2,000,000
Montgomery, . . .
... 1
300,000
Total, . . .
... 3
$2,300,000
Kentucky.
Bo, of Banks,
Capital.
Bowling Green,. . . .
1
176,000
Carrollton,
1
160,000
Covington,
2
1,000,000
Danville,
1
220,000
Frankfort,
2
C60,000
Flemingsburg,
1
100,000
Greensburg,
1
125,000
Georgetown,
1
200,000
Harrodsburg, .......
1 .
100,000
Henderson,
1
200,000
Hickman,
1
160,000
Hopkinsville, ......
1
260,000
Lexington,
2
1,380,000
Louisville,
4
3,260,000
Maysville,
2
850,000
Mount Sterling, . . . .
1
200,000
Owensboro,
1
300,000
Paducah,
2
300,000
Paris, . . .
1
370,000
Princeton,
1
300,000
Richmond,
l
150,000
Russellville,
1
400,000
Smithland,
1
800,000
Somerset,
1
100,000
Versailles,
1
100,000
Total, 33 $11,330,000
iLLtNOia
Alton,
.. 1
$100,000
Bellovillo,
.. 1
300,000
Belvidere,
.. 1
100,000
Bloomington, . . .
.. 1
100,000
Charleston,
.. 1
50,000
Chicago,
.. 6
1,264,000
Danville,
.. 1
100,000
Elgin,
.. 1
60,000
Galena,
.. 1
100,000
Napierville,
.. 1
100,000
Ottawa,
.. 1
150,000
Peoria,
.. 1
200,000
Peru,
.. 1
100,000
Quincy,
.. 1
200,000
Rock* Island, ...
.. 1
200,000
Joliet,
.. 1
50,000
Springfield, .....
.. 2
450,000
Waukegan,
... 1
100,000
Total, 25 $3,714,000
Michigan.
Detroit,
. 4
$960,000
Mount Clemens, . . .
. 1
250,000
Total,
. 5
$1,200,000
Mississippl
Holly Springs, ....
. 1
$100,000
*
Gck igle
Original from
UNIVERSITY OF CHICAGO
Digitized by
«
652 Bank Capital of the United States. [February,
Tvdiana. New-Jersey, (oontU)
No. of Bank*.
Capital .
No. of Bank*.
Capital.
Albion,
.. 1
$50,000
Bridgton,
. 1
52,050
Bedford,
.. 1
91,763
Burlington,
. 1
50,000
Cambridge,
.. 1
105,000
Camden,
. 1
260,000
Conners ville, . . . .
.. 1
100,000
Dcckertown,
. 1
65,000
Columbus,
.. 1
60,000
Dover,
. 1
100,000
Elkhart,
.. 1
30,000
Elizabethtown, ....
. 1
200,000
Evansville,
.. 4
301,866
Flomiugton,
. 1
50,000
Fort Wayne, . . . .
.. 1
145,888
Hightstown,
. 1
50,000
Goshen,
.. 1
60,000
Jersey City,
. 2
200,000
Iluntington,
.. 1
60,000
Medford,
. 1
70,000
Indianapolis, . . . .
.. 4
419,900
Morristown,
. 1
100,000
Lafayette,
.. 2 •
237,760
Mount Holly,
. 1
100,000
Lima,
.. 1
60,000
Middletown Point,.
. 1
50,000
Lawrencoburg, . . .
,.. 1
216,000
Newark,
. 4
1,708,650
Logansport,
.. 1
60,000
Now- Bruns wick, . .
. 2
260,340
Madison,
.. 2
262,550
Newton,
. 1
134,480
Michigan City, . . .
.. 2
170,000
Orange,
. 1
125,000
Monticello,
.. 1
60,000
Princeton,
. 1
100,000
Mount Vernon, . .
.. 1
60,000
Rahway,
. 1
$200,000
Now- Albany, . . . .
.. 2
213,850
Salem,
. 1
75,000
Peola,
.. 1
60.000
Somerville,
. 1
50,000
Richmond,
.. 1
167,000
Trenton,
. 2
310,000
Rockville,
.. 1
60,000
—
Salem,
.. 1
60,000
Total,
.30
$4,447,400
South-Bend,
.. 1
102,341
Syracuse,
.. 1
\ 60,000
MISSOURI.
Terre Haute, . . . .
.. 2
375,000
St Louis,
. 1
$603,750
Vincennes,
.. 1
147,200
Fayctto,
. 1
121,000
Warsaw,
.. 1
100,000
Cape Girardeau, . . .
. 1
121,000
—
Lexington,
. 1
121,000
Total, ...
..40
$3,785,108
Palmyra,
. 1
121,000
New-Jersey.
Springfield,
. 1
121,000
Belvidero,
.. 1
$146,880
Total,
. 6
$1,208,760
Bordentown, ....
... 1
100,000
CANADA.
It will bo seen by the following table that the extension of bank charters,
recently granted by Parliament, is very considerable :
Banks .
Pres. Cap .
Increase.
Total .
Bank of Montreal,
.£1,000,000
£500,000
£1,600,000
Bank of Upper Canada,
. 600,000
600,000
1,000,000
Commercial Bank, M.D.,
. . 500,000
600,000
1,000,000
City Bank,
. . 225,000
75,000
300,000
Bank Du Peuple,
. . 200,000
100,000
300,000
Quebec Bank,
. . 250,000
250,000
600,000
Total,
, .£2,676,000
£1,926,000
£4,600,000
Gck .gle
Original from
UNIVERSITY OF CHICAGO
1855.]
Banks of the City of New- York.
G53
BANKS OF THE CITIES OF NEW-YORK, BOSTON,
PHILADELPHIA, AND BALTIMORE.
I. New-York City, January 6, 1855.
Table of the Loans , Specie, Circulation, and Deposits of the Banks of the City of New-
York, for the week ending Saturday, January 6, 1865. To which is prefixed the
Capital of each, Bank at that date.
Banks.
Capital.
Jan. 6.
Loans.
^Specie.
Circulation.
Deposits.
Bank of New-York,
$2,000,000
2,<i50,000
$3,027,540
$461,495
$248,856
$2,438,096
Manhattan Bank,*
8,989,856
611,528
818,178
2,895,129
Merchants' Bank,*
1,490,000
8,220,154
1,078,155
205,816
8,844,700
Mechanics’ Bank,
2,000,000
8,847,871
1,116,593
435,864
8,996,883
Union Bank,
1,800,000
2,882,957
458,719
159,997
2,090,965
Bank of America,
2,000,000
8,770,686
1,087,419
68,078
8,656,295
Pbcnix Bank,
1,200,000
2,088,499
489,746
139,321
1,818,118
City Bank,
1,000,000
1,519.-58
178,526
72,986
1,105,135
North-River Bank,
655,000
960,255
101,839
181,288
852,948
Tradesmen's Bank,
600,000
1,242,141
128,295
200,470
707,193
Fulton Bank,
600,000
1,825,245
164,784
182,688
1,059,969
Chemical Bank,
800,000
1,225,888
258,040
277,905
1,088,368
Merchants’ Exchange,....
1,285,000
2,415,476
125,847
121,585
1,651,928
National Bank,*
750,000
1,891,867
179,393
158,944
770,649
Butchers <k Drovers’,
600,000
1,244,627
102,056
41,370
757,007
Mechanics & Traders’,*. . .
200,000
586,722
68,946
98,695
895,488
Greenwich Bank,*
200,000
480,003
26,oas
140,511
880,555
Leather Manf. Bank,*
600,000
1,560,117
1,016,790
259,976
179,407
1,185,154
Seventh Ward Bank,* ....
500,000
125,708
150,790
656,886
Bank of State of N. Y.*. . .
2,000,000
8,555,162
889,992
547,761
2,887,439
American Exchange,
8,000,000
4,SS9,601
823,581
275,927
4,062,670
Moch. Banking Asso.,
682,000
967,825
58,412
175,710
674,552
Bank of Commerce,
5,000,000
8,241,286
1,254,771
78,190
2,270
5,596,815
Bowerv Bank,
856,650
852,957
178.21T
620,511
Broadway Bunk,
600,000
1,148,826
112,498
199,675
961,208
Ocean Bank,
1,000,000
1,049,885
95,858
68,693
1,428,845
Mercantile Bank,
1,000,000
1,916,928
827,795
91,184
Pacific Bank,
422,700
668,585
60,487
99,792
404,451
Bank of the Republic, ....
1,500,000
2,543,280
810,808
77,480
88,155
2,289,914
244,921
Chatham Bank,
450,000
465,668
75,801
People's Bank,
412,500
742,570
92,908
98,061
618,099
1,1 59,216
Bank of N. America,
1,000,000
1,427,- 0*.
140,924
88,565
Hanover Rank,
1,000,000
1,286,500
74,715
97,299
640888
Irving Bank,
800,000
426,574
60,768
95,513
844,069
Metropolitan Bank,
2,000,000
8,157,578
791,486
71,850
8,719,500
Citizens’ Bank,
400,000
590,781
580,612
82,541
141,308
429,594
Grocers' Bank,
300,000
65,432
80,161
429,899
Nassau Bank,
500,000
418,050
795,155
85,269
105,589
698,669
East River Bank,
486,613
48,756
85,077
168,526
Market Bank
650,000
951,807
88,151
108,852
644,288
8t Nicholas Bank,
500,000
565,604
21,209
78,567
299,589
Bhoe A Leather Bank,
600,000
675,977
40,419
95,672
827,667
Corn Exchange Bank,
914,000
1.307,512
169,678
94,774
1,079,188
Continental Bank,
1,500,000
2,874,280
888,498
74,691
1,056,468
Bank of Commonwealth, . .
750,000
1,160,499
71,171
89,101
883,992
Oriental Bank,
300,000
426,037
44,871
72,888
259,019
Marine Bank,
500,000
528,448
472,272
91,756
841,687
Atlantic Bank,
400,000
488,888
67,081
88,226
ISO, 828
Island < ity Bank
800,000
805,086
28,212
89,667
108,179
N. Y. Dry Dock Bank,*..
200,000
408,841
20,186
62,424
82,257
N. Y. Exchange Bank,. . . .
180,000
163,983
law
18,592
80,042
87,659
Bull’s Head,
172,000
148,970
72,705
71,180
Total,
$48,482,900
$82,244,706
$13,596,963
$7,049,982
$64,982,153
• Tho nlno Banka with tho star affixed aro Incorporated Banks; all the others are Banking
Associations formed under the general law of this State.
Digitized by Gougle
Original fro-m
UNIVERSITY OF CHICAGO
654
Banks of the City of New- York. [February,
Digitized by
New-York,
Tabular Statement of the New-York City Banks , showing the amount loaned to Direc-
tors, Real Estate Undivided Profits, and Individual Deposits , of each, September 23,
1854, according to the last Quarterly Returns :
Name op Baxk.
Duo firom
Directors.
Real Estate.
Profits.
Individual
Deposits.
Incorporated Banks.
Bank of the State of Ncw-York,
*25*2,318
48,975
llfl,S65
267,699
2*28,149
11,488
122,888
195,010
27,136
60,627
124,247
$265,092
60.5S7
198,622
826,978
609,674
103,718
887,428
147,046
6,016
112,206
171,177
$2, 4'S, 060
449,421
1,002,451
2,619,972
2,718,785
414,110
2,994,538
899.345
128,888
651,943
69° 7*3
Greenwich Bank
$15,000
800
M,W
81,628
14,041
09,756
41,211
10,224
38,250
24,000
Leather Manufacturers’ Bank,
Manhattan Company,
Mechanics1 Bank,
Mechanics A Traders1 Bank,
Merchants' Bank,
National Bank,
N. Y. Dry Dock Company,.
Seventh Ward Bank,. .* \
Tradnamen’a Bank,
Banking Association*.
American Exchange Bank
$1,415,342
67,391
85,120
270 900
$616,498
$2,222,638
214,097
18,899
1W,299
618,486
16,275
ini n<t<*
$1 4, 869, ‘285
8,822.2#$
818,115
Atlantic Bank, of "City N. Y„
Bank of America. . . ,*
220,000
Bank of Commerce.
893,000
38 716
8,837401
AtUi 7JR
Bank of the Commonwealth,
187,832
9 v» non
Bank of New-York,
101t8S5
Bank of North America,
1 m «>M
OS ftTU
1.149,172
Bank of the Republic,
190,188
19,807
176,987
Yihi
CH^O 1 O
907 894
Bowery Bank. /
1 <h*AAA
. -■> k,C» &
Broadway Bank,
121 6*29
159 700
07 A HM
Bull's Head Bank,
fv967
172447
678
63,615
(J070
107,292
7S“,3<*6
281,258
Butchers A Drovers1 Bank,
91,752
71,278
88,415
117 138
60,000
45,4*7
63,870
62,458
69,130
80,000
Central Bank, City N. Y.,
Chatham Bank,.?
21,048
ZOO «70
Chemical Bank,
1 non XHA
Citizens1 Bank. City N. Y
86,986
78,900
97,727
48,000
84,563
77,418
34,508
190,900
64,259
119,850
78,469
41,495
62,978
80,451
142,201
1S5,446
77,800
840,719
189,009
69,600
89,881
567 517
City Bank of New-York,
182JOO
78,555
41,980
14,114
8,589
18,777
1 07s 091
Continental Bank,
1,878,094
CO 7 (Ml
Corn Exchange Bank,
111,604
23,279
East River Bank,
007 R7Q
Eighth Avenue Bank,.
85,640
OOV .>,
Ernpiro City Bank,
760
12,000
Fulton Bank
227J08
1 rifts OOC
Orocere’ Bank
Q# iJ)R
iK*<U7
4^8,057
711 #v>
Hanover Bank,
42,907
Irving Bank,
V 1,001/
ill AAA
• I I $
.400 ',70
Inland Cltv Bank.
i a am
6 KM
4os.O»o
IV) MCI
Knickerbocker Bank
A", C.77
• ',^1 KJ
1ft kQ7
lOi.ozvl
264,576
4 1 ,U 1 IQ
Marino Bank, City N. Y.,
75,000
13 685
Market Bank
Mechanics* Banking Association,
69,778
11,185
29,751
74,140
100,417
114,046
ivfl, Uo
820,754
£7U Old
Mercantile Bank
1,078,568
1 ft71 07ft
Merchants1 Exchange Bank,
62 799
Metropolitan Bank,
282*000
177 889
l,Ol I,£l J
i 70^ 7na
Nassau Bank,
tu) kok
9ft 147
1 , 1 (0, 1 1 v
New-York Exchange Bank,
North River Bank,
258,952
166,106
87,358
63,108
18,912
224,086
61,295
88,800
216,782
*-
78,30#
So.WI
18,089
80 072
92,388
7A1 AiiA
Ocean Bank
40808
ID I, DUO
•oi O/WI
Oriental Bank,
4,050
11*130
OI K R.M
Pacific Bank,
9 000
66^99
Ol 0,0 iO
People’s Bank,
L607
175,000
49,196
108,124
(M l.iVW
69* 018
Phenix Bank.
Bt. Nicholas Bank
69,176
68,189
125,000
10,114
40 5^8
1 ,'i.o.XOI
091 nir.
Shoe A Leather Bank
■ ip.
Union Bank in city N. Y.,
180/147
1,167.012
$1,918,767
$2,951,121
$3,980,715 j
$42,582,778
Total Ncw-York City Banks,
$6,359,109
$8,567,619
$6,209,852 {
$57,402,018
Google
Original from
UNIVERSITY OF CHICAG(j)
1855.]
Boston and Philadelphia Banks.
655
II. Boston, January 3, 1855.
► Average Condition of the Banks in Boston for the Week preceding Monday , Jan. 8, 1855.
BANKS.
Loans and
Discounts.
Specie in
Bank.
Due
from other
Banks.
Due
to other
Banks.
Deposits. !
Circulation.
*
*
*
♦
*
*
Atlantic,
S4S«212
51’*S5S
197,374
164,479
239959
193,798
Atlas,
799*821
72,742
119,251
108,170
178,730
139,467
Blackstone,
1,101-912
24*000
183,3*24
274.669
235.596
Boston.
1,550,747
117,461
204,750
89,700
520,636
229,668
Bovlston,
700,780
28,786
1 1 1,712
216861
163.660
Broadway,
149. sf>u
5*887
14,14*2
17.-71
50.356
dtv,
1,455.306
91*581
150.868
120,190
816.764
154*513
Columbian,
1,07L515
74,845
268,906
7,007
404.228
255,619
Commerce,
2,821.086
108,074
418*269
587.S91
445.994
290,077
Eagle
1,189.276
81,168
169,079
28,770
874,082
200,167
Eliot,
70*2.997
49,092
121
96*585
14i.C95
131.560
Exchange
1,742.014
95,7o2
228*722
869,333
816.187
2o9,755
Fanenil Hall,
926,068
29.702
107*898
43,821
264,038
288*960
Freemen’s,
768,625
24,031
9o,665
65,961
155.696
207,177
GU.bc,
1,549,806
140379
204,084
266,715
292.693
146,610
Granite
1 1,251.688
42,019
1*21.446
112,231
280,514
96,128
Grocers*
1,080*481
47,855
887,075
411,796
197.440
173.218
Hamilton
901,961
77,2S3
129 258 1
35,298
268,795
195,634
Howard B. Co, i
787,613
89.013
102,245
88*222
123,7*26
196.258
Market
967,085
42.519
151.269
102,*289
185,608
191,089
Massachusetts,
1,010.38*2
60.810
184,140
57,647
236.223
152,010
Maverick
664,145
2*2,438
43,783
65,806
144.842
M» eh aides’,
871,345
16.422
54,295
84.950
119.336
Merchants*
5,914.585
896,142
707,598
682,089
1,280*288
647,054
National,
*51,764
52*018
165,5o4
54,538
169,425
182,971
New-Kngland,
1,878*554
50-216
197,694
111.328
279.206
175*410
North,
1,208,559
85,089
161,587
16% it;.
271,571
1S6.793
North America,
1,048,900
198,134
118,480
209,403
17L40S
bhawuiut,
1,115,888
52,752
128440
79,810
22S,6T6
181*841
8 hoe and Leather, ....
i. M, 1 1 6
79*979
145,601
191,170
198,007
163*515
State
2,500,088
125*007
268,015
148,324
482,858
1914>62
Suffolk
1,521,282
880,211
1,587,406
764,693
1,172,178
868418
Trailers’,
1,080312
52*989
189,182
198,400
177,013
160,647
Tremont,
1,931.975
ll s.09 5
275,734
288,926
464,842
343*849
Union
1,382.571
97,718
250*967
108,069
823,007
178,783
'Washington,
1,053980
89,753
96.802
21*104
249,159
156.414
tVebster,
2,293,725
100,718
258,881
86,782
601,407
864,661
Total,
j 48, 826,864
8,001,112
8,200,734
5,762,348
11,720,417
7,066,719
III. Philadelphia, October, 1854.
Loans, Jo posit*, Circulation, and Coin of the several Banks of the City of Philadelphia.
BANKS.
Loans.
Deposits.
Circulation.
Coin.
Pennsylvania,
Pig
$1,157*866
$497,000
459.945
$806,000
Philadelphia*
1,964,121
1,684,476
882,681
North Amertcs*
Commercial,
405*841
218,910
848/167
193,937
Farmers’ A Mechanics’,
8,050427
1,826,170
758,1 49
1,740.948
886410
809,511
Girard, *....
1,084*745
857.762
648*025
280,710
Southwark
193,195
290*022
Bank of Commerce*
64V54U
443,948
146*930
835,708
Mechanics’,
1,888,230
1,896*191
1,877.000
917,545
887*408
388*556
588*168
’Western,
980.163
266,800
191*521
N. Liberties,
981,000
285*000
167,000
Penn Township,
704,910
581,972
616,287
211*516
229,289
Man. 6c Mech.,
919,856
406655
165,020
Kensington,
814,517
204 9i >6
226,801
Tradesmens’,
495.000
618,871
182,780
215*061
1854,
$25,285,319
21,964,702
$14,942,602
18,640,988
$4,692,146
$3,940,189
1858,
6,079,681
5,294,060
f Digitized by Gougle
Original fro-m
UNIVERSITY OF CHICAGO
650
Banks of the City of Baltimore ,
[February,
Digitized by
IV. Baltimore.
*
Exhibit of the Condition qf the Baltimore Banka— January 1, 1855, compared with 1854.
Merchant*1,
Baltimore,
Union,
Farmers «fc Planters1, . . .
Mechanics1
Commercial <fc F armors’,
Western,
Farmers <fc Merchant*1,. .
Chesapeake,
Marine,
Franklin,
Citizens1,.
Commerce,.*
Howard,*
Fell’s Point Savings,* . .
Total,
Capital
Real Estate
and Stocks.
Loans.
1854.
1855.
$1,500*000
$25,000
$8,164*674
$2,290,293
1,200*000
23,455
1,808,187
1,742,088
1,108475
68,953
1,766,877
1,792*021
776,262
1,805,889
1, 761052
600*000
8,980
1,592*886
1,866*376
512*560
56,979
937,962
875,426
596,940
18,000
876,747
8sT.,MS
898*560
54,461
602,290
538^17
864*168
175,104
aS8/)70
Co9,947
836*840
60,182
580*102
534,990
506,787
10,586
765*812
798.654
841*860
2,087
789,810
775*841
156*875
1,000
211,450
91*975
164*385
105,987
437.828
$8,576,598
$503,645
$14,969,218
$14,779,843
Circulation.
1855.
1954.
Merchants1,.
Baltimore,
Union,
Farmers A Planters1, . . .
Mechanics1,
Commercial A Farmers1,
Western
Farmers ^ Merchants1,.
Chesapeake^
Marine,
Franklin,
Citizens',.
Commerce,*
Howard,*
Fell’s Point Savings,* . . .
Total,
$889*995
228*912
259*485
857,120
857*885
126,705
860,601
1BMN
215*202
88,060
149,629
251,442
$2,956,532
$281,100
218,Si>l
282475
820,640
288,997
112,850
208.200
149,800
159,044
G0,47S
164^12
802498
•4490
22,988
60*395
!$2, 638,708
Deposits.
1851
$1,186,224
906,899
678,216
660,170
1,096,487
499(894
522,986
909409
602,759
831,027
99M40
898,853
1855.
$667*88S
B94401
660*175
458*299
782*968
899*720
886*544
181*989
899678
265*289
9 14 "7i
484*452
90*546
84*809
295*597
Specie
1851
$566,215
246,034
245,984
287,260
881,429
218,186
277,594
157,472
184,179
79,252
95,752
189,898
1855.
$452,783
924,987
201,819
224,642
178,066
233;991
224,884
128,779
75,768
70,950
85,610
265,704
70,868
17,656
88,906
,$6,902,939 j$5,S5S,G28 $2,948,708 $2,484,946
Baltimore Banks, 1849—1853.
January .
Capital .
Real Estate , etc,
Loans .
Specie.
Circulation.
Deposits.
1858,
.7,291,415
686,069 65
24,291,221 15
2,996,910 44
8,828,058
6,021,709 04
1952
. 7. hi. in
022,851 14
11,428,509 81
1,967,564 67
2,180,667
3,915,977 09
1851,
..6,101,050
11,788,716 59
2,870,174 81
2,381.918
4,528,966 86
1850,
..6,976,814
698,669 21
10,924,118 07
2,118,758 49
2,978,588
8,648,817 32
1848,
.6,974,540
607,227 94
9,797,417 21
1,781,911 11
1,852,163
2,827,896 SI
The above table shows an aggregate decrease in the line of discounts — as compared with last
year — of $699,870; a decrease in circulation, of $317,824; a decrease in deposits of $1,101811;
and a decrease in specie of $863,762.
* We had no roports from these Banks last year. The u Commerce" is a new Bank.
Gougle
Original from
UNIVERSITY OF CHICAGO
* {
1855.]
Bank Iieim .
G57
BANK ITEMS.
"1
New- York. — The charter of the Mechanics’ Bank, New-York City, expired on
the 1st January, 1S55, having had a capital of $1,440,000. A new organization,,
under the general law, was made on the same day by the stockholders, with the;
same name, and a capital of $2,000,000. The old officers are reelected. The Bank
declared a linal dividend of 38 8-9 per cent on the old stock. ^
Tracks mens Bank. — The charter of the Tradesmen’s Bank expired also on the
1st January, and the stockholders havo organized another, under the same title,
with a capital of $000,000. The directors declared a final dividend of profits of 42
per cent.
Albany. — The charter of the old Bank of Albany expired also on January 1st,
and re-commcnces business under the general law. The first charter of this bank
was granted in 1792, with a capital of only $75,000, when its bills w'ere issued in
sums of twenty-five, thirty, forty, and fifty cents. Mr. Kendrick, the present effi-
cient Cashier, was appointed in the year 1849, and from that time till the present,
has been diligent, earnest, and successful in enlarging the sphere, and extending
the usefulness of the institution; and ho is about to close old and open new books,
with his balances largely in favor of stockholders, while the public stand ready to
receive and welcome, with confidence and approbation, tho now impressions of a
very old friend.
Binghamton. — The charter of the Broome County Bank, Binghamton, expired on
1st January, 1855. Tho Bank has since organized under the general law, with a
capital of $100,000.
Merchants' Bank , K Y. — On Tuesday, January 2, Mr. Sided, tho Paying-Teller
of the Merchants’ Bank, on making up the amount of spccio in the vault, discovered
a deficiency of exactly $25,000. As the specie had been examined the two pre-
vious days and found right, this excited surprise. Tho Teller immediately reported
the fact to Mr. Palmer, tho President, and Mr. Silliman, the Cashier. As far as
diligent inquiry can go, no clue can be had to tho robbery. There is no one in the
Bank suspected, and, in fact, it could not bo done by any one but the porter, who is
beyond suspicion. A reward of $3000 has been offered for the discovery of the
coin.
Cherry Valley. — Horatio J. Olcott, Esq., hitherto Cashier, has been appointed
President of the Central Bank at Cherry Valley ; and W. II. Baldwin, Esq., Cashier.
Tho charter of tho Bank expired on 1st January, 1855, and a new organization was
formed at the same time, under tho general banking law.
Fredonia . — S. M. Clement, Esq., has been elected Cashier of II. J. Miner’s
Bank, Eredonia, in placo of J. H. Madison, Esq., resigned.
Massachusetts. — Elijah P. Clarke, Esq., who has held the position of Cashier of
tho New-England Bank lor twenty years, has resigned; and tho Board have selected
Mr. Seth Pettce, as his successor.
“The President and Directors of the New-England Bank havo heard with sur-
prise and indignation, certain rumors derogatory to the official acts of tho lato
Cashier of their Bank, and they tako tins opportunity of stating explicitly and pub-
licly, that such rumors are false.
u When Mr. E. P. Clarke voluntarily retired from his Cashiorsliip on tho first day of
December last, after having faithfully served tho Bank for more than twenty years,
he left the properties and affairs of the Bank in perfect order, as they remain at this
time, with tho exception of $0810 missing from tho Teller’s depatrmont since the
first instant. And for this sum the Teller has made a deposit, thus making his
account good ; which deposit will be returned to.him, if that money was stolen from
tho Bank, or is recovered. By order of tho Board,
“New-England Bank, Jan . 13, 1855. Thomas Lamb, rres."
43
Digitized by
Gck igle
Original from
UNIVERSITY OF CHICAGO
[February.
Digitized by
058 Bank Items.
B-jyUton Bank — Wm. Parker, Esq., contemplating a visit to Europe, has resigned
the otlicc of President of tho Boylston Bank, remaining a Dirctor in the Board ; and
Timothy Gilbert, Esq., has been chosen President during his absence.
Uxhrld'jt. — The Blackstone Bank, of Uxbridge, was entered into either on Satur-
day night or Sunday evening, January 7th. The robbers forced tho door of the
building, and tho two outer doors of the vault; tho inner was held by a combin-
ation lock, which was displaced in such a manner that it had not been got open
at 6 o’clock yesterday afternoon. On examination, however, it was found they
had taken nothing away.
RnonE-TsLAKD. — Thomas J. Hill, Esq., has been elected President of the Smith -
field Lime-Rock Bank, in place of Josiah Seagrave, Jr., Esq., resigned.
— nenry C. Cranston, Esq., was, on 3d July last, appointed Cashier
of the National Bank, Providence, in place of Ezra Bourn, deceased.
New-Jeksey. — Tho charter of tho Princeton Bank expired on the 1st January,
1855. A Bank under tho same namo has been organized under the general bank-
ing law of Ncw-Jcrsey, with a capital of $100,000 ; the circulation secured by Vir-
ginia and Kentucky State stocks.
y^ir-JJrunm'ick — Tho namo of tho Farmers & Mechanics’ Bank, at New-Bruns-
wiok, lias been changed to that of tho Bank of New- Jersey.
The Banks of New- Jersey. — Tho Bank Commissioners of Now- Jersey have just
issued their Annual Report. They state that twenty-four banks in all have been
ivf ablished under the general law; that ten of these are in operation, eleven have
given notice of winding up, two have been stopped by injunction, and one has
been proceeded against. The banks still in operation aro tho Hudson County Bank,
Jersey City; Newark City Bank; Central Bank, Hightstown; Passaic County
Bank. Paterson; America Bank, Trenton; Bordcntown Bauking Company; Cape
May County Bank; Princeton Bank; Bank of New-Jersey, Ncw-Brunswick ;
Hunterdon County Bank, Flomington. Tho last was organized during the preceding
year; tho Farmers’ Bank, at' New-Brunswick, and Princeton Bank, have come
under tho general law since tho expiration of their charters.
Tnc banks that aro closing are Ocean Bank, Bergen Iron "Works; Delaware and
Hudson, at Tom’s River; Merchants’, at May’s Landing ; Atlantic, at Cape May
Court House; Bank of America and Traders’, ditto; City Bank, Capo Island:
Farmers', at Freehold ; Tradesmen’s, at Flemington ; Public Stock, at Belvidere ;
Bank of North America, Flemington.
The banks closed by injunction are American Exchange, Capo May Court House :
and Merchants’ Bank, Bridgeton.
The Wheat Growers’ Bank, Newton, lias been proceeded against, for non-compli-
aneo with the law, but tho case is undecided. Tho circulation issued under the
general law has been considerably less than $3,000,000, the limit fixed. No loss has
been sustained by note-holders in tho winding up of the banks. None of tho banks
have lailed, but have stopped voluntarily or under injunction — in the latter case for
non -compliance with the law.
The general banking law providos that tho total circulation of the free banks
shall not exceed $3,000,000. Tho banks now in oporation have considerably less
than that in circulation, but tho amount is not stated in tho report.
The report recommends several amendments to the existing law, tho most import-
ant of which are, that no bank shall receive notes without proof that their capital
stock is actually paid in ; no bank should organize with less capital than $20,000 ;
all banks to do a bona-fide business ; a lx>ard of directors to be appointed for each
bank, and a list of them to be published. The report strongly urges that the circu-
lation of notes under $5 bo prohibited
Gck igle
Original from
UNIVERSITY OF CHICAGO
Bank Items.
Digitized by
1855.]
An increase is seen in the circulation, loans, and deposits of the New-Jerscy
banks, up to July last, but since the latter period the issues are less. The following
statement shows the condition of the thirty-two banks in the State of New- Jersey
on July 1, 1854 :
Circulation,
Deposits,
Discounts,
Cash on hand,
Due from other banks,
Deposited in other banks, . . .
Surplus earnings undivided, . .
Stocks, bonds, and mortgages,
Real Estate,
$4,803,128
50
3,948,798
50
11,331,718
41
1,010,837
04
762,353
64
900,264
99
905,653
96
689,927
20
247,264
43
Indiana. — Omer Tousey, Esq., has been elected President of the Lawrence burg
branch of the State Bank of Indiana.
State Bank — The circulation of the State Bank of Indiana in Octo-
ber, 1853, was $3,834,765 50
Circulation in October, 1854, 2,803,648 00
Decrease, $1,031,117 50
The Stock Bank circulation July 1, 1854, 9,299,575 00
Circulation January 1, 1855, 5,565,099 00
Estimated amount in hands of bankers not in circulation, 1,000,000 00
Decrease in six months, $4,734,275 00
The precise amount surrendered at the Auditor’s office up to 1st Jan.,
1855, is 3,734,475 00
Tennessee. — The Miners & Manufacturers’ Bank, at Knoxville, has been organ-
ized under a charter granted in 1854, with a nominal capital of $2,000,000, of which
$500,000 have been paid in. The charter is a very liberal one, and authorizes the
Bank to open branches in every county in the State, with an increase of $200,000
to the capital for each branch. Joseph L. King, Esq., President, and 11. L. M'Clung.
Esq., Cashier, (recently President of the Farmers’ Bank, of Knoxville.)
Illinois. — The affairs of the City Bank, the Union Bank, and the Phoenix Bank,
all of Chicago, which have been closed for several weeks past, are to be wound up
under the general banking law of Illinois. Hon. Mark Skinner has been appointed
receiver for the purpose, and took charge of the visible effects of the banks on
Thursday last.
Kentucky. — The Kentucky banks have made liberal dividends, namely : North-
ern Bank, 5 per cent ; Bank of Kentucky, 5 per cent ; Farmers’ Bank of Ken-
tucky, 6 per cent, (payable to New-York stockholders at the Bank of America ; )
Bank of Louisville, 7 per cent
Pennsylvania. — Gov. Bigler has vetoed the bill relieving the Ohio and Penn-
sylvania, and the Pennsylvania Railroad Companies from fines to the amount o l
$70,000, incurred by these companies in passing small notes, contrary to the small-
note law of Pennsylvania. It will be remembered that several individuals passed
up and down this road some time since, noting all violations of the law, until the
penalties accumulated to the amount of $70,000, and then brought suit, for which
they wore convicted of conspiracy, and sent to tho penitentiary.
Ohio. — A State Bank in fact . — The Cleveland Herald says : “ The late sale oi
Ohio stocks at Columbus, brought sufficient money into the State Treasury to redeem
Gck igle
Original from
UNIVERSITY OF CHICAGO
Bank Items .
[February,
Digitized by
MiO
e very dollar of the outstanding circulation of tho Canal Bank of this city, and ten
thousand dollars over. This surplus, of course, will go to the depositors. The
Canal Bank, therefore, so far as its money is concerned, is a State institution, and
for every dollar now in circulation another dollar is actually in the Treasury.”
Tho Capital City Fact says that tho Canal Bank money should bo sent to the
Treasury. Our advice is, to keep this money in circulation, for when a dollar gets
to the treasury it is cancelled, and just so much money is withdrawn from. circu-
lation.”
Michigan. — Of the failure of the Government Stock Bank, Ann Arbor, the
Detroit Tribune says :
“Our readers may not be generally aware that this concern has exploded, though
most of them probably anticipated that result, from tho facts we stated in regard
to it some days ago. Since that time its directors have appointed an assignee, and
the State officers have appointed a receiver to take charge of its effects and wind
up its affairs. The receiver (Addison Mandell, Esq.,) upon receiving his appoint-
ment, proceeded to Ann Arbor to enter ujxrn tho duties of his trust But upon
arriving there, ho found that an assignment had been made, and that the assignee
(( Jeo. ban forth, Esq.) was in possession of all the assets of the Bank, except some
three or four hundred dollars’ worth of office furniture, which he refused to sur-
render to Mr. Mandell. He claimed to have in liis possession between sixty and
seventy thousand dollars of discount paper against parties out of the State. But of
this there scorns to be considerable doubt ; at any rate it is not believed that a
dollar will ever be received for tho benefit of the creditors of tho Bank.
“ Amongst its liabilities is the sum of from fifteen to twenty thousand dollars due
to depositors, and an indefinite amount of notes in circulation — say from fifty to one
hundred thousand dollars. Precisely what amount, no one seems to know, not
even the State Treasurer. All the assets there are to meet this indebtedness are
thirty-three thousand dollars of government stocks in the hands of the State Trea-
surer, estimating their value at $109 or S100, the notes to which we have referred
as in the hands of the assignee, and tho furniture in tho banking-house.”
Bank Officers. — Recent events in this city have directed public attention to the
subject of the minor officers in our banking institutions, and it would almost appear
that most of those holding stations in banks live nearly all of their time under a
sword suspended by a single hair. They aro constantly in dread of some error in
their accounts, which will place them in tho most embarrassing circumstances
imaginable, where they can neither clear up nor explain a deficit which may occur.
Too often when a mistake occurs, foul whisperings aro abroad, and tho zealous
officers, imitating what Dr. Johnson calls tho “cool malignity” of Iago, “their
jealousy shapes faults that are not.” Within a few days several cases have come
to our hearing, in which money has been missing from our banks that could not bo
accounted for at the time, but which was subsequently ascertained to liavo been
lost under singular circumstances, which it required time to reveal. Within a few
months tho specie on hand at ono of tho banks in State street was reported to be
five thousand dollars short Some twenty days were spent in an investigation, and
it turned out, after all, that the gold was right, bnt a mistake in the figures had
caused those anxious days and nights winch had been passed by tho clerks in
whose department the deficit was supposed to be. In another case, a check for
three thousand dollars was missing, and it was the causo of great uneasiness among
the bank officers, till it was discovered pinned between two bank-bills which had
been sent to another institution for redemption. Within a few’ days, a mystery
was cleared up in a bank where it was discovered that two bills for five hundred
dollars each had been taken by mice and nibbled so as to almost destroy tho
identity ; but the removal of the furniture to another building revealed who had
been the thieves, and completely put to rest all suspicion in regard to tho clerks
employed on the premises. Truly did wo make use of too strong an illustration
when, at the commencement of this article, wro said the minor officers in our banks
Jived under a suspended sword? — Boston Transcript^ Jan. 13.
Gck igle
Original from
UNIVERSITY OF CHICAGO
Digitized by
1855.] Notes on the Money Market. 661
Notice.— We have In type for the next No. of the Bankers' Magazine, a continuation of the
series of local bank history ; which will contain : L The history of the Lank of Albany, to the expi-
ration of its charter, January 1,1$55. IL The Mechanics’ Bank, Ncw-York. III. The Trades-
men's Bank, New- York. IV. The Pawtucket Bank, Massachusetts.
Banks in the United States.— The Merchants <& Bankers' Almanac for 1S55 la now pub-
lished and ready for distribution. Copies will be mailed to order. To savo trouble, tho prico
should be remitted with tho order, namely, $1, or with postage pre-paid $1.12. The lists of banks,
bank officers, private bankers, etc., have been compiled with much care. {See advertisement oj
contents an the cover of this No.)
Notea on tije Sttotitj) fttarfcet.
New- York, January 25, 1855.
Exchange on London , sixty days' sight, [I a premium.
TnE month of January, 1S55, like its immediate predecessors, has been prolific in financial disas-
ters, and will be long remembered as one of tho most eventful in tho financial history of tho times.
Tho year opened with some little relief among our merchants; with tho prospect of a steady
improvement, as indicated by reduced imports from abroad, liberal exports to foroign countries, and
rates fur sterling bills that forbid any further shipments of coin. These hopes have been only in part
fulfilled, while the reverses of the mouth have thrown a damper upon tho monied circles of the East
and tho West
The first blow inflicted, was the suspension, on the 2d of January, of Messrs. Wadsworth A Shel-
don, financial agents of the State of Illinois. This linn hold a large amount of funds, remitled by
that State, to meet tho semi-annual interest duo on its public debt. This is a most unfortunate cir-
cumstance for Illinois, and will, of course, suggest the employment hereafter of parties of the most
responsible and reliable order as tho fiscal agents of tho State. Wo learn that arrangements will
soon be etlectcd, through the exertions of David Leavitt, Esq., for the payment of tho interest now
unpaid. The indebtedness of Messrs. W. & S. is generally represented at about $2,000, uw; and
their assets nominally as much or moro: but time will be required, and large losses must be sub-
mitted to in tho conversion of their securities into cash.
On tho following day (3d) it was known that Messrs. Belcher & Brother, of St. Louis, sugar-
refiners, hail suspended for about $2,000,000, and this failure immediately produced those of Messrs.
A. G. Farwell Co., Boston ; Foster & Stephenson, and Mr. Winthrop G. Bay, of Ncw-York, all
agents of the BL Louis firm, and known to bo under heavy acceptance for tho latter. It was sup-
posed that this failure would occasion heavy losses to Messrs. Pago & Bacon, bankers, at St Louis,
but nothing beyond Inconvenience to tho firm was generally thought would result
In addition to these names, the following firms suspended early in January : I. Messrs. Lokcr,
Ecnick <fc Co., St Louis. II. Howard Smith <fc Co., Detroit
On the 3d inst also, It was known that Messrs. William A Hill A Co., Messrs. Hoon A Sargent,
Mr. If. I>. King, and W. Larimer, all bankers at Pittsburgh, had suspended. These firms had sus-
tained for something like two months a steady run upon their deposits. Tho difficulty of nego-
tiating, or procuring temporary loans on railroad securities and other (in ordinary times) reliable
assets, had forced tlieso firms in suspension. We learn that It Is probable that tho flret-two named
firms will resume business in a few weeks.
Gen. Larimer has made an assignment of all his property, real and personal, to Thomas David-
son, of East-Liberty, and Thomas Mellon, of Pittsburgh, in trust for all his creditors, without prefer-
ence to any. The liabilities are estimated at about f&X'.OOO. The heaviest items aro those of the
Gck igle
Original from
UNIVERSITY OF CHICAGO
Digitized by
i)Q2 Notes on the Money Market. [February,
Pittsburgh & Connellsville Railroad Company, which claims $120,000 or more, and the Ohio A
Pennsylvania Railroad about $20,000.
The following tabic of markot values of railroad securities in January, 1S54, and January, 1835, at
the West, will exhibit tho extraordinary losses to which such investments are subject
1854.
1S55.
Decrease.
Little Miami Railroad Company,
110
SO
80 per cent.
Cincinnati, Hamilton A Dayton Railroad Company,
100
60
46
u
Wilmington A Zanesville Railroad Company,
175
35
40
4*
Cincinnati A Chicago Railroad Company,
88
5
33
<4
Dayton A Western Railroad Company,
75
15
60
44
Covington A Lexington Railroad Company,
53
30
S3
•4
Central Indiana Railroad Company,
80
45
35
44
Mad River A Lake Erie Railroad Company,
80
37
43
14
Cleveland A; Pittsburgh Railroad Company,
$6*
—
—
Maysville A Lexington Railroad Company,
47*
noth’g
47*
Peru A Indianapolis Railroad Company,
65
25
40
U
Columbus A Zenia Railroad Company,
80
26
44
Central Ohio Railroad Company,
75
60
15
M
Cincinnati A Indianapolis Eailroad Company,
42
24
.4
Indianapolis A BcUefontaino Railroad Company,
68
40
28
44
Eaton A Hamilton Railroad Company,
65
25
40
**
On the 13tli, tho suspension of Messrs. Pago A Bacon, of St. Louis, was announced— or the non-
payment of their drafts upon their New-York agents and correspondents, Messrs. Duncan, Sher-
man A Co. Tho first protest of these drafts occurred on Friday, tho 12th. Tho amount required
by the firm on that day to sustain them was $150,000, but this amount could not be obtained on the
securities offered.
The suspension of Messrs. Togo & Bacon wc consider a public calamity. It not only interrupts
the current of improvement that was visible recently in monoy circles, but it serves to unsettle
confidence In banking and commercial houses. To the cities of SL Louis and Cincinnati it is a
severe loss, because it Interrupts for a time tho work on an Important line of railroad communica-
tion between those cities.
Tho firm of Pago A Bacon have invested a largo amount of their funds (estimated at $2,000,000 to
$3,000,000) in the stock and contracts for building tho Ohio & Mississippi Railroad— a lino of 834
miles between St Louis and Cincinnati Tho road being In partial operation only, tho income
from It is as yet very small ; but this investment in itself would have created no serious embarrass-
ment to the firm, who arc well known to bo possessed of a very largo cash capital and of real estate
to a great value. Indeed their resources aro estimated at or above three millions of dollars. But
the primary causes of their difficulties was the recent failuro of Messrs. Belcher A Brother, sugar
refiners, at Si Louis, whoso paper is hold by Messrs. P. & B. to a largo amount What the
ultimate effect uj>on tho St Louis firm will be we cannot say, but thero is not the slightest doubt
that all the obligations of Messrs. Pago A Bacon will be honorably met and with very little delay.
The firm of Page, Bacon A Co., at San Francisco and Sacramento, includes Moeera. Page A Bacon
of 8t Louis, and also Mr. David Chambers, Mr. Ilenry Haight, and Mr. Francis W. Page. The
California houses are not in any way affected by the operations of tho St Louis firm, and their ship-
ments and drafts will be made os usual.
Mr. David lloadlcy has issued the annexed notice :
“ The arrangement under which tho undersigned is honoring the drafts of Messrs. Pago, Bacon A
Co., is believed to be such as will insure tho payment of all that may have been drawn on their
several correspondents in tho Atlantic States.
“ But, as tho requisite advices may not have reached their several agents, the undersigned requests
that in case of tho protest of any of the drafts of Messrs. Page, Bacon A Ca, they should be pre-
sented to him at tho Bank of America, in this city.
14 Few- York, Jan. 17, 1S55. David Hoadlet, Assignee."
The firm say in their card to tho public : “ We assure our friends we believe our suspension but
temporary ; that our assets, * partnership and private,’ will exoeed our liabilities by upwards of
three millions of dollars, and that as soon as our books are written up, we shall make a statement
of our aflUrs as full and satisfactory aa the public could desire. Pass A Bacoe.”
Gck igle
Original from
UNIVERSITY OF CHICAGO
Notes on the Money Market.
663
1855.]
The principal feature of the stock market is a greater facility in negotiating solid loans. On the
10th inst.y the new loan for four millions of dollars for account of tho Now- York k Erie Railroad
Company was finally taken, mostly by New- York capitalists at SO per cent
Tho loan of three millions for account of tho Illinois Central Railroad Company has been liberally
subscribed for by Now- York and Boston capitalists. Tho rato at which it is taken is 70 per oent ;
thus yielding an annual interest of ten per cent on tho amount invested, and thirty per cent profit
at the end of a few years.
Tho stocks of nearly all the States have been much depreciated for some weeks. Virginia Six
per Cents have been sold as low as 88. Under more favorable influences, they have now advanced
to 05 a 97. Tho loans of North- Carolina, Missouri, Indiana, Georgia, and Pennsylvania have like-
wise been at low figures during the past six or eight weeks. We annex our summary of prices,
as a record for present information and for future reference :
U. S. 6 per Cents, 1867-8,
Dee. 1.
••
Dec. 80.
119
Jan . 5.
11G
Jan. 12.
116)4
Jan. 19.
120
Panama R.R. Shares,
75
72
76
92
87)4
N. Y. & Erie R.R. ‘Shares,
... 84K
89*
89
43*
46*
N. Y. Central R.R. Shares,.. . .
.. 6834
8334
84
87*
S8*
Mich. Central R.R. Shares,...
82
SO
SO
75)4
7$*
Mich. Southern R.R. Shares,...
.. 80
7934
79*
8234
S4
Nor. & Wor. R.R. Shares,
.. 83
84
80
84
a 4*
Hudson River R.R. Shares,...
... 80*
8334
8534
89*
Reading R.R. Shares,
.. 7CK
7134
7434
SO 34
78
Long-Island R.R. Shares,
.. 22
25
25
27*
29
Illinois Central R.R. Shares,.. . .
.. 91
90
91
90
95
Illinois Central Bonds,
... 66K
66
66
71 34
7234
N. Y. Central R.R. Bonds,... • •
.. 82
8834
83
So
86*
Eric Railroad 7s, 1359,
... 93
94
91
94
94*
Erie Income Bonds,
.. 8634
100
98
102*
103
Erie Convertibles, 1S71,
.. 67k
7034
70
74
75*
Panama Railroad Bonds,
.. 7634
SO
7734
91
S9
Pennsylvania Coal Co., .......
.. 95)4
9534
9734
101*
105
Del. & Hud Canal Co.,
.. Ill*
706)4
105
10S34
109*
Cumberland Coal Co.,
.. 2634
2834
2 «K
81*
88*
NoTv-Jersey Zinc Co.,
.. 4
4
4
8*
4
Canton Zinc Co.,
.. 13
72)4
19*
22)4
2234
Nicaragua Transit,
... 13
7434
16
16*
16
IIucL Etv. B.B. 1st Mort ......
.. 98
95
9634
100
102
Now-York Sc Harlem,
... 27K
2834
2934
8234
8234
Ohio Six per Cents, 75,
... 97
87
100
104
108
Kentucky Six per Cents^
.. 95
93
96
98
100
Virginian Six per Cents,
.. SO
96)4
92)4
9334
96
Indiana Five per Cents,
.. 75
77)4
7934
79*
SO*
Cleveland & Toledo R.R., .
.. 66
58
52)4
66
53
There is also an improved feeling in bank shares, and an advance of 8 to 5 per cent during the
past month in those that are mostly in the market
The export of specie from Boston to foreign ports during the year 1854, was over seven millions,
namely :
December,
November,
October,
September,
August,
July,
Total for 1854,
1195,886 29
840,612 72
587,079 80
943,428 97
997,892 60
851,493 88
June, ....
May, ....
March,.,.,
February,
January,
11,163,170 54
, 694,022 63
551,455 84
78,993 09
421,548 11
$7,418,437 82
The annexed statement exhibits the average condition of tho leading depart* 'Tits of tho banks
of Boston for the first week in each month since tho commencement of tho weekly returns, in J une
last:
Digitized by
Gck igle
Original from
UNIVERSITY OF CHICAGO
Xoti-s on the Muncy Market.
[Feb., 1855.
Digitized by
<»<>4
Loam.
Specie.
Deposits.
Circulation.
June 5,
$4-8.309.192
$2.3G'\277
$18,270,002
$>,277,019
July 3,
49,22*V»99
2. 044, >33
13,133,196
S/>99,o>9
Aug. 7,
50,37*5, ^*>6
2,904.012
1 3.507. >54
3,207,597
t?cpt. 4,
51,357,522
2,320.442
13,132,571
7,995,792
Oct. 2,
50,175,005
2,831.597
12, 2o >,225
3,213.216
Nov. G,
51,1 S3, 713
8,422,096
14,570,929
6,535,116
Dec. 4,
49, >77,633
2.2 01, >05
12.133.9oS
S,J46,45^
Jan. 2, 1354,
4 >,3 >9,8*13
2,757,807
ll,494.s70
7,217,724
Jan. 9,
4 8, >20,364
0,ool.ll2
11,720.417
7,665.719
Jan. 16,
49,3 >9, 841
0,253, 04 1 1
12,4>>s08
7,4 S3, 927
The loans have declined in a small ratio, but there la recently an accumulation of coin, as in
Now- York.
The movements of the New-York City hanks for the past few weeks, are shown in the annexed
summary of loansjspccle, circulation, and deposits with the amount of coin held by the Sub-
Treasury, at New-York:
Date.
Loans.
Coin.
Circulation.
Deposits.
Sulh-
Traitsury.
Nov.
25, 1S54,
$>1,999,705
$10,2«^\9>8
$7.71 >,158
$60,334,199
$6,4A\<vh»
Dec.
2,
>1,673, 123
1<\4 >>,8 >3
7,849,289
62,962,583
6,665,7* Hi
Dec.
9,
80,593.037
10,483,591
7,480.833
60,278,866
6,772, >00
Dec.
10
80,910,064
11,471,841
7,261,111
61,807,098
5,52>.30i)
Dec.
23,
eo, >6 1,591
11,486,880
C, 924, 667
68.958,027
3,5 >0,401
Dec.
80,
SI .053,037
12,076,147
7,075.380
62, >2 8, 020
8,382,1 *»
Jan.
6,1 >55,
82,244,706
13,590.963
7/49,9 >2
64.9>2,158
2/hU.h-mI
Jon.
13,
83.970,081
15,488525
6,686,461
67,303,398
2.982,2' >0
Jan.
20,
85,447,998
16,372,127
6, 6> 1,855
69,047,618
2, 738, .too
Exchange on London has advanced from 7>$ to 9 per cent. Even the latter is a favorable
index of tlio market — any thing under 9j { per cent will insure stability In the market, and obviate
any export of coin. The increased amount of loans granted by tho New-York city banks has
already produced essential relief to borrowers, Tho street rates for loans are materially reduced.
First-class paper being taken at 10 a 12 per cent For loans on call, with adequate stocks as col-
laterals, the rates arc 7 a 9 per cent The arrivals of gold-dust from California, are not so large as a
few months since. This Is attributed to the want of rains in that country, which Interferes mate-
rially with mining operations. It is stated, also, that there arc largo amounts coined at tho Branch
Mint in San Francisco, and retained there for general uses In tho community. Tho exports of gold
direct to Liverpool and London, arc also largo from San Francisco; the rates of freight and insur-
ance aro more in favor of tho direct shipments to Europe.
Tho banks in the Western country aro rapidly curtailing their circulation, In consequence of the
recent drafts upon them for coin. Four of the banks of Kentucky report as follows:
Ci r culation. Co i n.
Bank of Kentucky, {2,067,000 $1,006,000
Northern Bank, 1,241,000 793,000
Fanners' Bank, 1, 670.000 90>/n>o
Bank of Louisville, 910,000 561,000
January, 1855, total, $5,913,000 $8,373,000
January, 1853, total, 9,455,000 3,747, 0*>0
The Farmers* Bank lias increased $300,000 In circulation, and $400,000 in coin, in consequence
of a large increaso in capital. Tho other three banks have lessened their circulation moro than
forty-five per cent
This serious reduction in the hanking circulation of Kentucky is a criterion of the changes in other
States. Wc observe a similar reduction in Indiana, Maryland, etc., and a greater one in South-
Carolina, This has been one of the causes (or wo may say accompaniments) of tho stringency in
tho money market during the past six months.
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UNIVERSITY OF CHICAGO
THE
BANKERS’ MAGAZINE,
AND
Statistical ftegiatcr.
Vol. IV. New Series. MARCH, 1855. No. IX.
THE USES OF GOLD AND SILVER IN THE ARTS.
The discovery of gold in California has given, within the past five
years, a great impetus to its consumption in the various branches of
the arts. Millions of gold, in value, are annually consumed in the
United States in various manufactures; much more than is gene-
rally supposed. According to authorities that have been consulted,
at least ten millions of dollars in gold and silver are annually con-
verted into manufactured jewelry, and in the various departments of
trade in the United States.
The actual amount of silver coin that is yearly manufactured into
jewelry, and otherwise used in the mechanical arts in the United
States, has often been a subject of speculation and inquiry. Yet we
do not know that any exact data have ever been collected, from which
an accurate statement may be formed as to such consumption.
Inquiries have only elicited the reply, that the uses in mechanism to
which silver is put are so various as to preclude the possibility of
obtaining a reliable statement, or of forming a satisfactory estimate,
even of the quantity used. We are, however, assured, that be the
amount of silver coin employed in manufactures in this country
more or less, it bears no proportion to that exported to foreign
countries for similar purposes. This is a subject that would properly
be one of the branches of inquiry of the census; and it is to
be regretted that in past years this matter has been overlooked.
An attempt to prevent the use of native coin in manufactures it is
44
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666
The Uses of Gold and Silver in the Arts . [March,
thought would fail ; and if successful, would have the effect of flooding
the country with heavily alloyed silver-ware of German manufacture.
A recent attempt to ascertain facts, with reference to an article on
this subject, while it has been in the main unsuccessful, has nevertheless
acquainted us with some points with respect to it, that may be new
and interesting to a portion of the public. We believe it is a common
impression — universal so far as we have observed — that the favorite
coins of jewelers — those they prefer, and for which they pay a pre-
mium— are those emanating from the mints of Mexico and the South-
American republics. We are quite surprised to hear that such is not
the case ; that they are considered as of uncertain purity ; but that
the coins sought for and forming the great bulk of the meltings of
jewelers, are those bearing the stamp of the United States Mint, of a
date previous to the late revision of the standard ; the quarter and
half-dollars of the old standard commanding a premium of 4 per cent.
French five-franc pieces and Spanish milled dollars are the only coins
regarded with equal favor, and they are very scarce. All others are
rated in value at 2 or 3 per cent less.
These facts account for the tenacity with which the Mexican six-
pences, shillings, and quarter-dollars, that form so large a portion of
the small silver coins of the Middle and Western States, arc kept in
circulation, and also for the comparative scarcity, notwithstanding the
operations of the United States Mint, of all United States coins except
those of a recent date. The first are unworthy the attention of specie
brokers, and the second are gathered either for domestic use or for
exportation. The disfavor with which the new coinage of the United
States is regarded for the purposes of the crucible, has the effect, of <
course, to cause it to be retained as a circulating medium ; and it will
probably not be used in manufactures of silver as long as an adequate
supply of the preferred coins can be obtained, and, it may be antici-
pated, never will be exported so largely as that of the older stand-
ards.
In England, more exact information has been obtained as to the
quantities of gold and silver that are annually melted down for
jewelry, plate, etc. It has been ascertained that in Birmingham alone
not less than one thousand ounces of fine gold are used weekly , equiva-
lent to $850,000, or $900,000 annually ; and that the consumption of
gold-leaf in eight manufacturing towns is equal to 584 ounces weekly,
namely :
London,
Ounces.
Liverpool,
Ounces.
Edinburgh,
Leeds,
Birmingham,
70
Glasgow,
Manchester,
40
_
Dublin,
Ounces,
684
For gilding metals by the electrotype and the water-gilding pro-
cesses, not less than 10,000 ounces of gold are required annually. One
establishment alone in the Potteries employs £3500 worth of gold
per annum. The consumption of gold in the Potteries of Staffordshire
for gilding porcelain, etc., is from 8000 to 10,000 ounces per annum.
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UNIVERSITY OF CHICAGO
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1855.] The Uses of Gold and Silver in the Arts. 667
A recent English work states the consumption of gold and sil-
ver in Paris at over 18,000,000 francs. Where a specie circulation
is general, the wear and tear of coin is estimated at four per cent per
annum, and if this be true, at least £2,000,000 are required to main-
tain this circulation at its present amount.
Twenty -five years ago, Mr. Jacob, an English writer of celebrity,
estimated the value of the precious metals annually applied to orna-
mental and luxurious purposes at £5,612,000, or upwards of twenty-
eight millions of dollars, namely :
In Oreat Britain, £2,457,000
In France, 1,200,000
In Switaerlaad, 350,000
In other portions of Europe, 1,605,000
Total, £6,612,000
M. Chabral, a later writer, and a reliable one, estimates the con-
sumption of gold and silver in the arts, at Paris alone, at 14,552,000
francs; and 21,828,000 in all France. M. Humboldt, whose opinion
Is entitled to great consideration, at the same time estimates the con-
sumption in all Europe as about £3,460,000, but taking a medium
between these authorities, we may assume £4,500,000 as the quantity
there used — equivalent to $22,500,000 annually.
At the present moment this consumption of fine gold and silver
must be doubled, both in Europe and the United States; and may be
fairly estimated at $40,000,000 to $50,000,000. The quantities used
in the manufacture of watch-cases, pencil-cases, plate, household mate-
rials, and in the arts, are enormous.
A movement was made a few years since, by the United States
government, with a view to force foreign silver coins out of circula-
tion ; but the continued large absorption of domestic coins in manu-
factures, together with the much larger shipment of them to foreign
countries, conspired against and defeated its success ; and it was soon
abandoned. The same causes have prevented a renewal of the effort,
and it may be doubted whether it will ever succeed, whether silver
coins be scarce or plenty, unless such effort be sustained and aided by
public sentiment, to secure which, provision for the redemption of the
objectionable coins at the accepted value, may be necessary.
One good result of the withdrawal from circulation of the worn and
battered sixpences and shillings would be the ultimate adoption of the
principles of the federal currency in marking goods, making change,
and other small money transactions. It is true, corner-groceries and
small haberdashery establishments would consequently be compelled
to abandon the practice of counting twelve cents a shilling, and eight
shillings (ninety -six cents) a dollar, from which they now derive a con-
siderable profit, and to secure the proper returns of trade in a more
direct, not to say honest, manner.
* It has been suggested, that to accomplish the universal adoption of
the federal currency of eagles, dollars, dimes, and cents, as our practi-
cal as well as theoretical system of oounting money, is worthy the
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UNIVERSITY OF CHICAGO
0G8
The Uses of Gold and Silver in the Arts. [March,
efforts of the American movement. We shall not discuss the point,
but leave it to the consideration of the public, satisfied that no argu-
ment relative to the question is called for. The more general use of
the dimes, half-dimes, and three-cent pieces, could be secured if the
government officers were uniformly instructed to receive the foreign
small coins in payment, but not to pay the latter out again. All such
coins should be carefully laid aside by the post-office clerks and other
officers of the government, and, at a proper time, should be sent to
the Mint at Philadelphia for melting. It is understood now that the
Mint is prepared to supply such quantities of the small silver coins
as will obviate any necessity for the use of the foreign depreciated
coin by any portion of the community ; and we are surprised to find
that at the post-office in this city, (and this may be said of other
officers) the clerks are allowed to pay out such foreign coins. It seems
to us that this matter is of sufficient importance to claim the attention
of Congress and secure the passage of a law which, while it should
encourage the reception of foreign small silver coins, by all govern-
ment officials, should prohibit, under a penalty, the re-payment of these
coins by such officers, and that for all purposes of change our own
coins should be uniformly used.
Some differences of opinion exist as to the quantity of gold and
silver held in the country. The Treasury estimates the specie in the
banks to be sixty millions, and in the hands of the Sub-Treasurers and
the people at large, one hundred and eighty-one millions ; an aggre-
gate of $241,000,000 against $112,000,000 in the year 1848, before
the gold of California was brought to light.
The Custom-House books show that about $121,000,000 have been
exported in the five years ending June 30, 1854, over and above the
imports, namely :
Year ending
June 80.
1860.. .
1851.. .
1862.. .
1563.. .
1854.. .
Imported.
$4,628,792
5,453,692
6,505,044
4,201,382
6,768,587
Exported,
29,472,752
42,674,135
27,486,875
41,197,300
$26,547,397 $148,354,056
For the nine months ending Sept. 30th, 1854, the coinage of the
United States amounted to the enormous sum of $80,374,788, includ-
ing fine bars. The coinage of gold and silver for the past six years
is shown to have been as follows, according to the recent report of
the Mint :
Year. Oold. Silter.
1840, $9,007,761 60 $2,114,950 00
1850, 31,981,738 50 1,866,100 00
1851, 62,614,492 00 774,397 00
1852 66,846,187 50 999,410 00
1853 46,998,945 60 6,996,255 00
1 854, (9 months,). . . 66,302,388 86 14,072,400 00
Aggregate.
$11,122,711 60
33,847,838 60
63,388,889 00
57,746,597 50
53,995,200 60
80,374,788 86
Six years,.... $273, 751, 513 96 $26,823,512 00 $300,575,025 96
\
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UNIVERSITY OF CHICAGO
1
1855.] British Commercial and Financial Retrospect. 669
On the whole we may fairly assume that if there be two hundred
and forty millions of coin in the country, the amount consumed and
now existing in a manufactured shape is fifty per cent larger ; namely :
Three hundred and sixty millions of dollars, and perhaps double, or
$480,000,000.
This consumption is going on in an increased ratio from year to
year, with the increasing wealth of the country. Gold and silver,
once put into a manufactured shape, rarely come back again to coin.
They are lost to the world, in a business or commercial sense. We
think, too, that there is an increasing preference among the people
for gold as a currency, over paper money ; and that this is more
attributable to the prevalence of counterfeited bills than to any less
confidence in the stability of our banking institutions.
BRITISH COMMERCIAL AND FINANCIAL RETROSPECT,
FOR THE TSAR 1854.
From the London Morning Chronicle, January 1, 1855.
I. Preliminary Remarks. II. The Bank of England. HI. The Rate
of Interest. IV. The Joint-Stock Banks of London. V. Foreign
Securities. VI. Railway Shares. VII. The Grain Trade. VIII.
The Manufacturing Districts. IX. The Price of Labor. X. The
Retail Trade. XI. Shipping. XII. New Enterprises. XIII.
General Results. XIV. Chronology of Leading Events. XV.
Fluctuations in Foreign Shares.
I. Preliminary Remarks. — At the close of preceding years, it has
been our agreeable duty to trace the movements and operations of
industry and commerce, and to note their success or failure when
there have been no violent external occurrences to disturb, or to
threaten to disturb, the peaceful course of trade. Our task at the end
of 1854, if, in some respects it is less pleasant than in former years,
and if it presents aspects involving increased care and discrimination,
will nevertheless be one which we can perform with considerable
satisfaction. In these columns, it is expected of us, and indeed it is
our desire, to chronicle the progress of commerce without entering
upon political discussion, or upon any considerations but those which
affect the great operations of industry ; but after a forty-years’ peace,
in this the first year of a great war, how can we escape from the great
question which men of business will naturally put to each other —
What has been the effect of the war upon the trade and industry of the
country during the few past months 1 The glances at various fea-
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I
670 British Commercial and financial Retrospect. [March,
tures of our monetary and commercial position will, we trust, supply
satisfactory information to this class of inquirers. Looking at the
vast commercial intercourse of this country with every nation, and we
may also say with every tribe in every country of the globe, and
looking also at the enterprises involving the investment of large capi-
tal, whose success may be destroyed by the violence of war, an
inquiry of this kind is both natural and reasonable. But our vast
monetary operations, our system of credit, the faith of our banks, and
our system of currency, have been thought to be matters which a wrar
would put to a severe trial. Presently we shall see what ground
there has been for apprehension. With respect to our foreign com-
merce, we may observe with proud satisfaction that our fleets in the
Baltic and Black Seas have so imprisoned the vessels of war of our
enemy as to secure to us the free navigation for our ships, without
convoy, to any part of the world. Our foreign commerce, therefore,
so far as our mercantile marine is concerned, has not suffered the
slightest obstruction or impediment from the war. We shall glance,
impartially and discriminatingly, at the interesting topic as to how the
war has affected our monetary and banking systems.
II. The Bank of England. — It was, perhaps, natural that, upon
the certainty of war taking place, there should be persons whose
fears would lead them to apprehend great derangement of our
funded, banking, and monetary systems, and, in particular, that the
Bank of England would be subjected to a heavy and trying demand
for specie for exportation. A glance at the affairs of the Bank of
England for the past year will afford us matter for congratulation.
In the early part of the year, the position of the Bank of England
occasioned some solicitude. The discovery of gold in Australia somo
time previously, led to the most extravagant expectations as to the
probability of a great influx of the precious metals from the colonies,
and the large amounts which at one time were received encouraged
this belief; but it was soon discovered that, after being coined, the
gold was re-shipped to the colonies. There were not wanting more
experienced business heads, however, who, correctly reasoning upon
a plain principle of trade, urged that all commerce being an exchange
of commodities, the vast shipments of British manufactures to our
new colonial possessions must be paid for in great part with the pre-
cious metals, and that, therefore, the position of the Bank, sooner or
later, would certainly be improved by considerable additions to the
stock of its treasure from this source. It was not so, however, for
extravagant and excessive exports have occasioned a glut of goods in
the colonies, and there is now a disastrous failure in expected remit-
tances. During the year ending December 24, 1853, the stock of
bullion in the Bank of England suffered a diminution to the extent of
£5,884,183. In the first week of February in the past year, the stock
of gold coin and bullion possessed by the Bank in both departments
was £10,226,688. The 44 other securities,” discounts, and loans, were
£13,570,465. The reserve of notes was £6,966,505. On the other
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Joint-Stock Banks .
671
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1855.]
9ide of the account, the “other deposits” amounted to £12,608,926.
The account at the close of the year, made up to the week ending
December 9, 1854, presents the following changes in the foregoing
essential features of the Bank statement. The stock of gold coin and
bullion in both departments was £14,005,444. The u other securi-
ties” were £13,732,473. The reserve of notes was £7,928,830. The
“other deposits,” or customers’ balances, were £9,691,373.
It will thus be seen that the fluctuations in the Bank of England
account during the first year of war have been very inconsiderable,
and not of a character to diminish confidence in the monetary resources
of the country. The features in the year’s bank account worthy of
notice, therefore, are, that the gold coin and bullion in the year have
undergone diminution to the extent only of £2,226,244 — an amount
too inconsiderable to give rise to uneasiness. The reserve of notes
employed for banking purposes has increased in the year from
£6,966,505, to £7,928,830 — an amount larger than is usually con-
sidered necessary in this branch of the Bank establishment. The “ other
securities,” or bills discounted and loans, are about as they were at
the commencement of the year. It is noticeable, however, that there
has been a very considerable withdrawal of money from the private
accounts of the Bank’s own customers, the “other deposits” having
been reduced during the year from £12,608,926 to £9,691,373. This
fact may be readily accounted for by the increased employment for
money at profitable rates. The Bank rate of discount throughout the
year ha9 ruled high, but not more so than the demand for money
justified. Indeed, there have not been complaints, from important
interests, of difficulties from the high rate of discount ; but on the con-
trary the course adopted by the directors has given general satisfac-
tion; and we may point to the present position of this great establish-
ment as displaying the sufficiency of our monetary and banking
resources to carry us through any external difficulties.
III. Rate of Interest. — In the course of the past year, money capital
has been very profitably and safely employed in the operations of busi-
ness. If the rate of interest — 5 to 6 per cent — has been much higher
than in most years, there has, notwithstanding, been no difficulty in
effecting discounts upon customary trade security. We can trace in
no direction any obstruction to the prosecution of commercial enter-
prise from this cause.
IV. Joint-Stock Banks. — The advantageous employment of money
is strikingly shown in some of the accounts of our joint-stock banks.
The oldest as well as the most wealthy of the London joint-stock
banks is the London and Westminster, which possesses a paid-up capital
of £1,000,000. It should be observed that a rule exists with these
new banks of allowing a certain rate of interest, proportioned to the
value of money in the market, upon the smallest amount of each cus-
tomer’s balance on any day in each month. Interest is also allowed
upon considerable sums deposited for fixed periods, at stipulated rates.
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6 72 British Commercial and Financial Retrospect . [March,
This new feature in the business of banking is peculiar to the joint-
stock banks, and does not exist among the wealthy private establish-
ments, which engross the larger part of the banking transactions of
the metropolis.
1. The net profits of the London and Westminster Bank, for the
half-year ending June 30, 1854, after discharging a heavy amount of
interest upon current and deposit accounts, amounted to £7 3,900 1 9s. 5 d. ,
out of which a dividend w*as declared at the rate of 6 per cent per
annum, with a bonus of 3 per cent upon the paid-up capital for the
half-year, and leaving a surplus to carry forward to the next account.
2. The report of the Union Bank of London furnishes still more
striking results. The paid-up capital of this establishment is £422,900.
The union was able to pay its customers during the half-year, as
interest upon current and deposit accounts, the large sum of
£107,739 17s. 5tf., leaving £84,631 11s. 2d. net profit for division
among the proprietary. The dividend declared was at the rate of 10
per cent per annum, clear of income-tax, with a bonus of 5 per cent
upon the half-year.
3. The London Joint-Stock Bank, with a paid-up capital of £600,000,
declared a dividend at the rate of 10 per cent per annum, and carried
over 24,695 7s. 3 d. as undivided profit to the credit of the current
half-year.
4. The Commercial Bank of London, with a capital of £300,000,
declared a dividend at the rate of 6 per cent per annum, with a bonus
equal to 4 per cent. These facts, illustrative of the business opera-
tious of these large banking establishments, are valuable, not merely
as recording the success of the new joint-stock establishments, but
they furnish us with a light by which we can discover the profits of our
leviathan private banking firms, and, what is still more important, they
enable us to see to w’hat great advantage money capital must have
been employed during the past year. Now, there is not the slightest
reason to believe that these successful and highly profitable banking
results have arisen from any forced business efforts ; but, on the con-
trary, there is the clearest evidence that they have sprung from the
legitimate demands for money arising out of "an active state of trade
and commerce. Although the rate of discount during the year has
ruled high, there has been nothing like a panic demand for money to
enable discounting firms to exact exorbitant rates from borrowers.
With regard to the English stock market, the most remarkable
feature to notice is the fact of prices having gone dow rn considerably
more prior to the commencement of hostilities than during the actual
progress of war. Indeed, no sooner did hostilities commence than
the market gradually rallied and has since shown extraordinary firm-
ness at very high prices, compared with those in former periods of
a like kind. This has been a source of great surprise to many, but
it has been the natural result of the progress of this nation in wealth,
intelligence, and power. Money has been singularly plentiful, and has
quite overpowered the depressing influence of the w'ar. No govern-
ment loan has os yet been found necessary, and the increased burden
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Railway Shares.
673
1855.]
of taxation necessarily imposed on the people has been but slightly
felt. The public, who, in former periods of war, were continuous
sellers of stock, have, during the past year, been extensive purchasers
for permanent investments. As the subject has on former occasions
been fully treated by us, it is unnecessary to enlarge upon it here.
The fluctuations in the value of consols during the entire year have
been about 11 per cent. The lowest price was 85*, and the highest
96*.
V. Torsion Secubitiks. — The value of the foreign securities has
not generally been violently agitated, which is the more remarkable,
as several are necessarily directly connected with the altered state of
political affairs on the Continent. There has, however, been a decline
throughout the market to a greater or less extent, as various circum-
stances have operated to affect them. The two principal events con-
nected with the market, to which a passing remark may be made, are
the introduction of a newTurkish loan, and the proposal of the Peruvian
Government to rearrange its foreign debt. It is to be regretted that
the first application of the Porto to the London market should have
been withdrawn by the Sultan, as it necessarily operated prejudi-
cially when the second loan was applied for. The first loan went up
to 13 premium ; the present one has been down to 9 discount. With
regard to the Peruvian debt, as negotiations are still pending for its
settlement, it would be premature to say more on the subject, as we
have already, on former occasions during the progress of the year,
taken a prominent part in bringing the propositions of the govern-
ment before the bondholders.
The principal fluctuations in the Foreign Securities have been from
10 up to 30 per cent, namely, Austrian Five per Cents, highest price
91, lowest 64; difference 27 per cent; Brazilian Five per Cents,
highest price 99*, lowest 90, ex div., difference 9* per cent ; Peru-
vian Four-and-a-Half per Cents , highest price 75, lowest 52, differ-
ence 23 per cent; Russian Five per Cents, highest price 112*, lowest
82, difference 30* per cent ; and Turkish, highest price 7* prem.,
lowest 9 discount, difference 16 per cent.
VI. Railway Sharks. — Considering the fluctuations that have taken
place in other approved English securities, it must be admitted that
railway shares have maintained their value with remarkable firmness,
quite unusual during a period of such vicissitudes as have been wit-
nessed during the year now closed. One great element in the stability
of the prices of these as well as in all other securities, has been the
" extraordinary abundance of money in the hands of the public, and
their confidence in the steady and healthful progress of affairs, mone-
tary, commercial, and political. There has been no real distrust, and,
instead of selling they have added largely to their investments.
Hence prices have kept up extremely well.
The fluctuations during the year in the leading railway shares have
been from about £14 to £17 10#. North-Western have been up to
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674
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107f, and down to 92, being a difference of £15 15*. ; Great Western,
84 and 68 J, a difference of £15 2*. 6 d. ; South-Western, 86 £ and 72£,
a difference of £14; and Brighton, 110£ and 93, a difference of
£17 10*.
VII. The Grain Trade. — The state of the grain trade during the
past year offers matter for instructive observation. During the
closing months of the previous year, and indeed throughout the last
winter, the price of wheat had ruled seriously high, the weekly'
average at the commencement of the past year, January 7, having
been 76*. 2 d. per qr., whilst the six week’s average ending at the same
date in the previous year was only 44*. 3rf. On the 28th of January
it had reached 83*. 3 </., and so late as the end of June the price was
as high as 78*. 7 d. By the end of August, when the productiveness
of the harvest becamo known, the weekly average price of wheat had
fallen to 62*. 3 d. ; and a little later, in the middle of September, it
had fallen so low as 52*. 5 d. This gratifying proof of the abundance
of the produce of the harvest gave much satisfaction to all classes of
the people, and it was hoped and believed that, in any difficulties in
which the country might be placed, the working part of the com-
munity would be amply supplied with that important article of food,
bread, at a reasonably low price. The satisfactory reports of the com-
pletion of the harvest, and of the fine quality of the grain, its more
than usual weight, and the abundance of the yield, which were received
from every district of the country, led political writers into sanguine
speculations as to the gain of the country by its most productive har-
vest. It was said triumphantly, that our additional produce would
probably pay two years’ expenses of the war. There was probability
and truth in the statement. We have had no evidence to shake the
opinion that the last harvest was one of the most productive that the
country has gathered during a great numbers of years. On the con-
trary, the scanty means wc possess of forming an estimate as to the
relative produce of years, lead us to the satisfactory conclusion that
that of the last year was little less than one third above an average.
The Gazette returns of the quantity of home-grown wheat sold in the
markets which govern the averages, show a remarkable and great
increase in our home supplies at market very soon after the termi-
nation of harvest labor. Our object being to estimate the quantity of
increased produce, as tested by the home supplies at market, a glance
for a given number of weeks at the market supplies before and after
the harvest will furnish us with satisfactory information. In the four
weeks of May, the Gazette returns of the quantity of wheat sold in
the markets which govern the averages w'ere as follows :
May 6, Quarters of whoat sold, 66, 5 1 1
13, “ “ 57,450
20, 11 “ 54,981
27, “ “ 65,791
Total, 244,733
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Turning to the supplies after the completion of the harvest fbr the
four weeks of the month of October, we shall discover what we may
fairly call an astonishing increase. The home supplies for the four
weeks of October, were as follows:
Oct. t, Quarters of wheat sold 151,801
14, “ “ 161,810
21, “ “ 150,211
28, “ “ 144,842
Total, 598,190
Here, then, is evidence clear and convincing of the abundance of
the laBt harvest, and also that the high price to which wheat has sud-
denly risen, is not attributable to any deficiency in our own home
supplies at market. Writing at this late period, we possess evidence
sufficient to account for the price of grain, which a few weeks ago
furnished a puzzle to the most experienced speculators. The truth is,
that we have been almost without foreign supplies for many weeks,
and it is now clear that, for a considerable period to come, we shall
be dependent upon our own resources. Good information leads to
the belief that America cannot be an exporting country to any extent ;
the ports of Russia in the Black Sea and Baltic are closed against us ;
in France, Belgium, Rome, Naples, and Algeria, the exportation of
grain to foreign ports has been prohibited. This being the case, we
have great reason to be thankful for the abundant produce of our own
harvest, but for which bread and flour might have reached famine
prices. The present state of the grain market has placed the agricul-
tural classes in a singularly advantageous position in relation to the
rest of the community. An abundant harvest makes a positive addi-
tion to the wealth of the country, and, in an ordinary state of things,
the benefit of it would be experienced, first by the farmer, in increase
of produce, and, secondly, by the community, in reduction of price.
In the present instance, the farming classes have received a vast
accession of produce, with an increase of price. The profit, therefore,
great as it has been, of the late productive harvest, has passed, or will
pass, chiefly into the pockets of the agricultural classes,
VIII. Manufacturing Districts. — The trade reports, throughout
the year, from our great manufacturing districts, although they have
not been of the same flattering character as in the two preceding years,
have, nevertheless — regard being paid to special circumstances — not
been of an unsatisfactory character. Birmingham has, in its various
branches of industry, exhibited wonderful activity, almost to the time
at which we write. The Yorkshire clothing districts have also main-
tained an active trade. The extensive cotton districts of Lancashire
have experienced, during the last few months, a considerably dimin-
ished demand for goods, and, in some instances, mills have been put
upon short time to keep down stocks. From Nottingham, Leicester,
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etc., complaints have been heard. It may be said, however, with
much confidence, that whatever depression exists in our great branches
of manufacturing industry may be chiefly traced to the prostration of
trade in America, the cessation of the Australian exports, and the
derangement in the trade with China and some other places. We
cannot in any way discover that the high rate of discount which has
now prevailed for more than a year has obstructed speculation or
impeded legitimate commerce. The large failures which lately
occurred at Manchester and Liverpool Lave very properly given rise
to much caution in extensive business transactions, but we nowhere see
that kind of prostration which, in by-gone years, has led to the closing
of mills, and the throwing of vast bodies of our operatives out of work.
The condition of the operatives must, in the nature of things, have
been much affected by the continued high prices of provisions, as well
as by the diminished demand for labor ; but the privations conse-
quent upon these circumstance have been borne without complaint,
and without any public expression of discontent, such as we have
witnessed in former years. It should be noticed, too, that with the
termination of the great Preston strike, an end has been put to that
spirit of hostility to their employers which had existed so long among
vast numbers of the manufacturing work-people, and the temporary
diminution in the demand for manufactured goods must have con-
vinced them that the demand for labor and the rate of wages, as well
as the profits of employers, depend wholly upon the prosperity of
trade.
IX. Prices of Labor. — In the latter half of the past year, and
particularly towards the close of it, in some extensive departments of
trade in the metropolis, much depression has existed. The building
trade, as was foreseen, and the numerous branches dependent upon
it, have suffered severely ; and, at the present time, very large num-
bers of workmen and laborers are without employment. Two cir-
cumstances have largely contributed to decrease the activity of build-
ing speculations ; first, the active demand for money in commerce, at
high rates of interest, has withdrawn the attention of capitalists from
investments in house property ; and, secondly, the improved value of
money has so increased the difficulties of small building speculators
in obtaining advances and loans as to seriously obstruct their opera-
tions. The high prices of materials have also formed another serious
impediment to successful progress in this branch. Hence we have
seen very numerous failures throughout the year in the building
trades, and hence great numbers of valuable workmen and laborers
are without employment at the present time. During the last few
months, also, the shopkeepers and the small tradesmen of the metro-
polis have complained apparently not without cause, of an altered
state of trade. Possibly, an increased income tax may have slightly
affected the business of the higher class of shopkeepers. It is within
our own knowledge that, in the workshops for the manufacture of
fancy goods and articles of luxury, there has been a great absence of
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1855.] New Enterpriser
employment; but the dose of the year has brought with it some im-
provement.
X. Retail Trade. — The high prices of provisions, and the di-
minished employment of the working people, are unquestionably
affecting the trade of the dass of small shopkeepers, who experi-
ence some difficulties in struggling against the times. The print-
ing trade may be noticed as one of those in which there has been
an absence of business of an unusual character; but here we can trace
a distinct cause operating to produce this adverse state of trade, the
tact being, as has been noticed by old publishers, that in seasons of
great excitement, when public attention is directed to the columns of
newspapers, there is always a diminished demand for books. If the
hasty general glance at the state of our various branches of trade
which we have thus given, is not of so gratifying a character as that
of preceding years of unobstructed prosperity, we have at least the
comforting assurance that our manufactures, commerce, and trade are
in a sound and healthy state, notwithstanding the trying difficulties of
the war.
XI. Shipping. — The year, which opened with a brisk demand for
shipping for mercantile business, has closed with dullness. Freights,
which at one period were extravagantly high, are now reduced to
their usual level. Plenty of employment has, however, been found
for all our shipping, and it is only now that freights are really falling
off. The demands of government for steam and sailing transports in
connection with the war, have taken a very large number of vessels
out of the market. The suspension of shipments to Australia at the
present moment, renders tonnage very plentiful, and has greatly
reduced the value of shipping property. In illustration of the great
alteration that has lately taken place in the Australian trade, it may
•be mentioned, that whereas the number of vessels loading in the
port of London was at the rate of from 90 to 100 per month, it is
now reduced to ten or fifteen ; and instead of freights being plentiful
at 160s. for sailing vessels and 240s. for steamers, they are now scarce,
at only 50s. for the former, whilst of the latter there are none on the
berth, they having all been taken up by Government for the trans-
port service. Vessels are now sailing out of both Liverpool and
London for the colonies in ballast. They will return home with
colonial produce — wool, tallow, etc.
XII. New Enterprises. — The rise in the prices of provisions and
materials, and the advance in the various rates of wages, which have
taken place during the last two years, have been productive of great
changes, and of serious consequences to many important public as
well as private interests. To the railway and steam navigation com-
panies the advance has been attended with results fatal to the expec-
tation of many a shareholder and proprietor, who anticipated receiv-
ing the usual rate of dividend. Perhaps in no undertakings has this
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been more peculiarly exemplified than in the case of the Peninsular
and Oriental and the General Screw Steam Shipping Companies — the
former, which once paid 8 per cent, and the latter, which formerly
paid 10 per cent, having had during the year to announce the
temporary suspension of a distribution of profits. To the advance in
coal and freights and rise in the value of tallow, cordage, provisions,
canvas, wood, oil, and other articles, with the conjunctive falling off
in trade, is mainly attributed the great decline in the profits of all the
steam and railway companies. The reports which each have had to
issue to their shareholders all allude more or less prominently to
this subject, and it is but too apparent that it will unfortunately still
be for some time a matter detrimental to the market value of the
shares and the hopes of the proprietors.
XIII. General Results. — Upon the whole, the commercial business
of the year has been of a character to more than satisfy reasonable
expectations ; and if some degree of gloom may exist in the minds of
some men of business, we may comfort ourselves with the evidence
of facts that hitherto our commercial affairs have sustained no injury
from causes which might reasonably have created apprehension and
alarm. The political speculator who is concerned for the honor and
success of our arms in the great war in which we are engaged, may
triumphantly point to the past year as affording evidence of the vast
resources of commerce, and of the ability of the country to bear
whatever reasonable burdens a state of war may render necessary.
XIV. Leading Events of the Year. — The following is a chrono-
logical arrangement of the various important events of each month since
November, 1853, connected with commerce and industry and mone-
tary affairs, etc., which will bo found of more than ordinary interest :
November, 1853.
6th to the 15th. — Various successes, including the battio of Oltenitea, reported
by the Turks against the Russians.
11th — Imperial Russian manifesto issued, signed by the Emperor, declaring war
against Turkey.
12th. — The drafts of the Isle of Man Bank temporarily refused acceptance, through
the death of the surviving partner.
16th. — Intelligence received of the Turks having passed Bucharest, following the
Russians upon their retreat to Cronstadt
1 8th. — The retreat of the Russians contradicted, while their adversaries are
announced to have crossed the Danube.
19th. — The particulars published of the reconciliation of the heads of the Boui-
bon family, through the meeting of the Comte de Chambord and the Due de
Nemours.
21st — The advices from Portugal intimate the death of the Queen.
2 2d. — The defeat of the Russians in Georgia, reported by the telegraph, but the
news was subsequently alleged to bo untrue.
26th. — A fall in the English funds suddenly takes place, on the statement of pri-
vate advices that tho Russians had passed tho Danube in strong force. The exports
of the precious metals to St Petersburg and Rotterdam exceedingly heavy, owing
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679
1855.]
to the withdrawal, by the “ Emperor Nicholas, f> of the balance in hands of his
agents, the Bank of England, and its remittance abroad.
29th. — Speech of the King of Prussia at the opening of the Chambers, in which he
refers to the position assumed by the Emperor of Russia.
3d. — In the address delivered at the meeting of the Swedish diet, allusion Is made
to war with Turkey.
6th. — Reported information of another Congress at Vienna, to negotiate for
peace.
7th. — Doubts expressed of the action of a Congress for the purpose described.
12th. — Intelligence received from Sinope that the Turkish fleet in that port had
been destroyed by the Russians.
16th. — Another victory announced by the Russians on the frontiers of Georgia,
in which four thousand Turks have been killed.
16th. — Resignation of Lord Palmerston intimated, on the question of the New
Reform Bill. Orders dispatched for the entrance of the English and French fleets
into the Black Sea.
26th. — Christmas day falling on the Sunday, the following day, (the 26th,) was
observed as a strict holiday throughout London ; the Bank of England, Stock Ex-
change, and other places of public resort being closed.
26th. — Lord Palmerston is announced to have consented to retain his position as
Home Secretary, through the mediation of the mutual friends in the Cabinet.
Jajtoary, 1854.
4th. — Sweden and Denmark declare themselves in favor of a neutral position on
the Turkish question. Bread-riots at Exeter, owing to the high price of wheat and
flour.
11th. — The combined fleets of England and France enter the Black Sea.
12th. — Advices arrive of the victory of the Turkish troops, under the command
of Omer Pasha, at Kalafat.
14th. — Subsequent intelligence of the further success of the Turkish forces at
Citate.
20th. — The Bank of France raises the rate of discount to 5 per cent.
24th. — The rate of interest of French treasury bills is increased to 1 per cent
26th. — Reports of the intended withdrawal of Baron Bruno w from London, and M.
Kisseleff from Paris, contradicted. Excessive fluctuations in the funds, occasioned
by the conflicting nature of the various rumors. The National Bank of Belgium
raises the rate of discount from 2 to 3 per cent
26th. — Advices from St Petersburg announce the dispatch of Count Orloff to
the European Courts to open fresh negotiations.
February.
4th. — The failure of Count OriofPs mission to Austria and Prussia announced.
8th. — Baron Brunow and M. Kisseleff leave London and Paris ; and diplomatic
relations between England, France, and Russia officially declared to have been
suspended.
14th. — Autograph-letter addressed by the Emperor Napoleon to the Czar, on the
question of the Eastern dispute.
17th. — The exchequer-bills falling due in March are advertised to be paid o flj or
renewed at the rate of 2 cL per diem.
17th and 20th. — General debate in Parliament on the Turkish question.
20th. — Answer received from St Petersburg that all negotiation is reftiaed.
21st— Troops embarked at Southampton for Malta— -the first portion of the con-
tingent to be sent out by England, to cooperate with France in the East
2 2d. — Intelligence received of the outbreak of revolution in Albania, and the
prospect of further disaffection in Greece generally manifested.
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Cth. — The Chancellor of tho Exchequer introduces the budget, and proposes to
increase tho property and income tax, and to take power to issue, if necessary,
£1,750,000 exchequer bills.
7th.— Failure of Messrs. Dickson & Co., in tho Australian trade at Glasgow.
10th. — Departuro of the Baltic fleet from Spithead. Death of Mr. Alderman
'Thompson, who was largely interested in mercantile pursuits, and who was a
director of the Bank of England, and numerous important public companies.
11th. — A French loan for £10,000,000 announced : the biddings to be taken by
public tender at 65£ 25c. for the 3 per Cents, and 92£ 50a for the 4$ perCents.
16th. — Failure of Mr. Thomas McGregor, and Messrs. Warwick, Harrison & Co.,
London warehousemen. Failure of Gladstone, Bond & Co., brokers, at Man-
chester.
18th. — News of tho arrival of tho Baltic fleet in Wingo Sound received.
20th. — Publication of the secret and confidential correspondence between Eng-
land and Russia. Failure of Messrs. Benjamin Elkin A Sons, in the Australian
trade.
24th. — A Turkish loan for £2,727,400 in a G per cent stock, at 85, introduced
through Messrs. Rothschild. Failure of Messrs. Monteaux, London and Paris
exchange-brokers.
26th. — Intelligence received of tho refusal of the Emperor of Russia to make any
reply to the ultimatum addressed to him by the English and French Governments.
Failuro of Messrs. Muller & Burroughs, London exchange-brokers.
28 th. — Declaration of war against Russia announced in a supplement to the
London Gazette.
31st. — Failuro of Messrs. Leroy, Chabrol & Co., of Paris, announced.
April.
1st. — Intelligence received of tho passage of tho Danube by the Russians.
3d. — News of the taking of llirsova by tho Russians. u
4th. — Diplomatic relations between the Ottomans and the Greeks declared to
bavo ceased
8th. — The depression in the funds, consols having sunk to 85£, toge tlier with the
general excitement occasioned by tho declaration of war, causes the withdrawal of
tho Turkish loan, only a limited amount of applications having been received by
tho contractors.
10th. — An alliance, offensive and defensive, concluded between Austria and
Prussia.
11th. — Intelligence from St. Petersburg of severe mercantile distress, through
the disturbance of trade by tho wrar. Tho failures of M. Ilja Stephanoff, cotton dealer.
St. Petersburg; M. Jensen, broker of Riga; and the three firms of S. AJexeyeffi T.
Mathias, and C. Kyber, of Moscow’, announced.
17th. — Accounts received of the first Russian prizes taken by English cruisers.
All the Russian Baltic ports declared to be in a state of blockade. Copies of treaties
offensive and defensive, between England and France, formally exchanged. Mr. C.
Moato, metal-broker, suspended payment.
18th. — Lord Raglan left Paris for Marseilles.
21st. — Official notification from tho Treasury respecting a proposed issue of
£6,0000,000 exchequer bonds.
2 2d. — Advices received of an engagement near Rostolli, in which tho Russians
wero defeated, with a loss of about 3000 men. Tho Turks lost 1500.
25 tb. — The partial bombardment of Odessa announced, for an insult to a flag of
truce, tho success of tho vessels engaged in the attack being most decisive. Another
battle in tho neighborhood of Kalafat, in which the Russians were defeated, with
considerable loss, (1500 men.) ^
26th. — Appointed day of fast, humiliation, and prayer, for the succoss of the
British arms and the restoration of peace.
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29th. — The French Government direct the Russian consols to retire from Mar-
seilles, Toulon, Havre, and Bordeaux. The bombardment of Odessa commenced.
Mat.
1st — The evacuation of Little Wall achia by the Russians commenced.
. 3d. — The capture of Peta by the Turks announced, and also the ratification of the
Austro-Prussian treaty. Further notice issued from the Treasury, respecting sub-
scriptions for exchequer bonds.
8th. — Tko Chancellor of the Exchequer propounds his supplemental war budget
in the House of Commons, and increases the estimates for the navy, army, and
ordnance departments. Failure of Messrs. Reade Brothers, provision merchanta
9th. — Austria, to recruit her financial resources, announces an intention to open
subscriptions for a loan of £3,500,000, at Amsterdam and Frankfort
1 1th. — The directors of the Bank of England raise their rate of discount to 6$ per
cent Singularly enough, the authorities of the Bank of France reduce their rate
of discount to 4 per cent.
15th. — Bombardment ofSilistria commenced by the Russians. Message from the
Queen to both Houses of Parliament, announcing tho embodiment of the militia*
16th. — Owing to the active commencement of hostilities in the East, a levy of
95,0o0 men is ordered by tho Prussian Government.
17th. — Intelligence received of tlio defeat of tho Russians at Nicopolis, with a
loss of 1500 men.
18th. — A change in tho Turkish ministiy, by which it is hoped the administration
of the Porto will be favorably influenced.
23d. — Tho blockade of Riga, Libau, and Windau declared. The neutrality of
Portugal announced.
24th. — Notice issued of the increase of the rate of interest on exchequer-bills,
from 2 d. to 2\d. per diem. The East-India directors also give notice of tho raising
of the rate of interest on India bonds, from £3 55. to £4 per cent.
25th. — Treaty between England, France, Austria, and Prussia, in which the
separate treaties previously concluded between France aud England on the one
hand, and Austria and Prussia on the other, are recognized and adopted. Austria
and Prussia send a joint summons to Russia, to evacuate tho Turkish territories.
30th. — Threatened occupation of Greece by the allied armies.
June.
2d. — Tho Austrian summons to Russia dispatched, demanding the withdrawal of
troops from the principalities.
4th. — An English Minister of War appointed, the Duke of Newcastle taking the
office, and Sir G. Grey entering tho administration as Colonial Secretary.
6th. — Failure of Messrs. J. & J. Hall, of Nottingham, announced.
7th. — The London joint-stock banks are, after a lengthened negotiation, admitted
to the privileges of the Clearing-House. Three failures on the Stock-Exchange
declared.
12th. — Suspension of Mr. Goddard, of Birmingham. The affairs of Messrs. New-
stead A Barnett, of the same place, under investigation.
14th. — The English squadron off Brahestadt, in Finland, seize a number of Rus-
sian gun-boats and merchant vessels, and destroy property valued at between
£50,0u0 and £60,000.
16th. — A blockade of tho Baltic coast of Russia announced in the London Gazette,
Failure of Mr. Julius Steding, of Moscow, announced.
18th. — Suspension of Messrs. Thomas Taylor A Sons, and other houses in the
worsted trade at Bradford.
19th. — Proposal for a Russian loan of 50,000,000 silver roubles introduced at St.
Petersburg and Amsterdam. The East-India Railway Company nogotiate
£1,000,000 at 44 per cent interest, for which debentures guaranteed by the East-
India Company are given. The tendere for the 4 per oent British Guiana and
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Trinidad loans of £50,000 and £25,000 respectively, accepted by the Treasury, the
whole being taken at par, tho principal amount on behalf of the Bank of England.
20th. — Tho second issue of £2,000,000 exchequer bonds arranged between tlic
government and Messrs. Rothschild. A now Prussian loan for £2,350,000 in a 4$
per cent stock opened at Berlin. A Belgian loan for £1,100,000 in a 4J- per cent
stock arranged at Brussels. Tho announced retreat of tho Russians from Silistria
with great loss, and tho commencement of tho evacuation of tho principalities.
Failure of Messrs. Davidson k Gordon, colonial brokers.
25th. — The reply of tho Czar to tho Austrian summons to the effect that, as a
mark of high consideration to Austria, Russia consents to retire from the Turkish
torn tones.
26th. — Tho failure of Messrs. Colo Brothers announced.
30th. — Bomarsund bombarded by tho English licet. Capture of tho Aland
Islands, and their temporary occupation announced.
July. '
3d. — An insurrection against tho government breaks out in Spain.
Gth. — Suspension of Messrs. H. W. Lord k Co., East-India brokers.
6th. — Suspension of Mr. Spiridono Gopcevich, of Trieste, announced.
11th. — Withdrawal of the combined fleets from before Cronstadt
12th. — Accounts received of tho defeat of the Russians by the Turks at Giurgcro.
Stoppage of Mr. Mark Gopcevich, of London, announced,
13th. — Island of Ramadan taken by tho Turks.
16th. — Mr. Spiridono Gopcevich resumes payment.
17 th. — Tho failures of Messrs. Passavant k Co., Messrs. Simeon Townsend, Messrs.
Bockenbach k Co., Messrs. W. Bcavos, Mossra R, M1 Lauren k Co., and Messrs.
Samuel Wilkinson, of Bradford, announced. Further success against the Russians
at Frateschti.
19th. — Intelligence of the discovery of railway defalcations in New- York and
Philadelphia, and consequent panic in tho American money market ; Mr. R. Schuy-
lor having over-issued New- York and Now-Haven railway stock to tho amount of ^
$2,000,000.
20th. — The Russian forces defeated at Ardaghan with considerable loss. Mr. J.
W. Cole, of the firm of Cole Brothers, arrested on a charge of obtaining, by means
of fraudulent orders, from Messrs. Lang k Campbell, tho sum of £10,000.
24th. — Lengthened debates in both Houses of Parliament on the additional
war-grant of £3,000,000. Failures of Messrs. Do Launay, Iselin k Clark, and
Mossrs. Schell, Burrows & Son, ofNcw-York, announced.
31st — Accounts of the total defeat of tho Russians on tho 23d at Slobodzie, with
a loss of 2000 killed and 500 wounded. Confirmed reports of tho abundant harvest
produce depression in tho corn trade.
August.
1st. — The retirement of the Russians beyond Wallachia The formation of a new
Cabinet at Madrid, headed by Marshal Espartero.
3d. — The rato of discount reduced by the Bank of England from 5| to 5
per cent.
14th. — Accounts received of tho occupation of Bucharest by 10,000 Turkish
troops. Failure of Mr. John Tucker, of Philadelphia, announced.
16th.— Negotiation of the Turkish loan of £5,000,000 through Sir L L. Goldsmid
and Mr. J. Horsley Palmer; the first portion of £2,000,000 being brought out in a
six per cent stock at 80. Mr. Joseph Windle Cole, merchant, committed from the
Mansion-House to take his trial on charges of obtaining £17,000 and £30,000 on
fictitious warrants of bonded goods.
19th. — Accounts of tho surrender of Bomarsund to the allied troops and fleets,
and the capture of 2000 prisoners.
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28<L — The defeat of the Turks near Kara, by General WrangeL announced, with
a considerable loss.
28 th, — Further considerable depression in the general value of grain.
29th. — Official notification received of the blockade of the White Sea.
September.
4th. — Advices received of the rejection by Russia of the final propositions of
Austria. Notification of the failures of Messrs. Peck A Bloodgood, and Alfred
Edwards A Co., of New-York.
1th. — The Commander-in-Chiof of the French troops (Marshal St. Amaud)
announces the destination of the allied forces to be Sebastopol.
8th. — Intelligence arrives that Marshal Baraguay d’Hilliers has left the Baltic on
his return to France.
11th. — Entrance of Count Coronini into Bucharest, on the 6th, at the head of
Austrian troops.
14th. — Ibraila and Galatz are evacuated by the Russians. Failure of Messrs.
Scott, Richmond A Co., of Manchester, announced.
15th. — A decisive victory announced by Schamyl over the Russians at Tiflis.
Messrs. Currie, Dale A Co. suspend payment.
18th. — Failure of Messrs. Dean, Youle A Co., of Liverpool.
21st. — Accounts received of the landing of 25,000 English, 25,000 French, and
8000 Turkish troops in the Crimea on the 14th. Failure of Mr. A. W. Park, of
Manchester, notified.
23d. — Information received of the suspension of Messrs. Lukin A Skuratof^ of
Moscow.
29th. — Suspension announced of Mr. J. Osterrede, of Moscow, and Mr. H. J.
Botoloff, of Shuya, both calico-printers.
30th. — News received of the defeat of the Russians by the allied troops on the
heights of the Alma. Failure of Mr. G. A. Ulich, of Trieste, with liabilities of
£100,000.
October.
1st — Suspension of Mr. James Mitchell, of Bradford.
4th. — Severe depression in Liverpool, occasioned by mercantile discredit. Stop-
page of Mr. Edward Oliver, of Liverpool, announced, with liabilities amounting to
£700,000. Also of Messrs. James M’Heniy A Co., Liverpool, with liabilities esti-
mated at £500,000.
6th. — Suspension of Messrs. Allen A Anderson, of London, in the American grain
and provision trade; estimated liabilities between £300,000 and £400,000.
7 th. — Announcement of the death of Marshal de St Amaud.
11th. — Failuro of Messrs. Moulton A Plimpton, of New-York, announced; liabili-
ties £60,000. Intelligence of the capture of Balaklava by the English and French
troops, and commencement of operations for the siege of Sebastopol. Great activity
in the grain trade, with a continuous rise in prices.
16th. — Messrs. Perrin A Wright, com factors, Dublin, suspend payment; debts
between £50,000 and £60,000,
23d. — Failure of Messrs. Samuel F. Moore A Co., clothiers and dry goods import-
ers, Boston, United States, announced. Messrs. Lemon A Co., bankers, Brentwood,
Essex, suspend payment. Intelligence received from America of the failure of
Messrs. Reed A Brothers, importers of dry goods, at Philadelphia, for £200,000; of
Messrs. Lincoln, Wing A Co., of Boston, in the Australian trade ; and of Messrs.
Chapin A Whitton, wholesale druggists.
28th. — The French Government issue a notice prohibiting, for the present, distil-
ation from grain.
November*
let.-— Intelligence received of the battle of Balaklava having been fought on the
25th October.
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684
British Commercial and Financial Retrospect. [March,
9th. — Failure of the Knickerbocker Bank, New-York ; also of Farmer’s Bank,
Saratoga county, announced.
13th. — Received the news of the great battle of Inkermann having been fought on
the 5th inst
14th. — Suspension of Messrs. Clay k Gillman notified; also Messrs. Hambleton
k Sons, an importing house at Baltimore; to Messrs. E. G. Merick k Co., Buffalo;
the Metropolitan Insurance Companies of Boston, and the Lewis County Bank, of
New-York.
2ist — Failures announced of Messrs. J. A. Westervelt k Co., ship-builders, and
Messrs. E. M. Livermore k Co., in the wool trade, both of New-York; with a
variety of others, including a number of small banking establishments, corporate
and private.
2 2d. — Suspension of Mr. A. Tonnolier, of Antwerp.
23d. — Nows of a naval engagement at Petropaulovski, in the Pacific, on the 4tli
September, and death of Admiral Price, commander of tho fleet Forgeries an-
nounced by Mr. IT. Meiggs, of San Francisco, California.
25th. — Visit of Lord Palmerston to Paris, and subsequent interview with Louis
Napoleon on tho question of reinforcements to the Crimea. Failure of W. Price,
general merchant, of Quebec.
27th. — Parliament announced to meet for business on tho 12th December.
28th. — Stoppago of Messrs. George Milne k Co., bankers, Cincinnati; and sus-
pension of Messrs. Smead, Collard k Co., who issue a statement of their affairs,
showing assets £350,000 against £240,000 liabilities.
29th. — Failure of Messrs. Gilbert k Tuttle, importers, etc., New-York.
29th. — The Emperor of Russia, in answer to tho Prussian Cabinet, consents to
treat for peace — on conditions.
December.
2d. — Signature of the treaty between the Western Powers and Austria.
5th. — Failure of Mr. James Wellan, corn merchant, Dublin; also of Mr. Michael
Smith, Dublin, who offers a composition of 3s. 4d. in tho pound, which is accepted.
5th. — Failuro of Messrs. Daniel Stewart k Sons, grocers, of Baltimore, for 1
£100,000; also Messrs. Finlay k Co., bankers, New-Orleans, and Messrs. Selden,
Withers k Co., financial agents of the State of Virginia, at Washington.
8th. — Suspension of Messrs. Reeves, Buck k Co., iron manufacturers, Pennsyl-
vania. T.i ' i ties said to bo between £200,000 and £300,000, and i 'Sets between
£300,000 Hud £600,000.
12th. — Opening of Parliament by the Qufeen in person.
18th. — Arrival of Sir Charles Napier from tho Baltic.
19th. — Announcement in the House of Commons that tho Chancellor of the
Exchequer would not make any financial statement previous to tho Christmas
recess.
20th. — The Chancellor of tho Exchequer moved a resolution in the House of
Commons upon which to found a bill for tho purposo of placing tho deposits in
savings banks on a better footing.
21st — Messrs. Carter k Co., ship-ownors and brokers, of London, suspend pay-
ment
22d. — Failuro of Mossra John Benson k Co., and Dennis Harris, sugar-refiners,
and Messrs. Patterson, Adams k Co., in the tobacco trade, all of New-York.
2 2d.-— Duties reduced by the French Government, on tallow, grease, etc.
23d. — Parliament adjourned to Tuesday, January 23.
26tb. — Suspension of Messrs. Swain k Webb, of Huddersfield, for, it is said.
£135,000.
27th. — Opening of tho Legislative Chambers of France by the Emperor Napoleon
and announcement of a new loan.
27th. — Arrival of M. von Usedom, on a special mission from tho Prussian Cabinet,
with reference to tho affairs of tho East. \
29th. — News received of a conference at Vienna between tho representatives
of England, France, Austria, and Russia.
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UNIVERSITY OF CHICAGO
1855.]
The Bank of England Note. '
685
XV. Fluctuations in Foreign Loans. — The following is a care-
ful summary of fluctuations in the market values of Foreign Securities
at the London Stock Exchange, 1852, 1853, 1854 :
Loan*.
Dec. a,
Dec. 80,
Dec. 80,
Fall,
Fall,
1852.
1858.
1854.
1858.
1854.
Austrian 5,
.. —
—
—
—
68
a
86
_
_
Belgian 4 >4,
.. 28
a 99
95
a
97
90
a
92
8
5
Brasilian 5,
.. 102
a 108
93
a 100
97
a
99
4
1
Buenos Ayres 6,
.. 78
a 75
68
a
65
58
a
55
10
10
Chilian 6,
.. 106
a 108
101
a 108
100
a 102
5
1
Danish 8,
.. 85
a 87
88
a
85
78
a
81
2
5
Danish 5,
.. 106
a 108
102
a 104
101
a 108
4
1
Dutch 2 x,
.. 68
a 69
61
a
65
61
a
68
4
8
Dutch 4,
.. 98
a 99)4
96
a
97
91
a
98
2)4
5
Equador Bond*,
... 5 Ma 5*
4* a
5 X
8J4 a
8*
*
1*
Granada 1)4,
... 22
a 28
21
a
22
15
a
17
1
6
44 deferred,
... 18^ a 18)4
7H a
8
5
a
6
5*
2K
Mexican 8,
. . . 28 M a 28)4
23* a
24X
20* a
21X
%
8
Peruvian 4)4,
... 108
a 105
68
a
70
69
a
71
25
•1
44 deferred,
... 63
a 65
48
a
50
48
a
50
15
-
Portuguese 4,
... 40
a 41
42
a
44
41
a
43
♦2
1
Russian 5,
.. 121
a 122
111
a 118
97
a
99
10
14
Russian 4)4
... 106
a 107
97
a
99
87
a
89
9
10
Sardinian 5,.
. . . 91
a 96
90
a
92
83
a
85
5
7
Spanish 8, ...
... 50* a 51 k
46)4 a
4Gy
33
a
89
4)4
8)4
44 deferred,
,. 24
a 24 K
2iy a
22
IS)* a
IS*
2X
8*
Venezuela 8)4,
... 42
a —
80
a
82
22
a
24
12
8
44 deferred,
.... 16
a 18
12
a
14
9
a
11
4
8
Those who wish to refer to the table of the fluctuations In English Securities, will And a copioua
table page 617, February No.
ON THE BANK OF ENGLAND NOTE,
AND THE SUBSTITUTION OF SURFACE-PRINTING FROM ELECTROTYPE FOR
COFPBR-FLATK PRINTING.
From The Illustrated London News.
On the 20th December last, a very interesting paper upon the
above subjects was read before the Society of Arts by Mr. Alfred
Smee, F.R.S., Mr. Henry Cole, C.B., Vice-President, in the chair.
The Society’s large room was crowded with an attentive audience.
Of Mr. Smee’s paper, the most attractive contribution of the season,
the following is an abstract :
In the month of November, 1851, I had the honor of presenting a
report to Mr. Hankey, the Governor of the Bank of England at that
period, that from facts and observations which had come under my
notice, I believed that the time had arrived when surface-printing
* Advance.
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The Bank of England Note .
[March,
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from electrotypes could be advantageously employed for Bank of
England notes, and that they could be both printed and numbered
by ordinary printing-presses, with considerable saving of expense,
and increased identity of appearance.
Heretofore the notes and checks of the Bank of England had
invariably been printed from copper and steel plates, in which the
lines were engraved or cut into the metal. In these hollows the
printers rubbed the ink, which, in process of printing, was transferred
from the plate to the paper. In surface-printing, the reverse state
of things exists, and the design, instead of being cut in the plate, is
left in relief, and the ink, being put to the eminences by means of
the rollers, is transferred in the press to the paper to form the im-
pression.
In accordance with this report, Mr. Ilankcy at once directed the
experiments to be commenced, and subsequently allowed me to act
with Mr. Hensman, the Engineer, and Mr. Coe, the Superintendent
of Printing ; and though each of us had our separate departments in
which our individual labor and knowledge were most useful, we con-
sulted together on every matter ; and by our mutual exertions, act-
ing together to one end for the benefit of the Bank, we have been
enabled to overcome every difficulty, and to bring the process into
practical operation for all the manifold varieties of checks and notes
which the Bank of England requires for its purposes.
The original form or pattern of the various notes and checks which
have been adopted, was accomplished and settled under the direction
of Mr. Hankey, and the Court of Directors, before any of us com-
menced our labors.
The whole of the written part of the note was originally cut by
Mr. Beckett, the engraver to the establishment, but the Britannia
was designed by Mr. Maclisc, R.A., and engraved by Robinson. This
engraving was the basis of our operations. After various experiments,
the cutting of the Britannia in a manner suitable for easy duplication
was executed on a steel die, by that veteran engraver Mr. Thompson,
whose artistic feeling is fully recognized by the public. The other
parts of the notes and checks were in a great measure cut by Mr.
Scirving, in some cases upon pieces of brass, in others on plates of
copper, about half an inch in thickness. In no case is the original
ever employed for printing, but is simply used to make moulds, so
that, throwing out of consideration accidental mechanical or chemical
injuries, they will retain their integrity for any length of time without
change, and will enable any number of duplicates to be made there-
from.
For the duplication of the original designs we have recourse to the
power afforded us by the processes of electro-metallurgy. For the
purposes of the Bank of England, we have had recourse to the various
forms of battery apparatus described by myself in the Philosophical
Magazine, and in my “ Elements of Electro-Metallurgy.”
To ascertain the changes which are occurring in the battery, wc
commonly employ an hydrometer ; but I have specially constructed
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The Bank of England Note.
687
r
1855]
an instrument which I call a battery metre. The point corresponding
to specific gravity, 1130, is called unity, and the interval between
that part and 1360 is divided into 144 parts. By this division every
degree represents one grain of zinc dissolved in 1000 grains of bulk
of the fluid. The opposite side of the scale, between the same parts,
is divided into 60 parts, each of which is, for every 1000 grains of
bulk in the fluid, about one thousandth of an inch in the thickness for
every superficial inch of surface, upon which the copper is reduced in
the precipitating-trough.
At the Bank of England we generally find it convenient to employ
parallelopiped-shaped vessels. Those made of mahogony and lined
with gutta percha are convenient and economical. For most of our
purposes we use the vertical trough, because the subject can be
readily inserted and removed for inspection. For rapid deposition
wo employ the horizontal trough, in which the subject is placed at
the bottom, and the copper pole above. In the use of this apparatus
some refined chemical laws are involved. In the first place, sulphate
of copper possesses a low diffusive power, and is carried, by virtue of
that property, so slowly through the fluid, that if we relied upon it
failure wrould surely attend our labor. Secondly, the saturated solu-
tion of sulphate of copper formed at the positive pole is so heavy,
that it descends from the place of its formation, like a cataract, to
the bottom of the vessel. Lastly, the part of the solution deprived
of its copper becomes so light that it rapidly rises to the top. For
all rapid deposition we seek to form our new salt at the top of the
apparatus, that it may descend to the place where it is required, and
the light fluid may rise to mix with the denser portion.
Up to the present time, the best standard salt for the reduction ot
copper by electro-metallurgy is the sulphate, and, with the occasional
exception of the nitrate, is invariably employed. We always have
a neutral trough, containing a simple solution, three parts saturated.
For general purposes, we use a saturated solution diluted with dilute
sulphuric acid of battery strength, to the extent of from one half
to one third of the bulk.
If we examine the precipitating-trough, we can but regard it as a
very curious and wonderful chemical laboratory, in which two pro-
cesses are being conducted at the same time, and in precisely equiva-
lent proportions. In it we have the best of all chemical factories for
the production of sulphate of copper by the combination of the plate
of copper writh the acid of the salt, and in it we may perceive the
most perfect of all foundries wherein the metal is cast upon the mould
atom by atom, with a skill wfhich rather shows the perfection of nature
than the deficiencies of the operations of man.
As a general rule, we employ a single battery with one trough.
Where we desire rapid action, w^e employ a compound battery of
two cells in series ; but this entails a double cost of battery power.
In a great many cases, where time is of no object, wo employ a com-
pound trough with a single battery ; that is to say, we arrange two
troughs in series with one battery — a contrivance whereby we use
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UNIVERSITY OF CHICAGO
The Bank of England Note.
088
[March,
our battery power twice over, and obtain two equivalents of copper,
one in each trough, and consequently at half the cost.
The deposited metal is of excellent quality, and a part of one of
the Britannias, when carefully weighed, was found to have a specific
gravity of 8.85. To ascertain the ductibility of the metal, I sent one
of the scraps to Messrs. Horne and Thornthwaite, and one pound of
metal was found capable of being drawn into three miles and a half
of wire.
For all our other originals, when we desire perfection, we rely
rn electro-moulds, ana electro-moulds alone. For this purpose,
original is placed in the precipitating-trough, and a thick electro-
mould deposited.
The casts of the Britannia are generally deposited so thick in the
compound trough, that they can be turned down to the required form
and size. Other subjects are generally backed with solder, and turned
to their proper thickness.
The electro-casts, when ready for printing, are mounted on solid
brass blocks ; and many tools had to be constructed for this purpose.
By this system of tools, if any part of a form is damaged, another
piece is immediately inserted.
When the paper is dried, it is moderately glazed, to give a smooth
surface for printing. The smoothness is given by placing the sheets
of paper between plates of copper, and subjecting them to a pressure
sufficient, on the one hand, to give a fine and true surface, and yet not
sufficient, on the other, to damage the water-mark.
The printing-ink used for the bank-note is also a matter which has
received attention. The properties of ink, when carefully prepared,
are very curious, and require considerable jndgment to adjust them
to particular papers. To Mr. Winstone, the printing-ink manufacturer,
has been intrusted the preparation and adaptation of the ink for the
note, as it required somewhat careful treatment for the peculiar ar-
rangement of the blacks and lights in the note.
For the checks, it was considered that the double-platten was the
best machine, which was in active operation at that time. For that
reason, a machine, by Hopkinson & Cope, was adopted, and the
checks were printed by it, as also some of the notes.
For the bank-note, a new platten has been specially constructed,
by Messrs. Napier & Son, with contrivances for both the tables and
the inking-apparatus to traverse, by which means an effect is pro-
duced equivalent to rolling with a single hand-roller twenty different
times. In this machine a plan of great value is employed, as the
form of every note is made to one gauge, and every denomination has
its separate tympan and overlaying. By this means, when a note-
plate is once made ready for press with its overlaying, it is always
ready at a moment’s notice, without further preparation, for taking
impressions.
Counting-machines are appended to each end of the machine, that
no impression can be taken without being registered ; and when one
hundred impressions are printed, a bell strikes, to call attention to
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UNIVERSITY OF CHICAGO
Digitized by
1855.] The Bank of England Note . 689
the fact. In Napier’s machines three thousand notes are printed per
hour ; and two boys are required to feed with paper, and two to take
off the printed notes.
After the note is printed, as a part of the system, it was proposed
that it should be numbered and dated at the ordinary machines
instead of the Bramah’s machine heretofore employed. These
machines are also double, requiring two boys to feed and two to take
off. By this working the notes are completed, and handed over to
the cashier, to be examined and counted. By this part of the system
the note is decidedly superior to that of the old, the printing by the
new process being very much improved as a mere question of printing.
When the form is arranged in the printing-machines, the first act
of the printer is to obtain a perfectly level impression, equal in tint
at every part, which is accomplished by filling the back of the blocks
wherever he finds any elevation exists. This may be called a general
picture, which possesses the general appearance, but without the
lights and shades which give beauty and excellence to the impression.
When the general picture is obtained to the parties’ satisfaction, four
impressions are taken upon thin paper, and, according to the gradations
of tint required, the impression is cut away, so that in one place no
thickness exists, in others one, two, three, or all the thicknesses re-
main. For the darkest portion the four thicknesses are left, for the
lighter none are allowed, and for the intermediate tints two or three
thicknesses are left. The whole are then pasted together and placed
over the electrotypes, and, by the contrivance of the overlaying, those
parts which are desired to be darkest get the heaviest pinch, those
parts required to be of a lighter tint are the least heavily pressed ;
and in this way the impression is in a great measure brought to per-
fection.
The time has long since passed away when scientific men would
think of attempting to devise an inimitable note. A note to be inim-
itable must be made with a skill superior to the power of imitation
of all men. The doctrine of inimitability should be buried with that
of the philosopher’s stone and the elixir of life; nevertheless, certain
properties are demanded by the mercantile community, whereby a
man may readily determine a good note. In this matter, constancy
of appearance is of paramount importance, and in this particular the
new surface-note stands preeminent. As far as the protection of the
Bank is concerned, intricacy is not required, as the Bank is never at
a loss to detect a forged impression, be it executed ever so skilfully ;
and the system pursued by the Bank is so perfect, that no forged note
ever has escaped eventual detection.
The doctrine even of difficult imitation is one which must be studied
by physiological principles, and must be considered in reference to
the faculties of the eye and the properties of the mind. From such
causes, it is found, by long experience, that any extraordinary com-
plexity is not only useless, but delusive and dangerous, from leading
the mind into details which cannot be successfully appreciated.
In speaking of identity, there is also another property of the eye
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UNIVERSITY OF CHICAGO
690
The Bank of England Note.
[March,
to be considered ; for although there can hardly be any such thing as
absolute identity or likeness between any two objects, yet any objects
which do not differ more than four seconds will appear alike to
unaided vision, though with the microscope great differences may be
discernible. Whenever, then, throughout this paper, 1 speak of iden-
tity, I refer to the identity observable by the unaided sight; and after
all, it is but a rough comparative identity — a mere vision of identity
when examined in a philosophical point of view. As far as the public
is concerned, nothing can exceed the value of a uniform appearance ;
this the new note affords in the highest degree. Day after day, and
year after year, the character of the paper will not vary. The same
signature of 44 M. Marshall,” w hich appears in the paper of one note,
will be repeated in the next. The same wave-lines, the same rough
edges on three sides, the same shadows in the wyater-mark, will be
brought continually before the sight. The Britannia will have the
same expression of countenance, and w ill be repeated line for line,
and dot for dot, for millions of impressions, unchanged and apparently
unchangeable. The very weight of the paper does not vary above
two or three grains, unless damaged by w'ear, and the color of the
ink will be maintained as far as possible.
Bank-notes are perhaps as little, or less, liable to be falsified than
most other human inventions, in consequence of the certainty of the
eventual detection of the fraud, and the great risk of punishment from
the care and vigilance employed to trace out delinquents.
For extensive production and uniformity of expression, surface-
printing stands preeminently as the master. Although the daily pro-
duction of the Times, and the weekly production of the Illustrated
London News , may justly be termed the typographical wonders of
the world, yet the care bestowed upon the note to render its unlimited
duplication perfect, has a tendency to materially influence the printing
art in this department in a beneficial manner.
We are all too apt to think that art will stop at our point, and not
progress ; but it is the property of invention ever to move forward.
The point at which we have arrived must be the step from which
future improvements must spring; and, proceeding step by step, the
highest possible excellence w ill doubtless eventually be secured.
There are certain characteristics which are common to the whole
class of Bank of England notes, which should be knowm to all the
wyorld. In the first place, every note has three of the natural edges
of the paper, and one cut edge. In the centre of each note is a water-
mark, composed of wraved lines; and the words “Bank of England”
are inserted in the substance of the paper at the low'er and upper
portion, and a fac-simile of the autograph of Matthew Marshall, the
esteemed Chief-Cashier of the corporation. The Britannia is printed
on notes of all denominations, and all notes have the words, 44 1 pro-
mise to pay the bearer on demand.”
The entire class of bank-notes include twelve genera, as each of the
eleven branch-establishments issue notes with tne town upon it, as
Manchester, Liverpool, Birmingham, Leeds, Newcastle, Leicester,
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Original from
UNIVERSITY OF CHICAGO
The Bank of England Note .
691
1855.]
Bristol, Portsmouth, Plymouth, Hull, Swansea; and these, with
London, form twelve establishments issuing notes.
Each genus comprises several species, as notes are of several desig-
nations. Thus, in London, nine notes are issued : £5, £10, £50, £100.
£200, £300, £500, and £1000 notes. In every branch, notes are
issued up to £100; and at the two important commercial towns of
Liverpool and Manchester, notes of £500 are issued in addition. In
every genus of note, the denomination up to £50 is placed in the
water-mark in letters, and twice in shaded figures.
Every species of note is made of innumerable individuals, each of
which has an individuality as distinct and determinate for a bank-note
as the individuality which characterizes every human being; and also
characteristics as marked in the eyes of the Bank, to distinguish one
from another, and no more likely to be mistaken than our chairman
is likely to be mistaken by you for our secretary, even when you are
so perfectly familiar with their likenesses. This individuality is given
by a number and date being added to the denomination. The number
is of no use alone, the date is of no use alone ; but the number, date,
and denomination together conjointly mark the specific individual ;
and any person, having these particular, can learn at the Bank to
whom the note was issued, and when it was issued, the date of its
return to the Bank, and the person to whom money was paid for it,
with many other matters of its pedigree and family history, which
are only objects of interest to its mother, the Old Lady of Thread-
needle street.
It is not generally known to the public that there are letters pre-
ceding the numbers on every note, and which, with the number, tell
the whole story of the note. Therefore, if the public will but take
down the letters and numbers, they can learn every other particular
on applying to the Bank.
To give an idea of the extent of our operations, I find, on casting
them up, that there are sixty-six kinds of bank-notes, and about fifty
varieties of checks, which had to be prepared. Besides these, there
are twenty-five kinds of bank-bills, issued from eleven different places,
independently of sixty day-bills, and various matters w'hich would not
be interesting to the meeting, further than to showr that the Bank has
not merely adopted surface-printing to a bank-note, but to all similar
documents of a similar character which they require.
If we examine forms of notes printed by typography, we shall
observe that the notes of the Bank of France and the Belgian note are
so produced ; but in these cases the character of the note is adapted
to the style of printing ; and even there the number printed is so small
as to appear insignificant when compared with the number issued by
the Bank of England. At the former establishment about 300 im-
pressions are printed every day ; at the latter nearly 30,000 are pro-
duced ; as 9,000,000 notes are issued per annum, representing nearly
£300,000,000.
If we examine the note through its different stages, we cannot help
being struck with astonishment at the care wThich has been taken to
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UNIVERSITY OF CHICAGO
692 The Bank of England Note. [March,
protect the public from imposition. In the manufacture of the paper
every sheet must be accounted for ; and the Legislature has wisely
provided that no person, under the pain of transportation, may manu-
facture, sell, or expose for sale, paper with the words u Bank of Eng-
land” in its substance, or any curve bar-lines, or any denomination in
writing. When it is received in the Bank, it is again counted and
arranged by a decimal system, under the care of the treasurer, before
it is stowed away. When issued to the printer, the same number
must be handed over to the treasurer ; and when it receives its final
imprint, and is converted into the representative of money, it is re-
ceived by the cashier, who again examines and counts the number.
These perfect notes are deposited in a place of security, till life is
given to them by being carried as a credit into the bank-books. When
it passes into the hands of the public, it is amenable to laws which
are known to the authorities of the Bank. Each denomination has a
different average duration of life, like individuals in different cities,
and some are never heard of again, like people who go to foreign
lands, and their fate ever remains unknown. When the note returns
to the Bank, after inspection, it dies, never to be resuscitated. The
signature is torn off, the denominations are punched out, and it
becomes a piece of waste-paper. The registry of its death is taken
by a system devised by my brother, Mr. William Smce. This sys-
tem, which is remarkable for its simplicity and rapidity of execution,
has been in use with great success for many years, and those who are
partial to the details of scientific book-keeping will discover many
devices of interest, but which it is foreign to the purposes of my paper
to consider in detail. After the death of the note is registered, it is
then deposited in the vaults for reference for ten years, when it is
burnt. The object of retaining the notes for so long a period is exclu-
sively for the accommodation of the public, for although such a course
entails a very considerable cost to the Bank, yet the value of the
information which is daily being supplied from this cause shows the
importance of it to the monetary community. It is not on easy
matter to utterly destroy so large a number of notes as those which
are issued by the Bank. Experiments have been tried to reduce
them again to pulp, but they have never altogether succeeded, and no
plan answers so well as their destruction by fire. A large iron cage
is built in the middle of the yard, including a light brick furnace
pierced with holes. In this cage the notes are placed, and burnt by
sackfulls at a time, and nothing is left but a little white ash. For-
merly the paper was colored with smelt, and this was left at the
bottom of the furnace as a curious blue mass. The same care which is
taken in the manufacture of the paper, and in its transition through
its various stages, is maintained to its final destruction ; so that, from
the linen-pulp to the cinder, no person can become possessed of a
single sheet without committing a felony, immediately liable to detec-
tion. As the final result of the changes bank-notes undergo, I am
enabled to show you a piece of the blue ash, a portion of the white
ash, and a curious mass resembling peat, which arose from the con-
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The Bank of England Note.
693
1855.]
version of a number of bank-notes into a peculiar substance, from
years of exposure to wet and pressure.
A vote of thanks was then voted to Mr. Smee for his very valuable
paper ; and a vote was also given to the Governor and Deputy-Gov-
ernor of the Bank of England for their kind liberality in allowing the
specimens to be exhibited, and the process to be detailed.
T H X MILL.
The Bank-note Mills, the property of Mr. Wyndham Portal, are
situated in the parish of Laverstoke, in Hampshire, in the picturesque
valley of the Test. This is a limpid stream, rising about three miles
above the mills, thence running by Stockbridge, (famous for its fishing
club,) and, flowing through Lord Palmerston’s property at Broadlands,
near Hornsey, finally discharges itself into the Southampton Water.
The waters of the Test abound with fine trout.
The first bank-note paper ever issued was made in these mills, in
about the year 1719, and it has ever since been produced on the same
premises. From an analysis lately made by an eminent chemist, it
has been ascertained that the water of this river is well adapted for
the purposes for which it is required in this establishment. The
building, the machinery, and, indeed, the entire premises, have under-
gone very considerable alterations and improvements of late, (in fact,
they are not yet brought to completion,) in order to adapt them to
the perfect execution of the paper used for the new bank-note, the
issue of which is to commence on New Year’s day. The new build-
ings in which the unique machinery is placed were erected under the
superintendence of Mr. Hellyer, architect, of the Isle of Wight; and
while great care appears to have been taken to provide for every con-
venience and possible desideratum, as regards light, ventilation, and
comfort for the workmen, Mr. Hellyer has, at the same time, suc-
ceeded in giving to the whole an appearance of beauty and chasteness
which is but seldom to be found in works of a similar character.
Although Mr. Portal’s engineers (Messrs. Donkin & Co., Manchester)
have constructed machinery of the most improved character, and on
an extensive scale, for the various departments of bank-note-paper
making, upwards of eighty hands are kept in constant employment.
The water-wheel, (at least, the principal one,) just erected by Messrs.
Donkin, is a turbine — a description of water-wheel but little known,
as yet, in this country, though much used and highly appreciated in
some parts of the Continent. It is a horizontal wheel, and to it, in
this instance, is attached a beautiful contrivance, rendered necessary
here by the constantly varying level of the water at the tail of the mill.
These mills are used exclusively for the making of bank-note paper ;
and at the present time about 50,000 notes are made daily. The
artisans and work-people live mostly in neat and picturesque cottages
adjoining the premises, and are occupants of the same dwellings for-
merly tenanted by their great-grandfathers.
The quality and the water-mark of the bank-note paper have in the
new note (now on the point of being issued to the public) been brought
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694 The Bank of England Note . [March,
to a high degree of excellence. The moulds from which the paper is
made arc executed by Mr. Brewer, who, with Mr. Smith, patented a
very valuable invention, which was rewarded by a medal at the Great
Exhibition of 1851. Mr. Brewer is constantly in attendance at the
mills, in order that the slightest defect in any of the moulds may be
immediately rectified. It is not necessary here, nor, indeed, expedient,
to attempt to explain in detail any of the processes that are carried
on in the rooms of which sketches are given. Suffice it to say that,
in thus improving and endeavoring to perfect the bank-note paper,
the authorities of the Bank have had entirely in view the protection
of the public from fraud and loss. 44 Instead of defending themselves,”
(said the Rev. J. Barlow, in his lecture at the Royal Institution, on
“a Bank of England Note,”) “as is the practice in some other coun-
tries, by secret marks on their paper-money, the substance and printing
of which are equally ill-executed, the Bank of England accepts no
security which may not be possessed by any one who will make him-
self acquainted with the following characteristics of the paper and
printing.” The paper is distinguished by : 1. Its color; 2. its thinness
and transparency ; 3. its characteristic feel ; 4. its water-mark ; 5. its
three duple (or natural) edges, and one cut (or artificial) edge; 6. its
strength. No observant person can fail to notice the great diminution
of forgeries within the last few years, before which time the punishment
for such crime was no less than death. May we not hope, and may
not the Bank of England derive some satisfaction from the thought,
that the abatement of an offence which education was once supposed
to promote may be attributed to the diffusion of useful instruction
and information, liberally supplied, combined, as it generally is, with
moral and religious influences?
Forged Bant: of Exglaxd Notes. — I have already mentioned that on sevenA
occasions of late, forged Bank of England notes have been passed off on some of the
Paris money-changers. It appears that at Marseilles, Lyons, and Bordeaux, the
sarao fact has been observed. No one, however, was able to say exactly from what
parties the forged notes emanated. The man lately arrested in the Palais Royal, at
M. Montcaux’s, turns out to be a Spaniard. Ho had just before received lOOOf.
from M. Levy, of the Palais Royal, for forged English notes, and offered notes for a
similar amount to M. Monteaux. This latter at once informed him that the notes
were forged, to which the other rcpliod that such could not possibly bo the case, as
ho had himself received them only a few days beforo at the Bank of England. M.
Monteaux observed, that however that might be, ho (the scrivener) must accom-
pany him to the Commissary of Police. On hearing this, the stranger lost his assur-
ance, and took to flight Ho was, however, stopped in his course, just as ho had
arrived in the Rue Richelieu. On being searched, ho was found to have a large
quantity of forged notes about him, they being in general for £5, £10, and £20. A
telegraphic dispatch was at once sent to England, to make known the arrest of this
man, so as to put the English police on the alert. The notes are said to be exceed-
ingly well executed, which can account for the number of them taken by the
French changers. Tho Spaniard continues in custody, but refuses to make any dis-
closures.— Paris Correspondent London Morning Chronicle, Jam, 1S5j.
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The Bank of England Charter.
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THE BANK OF ENGLAND CHARTER.
BY A BANKER.
From The Bankers' Circular, January, 1855.
I. — The Bank Act of 1844 stands condemned as having produced the
effects predicted by its opponents.
II. — It was condemned by the necessity of its suspension.
III. — It was condemned by the immediate success of that suspension
in restoring confidence.
IV. — It was condemned by Sir R. Peel when he admitted it had
not answered his expectations.
V. — It was condemned by the Committee of the House of Lords
when they declared it had produced the panio of 1847.
VI. — It is condemned by the fact, that since its establishment
there have been greater fluctuations in the value of money than ever
were known before.
VII. — It is condemned by the statements of the Times paper, (July
6, 1848,) that the revolutions on the Continent were “in a great
measure a political result of that mercantile depression from which
this country is slowly emerging.”
VIII. — The panic of 1847 proceeded “ from an apprehension on the
part of all commercial men, that persons who were possessed of pro-
perty would not be able to convert that property into Bank of Eng-
land notes.” ( Lord's Report.)
IX. — The suspension of the Act prevented the stoppage of the
Bank of England. (Ibid.)
X. — The suspension of the Act prevented the discredit of the Bank
note, (lb.)
XI. — The London Bankers, during the panic, might have stopped
the Bank of England, the Bank having in gold only £700,000 to meet
above two millions of their deposits. (Ib.)
XII. — Yet at this very time the Bank had eight millions in the Issue
Department which they could not apply to their deposits, owing to
the suicidal Act of 1844.
XIII. — Though the Bank had this eight millions in gold specially
reserved for payment of her notes, she had twenty millions of notes
out, without any more gold to pay them with : hence, convertibility
depends upon credit, and the credit of the Bank is jeopardized by the
division of the Bank into two departments, under the Act of 1844.
(Lord's Report.)
XIV. — The Act of 1844 was passed notwithstanding a protest
against it by the London Bankers.
XV. — The Act of 1844 purported to check speculation. The result
was to foment speculation. (Lord's Report.)
XVI. — As soon as the Act of 1844 was passed, the Bank of Eng-
land (which had never previously discounted at less than four per
cent) lowered their rate to two and a half, and reduced the natural
and market rate of capital by a forced issue of their own notes. (Ibid.)
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The Bank of England Charter.
[March,
1
XVII. — The amount of bank-notes outstanding is no criterion of the
wants of the country, as the Chancellor of the Exchequer assumed.
In time of alarm, a large amount is not equal to a smaller one in
ordinary times. (76.)
XVIII. — It is a defect in the Act of 1844, that it applies the same
rule in two totally different cases ; namely, when the foreign exchanges
are adverse or favorable. (76.)
XIX. — It is a defect in the Act, that while it purports to increase
convertibility, it in reality tends to discredit the Bank of England
note. (Ib.)
XX. — As long as the Act remains, so long will panics be likely to
recur. (Ib.)
XXI. — The Bank of England is compelled to buy and sell gold at
fixed prices. Is this absurdity to continue till California compels a
change!
XXII. — A well-regulated paper currency is not subject to depreda-
tion.
XXIII. — Adam Smith sanctions £1 as well as £5 Bank of England
notes.
XXIV. — Never, before 1847, was a bargain made between Govern-
ment and a monied Corporation, that the former should partAke in an
usurious interest, to be wrung out of the commercial classes during a
period of distress.
XXV. — A sudden rise in the value of money depreciates all pro-
perty, stops or retards all undertakings, and causes the dismissal of
workmen. The average depreciation in 1847 was not less than twen-
ty-five per cent.
XXVI. — The manner in which the money crisis was got over in
France, notwithstanding the revolution, is a proof of the superiority
of the French system. (See Times pap- Feb. 16.)
XXVII. — Currency is properly the means or vehicle of drculating
property. For want of currency to represent property during a
period of alarm, it is unavailable, and in a great measure worthless.
The value of all the property in the kingdom is made to depend on a
basis of some ten or fifteen millions of gold, which a war, a famine,
or a panic, may at once cause to vanish.
XXVIII. — We ridicule America for repudiation, yet we virtually
act on the same system. To check a temporary drain of gold, we
destroy credit, and reduce our merchants to insolvency. The bills
drawn on them by foreigners are not paid. Thus the debts due for
corn by this country in 1847 were to a great extent virtually repu-
diated by Government, who, by delay in suspending the Act of 1844.
allowed so many failures to take place.
XXIX. — Interest of money is tne practical test of value. The Act
of 1844 at times produces changes in this test equivalent to an arbi-
trary alteration of the yard measure.
XXX. — Free trade can not exist so long as the price of gold in
this country is fixed.
J
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SKETCHES OF BANKING HISTORY.
/. Bank of Albany, Neic- York. II. Mechanics 1 Bank, New-York.
III. Pawtucket Bank, Massachusetts .
The prior volume of this work contain sketches of the early history of the Mer-
chants’ Bank, New-York, Bank of America, Massachusetts Bank, and Bank of New-
York, Bank of North America, Philadelphia. We propose to resume these sketches
whenever the materials can bo collected. — Ed. B. M.
I. Bank of Albany.
From the Albany Evening Journal
This old and well-conducted institution closed its chartered exist-
ence on the first day of January, 1855, and at the same time com-
menced its new career as an associated bank, with an increased capital
of $360,000 instead of $240,000, which will enable its officers to extend
its sphere of usefulness. The Bank of Albany was the second bank
chartered by the Legislature of this State, and the fourth in the Union.
The Bank of North America, located at Philadelphia, received its char-
ter from Congress in 1781, and its powers were extended or confirmed
by this State in 1782. The Bank of New-York, in the city of New-
York, was chartered in 1791, and the third bank was the Massachusetts
Bank, located in Boston.
The following brief record of the organization, etc., of the Bank of
Albany, from the year 1792 up to the present time, has been compiled
from authentic materials.
Jn the year 1791 it was deemed necessary by our citizens that a
bank should be established in the city, and the necessary measures were
adopted for that purpose.
On the 17th of February, 1792, articles of association had been pre-
pared, and subscriptions were then solicited for the purpose of com-
pleting the arrangements. The following is the preamble to the
articles of association :
“ Whereas, It is conceived that it will be of public utility to estab-
lish a bank in the city of Albany, we, the subscribers, have therefore
associated ourselves as a company for the purpose of establishing said
bank by the name of ‘The Bank of Albany,’ subject to the rules,
articles, restrictions, limitations, and provisions following
The capital of the Bank was limited to seventy-five thousand dollars,
consisting of five hundred shares, of one hundred and fifty dollars each,
payable in specie, and the sum of fifteen dollars on each share was
required to be paid at the time the subscription was made.
The concerns of the Bank w^ere to be managed by a Board of
Directors, consisting of thirteen persons, nine of whom, at least, were
to be residents of the city, and at each election after the first, three of
the then Board were ineligible, and were to continue so for the term
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of one year thereafter. The same restrictions were contained in the
charter granted by the Legislature, and they were not removed until
the year 1824. ^
At elections for directors, the stockholders might vote in person or
by proxy as follows: For each share, and not exceeding four, one
vote; for five shares, and not exceeding seven, five votes; for eight
shares, and not exceeding ten, six votes ; and for every seven shares,
exceeding ten, one vote ; but no person or company were entitled to
more than fifteen votes for any number of shares they might hold.
The debts of the Bank were at no time to exceed three times the
amount of its capital actually paid in, and should an excess occur and
loss ensue, the Directors were liable in their private capacity.
The rate of interest for its discounts or loans was the legal interest
established by the State, and no discounts were to be made upon notes
having more than sixty days to run.
These articles of association were signed by ninety-one persons or
firms, and the number of shares of stock subscribed for was 537, rang-
ing from one to fifty shares.
In the list of names thus recorded, we find the following prominent
citizens of that day: P. S. Van Rensselaer, John Tayler, Dirck Ten
Broeck, John Woodworth, (the only signer now living) Stephen Lush,
Abm. G. Lansing, Sam’l. Stringer, G. Banyar, Jno. Maley, John R.
Bleecker, John Stevenson, Abraham Ten Eyck, Barent Bleecker,
William Cooper, James Caldwell, John Robison, with many others of
the like standing in society.
The first election for the choice of directors was held on the 27th *
day of February, 1792, and the following persons chosen, namely : )
Stephen Van Rensselaer, Goldsbrow Banyar, Daniel Hale, Abraham
Ten Broeck, Cornelius Glen, Albert Pawling, Stephen Lush, John
Maley, John Stevenson, John Sanders, James Caldwell, Philip Schuy-
ler, and Jeremiah Van Rensselaer.
Stephen Van Rensselaer was subsequently elected President of the
Board, and discharged the duties of that office until the first election
held under the charter in June, 1792.
On the 10th of April, 1792, an act of incorporation was granted by 1
the Legislature, and it contained all the essential features comprised in
the articles of association before recited.
By the provisions of this act, the capital of the Bank was increased
to the sum of $240,000, divided into six hundred shares, of four hun-
dred Spanish milled dollars each, or the equivalent thereof in specie ;
and the directors chosen under their articles of association, were desig-
nated or selected to the same office.
The rate of interest on loans or discounts was fixed at six per cent.
The right was reserved to the State to subscribe to the capital stock of
the Bank to the extent of fifty shares. It was made the duty of the
directors to make half-yearly dividends of so much of the profits of
the Bank as they should deem advisable. This provision, taking into
account the extra dividends declared, was literally carried into effect,
and the semi-annual payments were from three to five per cent, the
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Bank of Albany.
699
greater portion of which were four and one half per cent. Holders of
the stock of the Bank could not transfer the same until they had paid
all their obligations due at the Bank.
At the organization of the Bank under this charter, in June, 1792,
Abraham Ten Broeck was elected President, and continued to discharge
the duties of that office until the year 1798.
In the month of January, 1794, in accordance with the provisions of
the charter, the capital of the Bank was increased $54,000, being 135
shares at $400 each ; and there being a larger amount subscribed for
than was required, a committee, consisting of Jeremiah Van Rensse-
laer, Jacob Van Derheyden, and John Maley, appointed for the pur-
pose, made the following distribution :
Ninety-four persons, 1 share each, . . .94 Two persons, 10 shares each, 20
Five “ 2 “ “ ...10
One “ 3 “ “ ... 3 Total shares, 185
One “ 8 “ “ ... 8
By subsequent enactments of the Legislature, and by subscriptions
on the part of the State, the capital of the Bank was increased to
$320,000 and it continued at that amount until the year 1820, when
the sum of $100 on each share was returned to the stockholders, thus
reducing the capital of the Bank one fourth, and the value of each share
to $300.
In the year 1832, when the charter of the Bank was extended to
January, 1855, for the purpose of more widely diffusing the stock of
the Bank, the par value of the shares was reduced to the sum of thirty
dollars, and the number thereof proportionably increased.
The first building used for a banking house was an old-fashioned
Dutch edifice, standing on the Caldwell lot in North Pearl street, third
north of State street, and which was then owned by Casparus Ilewson.
In February, 1794, the Bank purchased the lot now next south of the
Mansion House, in Broadway, in part occupied by Cooke & Booth,
and subsequently erected thereon a building for banking purposes, and
occupied the same until the year 1810. The same building was sub-
sequently used for the post-office. In the year 1809, the Bank pur-
chased the property on the corner of State and Court streets, now
Broadway, and erected thereon a splendid banking house. This build-
ing was occupied by the Bank from February, 1810, until the year 1832,
when it was torn down for the purpose of widening State street, and
the award made to the Bank by the Commissioners for the property
taken was forty-seven thousand dollars.
During the last recited year (1832) the Bank succeeded in procur-
ing a lease for the term of 21 years of the lot on which now stands the
building occupied in part by them for banking purposes. This build-
ing was also erected by the Bank, and by the terms of the lease the
value thereof was to be appraised at the expiration of the above term,
and the value thus fixed was to be paid to the Bank by the lessor.
In addition to the persons previously named, the following have held
the office of President for the periods indicated :
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■JOO Sketches of Banking History. [March
Jer. Van Rensselaer, 1798 to 180C John Van Schaick, 1814 to 1820
Phil S. Van Rensselaer,, . 1806 to 1810 Barent Bleeeker, 1820 to 1S40
Dudley Walsh 1810 to 1814
Jacob IT. Ten Kwk. the pivs.nl worthy incumbent, received his
appointment in ls to, and tn-m that period till the present has con-
tinued to discharge the duties ofhis Office in a manner not only highly
creditable to himself bat with great benefit to the Bank.
Since the Organization of the Bank to the present time, a period of
sixty-two years, there have hern hut four cashiers in charge, namely :
Q0T. Van Schaick,. . . 1792 to 1815 Jellis Winne, Jr., 1832 to 1849
John Van Zandt, 1815 to 1832 E. E. Kendrick, 1849 to 1855
Of the Presidents and Cashiers, except the present incumbents,
none are now living with the exception of Cashier Van Zandt, who has
attained the good old age of 88 years.
James Van Ingen and Ilarmanus P. Schuyler were the first clerks ;
and on the appointment of James Van Ingen to a clerkship in the
House of Assembly, John Van Zandt was appointed his successor, in
which capacity he was continued till his promotion to the office of
Cashier, in the year 1815.
The late John W. Yates was for many years a Teller in this Bank,
and it was probably owing in a great measure to the business habits
acquired and the discipline enjoined in discharging the duties pertain-
ing to that station, that secured to him the appointment of Cashier of
the New-York State Bank in the year 1803.
The Bank of Albany has ever been conservative in its management.
It has been fortunate, also, in its officers, all of whom were men of
integrity and prudence.
We have been permitted to look through the early archives of the
Bank, from which a few extracts are subjoined, peculiarly interesting
as a reflex of the olden time :
“July 20, 1792. — Resolved , That the Cashier cause to be engraved
bills of the following denominations : One bill of 25 ; one bill of 30 ;
one bill of 40 ; one bill of 50. The said bills to correspond with the
paper intended for half-dollar bills.”
“Sept. 29, 1792. — Resolved, That from and after 27th instant, no
discount will be made on notes or bills having more than forty -five
days to run.”
On the same day they resolved to discount notes for gentlemen
residing in Troy, Schenectady, and Waterford, and in the Colonies.
“Sept., 1795. — The President presented a letter signed by Philip
Schuyler, David Brooks, and John Cantine, requesting the loan of
81500 for the purpose of treating with the Oneida Indians. It was
cione.”
“ Oct., 1796. — ifrso/iW, That the Cashier be requested to send 830,000
in specie to New-York, by Capt. Mathew Trotter, to take up our
notes in the New-York Bank to that amount.”
“Nov. 27, 1800. — Resolved, That John Willard be appointed an
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additional clerk to this Bank, at the salary of three hundred dollars
per annum ; that his duties be pointed out to him by the Cashier, and
that two sureties be taken, in the sum of four thousand dollars, for the
true performance of his duties.”
“ 24th Jan., 1801. — Resolved, That the great calls on the Bank for
money to sustain the wheat and potash speculations, will render it
inconvenient to receive the paper of any other bank for the space of
one month after this day.”
“ Resolved, That Stephen Lush, Philip S. Van Rensselaer and Simeon
Dewitt, be a committee to call on Messrs. Aaron Burr, Brockholt
Livingston, and Richard Harrison, Directors of the Manhattan Bank,
for the purpose of inquiring of them whether it is the intention of the
Directors of said Bank - to establish a branch in this place, or its
neighborhood. If so the Directors of the Bank of Albany think it
necessary to apply to the Legislature of this State for a declaratory
act against it. If, however, the Directors of the Manhattan Bank think
proper to enter into an agreement with the Bank of Albany not to
establish a branch at Albany or its neighborhood, that in such case
they are not disposed to make the application with intention to injure
them ; and that the committee make report as soon as convenient.
“ Dated Bank of Albany, at their Chamber, Feb. 2, 1800, at 10
o’clock, A.M.”
Mr. Kendrick, the present efficient Cashier, was appointed in the
year 1849, and from that time till the present has been diligent, ear-
nest, and successful, in enlarging the sphere and extending the useful-
ness of the institution; and he is about to close old and open new
books, with his balances largely in favor of stockholders, while the
public stand ready to receive and welcome with confidence and appro-
bation the new impressions of a very old friend.
II. The Mechanics’ Bank, of the City of New-York.
From the New- York Commercial Advertiser.
The charter of the Mechanics’ Bank of this city expired January 1,
1855.
It was chartered in March, 1810 ; it has therefore been nearly
forty -five years in existence. It was originated by the General Society
of Mechanics and Tradesmen, which at that time was one of the most
powerful societies, for its political and moral influence, that existed in
the city. The shares of the Bank were made at $25 each, that the
members of that Society might become holders, and each member was
entitled to subscribe for a certain number of shares. The Society itsolf
was allowed to take 6000 shares, with the privilege to pay for it within
a certain time : afterward a compromise was made between the Bank
and the Society, and the Bank gave the Society 1000 shares without
requiring any payment, in consideration of relinquishing its right to
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take the 6000 shares. The majority of this stock the Society holds to
this day. By the terms of the charter seven of the Bank’s directors
were required to be members of the Society, and of that number four
must actually follow a mechanical profession, and this has always been
strictly observed to the present time.
The first President of the Bank was John Slidell ; the first Cashier,
Whitehead Fish. The first Directors were : Jacob Sherrod, Stephen
Allen, Anthony Steinbeck, J. D. Miller, Francis Cooper, John SlidelJ,
Gabriel Furman, Matthew L. Davis, Samuel St. John, Naphtali Judah,
George Warner, John R. Murray, and Jonathan Lawrence, Jr.
During the war of 1812 the banks of this city, as well as all others
in the United States, suspended specie payments, and during that
memorable period when the credit of the government was so low that
a gloom was cast on the whole country, and the Hartford Convention
was spreading distrust on every side, the New-York banks, (one of
which was the Mechanics’,) stepped forward and freely advanced means,
and gave new life to the army and country ; and, as a singular conse-
quence, when within the last few weeks a careful account was taken of
its outstanding circulation, it was found that between $30,000 and
$40,000 of the notes issued at that time, (40 years ago,) have never
been returned to the Bank, while the circulating notes issued between
that period and the year 1843 (when the present law requiring all the
bills to be registered in the State department went into effect) have
all returned but three or four thousand dollars.
In 1819, Jacob Lorillard was elected President, and J. Fleming,
Cashier, and up to 1834 it did a most prosperous and healthy business.
It was remarkable for receiving more deposits and paying more checks
than any other bank in the city, in consequence of having so large a
class of small, as well as large, dealers.
In 1834, John Fleming being President, it was selected by the
Treasury Department at Washington, on the removal of its deposits
from the Bank of the United States, as one of the three banks to be
the depository of the U. S. revenue in this city, and from that period
may be dated the disasters which followed in the spring of 1837. The
Bank of America, Manhattan Bank, and the Mechanics’, were the three
Banks selected, and two of the three suffered severely for their ambi-
tion ; the truth being realized that it was harder to bear prosperity
than adversity. An immense deposit was thrown into each of these
Banks — at one time, we believe, amounting to twelve million in the
three. To resist the temptation of loaning this immense sum, was
impossible to any man of ordinary firmness and virtue. The conse-
quence was that an inflation was given to every operation of a specu-
lative character, and the end was ruin and disaster to thousands, and
very nearly destruction to the Bank itself. The losses sustained by
the Mechanics’ Bank in 1837 were estimated at $1,200,000.
In the midst of its troubles in May, 1837, its President, J. Fleming,
died suddenly, and the banks of this city had to loan it $1,000,000 to
sustain a run made upon it. Jacob Lorillard was called once more to
its Presidency, and John Leonard made Cashier. Shortly afterward
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1855.]
Mechanic £ Bank , New -York City .
703
Mr. Lorillard died, and Mr. Shephard Knapp was appointed President.
Mr. Leonard, who was not familiar with the business, was persuaded
to resign, and Mr. F. W. Edmonds, then Cashier of the Leather
Manufacturers’ Bank, was appointed Cashier. These gentlemen
have been re-elected for the present year In 1843, the Legislature
reduced its capital, in consequence of the losses under Mr. Flem-
ing’s administration, and from that day forward the institution has
stood high in the estimation of the business community.
Its dividends for the past five years have been ten per cent per
annum, and on winding up it pays a final dividend of 38 8-9 per cent ;
having thus repaid to its stockholders the amount they lost by the
reduction in 1843, besides regular dividends from that time to the
present
It has been the depository for the corporation of this city, we believe,
from the first year of its existence until 1837. The deposits were
then taken to another bank, at the request of its directors, while the
Bank was in trouble. In 1848, they were again brought back, and
have remained there ever since. The accounts of the city have been
kept there thirty-three years in all.
There are 815 stockholders in all. To those who are curious to
know their locality, the following may be interesting. In State of
New-York, 570
Connecticut, 126
New- Jersey, 63
Massachusetts, 7
Rhode-Island, 7
Vermont, 2
Pennsylvania, 6
Virginia, 3
Georgia, 1
Maryland, 2
South-Carolina, 3
Ohio, 2
New-Hamp8hire, 2
Louisiana, 1
North-Carolina, 1
Spain, 1
England, 4
France, 2
West-Indies, 3
Canada, 2
Scotland, 2
New-Brunswick, 6
Total, 815
On the 1st January, 1855, the Mechanics’ Bank was reorganized
under the general bankinglaw of the State, with a capital of $2,000,000,
instead of $1,440,000. The following gentlemen constitute the pre-
sent Board of Directors, namely :
Directors for 1853.
Shepherd Knapp,
Robert Kelly,
A. C. Kingsland,
T. C. Chardavoyne,
Richard Irvin,
Linus W. Stevens,
Francis Hall,
C. H. Sand,
Oliver B. Tweedy,
JonN Bullard, Jr.,
Willtam Chamberlin,
P. A. IIargous,
F. W. Edmonds,
James Morris.
Officers.
Shepherd Knapp, President Francis W. Edmonds, Cashier .
John Burke, Assistant Cashier .
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704
Sketches of Banking History.
[March,
III. Pawtucket Bakk, Pawtucket, Mass.
This Bank was chartered by the Legislature of Massachusetts, in
1815. Its capital stock of $100,000 was divided, at the time of its
failure, among 117 stockholders.
In October, 1850, the Bank Commissioners visited the Bank in com-
mon with other banking institutions of the State, for the purpose of
examining into its condition — a renewal of its charter having been
granted, provided its affairs should be found in a healthy state. After
a careful and rigid search, the Commissioners and Directors became
satisfied that, by the unlawful management of the Cashier, the property
and credit of the Bank had become very largely involved, so much as
to require the prompt interference of the Supreme Court. Where-
upon an injunction was asked for and granted October 10, 1850, and
Win. Dehon, of Boston, and Henry P. Knight, of Providence, R. I.,
were appointed Receivers.
The claims against the Bank at the time of its failure were, for bills
in circulation $02,330, and for deposits, time-checks illegally drawn,
etc., more than $147,000; making in all nearly $210,000. Checks
drawn on a bonk in Providence to the order of a third party, and
made payable at a future day, amounted to nearly the whole capital oj
the Bank.
Of the circulation, $61,009 have been redeemed in full, leaving
$1327 still outstanding, a large proportion of which has probably been
destroyed. All other claims have been adjusted without litigation,
and interest has been paid to bill-holders and other creditors, whose
claims were established before the Receivers in due time. The pri-
vate property of the Cashier, which was promptly surrendered by him,
and the amount received from his sureties, went far to cover the loss
which would otherwise have been sustained by the stockholders;
although without this aid no loss would have accrued to the creditors
of the Bank.
After the payment of creditors, the Receivers were discharged by
the Supreme Court, and ordered to pay over the remaining assets to
the stockholders, who, at a meeting regularly called and held in June,
1852, appointed Alanson Thayer, Laban M. Wheaton, and Henry P.
Knight (the first two stockholders), as Trustees to receive from the
Receivers these assets, and close up the business of the Bank as soon
as practicable.
Three dividends have been paid by the Trustees to the stockholders,
namely, Oct. 1, 1852, 25 per cent; Oct. 1, 1853, 25 per cent ; and Nov.
20, 1854, 33 per cent ; making in all 83 per cent, or $83,000 of the
$100,000 capital stock.
By an order of the Court, the redemption of bills was made to cease
January 1, 1853, but the affairs of the Bank remaining unsettled, and
the Trustees having funds in their hands, they continued to pay out-
standing bills, until the time of final dividend to shareholders. No
more, however, will be hereafter redeemed, and the Pawtucket Bank
may now be considered as finally closed.
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UNIVERSITY OF CHICAGO
1855.]
On the Prevention of Counterfeiting .
705
ON THE PREVENTION OF COUNTERFEITING.
Extracts from the Second Annual Report of the Board of Managers of
the Association of Banks for the Suppression of Counterfeiting .
Boston , 1855.
Two banks are members in the State of New-York, and the Bank of
Quebec in Canada, making in all two hundred and twenty-one banks
now belonging to the Association. Last year the number belonging
to the Association was one hundred and ten, making an increase the
present year of one hundred and eleven banks. There were twenty
charters granted for Banks by the last Legislature of Massachusetts,
making one hundred and seventy-one, which, together with the increase
of charters in the other New-England States, will make a total of
about five hundred institutions of this class in New-England.
It is very desirable that every bank in New-England should be a
member of the Association, in order to furnish means and otherwise
cooperate to suppress the alarming business of counterfeiting bank-
notes on New-England banks.
The very large banking interest of the State of New-York, would
seem to require that an association should be formed in that State, or
unite with us against the common enemy, as our operations are so
managed, that if all the banks in the United States and Canadas would
join us, thus furnishing the means and influence, we could operate
equally successful in all parts of the United States, Canadas, and
Provinces.
An informal organization of banks in Philadelphia has been in
existence about eighteen months, which has operated to some extent
in that vicinity, and succeeded in sentencing to the penitentiary seven
or eight of the most notorious forgers in that section. It is their
design to have immediately a formal organization, which shall embrace
all the banks in Pennsylvania, New-Jersey, and Delaware.
We hope they will be successful in forming their Association, and
can assure them, from our experience, that it is the only way to
operate with a small tax, and any considerable success.
The importance of union by the banks on this subject, is made daily
more manifest by the constant discoveries of organized bands of the
manufacturers and utterers of counterfeit money in all parts of the
country.
The Board of Managers have held eight meetings, at "which reports
have been made of the doings of the Executive Committee, and their
doings approved.
The Executive Committee have held forty-two meetings during the
past year, at which a great increase of subjects have been presented and
discussed, relating to various matters affecting the interests of banks ;
and have given special directions and authority in operating extensively
against counterfeiters, which will be more particularly referred to in
another part of this report.
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706
On the Prevention of Counterfeiting .
[March,
It was stated in the last annual report, that a reward had been
offered by the Executive Committee of five hundred dollars, for the
invention of a paper and ink that would prevent the alteration of the
name or the denomination of bank-bills.
The sub-committee having the matter under consideration, examined
and tested a large number of applications and plans presented, and
published a detailed printed report in May last, which was sent to each
bank belonging to the Association, 'which renders it unnecessary to
speak at length on this subject at the present time. As this report,
however, may fall into the hands of some parties interested, who did
not see the report referred to, 44 upon the subject of bank-notes,” it
may not be amiss to repeat here the remarks upon which the few last
conclusions are based, together with the conclusions arrived at, which
were as follows, to wit :
i
remarks:
44 The Executive Committee having instituted, through another com-
mittee, an inquiry into the possibility of copying or counterfeiting
bank-notes by the Crystallotypc process, through the chairman of this
committee we are made acquainted with the fact that it can undoubt-
edly be done, so as to escape detection, to an alarming extent. We
have seen that by a kindred process (Photographic it is said,) the Bank
of England’s officers, alwrays on the watch to detect forgeries and alter-
ations of bank-notes, and especially of those of its own, have been
deceived by the perfection of the copy ; and, judging from the few
experiments made under direction of the Committee referred to, we
have no doubt that, by the Crystallotypc process, bank-notes can be
so well copied as to be passed into the bank issuing the original note
as certainly as the original itself. Indeed, one such note, or copy, has
been taken and presented to the cashier of a bank in State street ;
who, expressing some surprise at the appearance of the note, (as well
he might, for being among the first taken on bank-note paper, its
appearance was baa enough,) yet unhesitatingly declared it to be a
true bill, beyond all doubt, because the signature was genuine — was
his own signature ; of that he was sure ! The risk of a note’s being
copied by Crystal lotype, Photographic, or other similar process, so far
as now known, attaches to all notes printed simply with black ink. It
is believed that very fine print cannot be so perfectly copied as a pic-
ture, and that certain colors cannot be reproduced at all. Red pro-
duces black . This belief and this fact suggested to the Committee
having this matter in charge, that if bank-notes were printed all over
with fine letters in red ink, one half the name of the bank, and the other
half the value of the note, as a ground- work, giving a pink appearance
to the paper, and the bank-note, in the usual style, was printed thereon
in black ink, the note could not be copied successfully by the processes
referred to; and that alterations would be rendered more difficult, as
the note would hardly ever get so badly worn but that some part of
the fine lettering would remain to show its origin and value, upon a
close examination.”
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1855.] On the Prevention of Counterfeiting . 707
“ And after a careful review of the applications for the reward, and
of the letters received from sundrv banks in reply to queries issued by
the Executive Committee upon the subject of bank-notes, we are of
opinion that it is desirable, as an experiment of much promise, that the
issues of bank-notes should be of three classes : ones, twos, and threes,
forming one class; fives and tens, another class; twenties and up-
wards, a third class ; that these classes should be sufficiently diverse
to make it apparent at once to an ordinary observer that a note altered
from one to the other, is an altered note, and from what class ; while
the whole should have a general character and appearance as bank-
notes— paper money. The first class, ones, twos, and threes, should
be the ornamented, picture, fancy notes of the Bank ; the second, fives
and tens, should be of the character of the fives and tens issued by the
Globe, Lowell, and some few other banks ; the third, of the character
of the large notes of the old Perkins stereotype steel-plate, which might
be sufficiently embellished, if desired, by end-pieces containing heads of
well-known men in public or private life. It is believed that this plan
might be adopted without diminishing the circulation of any bank, as
the persons usually retaining a bank-note for its picture, would be
most likely to retain one of the smallest value ; and that, if adopted
into general use, the alterations of value would usually be confined
within classes — that is, in one to two or three; five to ten; and
twenty, upwards, to one thousand dollars; and might be rendered
more difficult by the separate and differing construction of the notes of
each class, always preserving the general characteristics of the class,
and never infringing upon the distinguishing one for small notes.
“ To prevent the alteration of the name of the bank in bank-notes,
whereby the name of a sound bank may be substituted for that of a
broken one, we must rely to a great extent upon the ink used in print-
ing bank-notes, and the manner of using it. We do not give up all
hope of obtaining an indelible ink ; and when obtained , and until
obtained , all bank notes should be printed upon bank-note paper before it
is sized . When thus printed, the ink sinks more into the body or
substance of the paper, and it becomes more difficult to remove it
without destroying the paper itself. The impression is more perfect,
‘ sharper,’ and the sizing tends to sink a portion of the ink yet deeper
than it was left by the printing. It is believed that there are no
serious, no insurmountable objections to this course. It would involve
the necessity of a sizing-room as a necessary appendage to all bank-
note printing-offices, but would not greatly increase the expense of
printing and paper. The paper could be better sized for use, it is
believed, in this way, both as regards the durability of the note and
the beauty of its impression, than it is now done. We hope that this
mode of printing and sizing the paper of bank-notes may come into
general use.”
“ Some six or eight of the applicants for the reward propose that
the one-dollar notes should be every way smaller than the twos — the
twos larger than the ones, but every way smaller than the threes —
and so on ; for each note a different size. This plan we suppose would
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708 On the Prevention of Counterfeiting . [March,
be impracticable in general use ; as, if the notes differed from each
other progressively but one third of an inch each, the total differences
between a one dollar note and a thousand-dollar note would be three
inches ; a difference which, quite objectionable on other considerations,
is open to the very serious one that it would probably lead to constant
errors in the count of money in packages. A modification of this
plan, and applying it only to the ones, twos, and threes, we should
like to see introduced by some bank, that its practical operation might
be judged of. For instance, we should like to have some bank issue
this class on paper of the same outline size as that of its other notes,
but leaving a margin of an inch on the right-hand end of the one-dollar
note, uncovered by the vignette, denomination, (figures,) or any part
of the note except its outline line; two thirds of an inch on the two-
dollar notes; and one third of an inch on the three-dollar notes.
Should the plan succeed, and in process of time be generally adopted,
and the size of these notes be universally the same, it would seem to
be very difficult to alter one of them to a note of a higher class so as
to escape detection when offered to any one at all acquainted with,
and observant of, the paper money usually in circulation.”
conclusions:
“ 1st. That nothing has yet been offered which the Committee can
recommend as a perfect protection against alterations.
“2d. That the attainment of the object, by the means proposed to
itself by the Executive Committee, and for which the reward was
offered — that is, by some invention of paper or ink, singly or in com-
bination— has not yet been accomplished.
“ 3d. That it is recommended to the banks to adopt some means
immediately to protect themselves against the counterfeiting of their
notes by Crystallotypc, Photographic, or any similar process ; and
that the Executive Committee recommend — as the best mode known
to it of doing that, and at the same time of adding further difficulties
in the way of altering bank-notes — to have the name of the bank, and
the denomination of the note, in fine lettering, printed first on the face
of the note, in red ink, as a ground-work upon which to print the
regular usual impression.
“4th. That it is recommended — in order to put a stop to most of the
alterations now in circulation — and which , as a general ra/e, are those
only which have ever been in circulation — that the banks do adopt, so
far and so fast as they can, the classifying of their circulation, as herein
recommended, so that no note less than five can be altered to a five,
or to a larger denomination ; and no note less than twenty can be
altered to a twenty, or to a larger amount, without risking certain and
immediate detection.
“ 5th. That it is recommended that bank-notes should be printed
before the paper is sized, as a great protection and a great advantage. •
“ 6th. That we should like to see the experiment tried of having bank-
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UNIVERSITY OF CHICAGO
Digitized by Google
1855.] On the Prevention of Counterfeiting . 709
notes of three dollars and under printed smaller than the other notes
in circulation, in the manner proposed herein.”
Any bank desiring a copy of the 44 Report on Bank-Notes,” it can
be furnished on application to the Secretary.
A reward of one hundred dollars was offered in May last to manu-
facturers of bank-note paper, 44 for the best specimen, in the opinion of
the Executive Committee, of bank-note paper, of not less than five
hundred sheets, which may be submitted to them on or before the first
day of January, 1855.”
This reward was not offered as being deemed an equivalent in itself
for the time, labor, and expense which might be bestowed upon speci-
men sheets by the paper-maker who might be disposed to compete for
the prize ; but it was hoped that it might be regarded a9 worth con-
tending for, as a substantial evidence, if obtained, of the consideration
and estimation in which this product of his skill w^as held by a con-
siderable body of gentlemen best fitted by experience to form a correct
judgment upon its merits ; and whose decision would probably greatly
increase its sale and use. It was also supposed that the proffer of the
reward might turn the attention of all the manufacturers of paper for
bank-notes to the subject, with especial reference to the production of
a stronger, more durable, and firmer article, without a sensible
increase of bulk ; and induce them to exercise their knowledge and
ability, derived by them from experience in its manufacture, to the
attainment of these ends. At the time of the preparation of this
report, no application had been made for the reward. The time, how-
ever, within which application must be made, has not yet expired.
Meanwhile, if this effort to procure a better article of bank-note paper
than that now in use should be unsuccessful, the managers do not
intend losing sight of the matter, but will use due efforts to accom-
plish so desirable a result as opportunity may offer.
The Association having been applied to by officers of the law to pur-
chase counterfeit bank-plates, bills, dies, and implements used for
counterfeiting, after having been used as evidence to convict counter-
feiters, and presuming that the laws of most, if not all of the States,
do not require the destruction of such plates, bills, and implements,
the Secretary was instructed according to the following vote, to wit :
“Voted, That the Secretary be instructed to confer with some
prominent bank in each State in the Union, as to the best means to be
used to procure the passage of a law in such State, making it obliga-
tory upon the courts thereof to take charge of all counterfeit notes and
plates, dies, and other implements used by counterfeiters, which may
be taken possession of by the officers of justice therein, and cause the
same to be destroyed, as soon as the ends of justice will permit ; and
making it the special duty of such officers to take possession of all
such notes and plates, dies and implements, which it is in their power
so to do, and to deliver them to said courts, to be dealt with according
to law. Also, making it obligatory upon the courts to destroy the
plates of all banks that may close up their business, by failure, expira-
tion of charters, or for any cause whatever, that such genuine plates
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710 On the Prevention of Counterfeiting . [March,
may not fall into the hands of counterfeiters, which, to our knowledge,
has been the case.”
The subject-matter contained in the foregoing vote is very important,
affecting as it does, the banking interest of every State in the Union ;
and proper efforts should be made to procure the passage at onoe of
all necessary laws on this subject.
The plan adopted in August, 1853, and continued to the present
time, of offering rewards for the conviction and sentence of engravers
of plates for counterfeit bank-notes, or dies for altering the same — also,
for each person convicted and sentenced for uttering counterfeit bank-
notes, works admirably, as the marshals and police officers, in various
parts of the country, are on the alert for this class of individuals.
By the last annual report fourteen persons were convicted and sen-
tenced during the year preceding.
From February 15th, to December 31st, 1854, sixty-four persons
have been convicted and sentenced, and twenty-two more are in jail
awaiting trial, or under bonds. Several persons have been released
for want of proof.
Our success, in connection with the authorities of Canada, in sentenc-
ing to the Provincial Penitentiary, for seven years each, persons who
have for many years engraved the plates, and manufactured counter-
feit bills, on several of the New-England banks, some of which have
been well calculated to deceive, strikes a blow at the “fountain-head”
and parties engaged in this business will perceive that neither old age
nor wealth will screen them from the justice and majesty of the law,
if they persist in following this nefarious business.
Willard Gleason, it is said, has been in the business of manufactur-
ing and selling at wholesale counterfeit bank-notes for from thirty to
forty years, is estimated to be worth from eighty to one hundred
thousand dollars, and offered, when arrested, forty thousand dollars
bail , real estate security. Presses, plates, and a variety of implements
for counterfeiting, were found on his premises, enough to require a two-
horse team to transport them to Montreal.
Elijah Hurd, an engraver, as will appear on a subsequent page, in
the remarks of Judge Aylwin, in delivering the sentence of the court,
has been one of the most dangerous men in this department of counter-
feiting known on this continent.
He is reputed to be one of the best workmen in this country, and
has been known and looked after by this Association for a long time,
but his secret and secluded management and operations have been
such for the last few years, as to thwart all attempts to bring him to
justice.
lie is now receiving the reward of his folly and depravity of mind.
In this connection we desire to notice particularly the zeal, energy,
and determination displayed by the Canadian authorities in ferreting
out, arresting, bringing to trial and punishment, this old and well-
organized gang of counterfeiters, who have for years flooded the United
States with their forged notes, well calculated to deceive, and who
have been the means of sending hundreds of thoughtless young men
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1855.]
On the Prevention of Counterfeiting .
711
to prison, as utterers of their base manufactures ; a gang who, having
been joined by counterfeiters who had fled from our own cities to
escape punishment, had become so formidable a body, that all attempts
to bring them to justice had signally failed, until the government there
took the matter seriously in hand, and with great firmness enforced the
law ; and counterfeiters who had fled from the United States unwhip-
ped of justice, have found their way to the Provincial Penitentiary.
Although we have done much the past year, and in some good
degree, as we believe, have diminished the circulation of counterfeit
bank-notes, there remains a great deal more to be done, and it can
only be done by the united action of the banks, in furnishing the
material aid to carry out our plans. Our expenses for the past year’s
work have been very large , and if our doings fully meet the expecta-
tions and approval of the banks belonging to the Association, we not
only expect a continuance of their membership and influence, but con-
fidently expect an accession to our numbers the coming year, which,
with the experience acquired, will give us means to control , and we
hope the day is not far distant when we shall be able to exterminate
the business of counterfeiting, so far as it is carried on, as it hereto-
fore has been, by regular organizations, with known heads, and places
of business equally well known.
It must be evident to every reader of this report, that in view of
the vast amount of good already done to the community , the small
charge for membership should not deter a single hank in New-England
from giving this Association their sanction, influence, and aid, that
much more may be done, not only for ourselves, but for the commu-
nity, which ve are in duty bound to protect to the best of our energies
and ability.
This being done on our part, we ask all good citizens to second our
efforts, by aiding us at all times, when in their power, to bring makers
and utterers of counterfeit money to justice.
Board of Managers in A.D. 1854. — President: Geohoe W.
Crockett, President Bank of North America. Treasurer: Almon D.
Hodges, President Washington Bank. Secretary : Charles B. Hall,
Cashier National Bank of Boston. Andrew T. Hall, President Tre-
mont Bank. L. Gulliver, Cashier Union Bank. Wm. Hyde, Cashier
Hampshire Manufacturers’ Bank, Ware. J. M. Thompson, President
John Hancock Bank, Springfield. Henry W. Cushman, President
Franklin County Bank, Greenfield. Isaac Davis, Quinsigamond Bank,
Worcester. Moses Wood, President Rollstone Bank, Fitchburg.
James G. Carney, Lowell Bank, Lowell. L. Baldwin, President
Brighton Market Bank, Brighton. J. B. Congdon, Cashier Merchants’
Bank, New-Bedford. J. A. Appleton, President Haverhill Bank,
Haverhill. Joseph S. Cabot, Asiatic Bank, Salem.
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712
Banking in New -York.
[March,
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BANKING IN NEW-YORK.
Extracts from the Annual Report of D. B. St. John, Esq., Superintend-
ent of the Neiv-York Banking Department. Albany, Dec. 31, 1854.
The Superintendent of the Bank Department has the honor to sub-
mit to the Legislature his annual report, as required by chap. 164,
laws of 1851.
report:
Since my last annual report to the Legislature, fifteen banking asso-
ciations have been organized, and have deposited the securities required
by law, to entitle them to receive circulating notes.
Eight individual bankers have also deposited securities, and received
circulating notes.
The names and locations of the associations, the amount of securi-
ties deposited, and the amount of circulation issued to each, is as
follows :
Name*.
Location .
Securities.
Circulation •
Bank of Fayetteville,
Fayetteville, . . .
$102,423
$101,000
Bank of Yonkers,
Yonkers,
102,700
102,093
Bulls Head Bank,
New- York, ....
100,000
100,490
Eighth Avenue Bank,
New- York, ....
105,582
105,037
Farmers’ Bk. of Lnnsingburgh, .
Lansingburgh, . .
v 100,941
100,759
100,200
Frankfort Bank,
Frankfort,
100,000
International Bank
Buffalo,
129,081
Jefferson County Bank,*
Watertown,
18,000
Merchants & Mechanics’ Bk.,*. .
Troy,
11,000
Oneida Central Bank, .........
Rome, ........
121,081
Onondaga Bank,
Syraeuso
16,500
Otsego County Bank,
Plienix Bk. in city of N. Y.,*. . .
Cooperstown, . . .
19,600
New-lrork, . . . . ,
Pulaski Bank,
Pulaski,
102,773
100, 5SG
West- Winfield Bank,
West- Winfield, . .
$1,250,616
100,344
$1,114,617
The names assumed by individual bankers, their location, the amount
of securities deposited, the amount of circulation issued, reported
under the act of April 15th, 1854, chapter 242, are as follows :
Names of Banks.
Securities.
Circulation.
Bank of Bath,
$59,094
Bank of Canandaigua,
61,986
Bank of llorncllsville,
60,064
Bank of Seneca Falls,
80,712
Deposit Bank, Deposit,
66,749
64,000
Geo. Washington Bank, Coming, . . . .
60,067
Lake Mahopac Bank,
60,400
Medina Bank,
51,940
27,000
$464,619
$433,323
* Association organized under the act passed April 10, 1849, chapter 813.
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1855.]
Banking in New -York.
713
The total amount of circulating notes issued to banking associations
and individual bankers, and outstanding on the 30th day of September,
1854, was $24,661,572, for the redemption of which there was held in
trust, by the Superintendent, securities amounting to $25,962,160.33,
as follows, namely :
$6,718,248 11
$394,600 00
6,931,218 16
1,302,700 00
6,496,964 26
13,126,482 42
1,429,600 00
361,000 00
3,167,306 47
3,618,306 47
221,000 00
646,687 83
172,000 00
130,936 60
$26,962,160 33
In addition to the circulation issued to banking associations and
individual bankers, the outstanding circulation issued to the chartered
banks was $19,300,963, making the total amount of circulating notes
issued to all the banks, banking associations, and individual bankers,
outstanding on the 30th day of September, 1854, $43,962,535.
In addition to the securities held in trust for banking associations
and individual bankers, there is held in trust by the Superintendent,
under special acts of the Legislature, securities amounting to $257,400,
namely :
For the Buffalo Trust Company, Buffalo, bonds and mortgages, $97,000
Buffalo city 7 per cent stock, 3,000
For the United States Trust Company, New-York, Auburn city, 7 per
cent stock,
For the six chartered banks, as follows:
Sank*. Stock*, etc. Rate ofint. Under tchat act. Amte. TotU.
Bank of Genera, late lnoor., New-York State, 6 per oent, April 13, 1948 .... $3,000
Bank of Orange County, . . . Can. rev. ccrtifs, 6 “ Mar. 12,1849, .... 90,000
Cayofa County Bank, New-York State, • " April 13, 1848, .... 99,400
Central Bk , Cherry Valley, Can. nr. certlTa, 6 “ Mar. 19,1840, .... 0,000
Greenwich Bank, New-York State, 6% “ « 1,000 ....
Greenwich Bank, “ “ 0 ** » 8,000 <000
Seneca County Bank,....,. Can. ter. eertiTa, 0 * “ .... 8,000
$67,400
Making the total amount of securities held in trust by the Superin-
tendent of the Bank Department on the 30th day of September, 1854,
$26,219,560.33, as follows, namely :
47
$100,000
100,000
Bonds and mortgages,
New-York State stocks, 4} per cent,
« 5 «
“ 6} “
« g it
Canal rev'e certificates, 6 “
United State stocks, 6 “
“ 0 ««
Arkansas State stock, 6 “
Illinois “ 6 “
Michigan “ 6 “
Cash in deposit,
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714
Banking in New- York.
[March,
For banking associations and individual bankers, . . . .$25,962,160 33
Six incorporated banks, 57,400 00
Two trust companies, 200,000 00
$26,219,560 33
At the date of my last annual report, the securities held in trust for
banking associations and individual bankers, were $24,886,737.30,
which shows an increase of securities amounting to $1,075,423.03.
The securities held in trust for incorporated banks have decreased
in the same time $1000, and the securities held for trust companies
remain the same.
The whole number of banks, banking associations, and individual
bankers, including such banking associations and individual bankers as
have given notice of their intention to discontinue the business of
banking, is 334, namely :
Incorporated banka* 55
Banking associations, 19T
Individual bankers, . . . . * 82
Of this number, four banking associations, and forty-one individual
bankers have given notice of their intention to discontinue the business
of banking, and have returned a large proportion of the circulating
notes issued to them, and for which a corresponding amount of securi-
ties has been surrendered.
From the quarterly reports received from all the banks, banking
associations, and individual bankers, stating their true condition on
the 17th day of September, 1853, the banking capital of the State at
that date was reported at $76,692,075. From the last quarterly
reports received, the amount of banking capital on the 23d day of Sep-
tember, 1854, was ascertained to be $83,773,288, showing an increase
of capital as reported by the banks and bankers to be $7,081,213,
from September 1853 to September 1854.
Of the forty -one individual bankers who have given notice of their
intention to discontinue the business of banking, twenty-one have com-
plied with the provisions of section 8, chapter 319, laws of 1841, by
redeeming and cancelling ninety per cent or over of the circulating
notes issued to them, and by depositing an amount of money sufficient
to redeem the balance outstanding. Three of the four banking asso-
ciations, have also complied with the provisions of the above-named
act.
The past year has been marked in the financial history of our State,
as one of extraordinary financial embarrassment and difficulty. Nor
has this been confined to our own State. It has extended through all
the other States of the Union. The change from an easy money mar-
ket, to one of extreme stringency has been sudden and unexpected ;
but, under all these adverse circumstances, the banks of our State
have promptly met their liabilities to the bill-holders and the public,
with but few exceptions.
In but one case has the Superintendent been obliged to resort to the
_ jDrigjnai from _
UNIVERSITY OF CHICAGO
Banking in New -York.
715
1855.]
securities, held in trust, to pay bill-holders. The Eighth Avenue
Bank, located in the city of New-York, allowed a portion of its notes
to be protested at its banking-house, on the 10th day of October, and
subsequently other sums were protested and deposited in this depart-
ment, as required by chapter 203, laws of 1851. The notice required
by this act \vas given to the Bank, to pay the protested notes,
within fifteen days from the date of such notice — the Bank failed to do
so. Notice was immediately given to the bill-holders that the notes
would be redeemed out of the trust funds. The securities were
advertised, and sold at the Merchants’ Exchange in the city of New-
York, on the 21st day of November. $39,500 of the securities con-
sisted of bonds and mortgages, which brought $31,405, or about 80
per cent on the par value. The stocks were sold at a small premium.
A dividend of 94 cents was made from the proceeds of the stocks and
bonds and mortgages, which is paid to the bill-holders on presentation.
The experience of the Superintendent, in converting bonds and mort-
gages into cash, to pay bill-holders in this case, is similar to what it
has uniformly been, when bonds and mortgages have been sold, to
redeem circulating notes.
It is believed that all the bonds and mortgages that have been sold
under the provisions of the free banking law, since the passage of the
act in 1838, have not produced over 75 per cent, in cash, on their par
value.
The experience of sixteen years has therefore demonstrated the fact,
that bonds and mortgages do not prove to be a certain and ample
security to bill-holders, and it cannot bo supposed, that bonds and
mortgages can bo negotiated or converted into cash, on short notice,
by the Superintendent, at their par value.
The total amount of bonds and mortgages now held in trust by
the Superintendent, and on which circulation has been issued, is
$0,718,248.11.
At the date of my last annual report, the amount was $5,777,577.39 ;
showing an increase of $940,670.72. A large portion of this increase
has taken place by depositing bonds and mortgages, and withdrawing
stocks. As the law now stands, one half of all the securities deposited
by banks may be in bonds and mortgages.
It is conceded that the stock of our own State, and stocks of the
United States, arc a more convertible and a more perfect security, as
a basis for banking, than bonds and mortgages, being more easily con-
verted into cash, and having a more permanent and certain value in
the market.
I would, therefore, for the considerations above mentioned, and for the
purpose of having ample security deposited in the Bank Department,
to enable the Superintendent to redeem the circulating notes, issued
to banking associations and individual bankers, at par, in case the
bank or banker fails to redeem as required by law, respectfully
recommend, that the present law be so amended, that bonds and mort-
gages shall not hereafter be received as a basis for banking ; or, if
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received at all, that no more than 80 per oent shall be issued upon
their par value.
I am aware that this recommendation will find but little favor with
some who are interested in banking, and principally for the reason that,
previous to the present time, stocks of the United States and of our
own State have been, not only difficult to obtain, but have commanded
such high rates in the market, as not to yield a fair and remunerating
interest to the purchaser.
The price of stocks has no doubt been much enhanced by the great
demand for banking purposes, but it is evident from the great number
of banks that have given notice of closing business, that the business
may be over-done, and that it may be more profitable to return circu-
lation and dispose of the securities, than to continue banking. The
debt of the State is to be largely increased during the next three years,
for the purpose of completing the enlargement of the canals, and it is
believed that the amount of State stock to be issued for that purpose
will furnish a sufficient amount of securities to meet the demand of the
banks now organized, or such as may be organized from time to time.
This course will insure the sale of our State stocks from time to
time, as it may become necessary to issue the same at reasonable
rates, and increase the confidence of the public in the circulation of our
banks.
On the 26th day of October, R. M. Blatehford, Esq., of the city of
New-York, was appointed by me as a special agent to examine into
the affairs and condition of the Eighth Avenue Bank. On the 6th
November, he made a report to me of his proceedings.
From this examination and report, some important facts in relation
to the organization and management of this bank arc brought out
The capital was reported to be $ 100,000. Of this sum, $56,200 only
was paid in money. The balance, $43,800, was made up by notes of
the directors, which had not been paid. The directors were found to
be indebted to the bank for loans and over-drafts, over $38,000, mak-
ing the total liabilities of the directors about $82,000. The bank owed
to depositors about $29,000, of which 27,801.27 was due to depositors
who had deposited the same in the bank as a savings bank, and for which
the bank had agreed to pay interest. The bank seems to have been
established for the purpose of borrowing money under the pretence
of being a savings bank, and when so obtained, to loan it to the direct-
ors, or allow them to draw it out on their own responsibility.
From information received at this department, it is believed that a
large number of the depositors were of the poor and laboring classes,
who had deposited their small earnings in this fictitious savings bank.
A refusal or neglect to pay this class of depositors, on demand, is a
serious evil, and one that falls upon this class of individuals with pecu-
liar hardship. The general opinion prevails, that savings banks are
restricted in their loans and the investments of the funds deposited
with them, by legislative enactments, and offer peculiar security to
depositors.
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Banking in New -York,
717
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1855.]
Where the Legislature have granted special charters to savings
banks, and have prescribed in their charters how the funds deposited
with them shall be invested, this is so, and in this the Legislature
have recognized the principle of protecting the savings of those who
have not the information or knowledge necessary to protect them-
selves. The legitimate savings banks should be considered as a kind
of charitable institutions, designed to promote economy and frugality
among a class of our citizens whose means are small and who most
need encouragement. It is therefore but just to this class that the
Legislature should direct how the funds committed to the care of the
managers of savings banks should be invested, and that such safeguards
should be placed upon them by the Legislature as will most effectually
prevent frauds and peculations. I would respectfully suggest to the
Legislature the propriety of enacting a law restraining all banks of cir-
culation and all individual bankers from holding themselves out to the
public as savings banks, by any advertisement, sign, or in any other
manner.
In November last the Lewis County Bank, an incorporated bank,
failed to redeem its notes on presentation at the banking-house in
Martinsburgh, and allowed the same to be protested for non-payment.
Information was soon after received at this department of such a cha-
racter as induced me to believe that the bank was not only insolvent,
but that fraud and collusion had been practised by some of the officers
of the bank and other parties interested, and that a great wrong was
about to be perpetrated upon the holders of the circulating notes.
Upon this information I appointed William Barnes, Esq., of this
city, my special agent, as provided by law, to examine the books,
papers, and affairs of the bank generally, as well as its officers and
agents, who, under my instructions, proceeded immediately to Mar-
tinsburgh, the location of the bank, and made the examination as
directed.
The President of the Bank, L. R. Lyon, the Cashier, F. W. Grannis,
Henry B. Stanton, and H. R. Wilcox, of the firm of Stanley & Wilcox,
of New-York, who were the redeeming agents of the bank, were ex-
amined under oath by Mr. Barnes ; and I regret to state that the
report of my special agent confirmed my worst apprehensions. It
clearly shows that fraud and collusion have been attempted and prac-
tised in the management of the affairs of the bank, if no more heinous
offences have been committed against the public and the laws.
I have considered it my duty to call the attention of the Attorney-
General to this case, and to invoke his aid in endeavoring, if possible,
to protect the innocent bill-holders. No securities are held by the
Superintendent, and unless the stockholders and directors are made
{)ersonally liable, it is to be feared that the bills will be almost a total
oss to the holders.
The amount of circulation outstanding is $122,052.
The notes of the following banks, which have failed, and the securi-
ties of which have been sold by the Superintendent for the benefit of
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UNIVERSITY OF CHICAGO
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718 Banking in New -York. [March,
the bill-holders, are redeemed on presentation at the Bank Depart-
ment at the following rates, namely :
James’ Bank, stock and estate, 91 per cent.
Bank of New-Rochelle, stock and estate, 81 per cent.
“ “ stock, par.
Farmers’ Bank, of Onondaga, stock and estate, 85 per cent.
Merchants 6e Mechanics’ Bank, of Oswego, stock and estate, 77
per cent.
Eighth Avenue Bank, stock and estate, 94 per cent.
The Superintendent in his last annual report to the Legislature
recommended a general revision of the laws of the State in relation to
banks, banking associations, and individual bankers. The great num-
ber of acts that have been passed by the Legislature, through a series
of years, and the various amendments that have been from time to
time adopted, render it important that this suggestion should be car-
ried out ; not so much with a view to alter or change existing laws, as
for the purpose of digesting and simplifying the same. The commit-
tee on banks, of the last Legislature made some progress in perfecting
a bill or digest of the laws upon this subject, but were not prepared to
present their views to the Legislature until a late day in the session,
when it was deemed too late to give the subject that consideration
which its importance demanded.
The following table shows the number of banks whose charters will
expire in each year, from the 1st January 1855, to the 1st January,
1866, both inclusive, the amount of their respective capitals, (including
State stock and canal revenue certificates,) the amount they are entitled
to circulate, and the amount in actual circulation and on hand on the
1st October, 1854:
Bank*.
Charter* wiU eoopire.
Capital.
Entitled to
circulate.
Circulation.
5
1st January,
1855,
$2,306,000
$1,610,000
$1,615,992
1
1st Mon. Juno. 1855.
204,000
203,970
203,982
1
2d Tues. 44
1855,
150,000
175,000
175,000
2
1st July,
1855,
220,000
310,000
310,000
2 1 br.
1st January,
1856,
1857,
1858,
620,000
2,640,000
610,000
584,354
5
1st 41
2,000,000
1,623,001
2
1st 44
200,000
300,000
299,983
2
1st 44
1859,
200,000
300,000
299,955
1
2d Tues. June, 1859,
100,000
150,000
149,884
3
1st January,
1860,
360,000
475,000
475,000
1
1st June,
1861,
100,000
160,000
150,000
6
1st January,
1862,
715,660
995,000
966,970
1
1st *June,
1862,
600,000
450,000
422,211
8
1st January,
1863,
1,976,400
1,800,400
1,797,415
4
1st 44
1864,
1,200,000
1,000,000
999,090
1
1st 44
1865,
200,000
200,000
198,049
7
1st 44
1866,
3,950,000
2,776,000
2,774,657
2
Unlimited.
2,260,000
1,400,000
1,330,709
$18,041,060
$14,910,370
$14,376,202
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1855.]
Banking in New- York,
719
Table showing the times when the Charters of nine Incorporated Banks will expire, and
the amount of their circulating notes outstanding and not returned to (he Bank De-
partment on the 1st day of October , 1854:
Name of Bank.
Bank' of Albany,
Broome County Bank,
Central Bank, Cherry Valley,
Mechanics* Bank, New-York,
Tradesmen’s Bank,
Greenwich Bank,
Hudson River Bank,
Bank of Lansingburgh,
Livingston County Bank, ....
$2,304,924
Charter will empire.
1st January, 1855,
1st “ 1855,
1st “ 1855,
1st 14 1855,
1st “ 1855,
1st Mon. June, 1855,
2dTue& June, 1855,
1st July 1855,
1st 44 1855,
Circulation.
$200,000
150.000
166.000
*799,992
300.000
203,932
175.000
160.000
150,000
THE FOLLOWING 18 A SUMMARY FEOM THE OFFICIAL REPORTS, OF THE LIABILI-
TIES AND RESOURCES OF THE BANES OF THIS STATE, IN 1848, 1851, 1853,
AND DECEMBER, 1854.
Liabilities. Dec. 184a
Capital, $44,830,588
Profits undivided, 6,635,450
Circulation, 23,206,290
Due State of New-York, 8,092,960
Individual Deposits, 29,205,338
Bank Balances, 18,829,681
Miscellaneous, 981,727
Total Liabilities, $121,281,950
BfsounoES. Dec. 1848.
Loans and Discounts, $69,788,890
Loans to Directors, 5,265,040
Loans to Brokers, 2,092,239
Bonds and Mortgages, 2,654,558
Stocks, 12,476,758
Other Loans, 154,660
Beal Estate, 8,475,088
Loss Expense Account, 682,108
Over-drafts, 166,107
Specie, 6,817,814
Cash Items, 5,955,472
Notes of other Banks, 2,506,846
Bank Balances, 9,851,878
Miscellaneous,
Total Resources, $121,281,950
Sept. 185L
Feb. 1858.
Dec. 1854,
$57,572,025
$67,628,826
$88,260,860
9,409,488
8,878,266
12,093,621
27,254,458
80,068,014
28,220,788
2,184,564
1,768,450
8,458,116
48,901,810
81,816,058
71,096,501
17,288,465
80,472,105
20,540,705
1,461,947
8,570,108
2,745,885
$164,022,950
$228,681,828
$221,418,976
Sept. 1851.
Feb , 1858.
Dec. 1864.
$100,440,690
$186,176,741
$129,460,164
6,804,651
6,410,204
9,502,141
1,978,975
6,100,588
2,642,691
4,257,165
5,896,008
7,826,681
15,888,571
18,684,167
90,050,906
145,708
98,604
8,858,402
4,588,693
5,827,556
688,965
784,744
1,428,516
288,712
875,088
472,554
7,021,520
10,089,806
18,470,879
12,018,250
16,144,816
15,827,065
2,095,510
8,670,205
8,486,274
8,840,588
16,258,882
12,257,029
107,486
75,884
$164,022,702
$228,561,828
$221,478,017
Messrs. Page t Bacon, St. Louis. — This firm resumed business on the 15th
February. The Philadelphia Bank issued the following notice :
“The Philadelphia Bank, February 12, 1855. — Notice is hereby given, that
the drafts of Page & Bacon, of St. Louis, on the Philadelphia Bank, which have
been protested for non-payment, will be paid on and after the 15th inst., with
interest and costs of protest B. B. Comeg ys, Cashier .”
Similar notices were issued by the Atlantic Bank, Boston, and by the Bank of
America, New-York.
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720
Banking in the Several States.
[March,
BANKING IN THE SEVERAL STATES.
I. Pennsylvania.
Extracts from Governor Bigler's Message , 1865.
The administration of Governor Shunk commenced the cancellation
of the relief issues, and that of my immediate predecessor arrested the
process, leaving $650,163 of this unsightly currency in circulation.
In the spring of 1853, the policy of cancellation was again resumed;
and up to this date, $485,384.88 had been received into the sinking
fund, applicable to that purpose, leaving the meagre sum of $154,778.12
to provide for. The gratifying fact is apparent, therefore, that, without
any further legislation on this subject, the entire outstanding balance
of relief notes can be withdrawn from circulation and destroyed during
the current year. It is true that these issues have not come into the
Treasury as rapidly as the funds for their cancellation have accumu-
lated, and that, consequently, a portion of the receipts have not been
invested ; but this difficulty will be obviated in June next, when the
law will go into operation which forbids the banks and receiving
officers of the Commonwealth to pay out these issues, and requires
them to be presented at the Treasury for cancellation. We shall,
therefore, soon see the last of a currency which has polluted the chan-
nels of circulation for thirteen years past ; and I trust that the lesson
thus taught has been quite sufficient to warn us against similar errors
for all time to come.
My opinions on all questions that concern the currency have been
so often expressed that they must be well known to the Legislature,
and need not be given at length in this communication. Without, at
any time, assuming it would be wise for this State, regardless of the
policy of other commonwealths, to dispense suddenly and entirely
with banks of issue, it has been uniformly held that the amount of
banking capital as a basis for paper circulation, should be closely
limited to the urgent wants of commerce and trade. If the experience
of the country is worth any thing at all, it has demonstrated the cor-
rectness of this policy ; and that the use of small bank-notes should bd
discouraged and forbidden. In accordance with this view of the sub-\
ject, I have, on past occasions, refused to sanction any extensive increase*
of banking capital.
Every commercial country is liable to alternate seasons of excite-
ment and depression ; to periods of extravagant over-trading, followed
by ruinous revulsions. The reaction now felt is the inevitable if not
the natural counterpart of an undue expansion of credit, in the form
of bank-paper, railroad, state, and corporation bonds, and individual
obligations. In those States where the free or stock banking system
had stimulated the expansion, the workings of the reaction have been
disastrous. In our own beloved Commonwealth the shock has been
sensibly felt, though far less severe than in other parts of the country.
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1855.]
Missouri.
721
Her partial escape, it is believed, is mainly owing to her prudent and
restrictive policy in the use of bank credit. It is, at least, very clear
that had the free, or stock-banking plan, at one time so zealously
advocated, been adopted in this State, or had our present system
been greatly expanded, the position of affairs in our commercial
metropolis would not have been so favorable as at present. Had the
natural tendency to speculation received this artificial stimulant, the
limits of safety, like the lessons of experience, would have been passed
unheeded; as it is, some good men, in the pursuit of useful enterprises,
have been prostrated. It is most unfortunate that, under this influence,
all must suffer alike. Those who profit least by the expansion, are
often affected most by the contraction. This is especially the case
with labor, which is uniformly the last to be elevated in times of pros-
perity, and the first to go down in those of depression. The banks, as
a general rule, make the most out of these convulsions. It is often
their error to flatter the merchant and trader when the tide of pros-
perity runs high, and to forsake him on the first appearance of its
ebbing. Even sound banks and of good repute, it is said, are seeking
to make money out of the present crisis, by sharing their capital and
its benefits with brokers and jobbers, instead of aiding the business
community at legitimate rates. How far these allegations are war-
ranted, it is difficult to decide ; but it is to be hoped that few, if any of
our banks are justly liable to this charge, for such a practice would be
highly improper, and well calculated to excite discontent. Such a
departure from legitimate business would demand a prompt remedy at
your hands. It may be difficult to confine these institutions to their
proper business, with the prospect of better profits in other quarters ;
but they should be made to feel that they have been created for a
higher purpose than merely to enrich the stockholders.
II. Missouri.
Extract from the Governor's Message.
The charter of the Bank of Missouri will expire on the 2d day of
February, 1857. The grave and delicate question is presented to
you, by this state of fact, What legislation is necessary to secure
stability in the value of property, facilitate the operations of commerce,
and shield the State from an influx of depreciated or worthless bank
issue from our sister States ? Shall the charter be permitted to expire,
and the Bank be compelled to wind up its affairs, without any legisla-
tion to meet the consequences? Or shall a system of free banking be
adopted similar to those now prevailing in some of the north-western
States ? Or shall the present institution be re-chartered, with such
modifications as experience has indicated to be necessary ? These are
questions to which I have given the most anxious attention, and upon
which I solicit your earnest deliberation. They are practical and not
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722
Banking in the Several States .
[March?
abstract questions ; circumstances preclude us from treating them as
we might, if our State was in its infancy, and our relations to the com-
munities around us gave us the option of deciding what currency we
would have, and what not. They should be decided in time for the
officers of the Bank to make preparation for the future, and arrest, if
possible, a convulsion in our monetary affairs.
If the charter of the Bank is permitted to expire without further
legislation, the consequences must be injurious in the extreme. The
value of all our property will be depreciated, there will follow a series
of fluctuations in prices, opening the door to fraudulent speculations ;
the relations of debtor and creditor will be so disturbed that the latter
will be compelled to seek relief in the courts of justice, and the pro-
perty of the former will be ruthlessly sacrificed, and whole families
suddenly exposed to poverty and want. Our State will be imme-
diately flooded with the depreciated issues from the banks of neighbor-
ing States, and our commercial classes will be overwhelmed in difficul-
ties. This picture of what may be anticipated, is not over-charged.
Similar results have followed in other States, from causes much less
powerful to produce them. Nor can such a condition of things be
materially alleviated by penal legislation to exclude foreign bank
paper. If effectual, it could not relieve us from one tithe of the evils
which I have enumerated. Our own experience, as well as that of
every community in which it has been tried, proves that all such legis-
lation is a practical nullity.
Before any system of free banking can be adopted, it will be indis-
pensable to amend the Constitution. That instrument empowers you
to create one bank with five branches ; it empowers you to do nothing
more. Its meaning is, in my judgment, too palpable to be misappre-
hended ; and I cannot appreciate the reasoning by which it is attempted
to be shown, that, although the General Assembly cannot establish
more than one bank, it may authorize every member of community
to do so. Before the Constitution can be altered, all the difficulties
and calamities which it is so desirable to avert, will have come upon
us. Nor do I think that such an amendment would be either wise or
prudent. Coin is our measure of values, and medium of exchange.
III. New-Jersey.
In the New-Jersey Senate a minority report (Mr. Allen) from the
Banking Committee has been made. The report states that —
“The General Law in New-Jersey had proved a decided failure.
He did not believe that the majority of the citizens of New-Jersey
were favorable to that law ; on the contrary, extensive business inter-
course with the people convinced him that four fifths were opposed to
it. The special banks of New-Jersey, in the darkest days of our com-
mercial prosperity, have sustained themselves in the most satisfactory
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1855.]
New-Jersey .
723
manner, demonstrating their entire efficiency and integrity. He
thought we should be careful how we destroyed a system which has
thus proved beneficial and competent to all demands made upon it,
merely because it has in some few instances been abused by foreign
speculators, having no interest in our State, or the preservation of its
reputation.
“ The Free Banking Law did not originate in this State ; it was con-
cocted in. Wall street. It is totally unsuited to our own business rela-
tions, as has been abundantly demonstrated by its operations since it
was first instituted. Out of twenty-four banks established under this
law, only ten are in operation, three of the others are sued, and five of
those in operation, after having given the system a fair trial, are applying
for special charters. General banks do not discount or afford proper
accommodations to business men ; they cannot afford to do so, as can "
the special banks who have a cash capital. Under this law, a portion
of the bank issues are based upon bonds and mortgages; and the
experience of both this country and Europe demonstrates that bonds
and mortgages constitute a poor security for bill-holders.
“ Another objection to the general law is that we have no State debt,
and all capital invested must go out of the State to purchase securi-
ties ; in other words, it is a system operating for the benefit of other
States, at the expense of our own. Moreover, the free banking sys-
tem invites fraud, and this fact is generally understood throughout the
country. The Governors of Pennsylvania and Indiana both oppose the
law on these grounds, and in the Eastern States they are returning to
the old system. There is inevitably greater danger under the general
law than under special charters, properly guarded. The stocks which
constitute the banking basis under the general law will depreciate, and
that, too, very frequently, just when accommodations are most neces-
sary. Mr. Allen proceeded at length to advocate the re-charter of the
banks, adducing many strong arguments in favor of their maintain-
ance.”
The New-Jersey Legislature are about to re-charter the old banks of
the State, as the general law has been found of little benefit. The new
charters provide, that in case of insol vency, the President and Directors
of the bank shall be personally liable for the whole amount of the
notes then in circulation ; and that these notes shall constitute a pre-
ferred debt upon the entire assets of the bank. These two provisions
— making the directors liable, and the notes a preferred debt — if not
an absolute, are a salutary security to note-holders.
The official Reports of the Bank Department of New-Jersey for the
year 1854, show that, notwithstanding the presumed safety of the
general law and its various amendments, the most gross frauds have
been perpetrated under it. A late instance has demonstrated that the
liabilities of the bank were over $50,000, and its specie on hand $250,
while its securities were nearly worthless. This act demonstrates
most conclusively the utter incompetency of banks, thus established,
to furnish a sound circulating medium.
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734 Bank Statistics. [March,
State of seventy-two Incorporated Banks and of the Free Banks of New-Jerscy, on the
1st of January, 1865:
RESOURCES.
Old Banks. Free Bombs.
Loans and discounts,.. . .
Stocks,
Real estate, ............
$7,766,920 25
32,244 99
$1,410,414 59
789,719 25
44,720 39
76.471 00
209,776 67
68.472 08
77,857 33
Other investments,
Due by other Banks, . . .
Notes of ditto,
Specie,
81,925 89
349,867 08
$10,776,688 59
$2,677,433 21
Capital,
Circulation,
Deposits,
Due other Banks,
LIABILITIES.
$3,935,860 00
2,678,278 00
443,656 00
$1,378,935 00
710,653 00
612,184 40
40,219 45
$9,899,916 00
$2,741,891 85
BANK STATISTICS.
OOKPARATIVE STATEMENT Or TOT LIABILITIES AND RE80UB0E8 OF TOT BANKS
Or PENNSYLVANIA IK TOT YEARS 1847, 1849, I860, 1862, AND 1864.
Liabiutixs.
No.. 184T.
Not. 1849.
No.. 1850.
Nov. 1852.
No.. 1856.
Capital,
$21,585,750
$18,478,882
tl9.6T5.484
$19,218,154
$2(^857,568
Circulation,
18,787,597
11,885,780
11,988,814
14,624,908
16,707,478
Bank Balances,
4,838,078
4,024,905
5,889,691
6,681,625
8,962,888
Deposits,
15,009,870
15,412,286
1T.T19.244
22,048,741
28,115,785
Contingent Fund,
1,898,829
1,926^28
1,787,515
1,856,576
2,228,151
Discounts,
704,560
585,454
795,120
692,880
1,298,771
Profit and Loss,
478,999
490,270
554,586
1.15T.806
760,026
Due the Commonwealth, ••
467,960
618^61
422^72
557,825
470^85
Belief C irculation,
640,881
60,619
2,548
10,988
4,210
Miscellaneous,
811,041
45,756
608,290
212,868
760,943
Suspension Account,
19,146
12,803
19,856
9,704
7,564
Dividends Unpaid,
978,009
890,180
ST 924,789
829,910
187,546
Total Liabilities,
$69,959,280
168^80,966
$58,582,251
$66^96,170
$69, 830,866
Besopxow.
Nov. 1847.
Nov. 1849.
Nov. 1850.
Nov. 1862.
Nov. 1854.
BIDS Discounted,
$82,152,451
$82,949,260
$86,408,022
$42,855,760
$44,418,728
Specie A Treasury Notes,.
7,862,669
6,260,741
7,212,920
7,840,500
7,580,250
Bank Balances,
8,988,740
8,059,683
4,668,194
5,562,646
4,682,607
Bank Notes and Checks,. .
8,060,780
2,874,876
2,519,620
8,006,896
8,856,655
Beal Estate,
1,104^75
1,207,961
1,008^84
992,953
948^60
Bonds and Mortgages, ....
1,888,726
2,270,538
1,658,971
2^07,860
991,472
Stocks,
2,800,012
2,120,784
1,699,868
1,264,410
1, in, 866
Bills of Exchange, eta, . . •
1,069,685
1,194,221
1,980,887
1,051,062
2,888,616
Expenses,
98,217
65,220
95,520
61,121
146,781
Post Notes,
628,955
404,298
440,578
864,008
869,920
Loans,
1,949,648
796,591
746,933
468,582
1,897,650
Miscellaneous,
4,885,082
177,895
147,205
125,878
1,582,781
Total Resources,
$59,959,280
15*880,968
$58^82,251
$66£96>170
$69,880,886
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UNIVERSITY OF CHICAGO
1855.]
London Joint-Stock Banks.
725
LONDON JOINT-STOCK BANKS.
I. London and Westminster Bank.
At a meeting of the London and Westminster Bank, held January
17, Mr. J. L. Ricardo, M. P., presiding, the dividend declared was at
the rate of six per cent, together with a bonus of five per cent free
from income-tax, and the report and accounts were unanimously
adopted. It was explained by the chairman that the progress of busi-
ness has been satisfactory, and that the various classes of accounts are
steadily increasing. No losses have been incurred through the late
American failures, and the present amount of the reserve fbnd is con-
sidered ample for general contingencies. Although there is little
expectation that existing prosperity will be interfered with, it was inti-
mated that a continuance of the war may produce ulterior consequences
which, despite the exercise of the strictest prudence, could scarcely fail
to affect both banking and commercial interests. Under such circum-
stances, it would be well not to rely fully upon the maintenance of a
dividend at the rate either of 14 or 16 per cent. Annexed is an
abstract of the report :
“ The directors have to report that, after making provision for all bad and doubt*
-fill debts, paying the income-tax, setting apart £2000 towards the new buildings
in Lothbury and Bloomsbury, and presenting a gratuity of 10 per cent on their
salaries to all the officers of the establishment, the net profits of the bank for the
last half-year amount to £75,318 10s*., which, added to £13,900 19s. 5d., unappro-
priated from the profits of the preceding half-year, make a total of £89,219 9s. 5 d
Out of this sum the directors have allowed interest on the rest or surplus fund at
the rate of 6 per cent, and they now declare a dividend to the shareholders at the
rate of 6 per cent per annum, and also a bonus of 6 per cent upon the paid-up
capital. After these payments are made, there is a balance of £2954 2s. Bd , which
has been transferred to the rest or surplus fund.
“ London and Westminster Bank, Dec. 30, 1854.
“ DEBTOR. £ s. d.
To proprietors for paid-up capital, 1,000,000 0 0
To amount due by the Bank on deposits, circular notes, eta,. . . . 7,177,244 19 10
To rest or surplus fund, . 125,307 1 6
To balance of profit and loss account, 13,900 19 5
To net profits of the past half-year, 75,318 10 0
£8,391,771 10 9
;4< CREDITOR.
By government stock exchequer bills, and India bonds, 1,451,074 13 1
By other securities, including bills discounted, loans to custom-
ers, eta, 6,246,387 4 4
By cash in hand, 694,309 18 4
£8,391,771 10 9
II. London Joint-Stock Bank.
The half-yearly general meeting of the proprietors of the London
Joint-Stock Bank was held January 18. The acoounts show that the
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726
The French Loan of 1855.
[March,
net profit realized by the Bank during the six months ending on the
31st December last, together with the sum of £24,695 7s. 3d., carried
forward from the 30th June, amounts to £93,680 2s. 8 rf., which enables
the directors to declare a dividend at the rate of £10 per cent per
annum, and a bonus of £1 Is. 2d. per share, leaving a balance of
£180 2s. 8 d. to the credit of the guarantee fund, now amounting to
£156,032 10s. lid. The dividend and bonus, free from income-tax,
will be payable on and after Friday, the 26th instant. The financial
position of the Bank is shown in the follow ing statement :
LIABILITIES AND ASSETS, DEC. 31, 1854.
Dr.
To capital paid up,
Duo by the Bank,
Guarantee fund, June 30, 1854, £153,549 3 0
Six months’ interest on ditto, at £3 per cent per
annum, 2,303 4 9
Undivided profit for the last half-year,
Carried to profit and loss account,
£ s. <L
600,000 0 0
6,161,154 15 1
155,852 8 3
24,695 7 3
113,425 19 8
Total, £7,055,128 10 3
Cr.
By exchequer bills, India bonds, etc., 729,794 0 8
By bills discounted, loans, and cash, 6,291,609 9 7
By building, furniture, etc., 33,725 0 0
Total,
£7,055,128 10 3
THE FRENCH LOAN OF 1855.
From the London Times , January , 1865.
Tiie success which has attended the proposal of the new French
loan has been so complete as to be even embarrassing. Five hundred
millions of francs were asked for, and when the books closed on Tues-
day evening, it was understood that the aggregate amount offered
exceeded two thousand millions. And this was in France alone.
English capitalists had applied for leave to contribute their cash to the
extent of nearly half the whole sum required. Altogether it is not
too much to say that, in response to the Emperor’s notification that
there was a public need of £20,000,000 sterling for the expenses of the
war, nearly eighty millions in ready money have been eagerly prof-
fered, nay, almost thrust into his hands. The anxiety of the monied
classes in Paris — especially of those w hose surplus capitals w'ere of
the slenderest proportions — to inscribe their names among the sub-
scribers to the loan, was exhibited in ways partaking equally of the
ludicrous and the picturesque. Permanent queues wTere established
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The French Loan of 1855.
727
1855.]
during business hours at the doors of all the bureaux where books had
been opened. Towards the close of the period allowed for subscrip-
tion these queues were formed at break of day, long before the clerks
were in attendance, and the office-gates unbarred. At the very last,
a crowd of intending creditors of the State took up their station round
the bureaux in the evening, and actually bivouacked in the streets
throughout a January night, in order to secure the chance of obtaining
admittance next day. Poor commissionaires, who had no money to
lend, sold the places of vantage gained by their patient vigils to those
who had, for 30 or even 100 francs a piece. It is stated that the whole
amount of the loan has been subscribed for by the lowest classes of
applicants — those, namely, who wish to purchase under £20 sterling
of annual Rentes, representing capitals of which £500 is the maximum.
As it was promised in the original programme of the operation that
these m inor subscribers should be served first, it would seem that the
applications from all the wealthier capitalists, both in France and
England, must be totally refused. It is understood that the ten per
cent deposit paid upon the inscriptions of larger amount has already
been restored by the French government to the contributors. The
British subscribers have also received notice of a similar re-payment
from Messrs. Baring and Rothschild.
One circumstance is w'ell wrorthy of remark in this eagerness of the
French industrials and bourgeoisie to advance their money to the
government — their enthusiasm is altogether genuine. They view the
transaction simply in its legitimate form, and seek to share in it on
account of its intrinsic advantages. The credit and gratification attend-
ant on the title of rentiers — the satisfaction of investing their savings
in a safe and profitable security — the pleasure of assisting to carry on
the war — these are the real impulses which have filled up the subscrip-
tion list to such an overflow. There is little, if any, stock-jobbing
influence at work. The spirit of gain to which the tory financiers in
England were wont to appeal so recklessly during the last war, when
they made their borrowing operations gigantic instruments of corrup-
tion, and a “slice of the loan” was equivalent to a bribe of some
hundreds or thousands of pounds, has found no stimulus in the present
instance. The money has been raised under the most favorable con-
ditions for the French public, without agiotage , without loan-inonger-
ing, without straining the resources of the bullion market, and w ithout
requiring the aid of those overgrown capitalists who were once believed
to sway the financial destinies of the world.
The experiment of inviting the contributions of small capitalists has
now obtained a second and memorable success, proving that it was
based on principles as sound as they were novel and bold. When, in
March last, the trial was first made, and the subscriptions to the loan
then effected received so remarkable an accession from contributors of
this class, the unexpected result was attributed to a passing caprice —
to the French passion for novelty — to the indirect solicitations of the
government — to any thing, in short, except a genuine approval of the
investment, and faith in the security offered. This second trial has,
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The French Loan of 1855.
[March,
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however, established the fact. It is now proved that the Emperor
Napoleon has found means to sink a shaft into a new mine of wealth,
whose productiveness would appear to be inexhaustible. This has
been accomplished, moreover, without in any degree tending to
impoverish the nation. The sums now obtained for the supply of a
great state necessity have not been withdrawn from industry or com-
merce. Excepting such small fraction of the total amount as may
be taken from the caisscs d'epargne , the whole of the twenty millions
subscribed by the minor class of contributors will have been furnished
from what have hitherto been unproductive capitals. Every sub-
scriber is called upon to pay down a deposit of ten per cent on his
inscribed amount of loan in ready money. There have accordingly
been two millions sterling provided already, with pledges for eighteen
millions additional, by the thrifty industrial community of Paris, and
the provinces. The money was, no doubt, in some instances rescued
from the cabaret ; but in most was plucked forth from the secret
hiding-places to which in times past the French peasant, or ouvrier , was
accustomed to intrust his hoards.
The event has revealed a new phase in the character of the French
workman. Heretofore, the best specimens of the race, those who
lived most industriously and frugally, and saved money, were distin-
guished also for suspicion and secretiveness. They preferred to bury
their five-franc pieces in the earth, or hide them away under the thatch,
rather than let them go out of their own hands, even with the fairest
prospect of a return with increase. It was often complained that an
enormous amount of metallic currency was thus uselessly lying buried ;
while, in times of commercial or political perturbation, the whole mass
of coined money would disappear as if by magic, and not all the
activity of the Mint could suffice to keep a sufficient quantity of the
circulating medium above the surface, even to supply the ordinary
demands of daily trade. Then it was believed that the Gallic indus-
trial was affected by a propensity for hoarding money when he had it,
which could not be controlled. The difficulties that were encountered
during many years in obtaining popular appreciation for the savings
banks in some degree countenanced this hypothesis. But the fact was,
that for many generations the French rulers had done nothing to
encourage investments among that class of their subjects, and much to
chill and weaken their faith in the securities guaranteed by the State.
Now that the Frenchman feels confidence in his government, and finds
himself invited to commit his savings to its keeping, he hastens with
the eagerness we have just witnessed to avail himself of the oppor-
tunity.
Encouraging as it is in every way to the Allies — as evincing the
perfect confidence of the people in their Emperor, as proving the
popularity of the war, and the almost boundless extent of the resources
from whence its supplies may be drawn — the prosperous issue of this
financial operation may well be suggestive to the Czar. It is not long
since his own attempt to raise a loan of comparatively trifling amount
was scouted upon in every mart in Europe. At home he has found his
Go*, .gle
• "" -Qrigtrsrfrum
UNIVERSITY OF CHICAGO
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1855.] Debt of European States, and United States. 729
revenues woefully restricted, and has to maintain the war by the agency
of eorvees, forced labor, and contributions in kind. These resources
can be available only for a time. Sooner or later, the issue of every
war must depend upon the soundness of what has truly been called its
“ sinews.” It may furnish no unimportant element in the conferences
about to open at Vienna, when the Russian negotiators find that, in a
country not hitherto remarkable for the superabundance of capital,
eighty millions have been offered, and eight actually paid, by an enthu-
siastic people, at the first intimation from their sovereign that funds
were wanted for the prosecution of the war.
DEBTS OF EUROPEAN STATES, AND UNITED STATES.
The following is a Summary of the Debts of Foreign States according
to recent Official Tables. 'Die whole reduced to sterling.
£
Austria, 811,000,000
Baden, 7,000,000
Bavaria, 14,117,000
Belgium, 86,000,000
Bolivia, 621,000
Brazil, 18,802,000
Buenoe Ayres, 8,500,000
Oanada Guaranteed,. 1,500,000
Chili, 1,784,900
Columbia, 6,625,950
Cuba, 811,200
Denmark, 18,069,000
Ecuador, 8,817,000
England, 778,928,000
France, 288,000,000
Granadia, (New,) 7,500,000
Qreeoe, 8,250,000
Guatemala, 504,520
Hamburg, 4,000,000
Hanover, 5,174,000
Holland, 102451,000
£
India,
48,000,000
Mexico,
Naples,
Pot,
Portugal,..
Prussia,
Roman States,
17,152,000
Russia,
68,000,000
Sardinia,
Saxony,
Spain,
Sweden,
Switzerland,
Turkey,
United States of America, . .
Venezuela,
West- India Loans,
Wurtemburg,
Total,
Heavy Robbery of Gold. — Two boxes of gold shipped from California, b y the
Northern Light, to Page, Bacon k Co., New-York, have been stolen- They con-
tained forty thousand dollars' worth of the precious metal It is supposed that the
robbery took place while crossing the Isthmus. It was not known until after the
arrival of the vessel at New-York, when, upon the boxes being opened by the parties,
they were found to contain iron instead of gold.
48
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730
Government, State, and City Bonds.
[March,
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GOVERNMENT, STATE, CITY, COUNTY, AND RAILROAD STOCKS,
BONDS, Etc.
New- York, February 2 0, 1855.
IUMK3 OF COMPANIES.
Alabama k Tenn. Elver
Baltimore k Ohio . .
do. do. ....
_ do. .do. .
Buffalo k State Line .
do. do.
Buffalo k Ncw-York City .
Bellcfontaine k Indiana .
Cin., Wilmington. A Zanesville
Cincinnati, Hamilton, A Dayton
do. ...
Sincinnati A Marietta . . .
Icvel&nd. Paincsville, A Ash tabula
Cleveland k Pittsburgh
<lo. do. • •
Cleveland A Toledo
do. do. (Ohio June.)
Chicago A Rock*Island, (Illinois)
Chicago A Mississippi
do. do.
do. do. • • •
Covington A Lexington
do. do. . .
Fort Wayne A Chicago
Galena A Chicago . .
Indianapolis A Beilefontaino
Indiana Central ....
Illinois Central ....
Illinois Great Western
Jeffersonville (Ind. to Louisville)
do. do.
Lake Erie. Wabash, A St. Louis
Lawrenccburgh A Indianapolis
Little Miami . . . . .
Muysville A Lexington . .
Madison A Indianapolis .
Michigan Central
do. do
do. do
Michigan Southern
Milwaukee A Mississippi .
do. do. . . .
New-York Central
do. do. (Subscription)]
do. do. convertibles I
New-York A New-Haven .
New-York A Harlem .
New-liaven A New- London .
New- Haven A Hartford .
New Albany and Salem
__ do. do. .
Northern Indiana .
do. do. Goehen Branch
Northern Cross
Ohio Central
do
do. Income
Ohio A Pennsylvania
do. do. .
Ohio A Indiana
Panama ....
Pennsylvania
Beading ....
do. . .
Scioto A Hocking Valley .
Springf., Mt. Vernon, A Pittsburgh
Steubenville A Indiana
_ do. do. Guaranteed
Tennessee R. H.’s guar, by State
Terre-Haute A Indianapolis
Terre-Haute A Alton
West Chester and Philadelphia .
Wilmington A Manchester (N. Ca.)
NATURE OF BONOS.
I 833.000 1st mort. con. till 1872
1.000. 000; Transferable— taxed
1.128.000 Coupons, free of tax
700,000] do. do.
600.000 1st mort., not conv
300.000 No inert. , do.
1,200,000' i8t mort. . .
000,000 i5t do. convertible
1.300.000 ist do. do.
600,000 ’‘>d mort., not conv
l,Q00,0U0|3d do. do.
2.600.000 lgt do., conv. till 1862
667.000 igt mort.. not conv.
800.000 do. convertible
l.auO,OUU do. 2d sec., conv.
626.000 do. not conv.
900.000 do. convertible
2.000. 0U0 do. conv. till 1858
1.00U.U00 do. do. 1857
1.000. 000 do. not conv.
1.600*000 2d mort. con. till 1868
400.000 1st mort., not conv. ,
}. 000*000^ mort., convertible
1,000,000
300.000
300.000
3,400,000
600.000
1,600.000,
600.000
600,000f
1 1 260*000 do. con v7 till 1888
1.200.000 do. not conv.
460.000 do. convertible
, 600,000 do. do.
Mort.. not conv.
1st mort., do.
do. 1st sec. do.
do. 2d do. do.
do. conv. till 1859
do. do. 1857
do. not conv. ,
do. conv. Ull 1800,
. xrzv^ri do. convertible
1.996, W)o No mort., do.
l,30o,U00 do. do.
1.900.000 do. not conv.
1.000. 000 1st mort., do.
JjojUJJo do. 1st sec.con. 1857
o 28*25 do. 2d do. 1858
8.287.000 No mort., not conv.
75o,000{ do. do.
3.000. 000, No con. 15 Je ’67 to ’59
750.000 do. do.
1.800.000 1st mort.. do.
450.000 do. do.
1.000. 000 do. do.
600.000 do. on 1st sec.
2.325.UU0 do.other do. con.*58
1.000. 000 do. not conv.
1.600.000 do. do.
1.200.000 do. convertible
1.250.000 do. couv.
600,000 2d mortgage.
600, 000 j Income conv.
l,750,uoo 1st mort., conv.
600,0tHJ Income, no mor. con.
1.000. 000 1st mort., conv.
2,378.000; No mort. con. 1856-68
6.000. 000 1st mort. con. till 1800j
6.014.000 do.
3.039.000 2d mort.
300.000!
600,000 1st mort. 1st div. con.
1,500.000| do. convertible
600,000 2dmort.guat.Pa.K.K.
list mort. conv.
IN WHEN PAYABLE
7 1 Jan. 1 July
6 Quarterly,
6 January. July
6 Half-yearly
7f April, Oct.
7 January, July
7 Divers
7 January, July
7 1 May, Nov
7 May, Nov.
7 January, July
7 Feb., August
7 Feb., August
7 March, Sept.
7 Feb., August
7 Divers
7 10 Jan., 10 July
7 April, Oct.
7 April, Oct.
7 January, July
b April. Oct.
7 March. Sept.
7jJnnuary, July
. 600.000; do.
I4OOU.0OM do.
4O0.0001 do.
600.0OU, do.
do.
do.
conv. till 1863
conv. till 1865
7 Feb.. August
7 January. July
7 1 May, Nov.
, 7.1 Oct., 1 April
|l0 April, Oct.
7 March. Sept.
7 April, Oct.
7 Feb., August
7 March, Sept.
6 April, Oct. ,
6 January, July
7;May. Nov.
8 April, Oct.
8 April, Oct. ,
8 Semi-annually
7!May. Nov. 1
8 January, July
8 April, Oct.
6 May, Nov.
6 May, Nov.
7 June, 15 Dec.
7 June, Dec.
7 May, Nov.
7110 M’ch, 10 Sep.
, 6 January, July
1 10 April, Oct.
8 May, Nov.
7, Feb., August
6 Feb.. August 1
8 leb., August
7 May. Nov.
7 April, Oct.
7|January, July
7 April, Oct.
7 Feb., August
7 January, July
7 1 Jan., 1 July
6 January, July
6 April, Oct.
] May, Nov.
iN.Y.lira
BaJLhSs
, 1875
‘ ,1880
,1881
OFF’D.
X
X
l*uM>>X
1866 X
1862 “
1808
1K*0
1*6H
1861
lNiO
1873
1863
1863-72
1870
1*63
iSi.ir.
January, July!
January, July
April, Oct,
March, Sept.
Feb., August
January, July
June, Dec.
Host
N.Y.
1874
1*6*J
1883
1863
lSiO-61
1866
1*75
\m
1861
1873
1*75
1866
18KJ
1873
1861
1800
Its56-56X
1*57-58 X
1889
1862
1*63
1*83
1*8.1
lNd
r-*
g.4
.9°
92 V*
80 I
91
■
86
78
ASK'D
■
hoo
xi S
88
X ..
X 80
X WV*
93
long
1861-73 X
1866 J\
1873 Xj .■
1858-62 X'101
1*>4-75X "I
98
80
96
B2L?
98V*
96
871.*
N)
m*
9315
95
90
1861
1866
1*73
1861
1864
1858-60
X
X
X
X
'Xl
80
97
81 V*
93
80
90
93
86
97
99
100
98
90 Hi
87V*
84
99V4
84
91
ii*S-06 X 103
1873 “
1*.7
11»66
IN-Y-W
I860
I " !lwi
Is-vjSS
1865
11866
Phi
I860
1865
1873
I860
X! 78
XI 95
106
X! 98
863.4| w
I av*| 83
X
X!
x! ..
X 99
X 99
1 »
i g V*
87 V*
95
80
1 75
106
L80U
hoo
108
87 V*
75
80
90
100
1101
85
M X stands'* for Ex-Interest.
Gok igle
rig i na I fee rri ^
UNIVERSITY OF CHICAGO
1855.]
Government, State, and City Bonds.
731
II, S. Gov. SecuritV
Loan, 6 per cent 18661
do. do 1862]
do. do 1867
do. do 1868]
do. do Coup. b’s. 1868
do. 5 perct. do. 1865f
.Stale Securities.
N. Y.6 per ct. . . .1860-’61-’62|
do. do. . ...1M4-’65|
do. do 18T2t,
do. 51/2 perct 1860-’6I
do. do 1865|
do. 6 per ct 1858-’60|
do. do 1866
do. 41/2 per ct. ISoS-’oO-^I
INT. PAYABLE.
Jan. July,
do.
do.
do.
do.
do.
Jan. April.
July, Oct.
18*2|jan. July.
Jan. April.
July, Oct.
Canal Certified, 6 p. ct,..186l!jan. j„i-
Ohio, do. 1856
do. do. 1860
do. do. 1870
do. do. 1875
do. 5 per cent 1865
Pennsylvania, 6 per ct
do. 5 per ct. coup.. 1877,
•Massachusetts, 5 perct....
Kentucky, 6 p.ct.b’d. 1869- 72
Illinois, Int. Imp. 6 p. ct.l847|
do. 6 per cent. Interest
Indiana State, 6 per ct,
do. 21 2 perct..
do. Canal Loan. 6 per ct.l
do. Canal Pref. 5 do.
Maryland, 6 do.?
do. 6 do.}
Alabama, 5 do.
Louisiana, G per ct. bonds. .
Tennessee, 5 do. do.
do.
do.
do.
do.
do,
do.
Virginia, 6
Missouri, 6
N. Carolina 6
Georgia, 6
do.
do.
do.
do.
do.
Feb. August,
do.
Ijan. July.
do.
do.
do.
do.
do.
I Jan. April.
[July, Oct.
May, Nov.
Divers.
Jan. July.
1 do.
do.
do.
do.
do.
do.
do. long
do.. 1886
do.. 1872
1873
u uo 1872
California, 7 do ...1870
City Securities
New- York 5 per ct. . ,1858-’6o|
.do. do. ...187d-*7o
•Albany, Bond. 6 p. c. 1871-81
•Alleghany do. do. 1875-’77
Baltimore do. do. 1870-’90|
•Boston do. 5 do.
Brooklyn do. 6 do
•Cleveland do.W.W7p.c.l879
•Cincinati do. 6 p. c
•Chicago do. do. 187:1-7’.
•Detroit W. W. 7 p.c.’73-’78-’83
•Jersey C. do. 6 do 1877
•Louisvilledo. 6 do...l880-’83j
•Milw’kie do. 7 do 1873
•Memphis do. 6 do 1882
•Norfolk do. 6 do 1867
•N\ Orl’ns do. 6 do. . .1892-*93
Philadelp. 6 do. . .1876-,90
•Pittsb’gh do. 6 do, ’69-’78-’83|
•Rochest’rdo. 6 do 1878.
*St. Louis do. 6 do I
•Sacramento 10 do.. ..1862-73;
;8.FrdaonciKo100dOo;....J87,M^N
Wheeling, muu. bnda. 6, 1874 Ma?cb, t.'
bounty Bond*.
•Alleghany.Pa.6p. ct. X T Ti
•F,ay«tte, Ky. 6do.X1881-83 Ja,&* July*
•Bourbon. Ky. Gdo.X.81-’82
•Mason Ky 6 do.X. 81-’82
•8t. Louis, Mo. 6 do. X. .1866
? Feb. May.
Uug. Nov.
Feb. Aug.
Jan. July.
Ja. Ap. Ju. Oc
April, Oct.
Jan. July.
do.
Divers.
Jan. July.
Feb. Aug.
Jan. July.
Divers.
March. Sept,
Jan. July.
[April, Oct.
[Jan. July.
do.
Divers,
do.
do.
do.
|orr*D.
10234
11034'
117
II714
117LS
108
106
[104
107
111
100 ■
lOOVfc 102
— 102
102
100
111 ,
117V*!1
118 1
118
109
112
101
•Boyle. Ky,
•Clark, Ky.
•Muskingum,
•Belmont. O.
•Putnam, O.
•Knox, O.
6do. X
6 do. X. .1883
7 do. X..1862
7 do.X..
do.
do.
do.
do.
Apr
Div(
7 do. X. .1875!
7 do. X.. 1878|
Itaiiroad Bonds.
N. Y. Central 7 p. ct.. .1883'
Erie 1st mort. do. ..1867|
do. 2d do.conv.do.
do. 3d do. do.
do. Income do.
do. Convertiblcsdo.
_do. do. do,
,Jan. July,
do.
March, Sept.
May. Nov.
.1875 Feb. Aug.
. .1871* do.
..1862 Jan. July.
Uud’n It. 1st mor.do* 18W-70 Feb* Aug.
do. 2d do. do. ..I860 16 Ju. 16 Dec.
100
101
99
I100I/2I
103
105
106
87 14 1
90
102
90
63
8034
48
95
105
92
86
91
95
94
9614
96
89
95
98
98
9534
161
101
97
90
100
97
87
87
76
103
105
106
107
103 ,
911/2
65
81V4
50
97
[106
92 Li
Railroad Bonds.
gad’n R. conv. 7 p. ct. 1867
Michigan South, do. ..I860
North. Indiana do. ..1861
Illinois Central do. ..1875
R- R* Co.S. Dividend
Baltimore A Ohio... .100
Chicago A Rock-Isl’d 100
Cin., Ham., A Day tonlOO
Cleveland, Col. A Cin.100
Cleve. & Pittsburgh. .50
Cleveland A Toledo... 50
Erie 100
Galena A Chicago 100
Harlem 50
do. preferred 60,
Hudson River 100 1
Illinois Central 100
Little Miami 50
Macon A Western 10
] Michigan Central.... 100
do. Southern ..100
do. do. con. st.100
New-Jersey 50
Northern Indiana . ..100
87
94
951/4
9414,
90
96
991/2
99
77
, 96U
100
102
103
1*8
92
101
9814
78
93 ,
791/2 80
99
9314
86
77
|l02Li|
1031/2
79 '
75V2
7712
6934
94
1*4
64
871/2
87 ,
1101/2
103
931/i
823/4
79 V2
. 81
llOH/2
92»/a
86 1/2 1
78
103
105
81
761/2
80 1
N)
78
7014
95
95
int. pay’bl.
May, Nov.
May. Nov.
Feb. Aug.
April, Oct.
forir’D.
90
8714
111
104
U
NJ
82
[102
94
r, do- con. at. 100
N. naven A Hartford. 100
New-York Central.... 100
N. Y A New-navenlOO
Ohio A Pennsylvania. 50
Panama 100
Pennsylvania 50 [16
Reading 60 6
Home A Watertown.. 100 10
IVIiNceliaiieouK.
N. Y. Life A Trust Co.100110
Ohio do. 100 8
N. Y. Gas-Light C0....6OIIO
Manhattan do 60)10
Dela. A Hud. Can. Colon! 9
Pennsylvania Coal Co.50 10
U. S. Bank 100 1
Boston Ranks.
Atlantic flOO
Atlas IlOU
Blackstone ’’inn
Boston 5C
Boylston * * *100
Broadway, (S. Boston).. .*100
City... 100
Columbian 100
Commerce 100
Eagle inn
Eliot, (new) !l00
Exchange 100
Janeuil Hall 100
Granite. loo
Grocers’ 100
Hamilton..... .*100
Howard, (new) 100
Market
Massachusetts 250
Maverick 100
Mechanics’, (S. Boston).. 100
Merchants’ 100
National, (new) 100
New-England 100
North
North America * *100
Shawinut
Shoe and Leather !!!loo
State 60
Suffolk : 100
Traders’ ’ ***100
Tradesman’s, (Chel.)II I IlOO
Tremonfc 100
Union
^shington... 100
Webster, (new) loo
Exchanges*
iSfcrY'"-" ^
Amsterdam,
Frankfort,..
Bremen
Hamburg,. .,
Antwerp,...
April, Oct.
Feb.Atw.
Feb. Aug.
Jan. July.
„ do.
M h, Sept.
April, Oct.
Feb. Aug.
do.
Jan. July.
May, Nov.
Jan. July.
June, Dec.
Feb. Aug.
Dec.
Jan. July,
do.
Feb. Aug.
Jan. July.
1 do.
Apr. Oct.
Feb. Aug.
15 Fe 15 Au
Jan. July.
' do.
May 15 No.
Jan. July.
Feb. Aug.
72
m
95
701/2,
Feb. Aug.
[Jan. July.
May Nov.
Jan. July.
June, Dec.
Feb. Aug.
In liqdati’n
Div’dtt.
1854.
4
31/2
4
5
3Mj
3V2
4
4
3
4
4
5
4
l
4
4
1
5
4
4
4
4
5
31/2
3Vi|
4
4
■1
4
5
3V>
4
4
$
48
8534
70
103
m/2\
H
83
77
92
100
81
93
90
123
93
89
119 ,
93VS2
ask’d
73
It, 0
100
71
87
, 75
[104
48
70
451/2
82
321/4
78
3734
96
95
[103
83
MA
, 901/2
124
93
90
94
107
92
WA
150
85
135
iS
1141/2
m
93
76
75
106
KM1A
102^/4
67
C'A
103
104
101
106
101
10934
106
113
1121/2
101
981/21
113
98
85
140
125
U43*
101
3
8“
f4
111
108
104
106
103
1107
103
11014
114
101 V2
J 99
114
new
3V2
4
4
4
31/2
81-5 253
96
I6V2!
4
4
4
4
4
4
5
4
31/21
8* St.
1051/2
108
1011/4
108 1
102
10JV2I
103 1
108
64 Vi
199 1
(103
255
100
,107
106U
102
110
■
1104
1104
109
66
130
104
109
109
10U/2
104 4
110
luo
,103
1105
10?*4llt«4
5.12X 5.13*
speeded as Bonds are transferable by inscription. All Bonds fexcont n.ui^n 1-#
3d Mortgage and Erie Convertibles) are payable to bearer/ ” • ” denotes te4m?re«t
and
Digitized by Gougle
Original fro-m
UNIVERSITY OF CHICAGO
732
Counterfeit Plates .
[March,
Digitized by
( Correspondence of (he Bankers' Magazine.)
BANK FRAUDS.
Mauch Chunk, Pa-, Jan. 26, 1856.
To the Editor or the Bankers’ Magazine:
Mr. Editor: On reading your article in January number, on the Market Bank,
a plan occurs to mo as affording the required check, without the great additional
labor of keeping duplicate “deposit” and “check” books.
Let the dealere’ ledger be provided with an additional column or space, in which
to extend footings of the month’s postings on Dr. and Cr. side of each account,
separate from the amounts of the previous month’s postings. These columns would
of course show, at a glance on each account, the total of postings Dr. and Or., for
each month separately.
Then, at the end of the month, let these special footings for the month be drawn
off like a trial-balance sheet, showing the total of all postings to each side of the
ledger for the month. These, if right, must agree with the totals for the month of
the check-book on one side, and of the deposit and discount-books on the other
side, and also with the total of the month’s postings to account of individual deposits
in the general ledger, (which should also bo extended into a special column.)
This would furnish a check upon the general book-keeper, the teller, the check-
clerk, and the dealers’ ledger book-keeper ; besides being a great help to the latter
in checking his additions, and, especially, in enabling him to discover, in case of a
difference in his balance-sheet, on which side to look for the error. I have not
thought carefully of this, but see no objection to its adoption. If you think well of
it, please suggest it. A Banker.
COUNTERFEIT PLATES.
To the Editor of the Bankers’ Magazine:
I have lately received the “Second Annual Report of the Board of Managers of
the Association of Banks for the Suppression of Counterfeiting,” and am much
gratified to observe that their effects have been very successful towards bringing
counterfeiters to justice.
The country is still flooded, however, with counterfeit and altered paper, and tho
increasing skill of counterfeiters together with the alarming effects produced by tho
Photographic process, by which bank-notes are so skilfully copied as to defy detec-
tion at the counter of the bank that issues them, has made it important to devise
gome scheme whereby banks and the community should be protected.
Wo stand in need of checks against counterfeiting , and against alterations of titles
of banks , and of the denominations of notes .
Against counterfeiting by hand-engraving and by machinery we can have no
other protection than tho superior skill and excellence of workmanship of the
engravers of our plates. Against the arts of the photographer we must invoke
science.
Let me make a few suggestions through your Magazine, whereby the efforts of
counterfeiters may be more effectually prevented than they are now, even if they
should not be completely baffled.
1. Let all the horizontal lettering of the note be printed in blue ink.
2. Let all the horizontal denominational figures, with their encircling ornamental
lathe-work, be printed in black ink.
Gck igle
*44 - - Or-kjinal from- -
UNIVERSITY OF CHICAGO
Foreign Items.
733
Digitized by
1855.]
3. Across the face of the note, running perpendicularly, let the name of (he bank
and the denomination of the note be printed in red ink, in large letters and figures^
neatly omamentaL This should be etched lightly on the plate before the horizon- /
tal engraving is done. It should be sufficiently strong to bo apparent to every
eye at the first glance, but not so strong as to interfere with or confuse the horizon-
tal lettering of the work.
4. Let the names of the President and Cashier be written in blue ink.
B. Let there be some ornamental engraving in black ink on the back.
The security against Photographic counterfeiting would be this:
1st The photographic process would not bring out the parts printed in blue ink;
or at least would develop them so imperfectly that they could not be transferred.
2d. The red ink parts would turn block under the photographic process.
3d. The design on the back of the note would be very likely to show through
the paper, and render the photographic impression confused.
Against alterations the security would be, that any attempt to alter the name of
the bank or denomination of the note, would entail the necessity of erasing the per-
pendicular as well as horizontal name and denomination. The perpendicular words
and figures being large, and underlying \ as it were, much of the lettering of the
plate, an attempt to eraso them would entail the necessity of erasing so much of
that lettering as to render the note worthless in the process.
The different colors of the ink, and the ornamental work on the back, would
require each note to pass through the press four times instead of once, as in the
notes printed in the usual manner; but the additional protection afforded would
fully repay the additional expense that would be incurred.
FOREIGN ITEMS.
Mineral Wealth op Cornwall and Devon. — To those acquainted with the vast
mineral resources of this country it is unnecessary to mention that the counties of
Cornwall and Devon stand preeminent for the production of copper and tin; whilst
mines of lead, also of great richness, are to be found there — in fact, two thirds of
the yield of copper of the whole world is raised in these districts ; but nature so
bountiful in this and other valuable metals has denied it the production of coal. The
annual rising of copper ores is rather over 150,000 tons, averaging 7 £ to 7f per
cent, or 12,000 tons of the fine metal ; the value of this exceeds £800,000 sterling;
The quantity of tin ore raised may be stated at 11,000 tons, containing 66 per cent
of the metal, (say 7,000 tons,) which, valued at £90 per ton, yields £630,000. The
annual production, therefore, of copper and tin together may be computed as
amounting to £1,430,000 sterling. For a period of four years — namely, 1850 to
1863, inclusive — this branch of our national industry shows an aggregate return
of £5,720,000, a sum amply sufficient to place Cornwall and Devon at the head of
mineral production, excepting in coal and iron, the annual value of which exceeds
£15,000,000 sterling; but these are more generally diffused throughout the country
than copper and tin, being found in rich and widely-spread basins in most of the
counties of England, Scotland, and Ireland ; the former average 5s. 7d. pt. the pit’s
mouth, and the latter 48s. The Cornish and Devon ores are conveyed to Wales for
the purposo of smelting; therefore the sum of 55s. per ton is deducted for returning
charges ; this, on an annual yield of 150,000 tons, gives a drawback of £1,650,000
for the four years, say £3,200,000, the total production for that period being equal to
fully one third of the intrinsic value of the metal itself! or one half of the Bum the miner
receives for his ores, and from which he has to deduct the cost of labor, machinery,
royalty, and all other expenses connected with mining operations. Fully one half;
or £825,000 thereof; would be saved to the copper miner had he coal in his own
Gck igle
Original from
UNIVERSITY OF CHICAGO
734
Foreign Item.
Digitized by
[March,
district* and which wonld double the present amount of dividends received upon all
the mines at work in Cornwall. It appears that the copper and tin mines of Corn-
wall and Devon present the following results for the four years in question — namely,
61 in number, 56 situate in Cornwall, and 5 in Devonshire : the former yielded,
in dividends, £825,835, and the latter £109,912; this is 16 36 per cent upon the
aggregate yield of those districts for that period — namely, £5,720,000 of ore, which
also includes the produce of the host of young and progressive mines at work, not-
withstanding they have contributed no dividends, having, in moet cases, sustained
calls ; therefore, in justice, the percentage of profits should be increased to a pro-
portionate extent, in order accurately to ascertain the true position of the dividend
mines alone The following is an abstract of the dividends paid annually by the
copper and tin miners of Cornwall and Devon :
1850, £197,216
1851, 199,860
1852, 245,484
1853, 293,247
Total, £935,747
56 Cornwall companies, 825,835
5 Devonshire companies, 109,912
61 £935,747
Of the above 56 Cornish mines, 13 are situate in the Camborne, Iliogan, and
Redruth districts.
The Banking House of George Peabody k Co.— The New-York Courier &
Enquirer . in answer to a correspondent, speaks of the house of Messrs. George Pea-
boby k Co., in London, as a “ purely American banking and commission house/' and
continues :
14 Such a house, controlled and directed by Englishmen, might not survive a
monetary crisis in the United States; and it would be strange if it did. No purely
English House could exercise the necessary discrimination in regard to American
securities, to withstand such a crisis as the present ; and hence the remark quoted.
But Mr. Peabody is an experienced American merchant, and he has recently taken
into partnership with him Mr. Morgan, of Boston, also a merchant of high character
and great experience, and with the knowledge which Mr. Peabody has always pos-
sessed in regard to American affairs, and the experience he baa recently called to
his aid, he could safely deal in American securities and have sufficient business to
render it his interest to be exclusively an American house. The result proves this.
We speak advisedly when we say that Mr. Peabody has accumulated a fortune of
more than three millions and a half of dollars, all, or nearly all, of which is conver-
tible within ninety days ; and if it be any satisfaction to the 4 Baltimore Merchant *
to know it, which we doubt, we may add that we have good reason to believe that
if Mr. Peabody were to die to-morrow, the house would be continued on his capital.
41 Tho truth is, a great American house in London — a house composed of Ameri-
can proprietors, operating on American capital, and measurably confining itself to
American business — is Mr. Peabody’s hobby ; and we are glad that it is so. Such a
house under the direction of gentlemen, will always have as much business as they
can manage, and cannot fail to make enormous profits. And such a house is of
unappreciablc value to our whole country. With a large cash capital, it will not
stand by and see valuable stocks sacrificed, at the same that it will stand aloof from
all mere schemes ; and thus by its refusal to give countenance to what is wrong,
preserve tho careful and prudent foreigner from being imposed upon by sharpers.
Nor is this all. Experience has shown that such a house has the ability as well as
the disposition, to come forward and interpose for tho credit of those they know to
be good on this side the Atlantic; and, therefore, it is just such a bouse that our
commercial men should desire to see perpetuated. That it shall be perpetuated we
know to be the desire and intention of Mr. Peabody, and to will in his case is to
accomplish.0
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Foreign Items.
735
Railroads. — The most extraordinary railroad enterprise of the present century,
is for the construction of 700 miles of double track and 300 miles of single track, to
connect Sydney, Melbourne, and Adelaide, in Australia. This can be accomplished
at an aggregate cost of twenty-one millions sterling, (one hundred million of dollars,)
only with the aid of the home government.
The chief features of the project are, that it seeks for the promotion and direction
of the home government, by guaranteeing a loan for its construction, the interest
of which should be payable and be chargeable on the general revenue of South- Aus-
tralia, New South-Wales, and Victoria, either in proportion to the length of railway
passing through each colony, or in some other ratio to the amount of the actual
estimated outlay or advantage of each colony; and that imperial commissioners
should be appointed to direct and control the expenditure of this loan, and to
receive in trust, for the purpose of creating a fund for the ultimate redemption of
the loan, waste lands of the Crown, on both sides of the railway, for a distance of
ten miles : and to cause the same to be gradually sold at public auction, according to
the existing laws regulating the sale of waste lands of the Crown ; and of the pro-
ceeds of the said sales to apply one half in the introduction of labor into the colony,
and the other moiety to be carried to account of the fund for eventually redeeming
the railway loan. Estimating the cost of tho undertaking at ten millions for the one
thousand miles of railway necessary to connect Adelaide, Sydney, and Melbourne,
tho difference between the colonies raising this amount with or without tho guaran-
tee of Parliament, would probably not be leas than two per cent; the guarantee
would, therefore, bo equivalent to a grant from the homo government of not less
than £200,000 per annum.
The cost for the construction of this project is £21,000,000, as follows:
COST OF CONSTRUCTION.
1000 miles of railway to connect Sidney, Melbourne, and Adelaide —
700 miles of double line, at £15,000 per mile,
300 miles of single line, at £10,000,
Passage-money of 5000 navigators and artisans, with their wives and
families, say 20,000 adults,
Docks and warehouses in connection with tho terminal station of each
city — Sidney, Melbourne, and Adelaide,
Interest of capital during construction of works, at the rate of 3 J per
cent, say
£10,500,000
3.000. 000
500,000
4.000. 000
3.000. 000
Total, £21,000,000
Portuguese Finances. — Of the Portuguese finances tho London Times remarks:
“ The advices from Lisbon state that the ministerial budget exhibits an almost
exact equalization of tho revenue and expenditure for 1855. Tho Finance Minister
has accordingly congratulated tho country that the government will bo able to
meet, * during tho next financial year, as until now, the interest of the internal and
external debt, and all other charges of the public service.1 This phrase, however,
contains an assumption not to bo passed without exposure. Portugal has not for
several years met the claims of her creditors honorably, nor does she now announce
any intention of doing so. She regularly confiscates forty per cent of the sums to
which they are entitled, and without offering tho slightest plea, except that the
practice is convenient.
Foreign Wheat in England. — Tho growing demand in Great Britain for
Indian corn, is demonstrated in the following extract from tho last Mark Lane
Express :
Tho imports for the three first months in tho past year were on an equally largo
scale with tho preceding, and will no doubt show an equal, if not greater, excess
over the imports of the same months in the present year with tho three months
contrasted above. Admitting that the last crop gathered in was as largo as it was
generally represented to be, the farmers have parted since August, with so largo a
portion of it that we question their ability to supply any thing near tho quantity
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required for the remainder of the season ; and as the stocks of old wheat in the
hands of farmers and merchants are all but exhausted, a severe crisis, it is to be
feared, will bo experienced as regards food before another harvest can be available.
The enormous importations of previous years must be kept in view, which were,
for the twelve months ending —
Wheat* Indian, Com* Flour .
qn. q re. cwta.
Oct 10, 1850,
Oct 10, 1851,
Oct 10, 1852,
Oct 10, 1853,
Oct 10, 1854*
3,513,590
4,333,127
2,455,542
3,847.364
4,342,022
1,463,649
1,564,150
1,392,741
1,881,710
1,682,633
2,855,698
6,048,355
4,113,794
4,494,104
4,696,387
Amounting to 19,491,645 7,984,883 22,208,338
And reducing the flour to wheat, 6,345,239
Total imports, 25,836,884
Or, 5,167,377 annually of wheat and flour.
All of which may be said to have gone into consumption ; for the stocks in all porta
are extremely small, and there does not seem much probability of getting them
replenished speedily from any quarter of the globe.
The fluctuations in wheat were os follows for January and December:
Dec. 16, average, 72s. 3d. Jan. 6, average, 74s. 3d*
44 23, 44 72s. 4<L 41 13, 44 73s. 9d*
14 30, 44 73s. 9<L 44 20, 44 72a. 2d*
The English Law of Stamps. — According to the following correspondence, it
would seem that Bills of Exchange on England will be, in all cases, subject to the
new stamp duty.
44 London, December 4, 1854.
44 Board of Inland Revenue^ Somerset House :
44 Sir: We frequently receive from our correspondents in the United States, as
remittances for their account, bills drawn at sight, or sixty days’ sight upon our-
selves by other parties, and for account separate from that of remitters.
44 We are at loss to know whether such remittances, in our hands, are subject to
the stamp under the new act, and request the decision of the Board upon this point.
44 Your obedient servants, Geo. Peabody k Co.
44 Thomas Keogh, Esq.”
44 Inland Revenue — Somerset House, }
“London, December 13, 1854, j
44 Gentlemen : The Board having had before them your letter of the 4th instant,
I am directed in reply to state that they are of opinion that the bills therein referred
to should be stamped previously to their being paid, or brought to the account of
the remitters upon maturity. I am, gentlemen, your obedient servant,
44 Messrs. Geo. Peabody k Co. Thomas Keogh.”
The Paris Bourse. — Paris, Monday, Dec. 4, 1854. — The negotiations between
the Austrian government and a well-known Paris capitalist for the construction of
railroads, have been brought to a successful termination. The contract was only to
be completed in the event of Austria entering into a treaty of alliance with Franco
and England, and this fact is considered as an additional proof of the satisfactory
nature of the treaty.
The commercial position of Paris is unchanged. The manufacturers have nearly
completed their stocks, and are not apprehensive of being surprised by too great a
number of demands coming at the same moment on the approach of the new year.
Very few orders are now received from the United States, and the commercial
aooounts from New- York of the 13th ult are any thing but reassuring. A few
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Parisian and Lyons houses have forwarded of late large consignments of goods to
Germany, particularly to Prussian firms trading with Russia. The cold beginning
to be rigorously felt, the communication by sledges will become very active by land
between Memel and St Petersburgh. The government, by prohibiting the export
of corn until the 31st July, 1855, was anxious to check the rise in the price of
grain. The decree, however has not yet produced the desired effect. The rates, it is
true, are less buoyant in Paris than in the preceding week, but in the departments
they continue firm. The sale of cattle has been very active at all the markets, par-
ticularly those of Sceaux and Poissy. Prices have not increased, but they main-
tain themselves, owing to the disinclination of the graziers to abate their preten-
sions.
MISCELLANEOUS.
Early Banking Customs in Boston. — In connection with the report of the
banking committee, which was submitted at the meeting of the Board of Trade last
evening, recommending a change of the time of closing the banks from two to three
o’clock P.M., was the following statement in regard to banking hours in former
years:
“ The first legitimate bank incorporated in Massachusetts was the 1 Massachu-
setts Bank,’ in the year 1784. It was then kept * in an elegant brick building, late
the Manufactory House near the Common, in that part of the city now known as
Hamilton place, opposite Park -street Church, and was kept open for business during
the hours from 10 till 1A.M., and from 3 till 6 P.M., during every day in the year
except Sundays, public fasts, Thanksgiving days, Commencement days, general
election days, Christmas, Good Friday, and the Fourth of July. Our fathers had a
proper regard,' (says Mr. Dodd, from whose interesting account these facts are
extracted, ) ‘ for the health of their bank-clerks, in the adoption of no less than seven
holidays during the year.’
“ The practice of keeping open the banks during the hours named continued down
to 1811, when they began to open at 9 o’clock in summer and 10 o’clock in winter,
and to close at 3 o’clock every day except Saturday, on which they closed at one
o'clock. This practice continued till about twenty-five years ago, when it being
found that there was but little to do between the hours of two and three, it was
resolved to close the banks at two o’clock, and this has been the usage from that
period to the present time. The population of Boston was then 61,000.
“ Of late years the condition of things has much changed. The population in our
city is nearly three times as great as it was in 1830, and added to that of the towns
within a circuit of ten miles, must amount now to nearly 350,000, all of whom, for
the interests and purpose of business, as much belong to our city as if they lived
within its limits. Since the last change was made, our railways have been built,
bringing our larger towns within a few hours’ distance, by which our business has
been much increased and will continue to increase in proportion to the increased
facilities offered.”
Security for Holders of Bills in Broken Banks.— Among the suggestions
in the Governor’s Address is one relating to a subject which we are glad to see
brought to the attention of the Legislature. The failure of the Cochituate Bank last
summer brought to light a defect in the laws relating to banks which, in view of
the anxiety of recent legislatures to act upon that subject, it is remarkable should
exist, and which it is important should be remedied.
It appears that by the law as it at present stands, in case of the failure of a bank,
the holders of bills do not have a claim for payment in full, prior to other creditors,
to which of right they aro entitled. It is true that it is provided that the stockholders
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in the bank shall be individually liable to an amount equal to their stock, for the
payment of bill* holders in full But it appears from the course of proceedings in
the case already alluded to, that the claim of the bill-holders for indemnification
under this provision of law is one which they must themselves enforce against the
stockholders separately. Of course to those who hold bills only for small amounts,
who are the sufferers in most cases, this is a remedy to which it is not worth their
while to resort Indeed, it is doubtful whether any bill-holder could recover from
one stock -holder more than his proportion of the amount of the bill To collect
from all tho stockholders their separate contributions to make up the amount, would
be impossible in practice.
The propriety of redeeming the bills of a broken bank in full, before paying any
other claims, is so obvious that it is needless to dwell upon it Depositors, when
they place their funds in a bank voluntarily, assume any risk which there may be,
and they ought to keep themselves informed of its condition. So other creditors of
a bank trust it voluntarily.
But holders of bills stand in a different position. Bank-bills, especially those of
small denominations, pass from hand to hand so quickly in the ordinary operations
of business that it cannot be expected that individuals shall discriminate between
those of the different banks all created by our own Legislature, and all equally
authorized to circulate bills. If such a bank fails, it is a mere accident in whose
hands its bills happen to be, and those who happen to hold them ought not to
suffer.
This is so universally recognized, that wo presumo tho present state of the law
must have been caused by accident and not by design, and it simply remains for the
Legislature to give a favorable consideration to tho suggestion of the Governor, and
sot tho matter right upon tho statute-book. — Boston Daily Advertiser.
Purchase of U. S. Stocks by the Government. — Treasury Department Jan.
3, 1855. — Notice is hereby given to the holders of the following described stocks of
the United States, that this Department is prepared to purchase, at any time be-
tween tho date hereof and tho 1st of March next, portions of those stocks amount-
ing in the aggregate to $1,900,000 in tho manner and on tho terms hereinafter
mentioned, to wit:
In case of any contingent competition, within tho amount stated, preference will
be given in the order of time in which said stocks may be offered. The certificates
duly assigned to tho United States by tho parties who are to receivo the amount
thereof must be transmitted to this Department ; upon the receipt whereof; a price
will be paid, compounded of the following particulars:
1. The par value, or amount specified in each certificate.
2. A premium ou tho stock of the loan authorized by the act of July, 1846,
redeemable November 12, 1856, of 2$ per cent; on the stock of the loan authorized
by the act of 1842, redeemable 31st December, 1862, of 10 per cent: on the stock
of the loans authorized by the acts of 1847, and 1848, and redeemable, the former
on tho 31st December, 1867, and the latter on the 30th June, 1868, of 16 per cent;
and on the stock of the loan authorized by the act of 1850, and redeemable on the
31st of December, 1864, (commonly called the Texan indemnity,) 6 per cent
3. Interest on the par of each certificate from the 1st January, 1855, to the date
of receipt and settlement at tho Treasury, with the allowance (for the money to
reach the owner) of one day’s interest in addition.
Payment for said stocks will bo made in drafts of the Treasurer of the United
States, on tho Assistant-Treasurer at Boston, New- York, or Philadelphia, as the
parties may direct
But no certificate will be entitled to the benefit of this notice which shall not be
actually received at the Treasury on or before the said 1st day of March next
James Guthrie, Secretary of the Treasury.
Photography. — The most startling discovery of the age, says tho Cincinnati
Gazette, is that by which a bank-note or other writing or engraving is copied to
such perfection as to defy the best judges. Last week a photographist copied a
note of tho State Bank of Ohio, and the spurious bill was presented to and received
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as genuine by three of the most experienced bank-tellers in the city, and even after
being told that it was not genuine, they contended that it was good. Unless this
discovery can be overcome, confidence in bank-notes will be destroyed. The dis-
covery and improvement of the art of photography are giving rise to serious appre-
hensions that bank-notes will soon be reproduced by this new system as to defy
detection. It is said that the use of light-colored inks in the signatures and tilling
up will render them incapable of being copied by tho photographic process. But
this preventive is not thought to be entirely reliable. Tho matter, however, is of
such direct interest to banking institutions that we doubt not strenuous efforts will
be made to discover a safeguard.
The exports of specie during the last year, although large, will not equal the
total shipped from this port in 1851, by six and a half millions, as the following
table will show:
EXPORTS or SPECIE FROM NEW-TORK TO FOREIOX PORTS.
1850.
1851.
1952.
1858.
1854.
Jammy,
$90,861
$1,266,281
$2,868,968
$747,67$
$1,845,682
February,
278,708
1,007,639
8,551,548
1,121,020
579,724
March,
172,087
2,868,861
611,994
592,479
1,466,127
April,
8,482,182
200,266
767,055
8,474,525
May,
4,506,185
1,884,893
2,102,467
8,651,626
June,
6,462,867
8,556,355
8,264,282
5,168,188
July,
1,518,0S0
6,004,170
2,971,499
8,924,612
2,922,452
August,
2,678,444
9,935,838
1,168,978
4,548,890
September,
1,038,918
8,490,142
2,122,495
1,244,191
6,547,104
October,
1,779,707
2,452,801
4,757,972
8,859,898
November,
5,033,996
809,818
8,855,775
8,538,001
December,
1,208,760
5,668,285
1,180,805
8,181,851
68,264
$9,982,943
$48,748,209
$25,096,266
$26,756,856
$87,169,406
The exports of specie for the last month are smaller than for any previous month
since August, 1847 1
Finances op Missouri. — From a statement furnished by the Auditor of Public
Accounts, I am gratified to be enabled to assuro you that the finances of our State
are in a prosperous condition. A detailed statement of the condition of the Treasury
for the last two fiscal years, and its probable condition for the next two years, will
be furnished you in the Auditor’s Report
The amount of revenue received in the Treasury in 1853, is $378,792 66
Tho amount received in 1854 is 429,872 34
The total amount received for the two years ending 1st October, 1854,
is $808,665 00
The amount expended in 1853 is 380,531 42
The amount expended in 1854 is 247,952 32
The total amount expended for the two years, ending 1st October,
1854, is $628,483 74
The estimated receipts of revenue from all sources, for the two fiscal years, begin-
ning on tho 1st October, 1854, and ending on tho 1st October, 1856, are $1,031,000.
Deduct estimate of ordinary expenses for same period, $500,000 ; deduct also ono
fourth of one per cent set apart for school purposes, $257,750 ; and also deduct such
extraordinary appropriations as may be made by the present General Assembly,
which will, perhaps, not exceed $75,000, and there will then be left remaining in
tho Treasury, of surplus revenue, on the first of October, 1856, $198,250 ; to which
amount add unappropriated revenue remaining in the Treasury on the 1st October,
1854, $234,889.59, and it will leave a surplus revenue remaining in the 8tato
Treasury, on the 1st October, 1856, of $433,139.59.— Cor. SL Louis Rep.
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Bank Items.
[March,
Counterfeit Bills. — Two years ago, a young Englishman was arrested in Boston
for passing counterfeit money, tried, convicted, and sentenced to the State's prison.
The money which ho passed was a five-dollar bill on the Wrentham Bank, which
was taken by the person receiving it to the Suffolk for deposit The teller at tho
Suffolk pronounced it counterfeit, and wrote “counterfeit” across tho face of it.
On tho trial the mark of the teller was called to prove the bill genuine, and the
teller’s stamp went for evidence. About a month ago, the bill, which had been
safely kept in tho District Attorney’s office, by accident fell into the hands of the
former cashier of tho Bank, when he immediately pronounced it genuine. Where-
upon the young Englishman was set at liberty after a confinement in tho State’s
prison of nearly two years. The question now is, who ought to pay the damages,
tho State or the Suffolk Bank ?
Counterfeiting on a Large Scale. — A regular counterfeiting league, com-
posed of gangs located in Cleveland, Cincinnati, and other portions of Ohio, has
been discovered by tho police, through a stool-pigeon. It is said that many well-
known citizens, including three police-officers, have been actively engaged in the
nefarious business. The Cincinnati Gazette of tho 14th says:
“ The names of the gangs and their principal places of congregating were named,
as woll as the method of obtaining ‘ covey1 and becomiug an adept in this species
of crime. It was stated that gangs were in Columbus and Sandusky, in both of
which cities arrests, upon information received from Young, have been made, and
the parties committed to jail for their final trial in the criminal courts. In this city
no arrests have yet been made, but we learn that tho necessary steps arc being
taken to make an extensive haul Officer Williams and his ‘stool-pigeon,1 upon
what had been told tho latter by Young and others, went to an old wooden water
station-house, on the L. M. Railroad, this side of Polktown, and there found boxed
up sheets of signed and unsigned counterfeit bills, cut and uncut, of denominations
ranging from $1 to $20, on the Northern Bank of Kentucky, State Bank of Ohio,
Bank of Kentucky, State Bank of Indiana, and banks in New-York, Pennsylvania,
Tennessee, and Virginia. The total amount found was not far from thirty thousand
dollars . There were also two plates to print tho ones, Northern Bank of Ken-
tucky, and the twos, State Bank of Indiana. The money is well executed and
well calculated to deceive.11
BANK ITEMS.
New-York. — At a mooting of the Directors of the American Exchange Bank,
held February 16th, tho resignation of Mr. C. A Meigs, tendered some time since,
was accepted, and Mr. Geo. S. Coo was appointed Cashier. The resignation of Mr.
Meigs and tho appointment of Mr. Coe took effect on the 19th inst Highly com-
plimentary resolutions relative to Mr. Meigs, were unanimously adopted. We are
informed that Mr. Meigs received a substantial proof of the estimation in which he
was held by the Board of Directors, in the shape of a gratuity of $1000
Samuel Willets, Esq., has resigned tho Presidency of the same institution, and is
succeeded by William A. Booth, Esq., who has for some years filled the office of
Vice-President of that Bank.
Nortii-Carolina. — The Legislature of North- Carolina has re-chartered the Bank
of the State of North-Carolina for twenty-five years; and the Bank of Cape Fear for
twenty years. Tho Commercial Bank, at Wilmington, has been authorized to
increase its capital from $350,000 to $8u0,000.
District of Columbia. — Thomas Carberry, Esq., has been elected President of
the Bank of the Metropolis, Washington, D. C., in place of John W. Mauiy, Esq.,
deceased.
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Indiana. — A now banking bill is now before the Legislature of Indiana, which
proposes to organize a new State Bank, and divide the State into not less than
fifteen, nor more than twenty bank districts. Each district is to be 'restricted to
one bank, or branch bank, and the aggregate capital of all banks shall not exceed
six millions of dollars. No branch is to be organized until $100,000 are subscribed,
and $10,000 paid in, the remaining capital being required to be paid in before
the 1st of January, 1857.
There is to be a State Board of Directors, composed of four members, chosen by
the Legislature, and one member by each branch bank. The new State Bank is to
purchase of the State all its interest in the present Bank, including stocks, surplus
funds, etc. ; no part of which is to be withdrawn from the Bank or lessened in
value, but the State Board is required to withdraw it from any branch and invest
it in others in case of mismanagement The Bank is to pay ten cents on each share
of stock annually as a bonus to the State for the benefit of the school-fund, and its
capital and other property is subject to taxation as in other cases. The State
reserves the privilege to establish new branches with the consent of two thirds of
the members of the State Board.
The Canal Bank and the New Canal. — The Stockholders of the Canal and
Banking Company, N. O., have addressed a petition to the Legislature, praying the
State to surrender to the Bank the reversion of the property of the Canal and Road.
The Canal and Banking Company was chartered in March, 1831, with a capital
of $4,000,000. Its charter gave it the usual banking powers, and provided in addi-
tion that tho Company should construct a canal and basin from some part of tho city
above Poydras street to Lake Ponchartrain, and should lay out a road, not less
than twenty-five feet wide, along the whole line of tho canal, and cover the same
with shells, or other hard substance, so that at all times it may be suitable for car-
riages to travel on. The charter likewise provided that after 35 years, in 1866,
the property should revert to the State.
Bank Dividends. — New- York, January, 1856. The following table shows the
bank dividends for January, 1855, compared with 1854 :
1854. 1855.
Banks. t * .
Jan. July. Jan,
Bank of America,. 4 4 4
Bank of Commerce, 4 4 4
Bank of New- York, 4 4 4
Bank of North-America, 8% 8tf 8#
Batchers A Drovers’, .5 5 5
Chemical Bank, 0 6 6
Continental Bank, 4 4 4
East River Bank, 4 8X none
Grocers’ Bank, 8* 8 X 8X
Hanover Bank, - 8X 8 X
Irving Bank, 8X 8x 8*
Market Bank, 4 4 4
Mercantile Bank, 5 5 5
1854. 1855.
Banks. * >
Jan. July. Jan.
Merchants’ Exchange Bank, ... 4 4 4
Metropolitan Bank, 4 4 4
Nassau Bank, 4 4 4
North River Bank, 5 5 4
New-York Dry Dock Bank,.. . 4 4 4
Ne w -York Exchange Bank, ... 4 4 4
Ocean Bank, 8X 8X none
Pacific Bank, 4 4 4
People's Bank, 8X 8X 8x
Phoenix Bank, 15 7 4
Seventh Ward Bank, 4K 5 5
Tradesmen’s Bank, 7X 7 X 42
The Dividends of the Phoenix Bank and the Tradesmen’s Bank were final divi-
sion of surplus profits at the expiration of their charters.
February, 1855.
Bank of tho Republic, 5
Citizen’s Bank, 4
Corn Exchange Bank, 8X
Leather Manufacturers’ Bank, 5
Manhattan Bank, 4
Marine Bank. 4
8t Nicholas Bank,
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742 Notes on the Money Market. [March,
The United States Bane.— The Trustees of the United States Bank announce
that no claims against that institution will be received alter the 16th of April next,
and that they will proceed to make a final dividend to the creditors.
Bankino House or Pads k Bacon. — The following notice [has been issued
by Messrs. Page k Bacon, of St Louis:
Omci or Paoi A Bacon, St. Louis, Feb. 17th, 1855.— We are happy to announce that our
arrangements for the red petting of our house are now complete, and that on Monday morn-
ing, February 19th, we shall resume the regular business of our office.
In making this announcement we should do injustice to our deep sense of obligation, did
we not embrace the opportunity it affords of bearing public testimony to the kind consider •
ation and generous sympathy so uniformly extended to us since the issue of our card qf
12th January. We are not insensible to either the fact or its significance, that , during the
entire term of our suspension, we have been annoyed by no manifestation of uneasy solicitude
or disaffection on the part of our friends', but have rather been cheered and encouraged by
their man y proofs of unabated confidence. We have no disposition at the presen t time to recur
to the immediate cause of our misfortune. The principal facts have already been laid before
the public in the journals of New- York and St. Louis; and we are content that the same
public, without further statement or comment on our part, should pronounce upon their
character. Pag* 6 Bacon.
Note* on tfje ittoneg Jttatfut.
New-Yobk, February 24, 1855.
Exchange on London, sixty days' sight, 9| a 9£ premium.
Sings the publication of our last No., the price of bills on Europe has advanced to such a point
that the export of specie from this port has been renewed. Abovo $1,800,000 in fine gold ban were
shipped by the steamer of the 2 1st Inst, for Liverpool, and above $500,000 from Boston, on the
14th. This arises from a temporary deficiency in the supply of bills from the South, on Liver-
pool, Havre, etc.
The money market shows continued improvement. The banks are discounting all the accept-
able paper that is offered, and are taking prime paper from the brokers. In the street, the brokers’
rates are 8 to 10 per cent for prime paper, and 12 to 15 for second class.
At Philadelphia, the rates for money are about the same as at New-York— 9 a 10)4 I** cent for
first-class paper, and 12 per cent for second-class grades. At these rates the supply of capital is
equal to the demand.
At Cincinnati, the money market is improving, and first-class paper goes freely. The excitement
In relation to the Ohio & Mississippi Railroad has subsided, and confidence is felt in the ability of
the Company to complete the road. The stock is firmer, and the bonds have been taken off the
market Two capitalists have, wo understand, undertaken to complete this road and relieve Mr.
Bacon from his engagements. No farther failures have occurred among the private bankers of
that city.
The Belcher Sugar Refinery has been chartered by the Missouri Legislature. The Stockholders
in this concern are the creditors of Messrs. Belcher Brothers, of St Louis. The charter is a very
liberal one.
At Boston, money is in fidr supply outside of the banks at from 8 to 10, and in the banks at from
Gck igle
Original from
UNIVERSITY OF CHICAGO
1855.]
Notes on the Money Market.
743
Digitized by
6 to 8. The banks prefer that description of paper which willpay exchange. Their operations
since 1st January, were as follows :
Date.
Loan*.
Specie.
Deposits.
Circulation.
Jan. 8, 1855*
12,757, MX
$11,494,876
$7,217,724
Jan. 9,
8,001,112
11,720,417
7,665,719
Jan. 16,
8,258,640
12,488,868
7,488,927
Jan. 28,
8,884,422
12,642,181
7,246,159
Jan. 80,
8,864,861
12,880,082
7,148,586
Feb. 6,
8,880,798
18,207,450
7,086,221
Feb. 18,
8,885,605
18,119,752
7,045,871
Feb. 20,
8,425,088
18,501,905
7,050,919
Collateral loans range from 9 to 12, except on pledge of the best dividend-paying securities, and
they command the money on call at 6 per cent
The New-York banks have Increased their discount line from $81,000,000 to $90,000,000. The
specie in their vaults is also accumulating as will appear by the (billowing exhibit :
1855.
Loan*.
Circulation.
Deposits.
Sub-
Treasury.
Coin
in Banks.
Aggregate
Coin.
Jan. 6,
..$82,244,706
$7,049,992
$64,9S2,153
$2,008,000
$18,597,000
$15,605,000
Jan. 18,
.. 8^,976,081
6,686,461
67,303,398
2,982,200
15,488,500
18,470,700
Jan. 20,
.. 85,447,993
6,681,355
69,647,618
2,788,400
16,372,100
19,110,500
Jan. 27,
.. 86,654,647
6,639,823
70,136,613
2,781,800
16,697,800
19,478,500
Feb. 8,
.. 88,145,697
7,000,766
72,923,317
8,798,200
17,489,200
21,287,400
Feb. 10,
.. 89,851,569
6,967, 7S8
73,778,842
4,188,800
17,184,400
23,26S,200
Feb. 17,
.. 90,S50,Q30
6,941,606
75,193,636
4,580,200
17,889,000
21,919,200
A radical change is proposed in the large commercial cities, in giving short credits to the coun-
try trade Instead of the long credits which hitherto have induced over-trading, and have seriously
crippled tho city jobbers. In lieu of 6, 9, and 12 months, as heretofore, the credits will probably
be reduced to 4 and 6 months.
The Mil granting a credit of three years to railroad companies for duties on railroad iron, is still
before the Senate. This bill is only another form of protection to foreign labor. If our railroad
companies will lay down American rails, they will confer a benefit upon tho community at large.
The iron interests of this country have been sadly neglected by our national legislature for many
years. Wo have more iron, coal, copper, and other minerals, than any portion of tho globe, and
capital is wanted to assist in bringing them to market Our railroad engineers acknowledge that
American rails are worth ten or twenty per cent more than the foreign, having more durability.
American rails at $G0 are moro economical, and confer more benefit, than foreign rails at $40 per
ton. In one case tho money remains in the country, accomplishing much good ; lu the other, It is
sent abroad and Is lost to us.
Tho Texas debt was passed on the 21st inst, in a modified form, by a two-thirds majority in both
Houses Tho amount agreed on by the Committee of Conference was $7,750,000. This compro-
mise was arrived at by the familiar process of splitting tho difference between the Senate and the
House bill. The very largo vote by which the bill passed in both houses furnishes a guaran-
tee, and tho only guaranteo against a veto. For it is evident that a veto on the bill would be over-
ridden by a tw’o-thlrds minority. This result also removes any doubt of tho fato of the Steamer
Appropriation Bill, over which the premonitory shadow of the veto has been already cast The
democratic objection to the Texas bill is, that it paves tho way for the assumption of State debts.
The latest intelligence from London, (up to the 10th inst.,) is favorable. Several of the leading
London Bankers write that, in their opinion, commercial affairs will show an improvement which
will continue throughout tho summer and autumn, in spite of the war. Tho last steamer brought
out liberal orders for American securities, and tho English funds maintain a remarkable buoyancy*
considering the state of political affairs. Better prospects exist in tho London and Continental
markets for American loans and stocks, including state, city, county, and railroad bonds. We
notice that large orders have been received from tho Continent, and particularly from France, for
various articles of foreign and domestic produce. The latter will bo readily filled, but the former
cannot he conveniently, owing to tho absence of French vessels.
The improvement in State stocks during the past threo months has followed the continued
Improvement in the money market Ohio six per cents had been sold as low as 95 ; Missouri, 84.
Such Is tho demand now prevailing for sound stocks that we think no solid 6 per cents remain
Gck igle
Original fro-m
UNIVERSITY OF CHICAGO
Digitized by
744
Notes on the Money Market. [March, 1855.
under par for any longth of time. Wo annex quotations for November 29, as compared with this
week.
Not. 28.
Feb. 21.
Ohio
6 per cents, I960,
108
a 105
Pennsylvania 5
a
8TXa 8TX
Kentucky,
6
u
102
a 108
Illinois Int. Imp. 6 per cents,
90
a 91*
Maryland
G
M
105
a 106
Tennessee
G
a
91
a 94
Virginia
G
M
$9xa 89*
95
a 95.X
Missouri
G
M
94
a 94X
N.-Carollna
G
a
96
a 96*
Georgia
6
a
96
a 99
California
7
u
89
a 90
During the snmo period there has been a marked improvement in city loans; and they are yet
far below their real values, and wo think will soon reach par. No more solid securities need be
discovered by capitalists. The quotations for November and February ore as follows :
Baltimore City 6 per cents,
Louisville “ “
Philadelphia M 14
Pittsburgh M M
Sacramento 10 per cents,
Cincinnati 6 44 44
In railroad shares the changes are still greater, namely :
Cleveland St Columbus,
Cleveland A Toledo Railroad,
Erie Railroad,
Hudson River Railroad,
New- York < Vntr&l,
Reading Railroad,
Michigan Southern Railroad,
Panama Railroad,
Nov. 28.
Feb. 21.
.90 a 91
95 Xa 96x
. 84 a 85
87 a 88
,. 88 a 8$x
93 a 93X
,. 76x« 77 X
79Xa 80
. 74 \a 7 5x
77 a 78
,. 90 a 91X
97 a 93
.. 91xa
92
103 a 104
. 50 a
55
69Xo 70
,83 a
81
45 a 45X
.80 a
80X
87Xo 88
• T9* a
80
93xo 94
. 65X0
66
75Xa 76
. a a
85
93 a 98X
. T4 a
75
107 a 108
DEATHS.
At Washington City, Friday, February 2d. John W. Maury, Esq., agod 40 years, fbr several
years past President of the Bank of the Metropolis.
At Norfolk, Va., Wednesday, January 31st, Wrioiit Southgate, Esq., aged 7T years, Oshier
of the Exchange Bank of Virginia. The death occurred at the Exchange Bank, about 11 o'clock
A.M., while in the discharge of the usual duties devolving npon him as Cashier of that institution.
Two gentlemen who were sitting near the fire-place had their attention drawn to the Cashier by
his singular breathing, but by the time they had reached the desk where he bad been writing be
breathed his last He had filled the office of Cashier of the Exchange Bank from tho time of its
commencement.
1
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Original from
UNIVERSITY OF CHICAGO
THE
BANKERS’ MAGAZINE,
AND
W o.OS
*
Statistical Register.
Vol. IV. New Series. APRIL, 1855.
No. X.
THE FREE BANKING SYSTEM.
The banking question is one of the important subjects of the day ;
important as affecting the great interests of the whole country — the
commercial, manufacturing, and mechanical employments of the
masses. Free banking has been discussed freely in various States :
in some it has been adopted, and in others it has been objected to, as
unfitted for the people. In New-York it has been seen to the greatest
advantage ; and even here its weak points have been fully demon-
strated. The States that have adopted the free-banking system are
New-York, Massachusetts, Vermont, Connecticut, New-Jersey, Ohio,
Indiana, Illinois, Louisiana, Wisconsin, and Tennessee. These general
laws are essentially the same in the leading point urged for their adop-
tion, namely, the deposit of State bonds as collateral security for bank
issues.
We ^propose : 1st. To recur to the slight differences in the free
banking laws of the several States ;
2d. To review the practical results of the operation of the laws ;
and
3d. To suggest such objections as appear to have force, when this
system is proposed for general adoption.
New-York. — The original free banking law of New-York, as adopted
in April, 1838, contemplated the reception of the stocks of New-York
and of the United States, “ or such other States of the United States
as shall be approved by the Comptroller,” but this copious margin
49
Digitized by
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UNIVERSITY OF CHICAGO
746
The Banking Question.
[April,
Digitized by
of sureties was found too liberal. The States of Illinois, Indiana,
Maryland, Pennsylvania, and Michigan soon after suspended pay-
ments and their securities thereby became depreciated, and the only
State stocks now received by the New- York Bank Department, as
a security for issues, are those of the United States and the State of
New-York, in addition to bonds and mortgage.
Of the losses resulting from bonds and mortgages as a security for
circulation, we can refer to the well-known failure of the Farmers’
Bank of Onondaga, in 1853. The sales amounted to $13,505; the
securities having been pledged for $50,317, being two fifths of the
estimated value of the property. The Bank Department at Albany
disposed of the various assets of the Bank, and published the following
official notice of the redemption of the bills, at a loss of 15 per cent to
the holders.
Farmers1 Bank of Onondaga. Notice to bill-holders. Bank Department, Albany,
May 23d, 1853. Horace Frizelle, an individual banker, having failed to redeem
the circulating notes issued by him according to law, notice is hereby given that
the securities held in trust,"for the redemption of the circulating notes of the Far-
mers’ Bank of Onondaga, having been sold and converted into cash, according to
the act in such case made and provided, and that a dividend of 85 per cent has been
made, and will bo paid to the bill-holders on presenting their notes at this Depart-
ment D. B. St. John, Superintendent
This is far from being an isolated case. Am official statement from
the Comptroller of the State of New-York, shows the following results
in the cases of twenty-six suspended banks, namely :
REDEMPTION OF NEW-TORK BANE PAPER.
Secured by
Nam* qf Bank* Stock*,
Cents.
Alleghany County Bank, 36
Bank of America, Buffalo, 78
Bank of Commerce, 76
Bank of Lodi, 83
BankofOlean, 87
Bank of Tonawanda, 68
Bank of Western New-York, 75
Binghamton Bank, 79
Cattaragus County Bank, 85
Chelsea Bank, N. Y., 25
City Trust <fc Banking Co., Par.
Erie County Bank, 72
Farmers’ Bank of Orleans, Par.
Fanners’ Bank of Seneca Co., '. Par.
Farmers A Drovers’ Bank of Erie Co., Par.
Mechanics’ Bank, Buffalo,
Merchants’ Exchange Bank, 81
Miller’s Bank, Clyde, Par.
New-York Banking Company, 42
Phcnix Bank, Buffalo,
State Bank, 30
Staten Island Bank, . .
St. Lawrence Bank, 32
Tenth Ward Bank, 94
Union Bank, Buffalo, 81
United States Bank,
Secured by
Stock*, Bond*,
db Mortgage *.
Cents,
50
76
97
74
• •
74
77
62
74
63
65
94
73
56
50
77
Gck igle
Original from
UNIVERSITY OF CHICAGO
Digitized by
1855.] Massachusetts. 747
Of these twenty-six banks, the lowest rate of redemption was 25
cents per dollar, and that for stock securities; and in five cases only
were the bills redeemed at par. Of the twenty-two banks whose bills
were secured by stocks, the average would (according to the numbers
of the banks, not according to the amount of circulation) appear to
be about 74 cents per dollar.
2d. Massachusetts passed a general banking law in May, 1851.
The subject was discussed very fully by the Legislature, and, pending
the discussion, all charters of new banks, and re-charters of old ones
were refused. The law finally settled down for the reception of the
stocks of either of the New-England States, the State of New-York, or
of the United States, as collaterals for bank issues; such stocks not to
exceed twenty-five per cent above the capital of the bank.
After the lapse of nearly four years, not one bank has been organ-
ized under this law of Massachusetts.
We have the experience of various States before us, and the result
is, that where the charters have been granted, with a due regard to
the character of the grantees, liability of the stockholders, and the
wants of the community, few losses have occurred.
We will take Massachusetts as an example. All the banks created
in that State are under one general system. No charter is granted
unless it is shown that the community requires additional banking
facilities. Secondly, the stockholders must be persons of well-known
character ; and the conservative feature beyond these is the liability
of stockholders for the debts of their banks, namely :
In case of any loss or deficiency of the capital stock of any bank, from the official
mismanagement of the directors, tho stockholders, at the time of the mismanage-
ment, shall be liable to pay the sum in their individual capacities ; but no stock-
holder shall bo liable for a sum exceeding tho amount of tho stock actually held
by him at that time. It. S., c. 36, § 30.
Tho stockholders in any bank, at the expiration of its charter, or at the time
when it stops payment, shall be individually liable, in proportion to the stock they
hold at such time, for tho payment and and redemption of all bills issued by tho
bank which remain unpaid. It. S., c. 36, § 31, c. 32, § 1.
Only two failures have occurred among the Massachusetts banks
within the past fifteen years. Those preceding arose from a sudden
inflation of the currency, following the noted pet-bank system, adopted
by General Jackson. The two recent failures occurred in 1850 and
1854. The first was the Pawtucket Bank, at Pawtucket, with a capi-
tal of §100,000. Even in this case the Bank was closed by the Bank
Commissioners before the public had any notice of impending difficul-
ties. The concerns of this institution were wound up by receivers
appointed by the Supreme Court, as in such cases provided. The
liabilities of this Bank (about $210,000) were liquidated with interest
in full ; and a final dividend of 83 per cent was made to the stock-
holders. The depositors and bill-holders, without exception, were
reimbursed, and the stockholders received eighty-three thousand
Go 'gle
Original from
UNIVERSITY OF CHICAGO
[April,
748 The Banking Question .
dollars, out of $100,000, after all the expenses of the trust had been
paid.
The second case was that of the Cochituate Bank, which suspended
payment at Boston, on the 15th April, 1854. The assets of the Bank,
it is believed, will fully liquidate its liabilities; but the Supreme
Court of Massachusetts, on hearing of the case in September last,
decided that all creditors of the Bank shall share pro rata in the divi-
dends of assets ; and that the remedy for the deficit will be against the
stockholders.
The capitalists of Massachusetts conclude that the old system not
only secured them a better remuneration for their investments, but a
more sound currency for the community, as well as more aid to the
traders and merchants.
Vermont. — There have been three or four banks established under
the general law since its adoption in 1852. The best commentary
upon its workings in that State is, that the free bank-bills are in some
cases quoted as low as five per cent discount, while those of the
chartered banks are redeemed in Boston at par.
This law of Vermont now in force authorizes the reception of the
stocks of either of the New-England States, New-York, Ohio, New-
Jersey, Virginia, and those of the United States. The capital not to
exceed $250,000, nor to be less than $50,000. In addition to these
stocks “ one half of the circulation may be secured by mortgages on
improved farms at two fifths their value, exclusive of buildings.”
Connecticut. — The free banking system was adopted in Connecti-
cut two or three years ago, but it does not enjoy the confidence of the
community. The people prefer the issues of the old chartered banks.
There have been only a few banks organized under the law ; public
opinion having decided in favor of the old system : and the State being
free from debt, it has been thought a disadvantage to send its real
capital to other States for the purchase of their bonds.
Of the bank circulation of New-England it is known that it bears a
less rate of discount in the city of New-York than that of the State of
New-York. The six New-England States have a bank circulation of
$48,000,000, capital $106,500,000, diffused among 466 banks, namely :
2fo. of Batik*. Capital. Circulation
Maine, 67 $7,300,000 $5,000,000
New-Hampshiro, 38 3,600^000 3,000,0o0
Vermont, 41 3,600,000 4,000,000
Massachusetts, 168 57,000,000 25,000,000
Rhode-Island, 87 18,000,000 5,000,000
Connecticut, 65 17,000,000 6,000,000
466 $106,500,000 $48,000,000
Here we see a bonfajide capital paid in exceeding one hundred
million of dollars ; and the entire circulation less than one half their
capital. Nearly every dollar of their bills is at par in the city of Bos-
ton, as well as throughout New-England. The bills issued in Bangor
Digitized by
Gck igle
Original from
UNIVERSITY OF CHICAGO
1855.]
New-Jersey.
749
circulate as freely in Vermont, Rhode-Island, and Connecticut, as at
home ; and the only exception to a par redemption is that of such free
banks as have refused to provide a redemption-fund at Boston.
On the other hand, if we turn to New-York, we shall find that the
bank-paper of the interior is at a greater discount than that of New-
England. At this very moment New-York country bank-paper is at
a discount of one quarter of one per cent in Wall street; although
professedly secured by State bonds and by valid bonds and mort-
gages ; while New-England bank-bills are, in Wall street, at a discount
of only ten cents on the hundred dollars. This may be considered as
a practical commentary on the value of the two systems.
We can refer also to the banking system of Rhode-Island, which
was based upon that of Massachusetts, and we find that in the former
very few failures have occurred. Still stronger testimony exists to
confirm this position in the history of the banks in Kentucky, Virginia,
Pennsylvania, South-Carolina, North-Carolina, and other States where
the chartered bank-system solely prevailed until a late date.
New-Jersey. — The free banking law of this State went into opera-
tion in the year 1850, which authorized the deposit of the stock of the
United States and of New-York as a basis of bank circulation.
By the supplementary law of 1851, the stocks of New-York, Ohio,
Kentucky, and Pennsylvania were receivable. About twenty banks
have been established under this law, nearly all of them located in
towns remote from railroad routes, in places where no banking facili-
ties were required or expected. These free banks were (and are)
generally owned by brokers in Wall street. They have contributed
little to the wealth or advantage of the State. Their circulation has
been, to a large extent, issued and controlled in Wall street. There
are exceptions to this observation ; and among these may be included
the free banks in Jersey City, Newark, and some few other towns.
The unfitness of the system for New-Jersey, which, like Connecticut,
is free from debt, is shown in the fact that a large number of these
banks have proved unprofitable to the owners and have been wound
up. Others are in process of liquidation.
The people of New-Jersey have reason to be proud of their old
chartered banks. Those that are now in existence are a benefit to
their respective communities. They serve a useful purpose in grant-
ing facilities to the mercantile and manufacturing classes. They create
and maintain a circulation based upon gold and silver, and receivable,
even in New-York, upon a par with New-York bills.
It is true that some failures have arisen among the New-Jersey
banks ; but the most marked instances were those which were owned
and managed in Wall street. These were the workings of New-York
men, and the failures were brought about by New-York parties.
It may be safely urged that if the banks of this country were placed
under the same system of free banking they could not procure or fur-
nish the requisite State bonds. The circulation of all the banks at this
time is estimated at 180 millions, whereas the gross indebtedness of
Digitized by Gougle
Original from
UNIVERSITY OF CHICAGO
750 The Banking Question. [April,
all the States approaches 8200,000,000, about one half of which is
believed to be held abroad.
The same observation applies to New-Jersey. The circulation of
her banks is estimated at 83,700,000. If they were compelled to go
out of the State to purchase the basis of their bank circulation, it
would be an abstraction of capital from the State.
Ohio passed a free banking law in March, 1851. The capital was
limited to not less than 850,000, nor more than 8250,000, and the
Auditor of State was authorized to receive stocks of the State of Ohio
or of the United States as a basis of bank-issues ; the stocks not to be
taken above par, nor above their market value. In case of failure to
redeem their notes, all banking business by such bank is suspended,
and the Auditor of State, within twenty days, is required to sell the
securities, and afterwards to divide the securities, pro-rata, among the
bill-holders. Tho banks established under this law numbered 13, in
August, 1853, with a capital of 8695,000, and circulation 8849,000.
Such has, however, been the effects of adverse legislation in Ohio, that
the number of banks is less now than in 1849-1851. The capital
has likewise decreased, as wTell as the circulation and loans. The
recent failure of some of the banks in Ohio has been accompanied
with no serious loss to bill-holders.
Illinois. — The freo banking law of Illinois was adopted in February,
1851. By this act the Auditor was allowed to receive stocks of the
United States or any State stocks on which the full interest is annually
paid, or the stock of the State of Illinois. The latter to be valued at
a rate twenty per cent less than the average market price in New-York
during the preceding six months. For all such stocks the Auditor is
empowered to issue circulating notes, which shall be payable in gold
or silver. Upon a failure to redeem on demand such bills, “the
powers and duties of any such association or banker, shall cease,”*
and receivers shall be forthwith appointed, under the direction of the
Circuit Court. The assets to be applied, first, to the redemption of
the circulating notes ; secondly, to the payment of other creditors ; and
thirdly, to a division, pro-rata, among the stockholders. Under this
law of Illinois thirty -six banks have been organized up to December,
1854 ; of which several have failed recently, and numerous others are
now closing their affairs. Ten of them are quoted in New-York at
twenty-five per cent discount.
A supplementary law wras passed in February, 1853, which limited
the capital stock of each incorporation to not less than fifty thousand
dollars.
Tennessee. — This State adopted the free banking system in Febru-
ary, 1851. The capital of each bank must be at least 850,000, and not
exceed 8500,000. Bonds of the State of Tennessee, or bonds of incor-
porated companies indorsed by the State, or bonds of the United
States, are receivable by the Comptroller as collaterals for bank circula-
* Seo Danker Magazine^ December, 1854.
Digitized by
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Original from
UNIVERSITY OF CHICAGO
1855.]
Kentucky.
751
tion ; provided such stocks yield (or are equivalent to) six per cent.
Each bank must keep on hand, in coin, not less than ten per cent of its
circulation. In case of failure to redeem the bills on demand, the bank
or banker is liable to 12 per cent damages per annum until paid.
Semi-annual returns of all die banks to be prepared and published.
Each bank to pay to the State for the benefit of the common schools,
a tax of one quarter of one per cent per annum on the capital stock.
Louisiana. — The general banking law of this State was adopted in
April, 1853 ; authorizing any five or more persons to associate as a
banking corporation, with a capital not less than $100,000. Bonds of
the United States, and of the State of Louisiana, and of the consoli-
dated city of New-Orleans, are receivable by the Auditor of State,
in exchange for circulating notes. Each bank is required to keep on
hand specie to the amount of one third of its liabilities, (circulation
excluded.) On a failure to redeem its notes, the Auditor is required
to sell the securities after three days’ notice. Three banks have been
organized under this law with an aggregate capital of $6,000,000.
Indiana. — The workings of the free bank system have been, per-
haps, more forcibly demonstrated in Indiana than in any other State.
The law was peculiarly defective, as it allowed the banker twenty days
after suspension to recover his position. In other words, if not pre-
pared to redeem his bills on presentation, it was sufficient that he had
the funds twenty days afterwards. The act permitted the reception
of the bonds of any State, the interest on which is punctually paid.
Such was the facility for the establishment of banks under the law,
that no less than ninety were incorporated up to July, 1854, whose
circulation then amounted to $6,000,000. Tne rapid contraction of
the circulation of other States in the months of July, August, and
September, produced a sudden run upon the Indiana free banks, which
were not well fortified with specie. At this period, (March, 1855,)
many of them are under protest or in oourse of liquidation. The
paper of thirty of them is received at par on deposit at Indianapolis,
for which exchange on New-York is furnished at one per cent pre-
mium. As long as the banks maintain this arrangement, their bills
will circulate freely throughout Indiana and Ohio ; but it will appear
that their circulation must be limited, and only gradually increased
The error committed in 1854 was in creating paper money too rapidly
and without a proper reserve in coin.
According to the bank-note lists of this month, eighty-two of the
Indiana free banks are at a discount of twenty-five per cent in New
York.
Kentucky. — One or two banks on a limited scale have been
established in Kentucky, with the privilege of issuing bills on a deposit
of State stocks. These were located at Newport and Covington.
Both failed in 1854, and the redemption of their bills is a matter ot
uncertainty. The chartered banks at the same time were abundantly
strong in coin and in Eastern funds, and their paper circulated (as it
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UNIVERSITY OF CHICAGO
752 The Banking Question . [April,
has for twenty years or more) with perfect confidence among the
people. The notes of the Newport Bank are selling at ten cents per
dollar.
The banks of that State, chartered many years since, have sustained
themselves ever since their resumption in 1842; and no losses in feet
occurred to their bill-holders in consequence of their suspension in the
general bankruptcy of 1837. Such is the universal credit of these
banks in the valley of the Mississippi, that their notes circulate from
Galena on the north to New-Orleans on the south. Without any com-
pulsory process of law, four of these banks had, in January last, three
millions of coin on hand against 5£ millions of circulation ; besides
being abundantly provided with balances at New-York and Philadel-
phia to meet the wants of their customers.
In Virginia, we find that the chartered banks present a similar posi-
tion with those of Kentucky. In October last they had specie on hand
to the extent of twenty-five or thirty cents on the dollar, and this, too,
after a violent reaction in the money market, and a rapid curtailment
of their circulation fully one third within the preceding twelve months.
No losses have occurred to the community through these banks since
their original organization.
It is somewhat remarkable that in the State of Virginia, where the
free bank system has been, within the past three years, introduced, the
bills of these new banks, purporting to be secured by State stocks, are
at a greater depreciation than those by the old banks. These new
bills at New-York, range from 2 to 10 per cent discount, according to
the distances of the places of issue from the leading cities, while the
bills of the old banks are uniformly to 2 per cent.
Georgia. — Although Georgia has no free banking system, properly
so called, it has recently had bitter experience in the mismanagement of
some of its banks, that were controlled in other States. The old
banks of Georgia have been prudently managed and have fully accom-
plished the objects of their creation : but wherever the true principles
of sound banking are violated by creating mere banks of issue, the
community is sure to suffer. Two failures among the new banks have
arisen from this source in New-England.
Pennsylvania. — This State has had well-managed banking institu-
tions under special charters, for the last fifty or sixty years. The only
failure among them during the past fifteen years, was that of the
Lehigh County Bank , Allentown. This concern, it was well known,
was owned and managed by Wall street, and other New-York specu-
lators. It was purchased by these parties for the purpose of making
it a mere bank of circulation, and that circulation to be used in and
near New-York City, where it was issued at par and redeemed soon
after at a discount, until the eventual failure of the bank
North and South-Carolina. — These States confine themselves to
the chartered-bank system. Even in 1855, the Legislature has sus
tained this system, and rejected all overtures for the introduction of
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Wisconsin.
753
the free bank policy. No failures have occurred among them for
many years. Their banks are well fortified with specie, and pursue a
strictly legitimate business.
W isconsin. — The free banking system of Wisconsin was adopted
in 1852, after having been submitted to the popular vote. It provides
for the establishment of banks with a capital not less than 125,000,
nor over $500,000 each. The securities receivable by the Bank Com-
missioners are stocks of the United States and of such States as pay
their interest regularly ; these stocks to be equivalent to six per cents,
and not to be taken above par, nor at a rate above the New-York
market price for the six months preceding.
In lieu of such stocks, first mortgage railroad bonds, issued by
Wisconsin companies, may be taken to the amount of fifty per cent of
the circulating notes. These bonds receivable at not over eighty
per cent, and not exceeding one half of the cost of the road upon which
they are a lien. This feature of the law is highly objectionable. In
case of a stringent money market and the forced sale of such securities
by the Bank Department, they are not likely to realize the price at
which they are taken. Under this law, twenty-four banks have been
organized, up to January, 1855, with a capital of $1,450,000 and cir-
culation $937,000. Only two of the banks have failed, and their
circulation, we are informed, will be redeemed in full, by the proceeds
of the sale of the bonds sold in the city of New-York for this purpose,
in March, 1855.
Mr. Webster was fully convinced of the danger of inflated currency.
He remarked in one of his speeches :
“ Banks,” said Mr. Webster, “ are the props of national wealth and
industry, not the foundations of them. They are useful to the state
in their proper place and sphere, but they are not sources of national
income. The fountains of revenue must be sunk deeper. The credit
and circulation of bank-paper are the effects rather than the causes of
a profitable commerce and well-ordered system of finance. Whoever
shall attempt to restore the fallen credit of this country, by the creation
of new banks, merely that they may create new paper and that govern-
ment may have a chance of borrowing where it has not borrowed
before, will find himself miserably deceived.”
The reasoning of Mr. Webster is further sustained by some of the
most eminent writers on political economy and on banking. As early
as 1720, the paper system of the noted law was forced upon France ;
being based upon government credit, instead of gold and silver, it soon
fell through.
Attempts have since been made to establish banks upon merely
government credit ; and it is found that they cannot sustain themselves
during periods of pressure. So far, the experience of New-York is
decidedly opposed to the adoption of government bonds as a basis of
banking.
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754
State Finances.
[April,
STATE FINANCES.
Finances or the States for the Years 1853-4.
I. Iowa. II. Pennsylvania. III. Illinois. IV. Louisiana. V.
California. VI. Forth- Carolina. VII. Texas. VIII. Indiana.
IX. Wisconsin. X. Michigan.
I. Iowa.
The Annual Message of Governor Hempstead to the Legislature
of Iowa, congratulates the people on a small public debt, limited
government expenditure, abundant harvests, and from freedom-bank-
ing. The public debt of Iowa is only $79,795. The revenue for
the fiscal year, ending November 1st, 1852, was $125,462. The
Governor takes ground against the existing restriction upon money,
and proposes the abolishment of the Usury Laws. Upon this topie he
■ays:
“ Your attention is also invited to the act passed at the last session
of the General Assembly, regulating the interest on money, and of
which I may say, that since its passage up to the present time, it has
not been generally regarded or enforced, and that without being of
any benefit to the borrower, it has resulted in keeping out of the State
much capital which would have otherwise been introduced among us,
and which, by fair competition, would have reduced the rates of inter-
est much below what is now paid. Such laws are always evaded, and
upon the principle that men should be permitted to make their own
oontracts and dispose of their money or property upon such terms
and conditions as may seem to them most appropriate. For these,
and many other reasons which might be urged, I would respectfully
recommend the repeal of all laws in this State upon the subject of
usury.”
Governor Hempstead cautions the Legislature on the subject of
paper money, as an evil of the greatest magnitude, and insists upon
the use of gold and silver for the purposes of internal trade and com-
merce.
II. Pennsylvania.
Of the debt of Pennsylvania the Governor, in his Annual Message,
reports an aggregate of $39,900,537.
At the time of my induction into office, the fhnded debt, including
accrued interest, amounted to the sum of $40,164,45? 48
Add to this the loan of April, 1852, to complete the North Branch
Canal, 850,000 00
$41,004,457 48
Deduct payments as follows :
Interest on outstanding certificates, $50,063 39
Beceipts to the sinking fund up to this time, 1,067,856 16
$h 103,91 9 64
Total funded debt, $39,900,537 84
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Pennsylvania,
755
Digitized by
Statement showing (he Funded and Unfunded Debt of the Commonwealth of Pennsyl-
vania, as the same stood on the 1st day of January, 1865.
Leans by act of
Rate of ltd. Reimbursable. Amount.
April 2, 1821, 6 June 1, 1841,
April 1, 1826, 6 Dec. 1, 1846,
April 9, 1827 6 Dec. 1, 1860,
March 24, 1828, 6 Dec. 1, 1863,
Dec. 18, 1828 6 Jan. 1, 1854,
April 22, 1829, 6 Dec. 1, 1854,
Dec. 7, 1829, 6 Bank Ch. Loans,
March 13, 1830, 6 March 4, 1858,
March 21, 1831, 5 July 1, 1856,
March 28, 1831, 6 March 28, 1861,
March 30, 1831, 6 July 1, 1866,
March 30, 1832, 6 July 1, 1860,
April 6, 1832, 6 July 1, 1860,
Fob. 16, 1833, 6 July 1, 1858,
March 1, 1833, 4* April 10, 1863,
March 27, 1833 5 July 1, 1858,
April 6, 1834, 5 July 1, 1862,
April 13, 1835 5 July 1, 1865,
Jan. 28, 1839, 6 July 1, 1859,
Feb. 9, 1839, 6 July 1, 1864,
March 16, 1839, 5 July 1, 1864,
March 27, 1839, 6 July 1, 1868,
June 7, 1839, 5 Aug. 1, 1859,
June 27, 1839,.' 5 June 27, 1864,
July 19, 1839, 5 July 1, 1868,
Jan. 23, 1840, 6 Jan. 1, 1866,
April 3, 1840, 5 Aug. 1, 1 864,
June 11, 1840, 6 July 1, 1870,
Jan. 16, 1841 6 Aug. 1, 1846,
Loan (Relief) May 1, 1841 0 May 4, 1846,
Stock Loan, May 6, 1841, 6 Bank Ch. Loan^
Stock Loan, May 6, 1841, 6 June 1, 1846,
Interest certificates, July 27, 1842, .. 6 Aug. 1, 1843,
“ March 27, 1843,.. 6 Aug. 1, 1846,
Stock Loan, April 29, 1844, 6 March 1, 1849,
Interest certificates, May 31, 1844,. . 6 Aug. 1, 1846,
Stock Loan, April 16, 1845, 6 Aug. 1, 1855,
“ Jan. 22, 1847, 5 Bank Ch. Loans,
“ April, 11, 1848, 6 April 11, 1863,
Inc. Bk. Loan, April 10, 1849, 6 April 10, 1879,
N. Br. Loan, April 2, 1852, 4ffc5 July 1, 1882,
Loan for the Redemption of six per
cent State Stocks, interest certifi-
cates, domestic creditors’ certifi-
cates, etc., per act of May 4, ’52, . .
Loan for the redemption of State
Stocks, etc., due and becoming due,
per act of April 19, 1863 6
Interest certificates unclaimed,
“ on outstanding and unclaimed certificates when fhnded,
Domestic creditors’ certificates outstanding,
445 Aug. 1, 1877,
Aug. 1, 1878,
$630
00
360
00
17,003
49
1,746,089
19
698,303
42
1,914,411
47
60,000
00
3,837,327
37
2,302,163
29
79,900
00
279,103
28
2,156,517
56
298,172
28
2,455,336
98
188,200
00
498,956
08
2,067,874
11
914,651
61
1,088,047
60
1,180,416
74
89,851
79
406,680
59
47,614
67
1,084,646
15
2,016,039
34
751,134
62
727,632
63
1,838,177
87
281
77
383,361
00
337,109
10
1,236
71
5,860
13
8,113
78
148
69
10,883
30
4,105,150
20
24,000
00
129,996
45
400,000
00
850,000
00
5,000,000
00
400,000
00
4,448
38
1,870
97
2,654
31
Total funded and unfunded debt,
$40,602,106 77
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756
State Finance t.
[April,
Of the loans authorized per act of May 4, 1 852, and 92d, 93d,
and 94th sections of tho act of April 19, 1853, there remains in the
State Treasury the sum of $267, 133.82 — which is applicable to
the further cancellation of six per cent State stocks, interest certifi-
cates, domestic creditors’ certificates, as well as five per cent State
Stocks, which are due, to which may be added the amount in tho
Sinking Fund, applicable to the further cancellation of Relief notes,
$192,713.62, amounting in the aggregate to 460,447 44
$40,041,659 33
Balances remaining unpaid of temporary loans authorized per acts
of April 19, 1853, and May 9, 1864, are not embraced in the above
statement, as they are reimbursable as rapidly as the means of the
Treasury will permit, namely :
Balanco of temporary loan of 19th of April, 1863,. . . $525,000 00
Balanco of temporary loan of May 9th,
1864, $434,435 67
Redeemed in January, 1855 15,000 00
419,485 67
$944,435 67
The finances of Pennsylvania are assuming a better condition, with
some prospect of a gradual reduction of the debt. Of the workings
of the Treasury for the year past, the Governor adds :
“ The aggregate receipt for the fiscal year of 1854, including loans
and the balance in the Treasury on the 30th of November, 1853, amount-
ed to the sum of $6,665,912.01 ; the gross payments for the same
period, to the sum of $5,424,983.29 ; leaving a balance on the 20th
November, of $1,240,929.72. The extraordinary payments consisted
of the following items, to wit: Loans repaid, $235,888.40; to the
North Branch Canal, $206,552.76 ; to the construction of the new
railroad over the Allegheny Mountains, $461,921.03 ; to the payment
of debts on the public works, $389,946.38. Of the balance remaining
in the treasury, a portion is applicable to the payment of the State
debt, and the remainder to the current demands. The simple or ordi-
nary operation of the treasury for the same period was as follows, to
wit : The receipts, exclusive of loans and the balance in the treasury
on the 30th of November, 1853, realized from permanent resources,
amounted to the sum of $5,218,099. The ordinary expenditures,
including the interest on the State debt and all the payments on new
works and loans, amounted to $4,116,744.84; being $1,101,480.15
less than the receipts.”
The act of May 4, 1852, authorizing a loan of $5,000,000 for the
redemption of six per cent State stocks, interest certificates, domestic
creditors’ certificates, etc., made it the duty of the State Treasurer to
pay the interest as well as the principal of the interest certificates, etc.,
out of the said loan ; consequently rendered it impossible to redeem
an equivalent amount of the principal of the State debt, with the
amount of the loan aforesaid, $55,264.75, being the amount of interest
paid out of said loan.
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Pennsylvania.
757
Recapitulation of (he Funded and Unfunded Debt of (he Commonwealth, as (he earns
stood on the 1st of January, 1855 :
6 per cent Loans,
5 “ “
4* “ “
A U It
FUNDED DEBT.
$632,104 93
39,064,609 97
388,200 00
100,000 00
$40,084,914 90
UNFUNDED DEBT.
Relief notes in circulation,
Interest certificates outstanding,
»* “ unclaimed, .
Interest on outstanding and unclaimed certificates
when funded,
Domestic creditors* certificates,
$383,361 00
24,851 21
4,448 38
1,870 97
2,654 31
417,191 87
Amount in Stato Treasury and Sinking Fund applicable to the
further cancellation of a portion of the above as before stated, . .
$40,502,106 77
460,447 44
$40,041,659 33
Recapitulation of the Funded and Unfunded Debt of (he Commonwealth, as the same
stood on the 1st day of December, 1861, per report of the Auditor General at that
time:
funded debt.
6 per cent Loans,.
5 " “
4i “ “
$2,314,023 61
36,704,484 03
198,200 00
$39,216,707 64
unfunded debt.
Relief notes in circulation,
Interest certificates outstanding,
ii unclaimed,
Interest on outstanding and unclaimed certificates,
when funded,
Domestic creditors,
$650,163 00
150,231 82
4,448 38
9,752 91
82,932 74
897,528 85
$40,114,236 39
It might he well to remark, that on the 1st of December, 1851,
there remained, unpaid of temporary loan authorized per act of 15th
April, 1851, the sum of $98,000, as well as $12,000 of the loan per-
taining to the out-let lock at Wells Falls, on the Delaware division,
not embraced in the above statement, and which have since been paid
at the State Treasury. *
A large amount of floating debt contracted on the several lines ot
canal and railroal, prior to December 1st, 1851, has been paid since
that period : but, as that item is never embraced in the annual report
of the accountant department on the public debt, it is not now included
in the above statement. E. Banks, AuditorJScneral.
Jos. Bailey. State Treasurer.
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758
Stale Finances.
[April,
III. Illinois.
The Governor of Illinois, in his Message to the Legislature of that
State, gives the annexed exhibit of the State debt on the 1st January,
. 1855 :
AMOUNT OF PUBLIC DEBT.
Internal Improvement Debt — principal,
Interest to January 1, 1855,
Arrears of interest when debt was funded,
Unfunded internal improvement scrip and bonds, . . . $397,480 00
Interest to January 1, 1855, 333,883 20
Wiggins’ Loan, principal and interest, 184,000 00
liquidation bonds, 253,358 79
nterest two years to January 1, 1855, 80,403 05
$5,771,959 74
2,579,561 87
2,023,629 13
1,199,125 04
Deduct amount of State indebtedness, purchased to
January 1, 1853, and interest on the same to Janu-
ary 1, 1855,
Amount paid on principal and interest to January 1,
1853, and interest on principal taken up to Janu-
ary 1, 1855,
$11,574,275 78
252,827 68
1,223,000 00
1,475,827 68
$10,098,448 10
Principal Canal Debt, 4,886,522 83
Interost on same to January 1, 1853 2,959,681 96
7,846,204 79
Loss amount of the two mill tax State debt fund, . . $702,152 26
Less amount interest fund received into the treasury
from 1st Dec., 1852, to 1st Doc., 1851, 590,645 56
Loss amount from ordinary rovenuo to pay interest
on liquidation bonds, 20,648 71
Less amount surplus rovenuo to purchase State in-
debtedness, 137,053 82
Less amount of tho fund received from sale of State
land to purchase State indebtedness, 280,894 06
Less amount paid by Board of Trustees of tho Illi-
nois and Michigan Canal, to fully liquidate tho
$1,600,000 loan, 526,008 79
Less amount that will bo saved in purchasing State
indebtedness at the market valuo with surplus and
land fund received to Jan. 1, 1855, 215,510 82
Less amount received for tolls on canal for tho past
two years, and for lands and lots sold, as well as
the amount received for land previously sold and
not paid for until the past two years, 1,477,123 94
$17,944,654 89
3,950,037 96
Total January 1st, 1855,
$13,994,614 93
By the foregoing it will be seen that besides paying enough to meet
the entire interest upon the State debt each year, for the past two
years, there has been paid and applied upon the arrearages of interest
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Louisiana.
759
1855.]
and the principal of the debt, the sum of $2,750,037.96, being the sum
of $1,375,018.98 each year, over and above the accruing interest,
making all paid on principal and interest during the past two years,
the sum of $3,950,037.96.
The Governor says : “ In my message to the General Assembly, at
their regular session, Jan. 10, 1853, I based a calculation that if the
taxes were kept at the same per cent on the dollar for various State
i purposes, and the increase of taxable property in the State each year
be ten per cent, that, with the other valuable assets of the State applied,
• in eleven years from that time the State debt would be reduced to
$74,080.62, I am pleased to inform you that the past two years the
increase of taxable property, after making all abatements for errors,
etc, was, in 1853 over 1852, fifty-one per cent, and the increase on all
taxable property for 1854 over 1853 (no lands being taxable only
1 once in two years, except those sold after one assessment and previous
' to the next, and the personal property) is about 14 4-9 per cent, mak-
ing an average increase of the taxable property of the State for the
last two years 32 per cent instead of 10 per cent, as assumed in the
calculation referred to. I think we can reasonably expect an increase
of at least 20 per cent a year for the next few years on all taxable
property of the State. Should this supposition prove true, and the
I taxes remain as now fixed by law, and the avails regularly applied to
its extinguishment, the debt would be paid much sooner than assumed.
I have no doubt but the receipts from the Central Railroad and
branches will far exceed the amount of $114,000 per year, as stated
in the calculation.
“ During the next two years I confidently expect that the amount
from all sources, derived from the available assets of the State, and
the revenue applicable to the liquidation of the State debt, will be
increased at least 20 per cent, which will render the calculation cer-
tain that the views entertained two years ago will be more than real-
ized in ten years, instead of the eleven, and I might say still sooner, but
prefer to give full time. The past two years have realized over
$750,037.96 more than enough to meet the calculation that the debt
would be paid all but $74,080.62, in eleven years. It will be per-
ceived that a large amount has been paid at this time more than
enough to meet the calculation referred to during the past two years,
and that the principal and interest of the debt is being absorbed and
canceled each year, while the revenue from all sources is rapidly in-
creasing, and swelling the means of the State to pay. The late time
in which the canal trustees make their report, obliges me to obtain the
amount of receipts from assets and tolls of the canal from a source
that may not entirely agree with the sum reported by the trustees,
but will not vary enough to make any considerable difference.”
IV. Louisiana.
The finances of Louisiana are represented by Governor Hebert, in
his Annual Message, to be in a favorable condition. The receipts
into the State Treasury for the past year amounted to $1,428,159.78 ;
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State Finances.
[April,
1
added to balance on hand January 1, 1854, $1,164,791.11, it shows
for the year an aggregate of $2,592,950.89. The expenditures during
the year have been $1,849,552.66. Balance in the treasury on the
1st January, 1855, $743,398.24. Of the restricted lines of railroads
in Louisiana, the Governor says :
“ But notwithstanding all the obstacles which I have enumerated,
fifty-two miles of railroad from New-Orleans to Lafourche have been
completed, and arc now open for travel and transportation.
“ Only twenty-eight miles remain to be constructed to connect New-
Orleans, by this line, with Berwick’s Bay. Four lines of this section
will be completed by the month of March; the remainder has been
cleared and graded, and will soon be put under contract. The com-
pany still hold $1,500,000 subscribed by the city, and secured by her
bonds, which they have thought inexpedient to attempt to realize in
the present condition of the money market.
“ Eighty-seven miles of the Northern railroad are now in daily use.
The formidable difficulties anticipated in crossing the swamps and
trembling prairies which lie between the city and the highlands, have
been overcome at a comparatively moderate expense. My personal
examination of the works executed on this section of the road enables me
to pay a well-deserved tribute to the skill of the engineers who planned
them. When permanent embankments shall have been formed, to
supersede the present temporary wooden structures, the road will pre-
sent all ihe conditions of durability and solidity. Contracts have
already been made, on favorable terms, for the filling up of the swamp
division of the line, and in a few months the road will rest upon a
continuous earthen foundation from New'-Orleans to the highlands.”
V. California.
The revenues of the State, under better management than hitherto,
arc ample to meet their current expenses and to provide a sinking
fund that shall liquidate the whole debt in ten or twelve years. The
following is a summary of receipts and expenditures for the year
1850-54, both inclusive :
RECEIPTS AND EXPENDITURES FOR FIVE YEARS.
For the year 1850,
For the year 1851,
For tho year 1852,
For the year 1853,
For the year 1854,
Receipt*.
... $3,156 37
... 330,796 05
... 366,825 07
... 454,985 85
... 1,022,647 32
Expenditures.
$348,165 26
585,702 83
925,694 56
1,269,149 13
• 1,204,757 96
RECAPITULATION
Executive Department,
Judicial Department,
Legislative Department,
Hospital purposes,
Miscellaneous expenses,
Printing,
Total,
OF EXPENDITURES.
.. $125,110 49
.. 93,309 60
.. 307,712 78
.. 225,463 91
.. 545,560 49
, 107,610 71
. .$1,204,757 96
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761
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It will thus be seen that while the receipts for the past five years,
ending on the 30th June, 1854, were, only $2,178,410.56, the expend-
itures were $4,333,409.74, or nearly double the amount of the re-
ceipts. Legislation alone has cost this State the sum of $1,355,526.06 !
TILE CIVIL DEBT OF THE STATE.
Three per Cent Bonds outstanding, $3,975 00
Interest duojthereon, 6,849 75
Seven per Cent Bonds issued under act of April 28, 1851 —
Payable in 1855, 116,500 00
Payable in 1861, 217,600 00
Seven per Cent Bonds issued under act of May 3, 1852, 1,394,600 00
State Prison Bonds, issued under act of May 11, 1853, 15,000 00
Comptroller’s Warrants outstanding, 411,216 61
Due School Fund for interest on amount received from sale of
School Lands, 19,104 25
$2,183,644 61
Deduct cash on hand in the Treasury, 127,439 81
Total Civil Debt proper, .$2,056,264 80
Amount due School Fund for proceeds of School Lands, 464,000 00
$2,620,204 80
THE WAR DEBT.
The following is a statement of the War Debt on the 30th June,
1850, which has been assumed by the general government :
Twelve per Cent Bonds issued under act of 1851, $200,000 00
Interest due thereon, 75,812 20
Seven per Cent Bonds issuod under act of 1852, 619,166 00
Interest duo thereon, 72,550 16
Warrants not funded, 16,354 54
Total, $984,341 90
Since then a considerable amount of interest has accrued, and the
total war debt on the 20th Dec., 1854, amounted to $1,022,345.51.
Of the official returns, the Alta California remarks : “ It appears
that the taxable property of the State has more than doubled during
the last fiscal year; and that the taxes collected during the same
period, equalled in amount the sum total of the taxes collected since
the admission of the State into the Union. The inference from these
facts is, that we were more than twice as rich on the 30th of June
last, than during the year preceding. California has suffered more
than any State in the Union from a reckless expenditure of the public
monies. The expenditures have always exceeded the receipts.”
Of business generally in California, the Price Current says : “ Times
have never been so hard in California from the day of the discovery
of gold until the present, as they are now. It is almost impossible to
negotiate loans on any terms, even on the best paper, and securities
which would attract capitalists are not to be had; in a word, the
bankers have shut off their lines of accounts, and money can hardly be
raised on any terms even on the best of paper. Real estate is at its
50
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lowest ebb, and but little of it is offered as collateral ; stocks and well-
known securities are not to be bad, while indorsed paper is only dis-
counted when the bankers feel themselves sufficiently secure to be
able to venture a few thousand dollars beyond the mark they have set
up for themselves as the legitimate line of operations. It is beyond
cavil or dispute that money is tighter to-day than it has ever been
before in San Francisco.”
We give an abstract of the Report of the State Treasurer, Jan. 1,
1865, made to the Legislature. The receipts have been as follows :
FKXn Texas, $112,014 54
“ Land Agent on general account, 41,831 TS
“ ** “ account of permanent School Fond, 8,317 24
“ 11 “ account of sales of timber and grass on lands
reserved for public uses in unincorporated townships, ...... 24,733 38
« Bank Tax, 66,689 72
“ Proceeds of salo of timber on township belonging Passama-
quoddy Indians, 8,355 51
M Duties on commissions, 2,616 00
M Bank dividends, 800 00
" Miscellaneous sources, 9,063 52
Gash on hand January 1, 1854, 95,504 71
Amounting in all to the sum of. $461,925 45
The disbursements for the same period amount to $343,818.04 —
showing a balanoe on hand at this date of $108,107.41.
VI. N orth-Caroliha.
Mr. Courts, the Treasurer of that State, has submitted his financial
report to the Legislature for the two fiscal years ending on the 1st of
November, 1854. The following is a recapitulation of receipts and
expenditures :
Public Fund, balance on hand Nov. 1, 1852, $36,286 46
Receipts for 1853 1,760,127 72
Receipts for 1864, 1,221,838 89
$3,017,763 07
$1,564,474 87
1,605,409 51
3,169,884 88
Balance^ $152,131 81
The Treasurer estimates the probable receipts into the public trea-
sury for the two fiscal years, commencing November 1, 1854, and
ending October 31, 1856, at $646,286, and the probable disbursements
at $620,653. The debt of the State, says the Treasurer, may be set
down now at $2,928,663. This debt will be increased soon to
$3,409,633 by the sale of $111,000 bonds, to be sold under the act
for the benefit of the Welden & Gaston Railroad, and the Neuse and
Disbursements for 1853,
Disbursements for 1864,
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Tar Rivers, and of $370,000 bonds for the North-Carolina Railroad.
The Treasurer, in anticipation that the present sources of revenue will
be insufficient to meet the demands on the Treasury, recommends that
provision be made for an adequate increase ; “ for,” he remarks, “ it is
important that the public, and especially those who deal in State
securities, should see a determination on the part of the Legislature to
provide revenue for the payment of interest, and not to borrow money
from year to year to do so, which is the mere exchange of one creditor
for another.”
From what we can learn, the new loan will be taken, as the last
was, by capitalists of the South. The Virginia and North-Carolina
banks are now investing their surplus funds in the Six per Cents of
those States, which, at present quotations, will pay 6.60 per cent on
the investments.
VII. Texas.
We learn from the Texas papers that Governor Pease has issued a
proclamation again offering the contract to construct the Mississippi
& Pacific Railroad to responsible bidders. In his proclamation, he
states the contract entered into between himself and Messrs. Walker
and King, and others, for the construction of the road, had become null
and void by the failure of the contractors to make the necessary
deposit of three hundred thousand dollars, in gold, silver, or evidences
of the State debt of the State of Texas, or other good par stocks.
Proposals in accordance with the provisions of the act of the Legisla-
ture, will be received at the office of the Secretary of State until the
first of May next.
We have before given a synopsis of the charter of this road, as one
of the most liberal ever granted by any State in the Union. Texas is
now rapidly filling up with emigrants from Louisiana, Alabama, Mis-
sissippi, and Tennessee. The present production of cotton in Texas is
about 100,000 bales only, and about 200,000 acres under cultivation
for this staple. The latest information shows that the State has ten
millions of acres adapted for cotton, making it one of the richest agri-
cultural States in the South. The entire crop of three million bales is
now produced in nine States on about 3,150,000 acres, while Texas
has sufficient cotton land to produce three times as much within her
own borders.
The following is a statement of the Texas debt, and the Act of Con-
gress providing for the payment of certain creditors. The act re-
quires the confirmation of the Texas Legislature, and it is believed an
/ extra session will at once be called for the purpose. Should the Legis-
lature indorse the Act of Congress, the Secretary of the Treasury is
required to give ninety days’ notice to creditors, within which to pre-
sent their claims, or be for ever barred in law or equity. After the
expiration of the ninety days, the Secretary will proceed to divide the
appropriation among the claimants as prescribed in the law.
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Texas Debt, in Conformity to the Requirements of “An Ad to Provide for Ascertain-
ing the Debt of Vie late Republic of Texas
Ostensible
Value,
Bate.
Par Value.
First cIess 10 per cent bds., crested by act Jane 7, 1887,. .$651,287 60
Ten per cent bds., by set Feb. 5, 1840, 662,400 00
Eight per cent bds., by set Feb. 5, 1840, ...“i 642,000 00
Ten per cent Treasury notes, first issue, June 9, 1887,..*. 81,080 00
Ten per cent Treasury notes, second issue, June 9, 1887,. 286,272 00
Treasury notes without interest, Jan. 19, 1839, 1,611,701 00
Bonds issued by the Commissioners under the several
acts authorizing the negotiation of a loan of $6,000,000
to L. S. Hargous and G. B. Lamar, .668,287 00
at 70 cents,
at 80 cents,
at 20 cents,
at 100 cents,
at 60 cents,
at 26 oenta,
various.
$889,901 88
195,720 00
128,400 00
81,980 00
148,186 00
886,675 96
497,968 60
In addition to the above, are Second and Third Class, Class B, and
Second Class B, making a total of $11,055,694.71, which sum, as
scaled by Texas, at 20, 25, 30, 50, 70, and 100 cents,' is reduced to
$5,600,696.91 ; consequently, the $7,750,000 awarded by Congress,
should the Indian depredation amount to $1,250,000, will pay the
creditors about two thirds of their claims. The Act of Congress is
as annexed :
An Act to provido for the payment of such creditors of the late^Republic of Texas
as are comprehended in die act of Congress of Sept 9, 1850.
Be it enacted by the Senate and House of Representatives of the United States of
America in Congress assembled , That in lieu of the sum of $5,000,000 payable to
the State of Texas in five per cent stock of the United States, by the act entitled,
11 An Act proposing to the State of Texas the establishment of her northern, and
western boundaries, the relinquishment by the said State of all territory claimed by
her exterior to said boundaries, and of all her claims upon the United States, and
to establish a Territorial Government for Now-Mexico,” passed Sept 9, 1850, the
issuing of which stock was restricted by the first proviso to the fifth proposition
contained in the first section of said act, the Secretary of the Treasury be, and he is,
hereby authorized and directed to pay to the creditors of the late Republic of Texas,
who hold such bonds or other evidence of debt for which the revenues of that
Republic wore pledged, as were reported to be within the provisions of the said act
of Sept, the 9th, 1850, by the report of the lato Secretary of the Treasury to the
President of tho United States, and approved by him on the 13th day of September,
1851, or which come within tho provisions of said act, according to the opinion upon
the Texas compact of the present Attorney-General of tho United States, addressed
to tho Secretary of the Treasury, under date of Sept 26, 1853, tho sum of $7,750,000,
to be apportioned among the said holders pro rata: Provided, That the interest on
the debt embraced in this act shall be determined by the existing lawB of the State
of Texas.
§ 2. And be it further onacted, That, in all cases where the State of Texas may
have paid any portion of the debt described in this act, the said Secretary shall
refund to tho proper officer of said State the amount actually so paid by tho State,
on the presentation at the Treasury Department of the evidences of said debt on
which the said State may have made such payment : Provided, Tho said sum shall
not exceed tho proportion which would have been allowed to tho creditor or credi-
tors if such payment on said evidences of debt had not been made by the State of
Texas ; and whore tho said sum that may be refunded to the State of Texas by the
provisions of this soction is less than the proportion which would have been allowed
under this act to the holders of such evidences of debt had such payment not been
made them, such holders shall bo entitled to receive the difference between said
sum and the proportion they would have received under this act if no payment had
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765
been made them ; and whcro any original certificates or other evidences of debt have
been surrendered to the authority of the Stato of Texas, and new certificates issued
therefor by said State of Texas, such new certificates shall be received as evidences
of the original amount of the claim.
§ 3. And bo it further enacted, That no payment shall be made UDder this act
to any holder of said securities or evidences of debt, unless the said holder shall first
execute to the United States a receipt for the said payment, in which said holder
shall for ever release all claims against the United States for or on account of the
said securities or evidences of debt ; also similar releases to said State of Texas ;
and the said certificates or other evidences of debt shall then bo deposited with the
Treasury Department
§ 4. And bo it further enacted, That before payment of the monies aforesaid,
the Secretary of the Treasury shall give notice by public advertisement for the
space of ninety days, of the time at whichsaid payment will be made ; and no pay-
ment shall be mado on any bond, certificate, or evidence of debt which shall not
thirty days before the time limited by said notice, be presented at the Treasury
Department
§ 5. And be it further enacted, That the sum of $7,750,000 be and the same is
horeby appropriated, out of any moneis in the Treasury not otherwise appropriated,
for the purpose of carrying into effect the provisions of this act
§ C. And bo it further enacted, That this act shall not take effect until it shall
be assented to by an act of the Legislature of the State of Texas, and a copy of the
act of said State, duly authenticated, deposited in tho Treasury Department at
Washington, nor until the Legislature of tho State of Texas shall pass at. act with-
drawing and abandoning all claims and demands against the United States, grow-
ing out of Indian depredations or otherwise.
Approved, Feb. 28, 1855.
4 W
VIII. Indiana.
f The ordinary annual expenses of the State government, from Oct.
31, 1844, to Oct. 31, 1854, inclusive, have been as follows :
ANNUAL REVENUE AND TAXABLE PROPERTY, 1844-1854.
Year. Taxable property. Annual expense*.
1844, $116,237,965 $93,368 73
1845, 118,870,251 74,855 28
1846, 122,265,686 69,136 59
1847 124,610,441 90,759 67
1848, 128,960,986 79,267 48
1849 133,419,056 73,881 47
1850, 138,262,085 73,615 10
1851 . 210,978,643 71,810 36
1852, 218,563,809 160,312 68
1853 266,097,614 103,929 88
1854, 290,418,148 54,261 44
Extracts from the Annual Message of Governor Wright, January , 1856.
On the first day of November, 1854, the State debt of Indiana
amounted to $7,031,003.50. Of this sum the State has liquidated the
amount of $227,804.50, leaving of the public debt the sum of
$G, 803, 139, of which sum $1,703,139 is bearing two and a half per
cent interest, and the balance, to wit : $5,040,000, is bearing five per
cent interest. The aforesaid sum of $227,804.50 having been paid by
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the State, under the act of tho General Assembly creating the Sinking
Fund, these stocks remain on the books of the agency, the interest
credited and applied annually to the reduction of the principal debt.
Hence so far as the interest is concerned, the stock belonging to the
State is still considered outstanding.
Satisfactory evidences of the strength of financial resources of the
State may be seen in what we have accomplished in the last ten years.
During this period, without estimating what arc called the ordinary
expenses of the State, there have been, by taxation, levied, collected,
and applied, the following sums, namely :
For tho redemption of principal and interest of scrip .$2,274,605 90
rest on tho public debt, including the payment of tho interest for
January, 1855, 1,798,412 62
Payment upon the principal of tho public debt, 227,864 50
Payments to tho thro© benevolent institutions, 693,503 31
Expenditures on the State prison, including expenses connected with
the removal of prisoners, 71,412 87
Total, $5,065,899 20
With the state of things we have had for the last year it was not
possible to avoid revulsions and monetary excitements.
Circulation of the State Bank, in Oct., 1853, $3,834,765 50
Circulation in October, 1854, 2,803,848 00
Decrease, $1,031,117 50
Tho Stock Bank circulation, July 1st, 1854, 9,299,575 00
Circulation January 1st, 1855, 5,565,000 00
Estimated amount in tho hands of bankers, not in circulation, 1,000,000 00
Decrease in six months, 4,734,475 00
The precise amount surrendered at the Auditor’s offico up to the 1st
of January 1855, is 3,734,477 00
The amount of the ordinary expenses of the State government, as
audited and paid by the Treasurer, for the year ending October 18,
1854, is $54,261.44, which is $49,668.44 less than the amount paid
for the year ending October 31, 1853. This sum, as the ordinary ex-
penses of a government composed of a million and a quarter of inhab-
itants, will compare very favorably with the ordinary annual expen-
ditures of any State in the Union — it being four and one third cents
for each individual.
IX. Wisconsin.
Extracts from the Annual Message of Governor Bar stou\ January , 1855.
It appears that the entire amount paid into tho Treasury during the year 1854, on
account of the various funds, was, $401,738 42
Account of General Fund, $101,299 46
Account of principal of School Fund, 85,583 27
“ of principal of University Fund, 9,845 59
“ ofincome of School Fund, 106,235 03
u of income of University Fund, 8,775 07
Add balance in the Treasury, January 1st, 1854, on acccount of all
funds, 57,436 48
Total, $459,174 90
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767
1865.]
During the same period the disbursements appear to have been as
follows, namely :
Aooount of General Fund, $222,164 12
“ Principal of School Fund, including loans, 84,996 06
“ Principal of University Fund, including loans, 21,898 93
“ Income of School Fund, 97,188 88
u “ University Fund, 10,640 44
“ Fox & Wis. Improvement Fund, 129 00
$437,007 43
Showing a balance in the Treasury on the first day of January, 1866,
on account of the various fimda, of. 22,967 47
The Secretary of State, in his report, estimates the amount probably
necessary to be drawn from the Treasury on account of the Qcneral
Fund, during the present year, to meet present and accruing liabili-
ties, at 263,069 62
In this estimate it is proper to state, that the sum of $141,638.72
is included, as neoessary to meet arrearages, arising from the erection
of Penitentiary buildings and support of convicts during the past and
present year, also the sum necessary to be applied toward the erection
of a Lunatic Asylum, and a completion of a portion of the buildings
designed, and the support of the institutions established, for the edu-
cation of the blind, and deaf and dumb.
To meet the foregoing liabilities, the resources are stated as fol-
lows, namely : •
State tax as levied and equalized under the act of 1864, $226,000 00
Bank Tax, (estimated,) 30,000 00
Railroad and Plank Road Tax, (estimated,) 4,000 00
Miscellaneous resources, “ 24,829 91
Total, $288,829 91
Among the matters of interest presented by this report, is a brief re-
view of the public expenditures, since the admission of Wisconsin into
the Union — showing the yearly appropriations therefor, from 1848 to
1854, inclusive — amounting in the aggregate, to the sum of $830,244.30;
of which $94,071.31, was in the years of 1848-9 ; $71,575.38, in 1850 ;
$112,420.80, in 1851; $123,474.06, in 1852; $163,910.58, in 1853;
and $264,692.07, in 1854. Of the last-named sum, appearing under
the head of expenses for 1854, $63,696.03 was the expenses of other
years; so that the actual expenses for the objects of 1854, were
$200,996.04, including such as are provided for by permanent pro-
visions— thus only exhibiting that annual increase in public expen-
ses of a new State, and growing in a great measure out of the neces-
sary expenditures in providing penitentiary and other public buildings
and the establishment of charitable institutions. While from the fore-
going, it would appear that the expenses for the year 1854 were
between thirty and forty thousand dollars more than for any previous
year, yet the aggregate, for general purposes, for that year was evi-
dently some forty thousand dollars less than for 1853. This is ac-
counted for by the fact that upwards of $80,000 more than in any
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previous year for such purposes was appropriated for the erection of
a State Prison, Lunatic, Deaf and Dumb, and Blind Asylums — includ-
ing the moderate appropriations made for the benefit of the State
Agricultural and Historical Societies : all of which did then as they do
now, appear to be just and worthy objects of legislative favor ; and
some of which at least, must continue to be objects of that character,
and destined to create no small proportion of the public expenses, unless
other provisions than at present exist, are made for their defrayal.
X. Michigan.
TBXASUBT REPORT FOR TOE FISCAL TEARS 1853-4
On hand November 30, 1852,
Receipts for the year,
1853.
$106,401
665,661
1854.
$315,625
610,848
Expenditures,
$112,074
396,449
$986,473
433,470
Funded debt,
Taxes for the yea r,
$375,625
2,339,392
105,314
$553,003
2,531,545
113,256
Extracts from the Governor's Annual Message, January, 1855.
The interest on our State debt is promptly paid as i.t becomes due.
There is now a large surplus in the Treasury, and it will doubtless
continue to increase, unless some provision shall be made to absorb it
by liquidating the State indebtedness.
A large surplus in the Treasury should be avoided. It is not politic
to tax the people to obtain money to loan to banks, or lock up in
the treasury vaults; it would be safer in the people’s hands, and likely
to be more prudently and profitably managed by them. The State
indebtedness, except to the trust funds, is not due, and as our bonds
are above par in the market, none are likely to be surrendered for
payment, nor can they be purchased under our laws. I therefore
recommend that Act No. 173 of 1848, be so amended as to provide
that interest upon our part-paid bonds, which shall not be surrendered
within a specified time, after proper notice, in pursuance of the provi-
sions of that act, shall cease. The law of 1848 was amended in 1853
so as to provide that when funded, these bonds shall be made redeem-
able at the pleasure of the State, within the time fixed for the maturity
of the original bonds, and the amendment now proposed would
probably induce a surrender of that class of bonds, and provide a way
for absorbing the surplus funds in the liquidation of our State indebt-
edness.
If this shall be done, and a provision be made for purchasing our
full-paid bonds at their market value, when there shall be a surplus in
the Treasury that cannot otherwise be properly used, it will then
become important, as it is now obligatory, to provide by law a sinking
fund in accordance with the provisions of the Constitution. Without
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769
the amendment or provisions proposed, a sinking fund, as required by
the Constitution would add to the evil of a large surplus fund. There
can, 1 think, be no doubt that the State has a legal and equitable right
to change the act of 1848 as proposed. The act is but a proposition
in the form of law, “ that upon the surrender at the Treasury of this
State, of any of the said paid five million loan bonds still outstanding,
the holder of the same shall be entitled to receive, from the Governor
of the State, certificates of stock or bonds,” at a rate therein mentioned.
This proposition, until accepted by the bond-holder by a surrender of
his bonds according to its provisions, may be rightly altered by the
State. Neither would it be a hardship to the bond-holder to change
the proposition as recommended ; it only requires him, virtually, to
receive his money if he desires it, or if he prefers the State to keep it
for him, not to demand interest upon it.
The policy of allowing banks to be the depository of the surplus
funds of the State, I think i9 very objectionable ; but if that policy is
to be pursued, I recommend that Act No. 63, of 1853, be so amended
as to require the payment of interest on the deposits, at the rate of not
less than five per cent per annum, and that the Governor be consti-
tuted one to approve the security to be given by the banks.
Virginia. — The following is an official exhibit of the debt and
resources of the Commonwealth of Virginia, for October, 1854 :
Outstanding debt, on the 1st of October, 1864 :
Internal improvement, $21,924,110 64
Debt to pay subscriptions to bank stocky 450,000 00
$22,374,116 64
Aggregate resources, as follows:
Productive stocks which yield an average of 6 per cent, $10,286,448 99
Unproductive stocks in unfinished improvements, 16,597,333 77
$25,883,782 76
Annual revenue of the State from taxation and other sources, $2,016,000, appro-
priated as follows:
Sinking fund to pay interest due 1st January and July, 1855, $1,342,450 69
Sinking fund, redemption of public debt in 1865, 223,741 76
Surplus of revenue after paying interest’and redemption of public
debt above, 449,807 65
$2,016,000 00
We learn recently that the Legislature of Illinois has abolished en-
tirely the office of State Financial Agent at Ncw-York. Hereafter all
indebtedness of the State, seeking payment, must be filed in the office
of the State Auditor, and warrants will be issued therefor. The Chair-
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770
man of the Finance Committee of the House of Representatives
him made a detailed report on the indebtedness of Messrs. Wads-
worth & Sheldon, the late agents. The following is a statement of the
accounts :
Balance of interest in their hands on the 1st day of July, 1854,
$51,199.72 ; amount remitted to them by the Governor to pay July
installment, $120,000 ; amount remitted to pay interest on liqudation
bonds, $5,067.17; amount remitted by the Governor to pay the
January interest, 1855, $212,000. Whole amount of funds in their
hands, $388,266.89.
This amount is subject to a deduction of $126,000, for interest paid
last July, and also interest upon the liquidation bonds, which leaves in
their hands the sum of $257,199.72. The committee also find in their
hands amount belonging to the surplus revenue fund, unemployed
since December 1, 1853, $20,000; balance of land fund, $10,385.16,
State bonds purchased by them and still in their possession, $13,009,
which were purchased for cash for $75,030.
The committee also state that no part of the fund known as the
three per cent fund, is now in the hands of Messrs. Wadsworth &
Sheldon, said fund having been withdrawn by the Governor, amounting
to $40,492.23, and now in his hands subject to draft.
The following is a recapitulation of the funds in their hands :
Balance of interest, $257,199.72; balance of surplus revenue fund,
$20,000 ; land fund, $10,385.53 ; cash value of bonds in their hands,
$75,030. Aggregate funds in their hands, $362,615.25.
For the surplus revenue fund, land fund, and State bonds purchased,
Amounting to $105,415.53, or so much thereof as may be in their
hands, the State has no security; while for the interest fund, amounting
to $257,199.72, the State has recourse to the securities of Julius
Wadsworth, as financial agent, receipts having been taken for this
fund in the name of Julius Wadsworth, and not Wadsworth &
Sheldon.
The slow process by which such debts are made out of securities,
be they ever so good, gives to the committee little hope of a speedy
restoration to the State Treasury, even of that part of the funds for
which security was taken.
The Legislature passed an act providing, that the January install-
ments of interest due on the public debt, be paid out of sucn monies
in the State Treasury as are not otherwise appropriated. A resolution
was also adopted, authorizing the commencement of legal proceedings
against Wadsworth and his sureties for the re-payment of the misap-
plied funds.
The following is a copy of the late law of Illinois to secure the pay-
ment of interest on the debts of the State.
§ 1. Be it enacted by the people of the State of Illinois, represented in the
General Assembly, That so much of all laws as authorized the employment of a
State Agent in the city of New-Tork to pay interest on the bonds of this State, be,
and the same are hereby repealed.
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§ 2. Hereafter all payments of interest on the public debt shall be made by the
State Treasurer at the Treasury, on the warrant of the Auditor, except such interest
as the State has contracted to pay in New-York, the installments upon which
shall be paid by the Treasurer in New-York, and except the installments upon
interest payable in London. And the Treasurer shall make such arrangements as
may be necessary for tlio payment of the installments of interest made payable
in London, provided that the money applicable to the payment of such interest
shall not be withdrawn from the Treasury more than thirty days before the time
fixed for such payment
§ 3. Hereafter, no part of the proceeds of tho sale of State lands, or surplus
revenue, Bhall be paid out of Treasury for the purchase of State indebtedness, unless
bonds or other indebtedness are filed, ready to be cancelled at the time the pay-
ment is made.
§ 4. Hereafter, all moneys applicable to the payment of mterest,'received into
the public Treasury, prior to the 16 th day of June and December in each year, shall
be apportioned and paid out on the first day of July and January, reepeetiyely,
ensuing.
§ 5. This act to take effect, and be in force, from and after its passage.
Thoo. J. Turner, Speaker House Rep.
Q. Koheuter, Speaker of Senate.
Approved, Feb 16, 1865. J. A- MaitebON.
Governor Matteson, of Dlinois, has succeeded in obtaining full secu-
rity for the indebtedness of Messrs. Wadsworth & Sheldon, the late
financial agents of the State. His arrangements are such that the
deferred interest will be paid in a short time. Arrangements have
been effected with the American Exchange Bank, to act as transfer-
agent for the stocks of Illinois.
The Bridge across the St. Lawrence. — This i a one of the most stupendous
structures of this or any other age. The eminent engineer, Stephens, is at the head
of the enterprise, and all that skill, science, and genius can devise, has been brought
into exercise to counterfeit the strength of nature. To the eye tho parts of the
work are already completed or in progress of completion, the piers seem as if designed
to rival the pyramids in durability. This bridgo, which is called tho Victoria Bridge,
is to span the St. Lawrence at Montreal In the middle of tho river the current
runs at the rate of nine or ten miles an hour, and it may be well understood that
the immense masses of ice at the breaking up of winter, are brought down the
stream with irresistible force. The piers, to sustain such a shock, must be as firm and
as stable as the natural rock. The bridge is to be of iron, and tubular, like that of the
Menai Straits— an estuary of the sea between the Island of Anglesea and Wales;
it will be two miles in length, and its central arch will have a span of 333 feet I
The abutment of 1200 feet in length on the northern side, is rapidly advancing
towards completion ; tho first pier is already forty -five feet above the water, while the
second and third piers are above the surface. The material used is black limestone,
and Titanic piers, which compete with the grand masonry of Egypt, are based upon
the solid natural rock which here forms the bed of the St Lawrence. The huge
blocks of stone are laid in hydraulic cement of the firmest character, and melted
lead, and strongly clamped together with iron. The cost of tho bridge, when com-
pleted, is estimated at £1,600,000, but will probably be nearer £2,000,000. If
there is no delay, the work will be finished in I860.
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AN HISTORICAL SURVEY OF THE ORIGIN AND
CHANGES OF MONEY, COIN VALUES, ETC.
BY JOHN EADIE, OF NEW-YORK.
1. Origin of Money . 2. Gold and Silver. 3. Babylon . 4. Days of
Job. 5. Croesus. 6. Solomon. 7. Early Slavery. 8. Egypt. 9.
Rome. 10. Value of Produce. 11. Roman Conquests. 12. Gold
in the First Century. 13. The Crusades. 14. Value of Slaves.
15. Fourteenth Century. 16. Alchemy. 17. Charles V. 18.
Spain. 19. Diffusion of Metals. 20. Spanish America. 21. The
American Colonies. 22. Continental Money. 23. Specie Currency.
24. The Sub-Treasury. 25. English Consols. 26. Public Debt of
Great Britain. 27. Gold in France — Silver in Holland. 28. Re-
flux of Gold. 29. Real Estate in Few- York. 30. Speculation.
31. Decline in Prices. 32. Railroads. 33. Sudden Fortunes. 34.
Opium in China. 35. John Jacob Astor. 36. Public Charities.
37. Railroad to the Pacific. 38. Maxims of Franklin. 39. Roths-
child and Ricardo. 40. Girard. 41. Fluctuations in Prices. 42.
Conclusion.
1. Origin of Money. — In glancing at the history of money and the
rise and fall of prices, it would be a waste of time to dwell upon the
protracted discussions which have taken place as to the nature of the
commodity termed “ money,” since its uses, as well as its abuses and
power, were never more generally known and appreciated in any age
or country than in our own. To some it is a curse ; “the root of all
evil” — u the almighty dollar,” worshipped as degradingly as was that
golden image, before which Israel’s hosts, forgetting the only living
and true God who had rescued them from slavery, bowed down in
abject submission. To others, its possession is a source of true happi-
ness, not for its own sake, but for the good which it enables them to
confer upon their fellow-men, upon society, or their country. Like
every thing in this life, man has the power of converting it into a
source of evil or of good. Its functions are numerous, but political
economists, while differing on the question of its value as an item of
wealth, agree in this, that its principal use is that of “a measure of
value.” It represents and procures every thing of which it measures
the value. It has been made of gold, silver, copper, brass, iron,
leather, and paper ; and in different ages and countries, corn, cattle,
cocoa-shells, tobacco, and other commodities, as well as man himself,
have been used and circulated as money. In California, which now
produces fifty millions a year of gold , pieces of soap passed current as
money among the native Indians only seven years ago !
2. Gold and Silver. — By the common consent of every civilized
people, since the days of Abraham, about two thousand years before
the birth of our Saviour, gold and silver have been the only commo-
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d ities recognized as money, or a universal measure of value, current
among all civilized nations. These metals were the first known to
man. They were in use among the grandchildren of Noah, and there
is reason to believe that gold , if not silver, was in . use before the flood,
since it is recorded of Tubal Cain, the brother of Noah, that he was a
worker in metals ; and the first branch of the river, flowing through
the Garden of Eden, described in Genesis 2, compassed a land in
which, the sacred writings inform us, there was gold, “ and the gold of
that land is good.” This was, doubtless, the location of the first gold
mines — eastward in Eden, the cradle of our common humanity — and
from the gold of these mines Noah’s descendants, who remained
around Babylon after the confusion of tongues, may have constructed
the huge golden images which history records among the earliest
wonders of Babylon. Some historians suggest that the Tower of
Babel, abandoned so precipitately at the dispersion, was transformed
into the great temple in which these images were worshipped. The
value of the golden images and furniture in this temple has been esti-
mated at fifty-five millions of dollars in our money. Nearly contem-
poraneous with the founding of the Babylonian Empire, according to
modern discoveries, Egypt was populated by a civilized race ; and
inscriptions on some of the Egyptian monuments, dating back before
the time of Abraham, speak of gold and gold mines.
3. Babylon. — A few generations after the Deluge, an active over-
land trade had sprung up between the people dwelling around Babylon
and those inhabiting the eastern shores of the Mediterranean sea ; and
at a very early ago the Phoenicians, having founded Tyre, navigated
the coasts of that sea, and carried on an extensive commerce with
Egypt. This commerce, doubtless, received its first impetus from
the destruction of Sodom and Gomorrah, an event which would
naturally strike terror into the over-land traders who had been accus-
tomed to journey through the valley of Siddim, and induce them to
pursue a more northerly course toward Tyre, thus avoiding the scene
of that fearful judgment. All history agrees in this, that the first
three prominent centres of trade and commerce were Egypt, Babylon,
and Tyre, and in these were first accumulated the precious metals.
In Egypt, the custom of embalming tho bodies of the dead, which
prevailed from the earliest ages, created a constant demand for tho
spices, and perfumes, and gums of the East, and so costly were these
that the expense of embalming a corpse was twelve thousand dollars.
The kings of Egypt drew about thirty millions of dollars annually
from gold mines, worked night and day by slaves, whose treatment
was so horrible that they longed for death.
4. Job. — Mines of gold and silver are alluded to in the book of Job,
who is supposed to have lived about the time of Abraham, and in the
wealth of the latter are enumerated both gold and silver. Abraham’s
purchase of a burial-place for two hundred and twelve dollars, “ four
hundred shekels of silver by weight, according to the currency of tho
merchants,” is the earliest reliable incident in history connected with
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the use of silver money at a fixed value. Silver then passed by -weight,
the only equitable mode of valuing metallic money. Gold was
esteemed, as it is now in China, among the precious jewels, and made
into ornaments or idols. Joseph, the greatgrandson of Abraham, was
sold into Egyptian bondage for twenty pieces of silver, ($12.40,) and
when his brethren went to him to buy corn, they paid silver, which he
ordered to bo put back again into their sacks, and with it his own
drinking-cup of silver. The Children of Israel, flying out of Egypt,
borrowed golden ornaments of the Egyptians, which, with the gold
that they themselves had accumulated during their stay in Egypt,
enabled them to exhibit a profusion of that metal in making the
Golden Calf. Moses subsequently constructed a large quantity of
gold and silver furniture for the Tabernacle out of the contributions of
tho people. Coming down to the time of Solomon, who collected in
a single year a million and a half of dollars in gold, and made silver
to be as stones in the streets of Jerusalem — who covered the temple
with gold and brought a million of gold in ships from Ophir — we find
records of vast accumulations of the precious metals, which -were
increased to an almost incredible extent in the fifth century, before our
era The King of Persia drew a net revenue from his conquered
provinces, of sixteen millions of dollars annually.
5. Croesus.— Croesus, King of Lydia, who lived about 540 years
before the Christian era, possessed an amount of wealth, in gold and
silver, which has since been proverbial. He presented to the temple
at Delphi, nearly fifteen millions of dollars, and supposing that to
have been only one tenth of his wealth, his store of bullion exceeded a
hundred and thirty millions of dollars. Ilis messengers, having on
one occasion been kindly treated by a family at Athens, he invited
one of that family to visit him, and on his arrival, presented to him as
much gold as he could carry. The visitor, to improve the value of the
gift, provided himself with a large cloak, in which were many folds,
and with the most capacious buskins ho could procure, he followed
Croesus into the treasury, where, rolling among the gold, he first
stuffed his buskins as full as he could, he then filled all the folds of his
robes, his hair, and even his mouth with gold dust. “This done, with
great difficulty he staggered from the place — from his swelling mouth
and projections all around him,” says Herodotus, “ resembling any thing
rather than a man.” Croesus, who, probably from politeness, had left
him alone to help himself) when he saw him come out burst into
laughter, and not only suffered him to carry away all he had got, but
added other presents equally valuable. Croesus was subsequently
plundered of his wealth and taken prisoner by the King of Persia.
During Solomon’s reign, Jerusalem was a prominent centre of
civilization, literaturo, and art. That king, endowed with exalted wis-
dom, allied himself by marriage to the powerful monarch of Egypt,
whose armies were then invincible on land, while by a commercial
alliance with Hiram, King of Tyre, he obtained control of the shipping
of the great Phoenician merchants. But the prosperity of Jerusalem
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intoxicated her people. They set at defiance Almighty wisdom, re-
vealed to them from heaven by the prophets of the Most High, and fell
into gross idolatry. Soon after Solomon’s death, they separated into
two states, and forsaken of God, they became an easy prey to rapa-
cious heathen invaders, who coveted the wealth of the chosen people.
One of these invaders, Sennacherib, King of Assyria, levied of King
Hezekiah a tribute of four millions of dollars in silver, and eight hun-
dred thousand dollars in gold, a considerable portion of which was
taken from the Temple. This invasion, which occurred about the
close of the eighth century before our era, has recently been a subject
of unusual interest among antiquarians, from a discovery made by
Mr. Layard during his exploration of the ruins of ancient Assyria.
He not only discovered the palace of Sennacherib, but he also found
among the ruins of that palace, sculptured in bas relief, a picture of
Jewish captives from Lachish, or as he describes it, “ the actual picture
of the taking of Lachish.” The Scripture account is given in the
eighteenth chapter of second Kings. Mr. Layard found, also, a por-
trait of Sennacherib on his throne before Lachish, and an inscription
of the same king in these words, “Hezekiah, King of Judah, who had
not submitted to my authority, forty-six of his principal cities and
fortresses depending upon them, of which I took no account, I cap-
tured and carried away their spoil. I shut up himself within Jerusa-
lem, his capital city.”
7. Early Slavery. — To get possession of gold and silver in large
quantities, or to procure slaves by capturing the people of other
nations, had long been the ambition of powerful rulers, and wars were
carried on for no other purposes than these. Assyria plundered
Babylon. The Phoenicians subjugated Egypt, but Egypt driving out
the invaders, conquered nearly the whole wrorld. Babylon re-con-
quered Assyria, and destroyed Jerusalem and Tyre, and subdued
Egypt. Persia arose on the ruins of Babylon and Assyria, and ex-
tending her sway to the Mediterranean, overran Egypt. Colonists
from Egypt and Phoenicia founded the original states, which becom-
ing united, formed the Grecian Empire, the most brilliant of all ancient
heathen nations. Greece successfully resisted several Persian inva-
the people of other
sions, and became the terror of surrounding countries. Rome pro-
cured from Greece her literature, science, and arts ; but Greece fell at
last, under the corrupting influence of Persian gold, and having lost
her liberty, submitted to the despotism of Alexander the Great, who
rallied her forces in a final death-struggle for universal dominion.
8. Egypt. — That monarch, when he had conquered the world, wept
that there were no more worlds to conquer. The vast empire which
he acquired fell to pieces at his death. The gold and silver of which
he plundered the government and people of Persia alone, has been
estimated at two hundred and fifty millions of dollars. In Egypt,
during the reign of the second king after Alexander, the accumulation
of the precious metals has been estimated as low as two hundred and
twenty-tw'o and a half millions of dollars, and as high as eight hundred
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and ninety millions, and all these treasures, with additional supplies
from the gold mines of the world, then highly productive, gradually
passed into the possession of Rome, with universal empire.
9. Some. — Rome attained the maximum of its power twenty-seven
years before the birth of our Saviour, when the yearly income of the
Emperor Augustus is estimated to have been two hundred millions of
dollars. Coined money had been in use among the nations about
nine centuries. The purest coins, rivalling in fineness even the best
of our own time, were issued from the Mint of Philip of Macedon, in
the fourth century before our era; and his son, Alexander the Great,
maintained the reputation of his father’s currency by perpetuating the
same standard of fineness. Of the prices of commodities in ancient
times, history affords only meagre details. At Athens, the precious
metals being scarce, prices were very low. In the sixth century before
tho Christian era, a sheep was worth a bushel and a half of corn, an
ox sold for seventy-five cents, a sheep fifteen cents ; but when coin
became abundant, as it did during the subsequent two centuries and a
half, prices rose step by step with tho increase of the currency, to five
times, and in many cases to ten or twenty times their former amount.
The pay of the Grecian soldiers, which had been five cents a day, rose
to ten cents.
10. Values. — In Rome, the same law of currency and values pre-
vailed ; prices of wheat rose with the increase of gold and silver
money, to such an extent that within three centuries and a half a mea-
sure of wheat, which sold for a quarter of a dollar, had risen to fifteen
dollars. When the spoils of Egypt came into Rome, money was so
plenty that Augustus loaned it without interest to any citizen who
could give security in double the amount. Hence arose our present
system of loans on bond and mortgage. Bread was about the same
price then in Rome that it is now in New-York. Tho wages of Roman
soldiers had risen from four cents and a half a day to fifteen cents, and
a liberal pension during life to those who had served twenty years.
Roscius, the actor, had an income of twenty thousand dollars a year.
Augustus received, in legacies from deceased friends, one hundred and
sixty-one millions of dollars. Cicero obtained from clients and ad-
mirers about eight hundred and fifty thousand dollars ; and a wealthy
citizen who died a few years before Augustus, although he had lost
heavily by the civil war, left an estate so vast that his personal pro
perty alone included 4116 slaves, 3600 yoke of oxen, 230,057 head of
other cattle, and in money, a sum of near fifteen millions of dollars in
our currency. Tho Emperor Augustus bequeathed to each of the
common people seventeen dollars, or nine millions of dollars in all.
1 1. Roman Conquests. — The whole earth, as far as then known, had
been ransacked for gold and silver to feed the insatiable demands of
imperial Rome. Streams of treasure had poured in steadily from
mines in every direction, but luxury and licentiousness increased — civil
commotions aroused distrust of the permanency of government — the
mines ceased to be worked — the precious metals were hoarded by
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private citizens, or buried in the earth so deep that only a very small
quantity has been recovered — and barbarous tribes pressed in toward
falling Rome, their minds inflamed by the magnitude of her wealth
and luxury. In her rage for gold she had become the instrument by
which was fulfilled our Saviour’s prophecy of the destruction of Jerusa-
' lem' and her soldiers ectually ploughed up the foundations of the
Temple on Mount Zion, in their search for that metal, literally fulfill-
ing the divine word, that of its walls there would not be left one stone
upon another. She had slaughtered by millions the humble Christians
whose exemplary deportment exhibited in strong contrast the vile but
fashionable debauchery which marked the lives of her governing
classes, until at last, falling to pieces from the festering corruption of
her vices and crimes, she embraced Christianity, but only to transform
it into that huge political engine in the disguise of religion — a State
Church — with which she again sallied forth to subjugate the minds and
the bodies of all mankind.
The fourth century of our era closed upon the dissolution of Rome’s
universal dominion, when the Eastern Empire began to drain off the
wealth of the late mistress of the world. Twelve millions and a half of
dollars were conveyed to Constantinople and expended upon the walls,
porticos, and aqueducts of that city, while many wealthy families emi-
grated thither with all their movable property. In the Western
Empire there was a constant struggle with hordes of northern barba-
rians, who having become independent of the imperial government,
frequently attacked the capital or levied contributions upon its people.
The Goths were paid at one time, about a million and a half of dollars
to raise the siege of Rome, while Constantinople was in like manner
laid under Contribution by the Huns. Thus the barbarians regained
portions of the gold and silver which their ancestors had been forced
to pay in taxes.
12. Gold in the World. — When Rome was in the zenith of her
power, about the time of our Saviour’s birth, the gold and silver in the
world is supposed to have amounted to 1790 millions, or nearly five
hundred millions more than the whole amount of coined money which
was in Europe and America a few years ago, on the discovery of gold
in California and Australia ; but the stoppage of mining operations, the
wear of coin from abrasion, its burial in the earth, and its consumption
in the arts, had reduced the amount at the close of the fifth century of
our era to about 435 millions. The dark ages, from the fourth cen-
tury to the discovery of America, witnessed a steady decline in the
quantity of money in circulation, and in prices, the inevitable results
of turbulence, ignorance, and fanaticism. Hardly had the northern
tribes of Europe, overrunning the southern and civilized countries,
completed the organization of states, ere they were threatened by the
Saracens from Arabia, and next by the Turks from Northern Asia.
So far had the Turks penetrated into Europe, that historians of our
own period, looking back through the vista of time, suggest that the
most serious apprehensions for the fate of Christianity and civilization
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would have been entertained throughout all Europe, had the people
known the actual extent of their danger.
13. The Crusades. — The crusades against the Mohammedan power,
which at this period engrossed public attention, were a heavy drain
upon the resources of Western Europe, but they tended to enrich the
Eastern portion. Constantinople had enjoyed a monopoly of the com-
merce of Asia, while the merchants of the Western Empire, taking
refuge from the barbarians on an island, founded the city of Venice,
and being protected by the Eastern Empire, engrossed a large share
of the trade of Europe. The cities of Genoa and Pisa participated in
the same trade. Gold from India and Egypt flowed to these ettiea,
but not in sufficient quantity to supply the wants of a circulating
medium, and at the discovery of America, in 1492, the stock of bon
gold and silver coin in Europe is estimated to have been only 170
or 195 millions of dollars, equal to about three years’ produce of Cali-
fornia. In England, the Saxon kings, having very little coin, estab-
lished living money, which consisted of various kinds of commodities
and human beings, at a fixed valuation.
14. Value of Slaves. — The price of a man-slave was fourteen dollars
and six cents, in our money ; a horse, eight dollars ; an ox, one dollar
and seventy-five cents ; a sheep, twenty -eight cents ; a goat, nine cents.
The nobility of England, so eager were they for field sports, paid at
that time for a hawk or greyhound the same price as for a man-slave.
King Alfred the Great was esteemed a wealthy prinee, yet the fortune
which he bequeathed to his sons was only seven thousand dollars a
piece, and to each of his daughters only fourteen hundred dollars. In
France, money was as scarce as in England. Charles the Bold, when
about to invade Italy, could procure throughout all France, in the ninth
century, only ninety thousand dollars. A bushel of wheat sold for
less than three cents. In Germany, six pounds of wheaten bread sold
for one cent, during a period of scarcity approaching a famine. A
day-laborer, receiving only a penny (two cents) a day, was able to
support himself on the small sum of six dollars a year.
15. j Fourteenth Century. — In 1336, the King of England having
seized all the coin in the kingdom to carry on war against France and
Scotland, prices were at ten dollars for an ox, half a dollar for a fat
sheep, twelve cents for a goose, six cents for a young pig, and pigeons
a cent a piece. In 1237, the salary of a clergyman was forty dollars a
year. In 1439, a clergyman could maintain himself respectably on
fifty dollars a year. Laborers were paid a penny farthing (three
cents) a day in England, in 1351. It was during this era that a gentle-
man arrived in England and appeared before the king, asserting his
Eower to turn inferior metals into gold and silver. Mr. Raymond
ully was his name. He made a bargain with the king that, if the
monarch would wage war against the Turks, he would produce from
base metals the requisite supplies of gold. But there arose a misunder
standing between them as to who snould begin first, and Mr. Lully ,
after demonstrating his power, refused to make any more gold until
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the king made war. He was consequently imprisoned in the Tower,
and one historian expresses his conviction, from reliable evidence, that
Lully actually did make gold in the Tower from base metals. [It is
almost needless to say that in cases of this kind, where gold was pro-
duced in the presence of credible witnesses, the gold itself had pre-
viously been introduced into the grosser substance in a state of
amalgam or solution.]
16. Alchemy. — People generally believed that gold was created by
the Alchemysts, and in the reign of a subsequent monarch, an act was
passed to prevent the “ craft of the multiplication of gold,” and this
popular delusion continued to harass the minds of statesmen and
philosphers for centuries. Even as late as the seventeenth century
there were believers in the existence of “the philosopher’s stone,”
which could transform base metals into gold. Only thirty years ago,
in London, during a most demoralizing speculation, a company was
organized “ to make gold."
Previous to the discovery of America, interest was 12 per cent per
annum in England, 16 per cent in Italy, and 20 per cent in France;
but in the sixteenth century, when American treasures flowed into
Europe, the rate of interest fell one half, and continued gradually to
decline as capital increased. At the close of the sixteenth century, the
circulating medium had been increased nearly five-fold, while prices of
commodities advanced in the same proportion. Spain owned, by
right of discovery, the greater portion of America, from which she
drew, in two hundred and ten years, an average of ten or fifteen mil
lions of dollars a year in gold and silver.
17. Charles V. — This revenue soon placed her far above all other
nations in wealth and power. She was rising to this position when
Charles the Vth fell heir to her throne, and reigned also over Germany
and Holland. He used his immense treasures to promote the best inter-
ests of Europe. He led his German troops against the Turks, who
had penetrated into Hungary. He invaded the piratical Mohammedan
States in Africa, with a fleet of nearly five hundred vessels, and
achieved brilliant successes, not the least of which was the liberation
of twenty thousand Christian slaves. Charles won the applause and
admiration of all Christendom. But his son Philip, succeeding him in
the sovereignty of Holland and Spain, directed a terrific persecution
of Dutch Protestants, who had early espoused the cause of the Reforma-
tion, and, by their virtuous lives and industrious habits, had become
a prosperous manufacturing and commercial people. Philip having
forced them to revolt, by setting up the Inquisition, they founded a
Republic in Holland. The persecuted Protestants of France and Spain
had also found an asylum in England, and they more than repaid her
hospitality by rapidly developing the resources of the country..
Prominent among these refugees were that exemplary Christian
people, the Huguenots, who, in flying from France, carried into the
British Islands many valuable arts and sciences, which, added to the
power of a great people, descended from Celts, Anglo-Saxons, and
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Normans, and inheriting the better characteristics of all, soon gave
Britain a preponderance in the scale of nations.
18. Spain . — Spain saw her powerful rival making giant strides
toward empire, and resolved upon her destruction by means of an
Armada, which, in the exultation of their pride, the Spanish aristocracy
proclaimed to be invincible . The continental world looked with
trembling awe upon that expedition which was expected to erase the
name of England from the maps and the history of earth. But Eng-
land’s navy proved equal to its great and powerful antagonist, and
storm and shipwreck completed the destruction of such portions of the
Invincible Armada as had escaped from the power of Albion’s wooden
walls. Holland soon after united her naval forces with those of Eng-
land, and the allied fleets having destroyed, in the Bay of Cadiz, the
remnants of Spain’s navy, the seventeenth century dawned upon the
maritime supremacy of England and Holland. It also dawned upon
the emancipation of the human mind from a system of philosophy that,
for a thousand years or more, had taught mankind to seek happiness
in metaphysical speculation and seclusion from their fellow creatures.
That system began to fall in the sixteenth century. It was supplanted
by a new philosophy that opened the sublime truths of the Bible to
all, and held up the amelioration of the condition of mankind, the
mitigation of human suffering, the multiplication of human enjoyments,
and the discovery of useful inventions, as the noblest aims of intel-
lectual effort, or of any system that would seek the highest interests
of man in time, or best prepare him for the momentous realities of
eternity. There followed wholesale reforms in government, improve-
ments in modes of life, new facilities for locomotion and correspond-
ence, discoveries in the healing art, and useful inventions, producing
comforts and conveniences, and means of intellectual development
which our working-men of to-day possess in a degree superior to that
within the reach of the kings and queens of England only three cen-
turies and a half ago.
.19. Diffusion of Metals. — The precious metals, from their active
circulation and general diffusion, became important, although subor-
dinate instruments in furthering that great movement which, progress-
ing with extraordinary rapidity, emancipated several of the nations of
Europe from slavery and ignorance, and laid the foundations of pow-
erful states— states without kings or queens— on the shores of this
western continent.
The stock of coin in Europe, and America, in 1699, is estimated to
have been 1486 millions of dollars. One hundred years later, about
the close of the last century, it amounted to 1900 millions, but in
1809 it began gradually to decline from abrasion, or absorption in
Asia, or consumption in manufactures, as well as the stoppage of the
Spanish American mines, until the discovery of gold in California and
Australia, in 1848-9, when it had been reduced to about 1300 mil-
lions. During its increase, the constant rise of prices, as in England,
worked a social revolution. The aristocracy, having leased their
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lands for a term of years or of lives, were unable to advance their
rents or to procure sufficient incomes to support largely-increased
expenses of living, while merchants, mechanics, and trades-people
excelled them in wealth. Cromwell’s successful revolution, over-
throwing the monarchy, was a natural result, the middle classes having
greater resources than the aristocracy. In Spain, gold and silver
were so abundant that they fostered indolence, and inflicted upon her a
train of evils from which she has never recovered.
20. Spanish America. — When Napoleon, in the prosecution of his
conquests, subjugated Spain, it became the policy of other nations to
prevent his acquiring the revenues which that country was draw-
ing from its American colonies. Accordingly, revolutions were
encouraged throughout Spanish America, already ripe for revolt, and
in a year or two the American mines ceased to yield the precious
metals, in any great quantity, and paper money became an apparent
necessity throughout Europe and America. The use of paper money
had been introduced in Italy, from China, in the thirteenth century,
and thence extended over Europe. Banks existed in Genoa and
Florence in the fourteenth century.
The Jews, persecuted and hunted from place to place during the
dark ages, had previously discovered and employed bills of exchange
in their migrations, as more secure in case of robbery or loss. Being
in constant apprehension of the loss of their lives and property, they
resorted to trade and money-dealing, while their attachment to the
land of Israel — which, in our time, is now opening for their long-
looked-for restoration — prevented them from holding real estate.
They thus acquired an early knowledge of the laws of trade, com-
merce, and finance, which has enabled them to take an influential part
in transacting the financial business of the world for several centuries.
No nation can now wage a prolonged war without the aid of the great
Jewish bankers of Europe. Paper money was introduced into China
before the Christian era, but its use was abandoned. In Europe, its
use was advocated on the ground that it would secure a greater uni-
formity in the currency and prices, by taking the place of specie
whenever the latter was conveyed away temporarily to adjust balances
of trade between nations ; and this idea prevailed very generally in
our own country, from the time of the first National Bank, established
in 1782, to the proposed re-chartering of the United States Bank in
1832.
21. The American Colonies. — In the early periods of our history,
the emigrants had very little specie in circulation. In Virginia,
in 1018, a price was fixed upon commodities, at which they might pass
current. Tobacco was a legal tender at three shillings a pound, and
the price of a wife was one hundred pounds of tobacco.* Massachu-
* This was not a slave-trade. Tho Virginia Company brought out young women
of good character and education, from England, and on arriving in tho Colony they
were permitted to chooso their husbands, who paid to tho Company tho expenses
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setts adopted com as a circulating medium, in 1641, making it pay-
able for all debts at a fixed price. In Maryland, about one hundred
years later, (1732,) tobacco was made a legal tender at one penny a
pound. A mint was established in New-England in 1652, and one in
Maryland ten years after. Paper money was issued in Massachusetts
in 1690, and other colonies soon followed the example. Prices rose
so rapidly with the increase of this currency, that a man who bought
an ox on six months’ credit, could pay his note when it became due
with the money for which he could sell a half-year old calf. Property,
which cost a thousand dollars, could be sold within a year for twenty
thousand. The I lome Parliament at length interfered, and prohibited
any future issues of such a currency. The amount in circulation
throughout the Thirteen Colonies, just before the Revolutionary War,
was £12,000,000, or four dollars a piece for the entire population, and
its value in coin was about ten millions of dollars.
22. Continental Money . — On the breaking out of the Revolutionary
War, Congress began to issue paper money, and in 1782 the whole of
the celebrated continental money issued amounted to 359 millions.
It gradually depreciated until its value became so low that a silver
dollar could purchase five hundred dollars of it, when its circulation
ceased. But the people, having achieved independence even at this
oost in money, viewed it as the smallest loss. They had pledged life and
fortune in that immortal struggle, and there were few families who had
not lost one or other. England’s sovereign and statesmen, in defiance
of the counsels of wise and good men throughout the United Kingdom,
expended five hundred millions in prosecuting that to her, jnost
humiliating war . One is forcibly reminded of the effect of war on the
precious metals, by a recent occurrence in Monmouth county, New-
Jersey, not far from the battle-field on which was achieved one of the
great victories of our revolutionary war. A stranger asked for
lodging at a farm-house ; he staid but a few days, and disappeared
suddenly. The object of his visit and mysterious disappearance was
soon ascertained by the family, who discovered under an old tree, dug
up from a considerable depth, the remains of a pot that had evidently
contained money. The stranger was, doubtless, heir to some wealthy
tory who buried his gold and silver, and fled when Washington defeated
the British and Hessians at the Battle of Monmouth.
Notwithstanding the experience of colonial times, excessive issues of
paper money became popular again after the Revolution. Banks were
chartered in all directions, until inflations and contractions of paper
money terminated in almost universal suspension of specie payments
not long after the close of the last century. Similar results were
taking pl^ce in England. The Bank of England suspended in 1797,
of the passage. The price of a wife at first was one hundred pounds of tobacco,
but, as the number became scarce, the price increased to one hundred and fifty
pounds. Tho Company even gave credit I under protection of a law which enacted
that tho debt for wives should take precedence of all other debts, and be first
recoverable.
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and did not resume until 1821. Then followed another expansion in
England, simultaneously with one in this country, enhanced prices and
an appearance of prosperity which, in the case of England, had no
parallel in her annals; but in 1825 both countries were visited by a
fearful panic. These alternations continued with greater or less intensity
until 1830 when, after a huge inflation in America and England, a
sudden contraction took place in England, followed by almost univer-
sal suspension of the banks, and wide-spread bankruptcy among indi-
viduals, in this country, in 1837.
23 A Specie Currency for the United Stales. — Our government had
already decided its policy in relation to the currency question which
had agitated the public mind periodically for half a century or more.
Two great parties, one led by Clay, the other by Jackson, had appealed
to the people, who decided in favor of an exclusive metallic basis.
Both undoubtedly, had the best interests of their country at heart
Clay, ’ in his American system, had advocated a high protective tariff
and a liberal supply of paper money, based on coin. These he deemed
best suited to procure good wages to the working-man, and permanent
stability in prices. Jackson advocated principally on constitutional
^rounds, a specie currency, which, from its intrinsic value, operating
through a moderate tariff, ho considered, would be most safe and
economical, and being held in reserve by the government, would check
undue expansions of the currency, and keep prices at a healthy uni-
form standard. Jackson’s policy was finally adopted, and lie lived to
see it permanently established. Its salutary operation has been
experienced for many years, but most beneficially in the present revul-
sion. Government having last year checked the tendency to excessive
inflation by hoarding coin, is, and has been, disbursing its accumulated
treasures when most wanted, thus affording great relief to business and
securing a uniformity in our financial affairs of which many persons
are yet° incredulous. It is true that the advocates of a national bank
had claimed for it the same regulating power, but the idea of a bank
of that character has become obsolete.
24 The Sub-Treasury. — The United States Treasurer, at New- York,
now transacts more than four fifths of the monetary business of the
country ; the accumulation in his department is sometimes as high as
twelve millions of dollars, and the yearly volume of his business, in
coin or bullion, on account of the Treasury and the Mint, exceeds two
hundred millions of dollars. Following the example of this country,
England, under the guidance of that great man, Robert Peel, adopted
a metallic basis for the Bank of England, in 1845, and the regular
publication of the condition of that institution, when uewe in con-
nection with the price of consols, has become a reliable guide to the
courso of the European, money market,
25. English Consols.— The public stocks of England, denominated
consols, took their name from the consolidation of various debts into
one general class. Hence the word consols. In 1 176, just before the
American war broke out, consols sold at 90, or ten per cent below
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their nominal value, but they steadily declined during that war until
they reached 54. After peace they rose gradually to 97£. The
French Revolution of 1793 sent them down, and they continued
depressed, or violently agitated, during the prolonged wars which
followed that event. In 1798, they were down at 47£; and in 1815,
just before the battle of Waterloo, they were 53J. After that battle
they began to rise, and continued to advance during the long peace
which followed. In 1844, they were at 101 J, when symptoms of the
famine in Ireland and the railway bubble in England, caused them to
decline; and in October, 1847, the famine being at its maximum
intensity, they sold at 79£, from which they gradually recovered. In
1852, they were 101 J, and continued at 101 during the following year,
until May, when indications of the present war with Russia caused
them to recede, and during its progress they have touched 87£. They
are now at 91, and either British capitalists expect an early peace, or
else there is no truth in the assertion that, 44 England trembles in the
climax of her greatness.”
26. Public Debt of Great Britain. — Her debt is now nearly four
thousand millions of dollars. From 1801 to 1816 she subsidized the
nations, during the French and American wars, with loans or grants
amounting to two hundred and fifty millions of dollars. Yet so vast
are her industrial powers and wealth, that some of her economists
declare that she has more to fear, in a financial point of view, from
that increase of prices which, in the absence of war, would result from
the present augmentation of the precious metals, than from an expendi-
ture of one hundred millions of dollars a year in prosecuting the con-
test against Russia. In other words, by an expenditure which shall
keep an excess of the precious metals away from her, she secures low
prices at home and causes high prices abroad, and is thus enabled to
under-sell the manufactures of all other nations. In times of peace she
accomplishes the same result by investing, in other countries, a por-
tion of the gain realized from trade with them, and thus keeps them
tributary through her wonderful commercial and financial systems,
while she makes London the centre of the world’s finances, by taxing,
not the principal, but only the income of capitalists. She has drawn
the gold of Australia, and a very largo portion of that produced by
California, to London, but it has not remained there. It has merely
passed through the Bank of England, to be distributed to the Conti-
nent, where many able economists suppose it is being hoarded by the
masses of the people, as it is now in the interior of our own country,
by the farmers and others who have, during two or three years, been
getting lucrative prices for their produce or labor.
27. Gold in France , and Silver in Holland. — In France, it appears
from the result of the late negotiation for a loan, gold is abundant.
France was almost the first to feel the stimulating influence of Califor-
nian and Australian gold. Her richest silks, her costliest wines and
wares, could alone supply the new wants of those who had suddenly
acquired the wealth of our modern El Dorados. In Holland, the
Goude
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bankers are hoarding silver, expecting soon that gold will be cheap
enough to increase the value of their stores several per cent. Coin is
undoubtedly hoarded in Germany, Switzerland, and Italy, as well as
France, and, although considerable quantities may be required on the
Continent, to form a safe basis for the expanded paper currencies which
have of late years come into use, it seems impossible that Europe
* should be able much longer to absorb the immense supplies flowing
in from the Pacific.
28. Reflux of Gold. — If it should happen that a return wave of the
precious metals from Europe should come upon us, that we should no
longer be called upon to send away the supplies we are receiving from
California, it will require all the practical virtues and good sense of
our people to save the country from a violent and demoralizing outburst
of extravagance and folly. In view of the danger of such a visitation,
it has recently been proposed in high quarters to drive out of circula-
tion all paper money of a smaller denomination than ten dollars, and
it will probably be carried out by legislative power whenever a com-
bination of circumstances shall render it popular. It were far prefer-
able thus to keep down prices, by reducing the currency, than by
wasting our resources in wars of conquest.
29. Real Estate on Manhattan Island. — Our happy country, blessed
with peace, exhibits a growth in wealth that has no parallel in history.
A principal source of the wealth of persons of large fortune, has been
the increase in the value of real estate, which, in turn, was produced
by a rapid increase in population. The land was originally purchased
of the Indians for almost nothing. In 1626, the whole Island of Man-
hattan, now the city and county of New-York, was bought of the
Indians for $25. Last year the Island was valued, in real estate alone,
at 330£ millions of dollars. The entire wealth, real and personal, of
the whole country, is given in the census report for 1850, at 7066^
millions of dollars, or $370 for each inhabitant. And yet it is little
more than three centuries, nine generations, since the first Europeans
formed settlements on our coasts.
30. Speculation. — Our rapid increase in wealth and population has
given rise to repeated speculations in real estate. In that of 1836,
prices rose to an extent which, if quoted, would now seem fabulous.
Property that was sold for half cash and half on bond and mortgage,
when the revulsion came, passed back into the hands of the original
proprietor merely to cancel the mortgage ; and there were cases in
which the depreciation being more than one half, a foreclosure sale
resulted in the unhappy speculator being compelled to make even a
greater sacrifice than half the purchase money, to cancel his obligation.
In the bankruptcy which followed, 33,739 persons applied for the
benefit of the general bankrupt law, and their debts amounted to
$440,900,000, while the gross assets were only about ten cents in the
dollar. The speculation had been stimulated by an undue expansion
of paper money at a time when the stock of coin, upon which it was
based, was steadily diminisliing both in America and Europe. It was
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supposed that our own gold mines in the South would afford a ftdl
supply of gold, but the speculation in gold mines resulted as disas-
trously as that in real estate.
31. Decline in Prices . — In 1842-1843, prices had reached their
lowest point, when the banks resumed specie payments. Comparing
the wholesale prices of those years with the prices now, we fmd a •
remarkable difference. Butter, in 1843, was twelve and a half cents
a pound. Last year it was twenty-two cents. Com was at fifty cents,
last year a dollar. Beef has risen in the eleven years from four dol-
lars to six dollars, and lumber from seven dollars to ten dollars.
Prices in 1827-8 were about the same as in 1842-3. These were
the two extremes of depression within the last thirty years, and they
were almost equal. In 1836-1837, prices were about as high as in
1854.
32. Railroads . — The present revulsion has arisen principally from
excessive speculation in railroads, but occurring at a time when the
metallic currency is increasing, and the productive industry of the
country rapidly augmenting its power, the effect upon industry, com-
merce, and trade, promises to be of short duration. Speculating
manias seem to be drawing to a close in this country. People are
now looking more to permanent income than speculative ^alues. In
times of speculation, when men make haste to be rich, speedy ruin is
brought upon individuals and families, and too often the disgrace of
fraud, forgery, and peculation is added to the horrors of a sudden
transition from affluence to penury. In the great money centres of
Europe, fearful cases of suicide or insanity often result from the
speculations which take place. The tulip mania, the South-Sea bubble,
the Mississippi scheme, and the railway speculation are memorable
instances of the fatality attending these popular delusions. On the
London Stock Exchange and the Paris Bourse, it is no uncommon
thing for a man to be worth a hundred thousand dollars on one day
and to be a beggar the next.
33. Waterloo . — In 1815, a member of the London Stock Exchange
having failed, and seeing his name disgraced on the black board, he
went to London Bridge, where, throwing his last shilling in the
Thames, he resolved to commit suicide, when a friend, a Frenchman,
coming from the French Ambassadors, accosted him, and told him of
the Battle of Waterloo, news of which had just been received exclu-
sively by the French Minister. The broker, recovering from his deep
despair, hurried back to the Exchange, but, being no longer admitted^
he bargained with two houses for one half the profits resulting from
the purchases which they might make before the news became public.
They bought largely, and when the news appeared, prices rose 15 per
cent. The broker was almost immediately transformed from a
doomed suicide into the owner of a fortune of five hundred thousand
dollars. Another broker, doubting the news, hurried to the govern-
ment office, where Lord Castlereagh expressed his great gratification
in being able to assure him that the news of the battle was authentic ;
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John Jacob Astor.
787
but it was sad news to the broker, who exclaimed, “ I am a ruined
man !” and went home a beggar.
34. Opium in China . — Among the causes which produced a decrease
of coin in Europe and America, before the revulsion of 1837, was the
abandonment or proscription of the use of opium in China, where
government seized and destroyed that drug. Instead of balancing the
trade with China by opium, it had to be settled by large shipments of
specie from England and America. England being largely interested
in that trade, invaded China, and levied a tribute of $10,000,000, in
silver, which afforded seasonable relief to the Bank of England, and
China had to take opium. In justice to England, it should be added
that she defended the propriety of that war, on the ground that her
people had suffered gross outrages at the hands of the Chinese, in
defiance of commercial usages and regulations. The stock of bullion
in the Bank of England, about the time of the resumption of specie
payments in this country, had become so low that it became necessary
to borrow of the Bank of France and the Emperor of Russia.
The reduction in values, which followed the decrease of the precious
metals from 1809 to 1848, was intimately connected with the famine
in southern and western Ireland in 1847. Estates which had been
mortgaged when prices were high, became deeply involved as prices
and rents tell, and in order to keep up their incomes and pay interest
on mortgages, the proprietors, or their agents, encouraged a minute
subdivision of land, without regard to the science of agriculture or
rotation of crops. The potato plant greatly facilitated the system. So
extraordinary was the development of that plant, that a laboring man,
having only two acres of ground, could feed and clothe a large family
by working only four days in the week. Half an acre of ground
yielded a support for a family of four persons. At length the potato
failed, (as scientific men had long predicted it would,) ushering in a
calamity of fearful magnitude, in which two millions of human beings
perished. There followed a revulsion in England which overwhelmed
mercantile establishments that had braved the commercial tempests of
centuries.
35. John Jacob Astor. — Many large fortunes were accumulated in
Europe and America during the first half of this century, and the
extraordinary fluctuations which took place in our own country, from
vacillating legislation, or overtrading, or speculation, facilitated the
amassing of great wealth by persons of economical habits. Stephen
Girard accumulated twelve millions, and founded in Philadelphia the
great college which bears his name. John Jacob Astor amassed seven-
teen millions in New-York, and founded the first free library in that city,
and numerous charities, termed “The Astor Foundation,” in his native
town. The amount which he gave or bequeathed to benevolent and
literary purposes was about a million of dollars, which, if improved
at legal interest, compounded annually for 37 years, would become
equal to the sum which he had amassed at the time of his death. His
lirst expedition across the Rocky Mountains, in the prosecution of his
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trade with the Indians, was one of the means by which our govern-
ment acquired title to the territory of Oregon. Of that expedition
one member yet survives, an esteemed merchant in Broad street,
New- York.
36. Public Charities . — Contemporary writh Mr. Astor was Richard
Robert Randall, the founder of a noble charity which adorns Staten
Island, the funds of which arc now estimated at a million of dollars.
During tho same period a large number of persons, of great wealth,
dying in New-York, the New-England States, Pennsylvania, and New-
Jersey, left imperishable monuments of their munificence ; while in
their life-time a native of New-York is founding with half a million of
dollars an institution in that city for the moral and intellectual im-
provement of young men, and a lady from Albany is founding an
educational institution for young women in Brooklyn, with an ample
endowment. In the Southern States many great and good men, at a
pecuniary sacrifice to their estates, have in the same period granted
freedom to their slaves, with means to settle in Liberia, the California
of the colored man. An English gentleman, named Smithson,
bequeathed his fortune to found in our capital the most richly
endowed scientific institution in the world.
37. Railroad to the Pacific . — In moral and religious enteiprises the
period has been unusually brilliant and successful, and American mis-
sionaries have been tho instruments, under Providence, of rescuing
vast multitudes from heathenism. Such arc some of the results of
the accumulation of money in the full light of Christianity in this our
nineteenth century. Results like these go far to remove any serious
apprehensions of demoralization which might be feared to flow from
our gaining possession of the Asiatic trade, now offered to us by
means of a railroad to the Pacific ; a road that, in proportion to the
resources of the country, is a work of less magnitude to tho general
government than the Erie Canal was to the State of New-York. A
ship canal at the Isthmus is preferred by many to a railroad through
the Rocky Mountains.
As to the means by which wealth may be obtained and accu-
mulated, it is safest to rely upon the opinions of persons of experience
who have been successful. It is a popular saying that “ any fool can
get money,” and hence probably it has occurred that few millionaires
have risked a disclosure of the secrets of their success. Bacon, speak-
ing of business, remarked that if books had been written about it, in
his time, as about other things, learned men would have been able to
excel business men in accumulating wealth, and iloutshoot them with
their own bow.” Of all the systems of economy ever produced, the
Bible undoubtedly furnishes for nations and individuals the best that
can be promulgated, since it is the work of divine inspiration. Men
may alter the phraseology of its truths, or present them in new forms,
and this they have done.
38. Maxims of Franklin. — Franklin said, “Save and have: waste
and want.” An eminent divine says: “There is but one way of
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securing universal equality to man, and that is to regard every honest
employment as honorable, and for every man to learn, in whatever state
he may be, therewith to be content, and to fulfill with strict fidelity the
duties of his station, and to make every condition a post of honor.”
A late writer, in his treatise on business, says : “ A man must possess
great strength of moral principle and an enlarged intellect to carry on
extended business with a reasonable hope of success. Business is in
truth a test of virtue, a fiery furnace to principle. No man can spend
many years in business without developing his character to his own
conscience at least, if not to the knowledge of the world. If he is a
man of weak wit, he will become an habitual liar ; if a man of lax
moral principle, he will become a rogue.” “ Life is a probation, and
business may be designed as a means of perfecting the moral nature.”
In reply to the popular opinion, that “ any fool can get money,” he
says : “ Let him who is convinced from study and reflection that busi-
ness does not call for intellectual ability, embark his all in some
credit business ; and if he does not pray before the 4th of November
that whole hecatombs of dead authors may bury him from the sight
of living men we will re-consider our opinion.”
39. Rothschild and Ricardo. — Among those who have accumulated
great storps of wealth in modern times were Rothschild and Ricardo,
and some others, who laid down rules for guidance in speculating in
the public stocks of Europe ; but these rules, even if they ought to be
regarded as wholly unexceptionable, apply to a business of limited
extent. One writer says : “ Wouldst thou be rich ? Consult not the
rich man but the bankrupt. ’Tis more to know what to avoid than what
to do.” Some maxims of McDonough, who recently left several mil-
lions to benevolent objects in New-Orleans and Baltimore, have been
severely criticised ; but his fame may appeal to future generations, in the
light of the charities to which he left all his wealth, for a more favorable
interpretation. Astor and Girard are not known to have had any
maxims other than that illustrated in their lives — strict economy. A
successful merchant, of sixty years’ experience in one of our large cities,
had these two maxims : “ 1. Do what you undertake thoroughly. 2. Be
faithful in all accepted trusts.” A retired merchant, who now fills the
highest of all the financial positions of trust which the United States
government has at its disposal, commenced life a poor boy, as a
clerk, at fourteen years of age ; and by strict morality, economy,
temperance, and industry, he had saved, when he became of age,
enough to purchase an interest in the firm, where he became the prin-
cipal, and finally retired in the prime of life on a handsome compe-
tency. The founder of a large and prosperous house gives nine
rules:
1. Industry and economy.
2. Self-reliance.
3. Punctuality.
4. Attend to small things as well as great.
5. Selfishness is the meanest of vices.
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6. Think vigorously.
7. Marry early.
8. Look out for information.
9. Never forget a favor; ingratitude is the basest trait of man's
character.
His 7th rule, to marry early, is now generally deemed, by young
men, a gross absurdity. Many young men in our time consider it
indispensable, before marrying, to have an independent fortune^
capable of supporting a family without business. We often hear the
opinion that a young man “ must not risk the happiness of the object
of his affections by asking her to share in the toils and trials of early
life,” although some of the best and greatest men, of ancient and
modern times, believed that a mutual participation in these toils and
trials was to both partners a principal source of domestic happiness*
40. Girard. — The young man who intends to accumulate a fortune
before he marries, will have to bestir himself — he must be more suc-
cessful than most modem millionaires, or else wait a very long time.
Stephen Girard was yet poor at forty years of age ; Nathan Roths-
child had not obtained the capital which laid the foundation of his for-
tune until he had passed the age of thirty, and John Jacob Astor had mot
saved his first thousand dollars at thirty years of age, although he had
been ten years trying to accumulate it. Rich men, the architects of
their own fortune, are of necessity men of middle or advanced age,
and only one third of the human family lives to attain the age of forty-
two years.
41. Fluctuations in Prices. — The effect of an increase or decrease
of money, whether it be in coin, or in paper representing coin, is the
same on prices. Every thing rises with the increase, and fhlls with
the decrease. A year ago, when from the increase of gold in our
banks money was abundant, prices rose rapidly. Persons having
productive property, or in lucrative occupations, imagined themselves
getting rich, and increased their expenditures accordingly. But ftw
stopped to inquire whether they were not the victims of a popular de-
lusion, and fewer still adopted in money matters those principles of fine-
thought which induce the farmer to lay up in harvest-time the stores
which he can use or dispose of to advantage in winter. Savings from in-
come during periods of prosperity are the legitimate resources of man-
kind in seasons of adversity. The course of money may be compared
to the harvests of ancient Egypt, years of plenty succeeding years of
famine, and he who stores away in productive and available invest-
ments the surplus of the one against the deficiency of the other, al-
though he may not, like Pharaoh, be able to buy up all the lands of an
empire, will find himself protected from trials and adversities of a most
overwhelming character. We are now passing through a great series
of rapid fluctuations in currency and prices. The two hundred and
forty millions a year in gold, which has been, and bids fair to continue,
flowing into the commercial world from California and Australia, ac-
cumulating at the principal centres of exchange preparatory to its general
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diffusion throughout the world, produces changes as much more sud-
den and violent than similar supplies produced in previous ages, as our
means of transit arc more rapid than those enjoyed by our ancestors.
The prevailing scarcity of money is likely to be succeeded very soon
by another plethora, in which extravagance and love of display — the
besetting sins of our time and country — may again turn the tide of
prosperity from us toward other nations. Although California has
yielded nearly $300,000,000 of gold within the past seven years, we
have sent away two hundred millions of it for silks alone, to say no-
thing of the amount paid for other luxuries ; and such is the operation of
the human passions, when uncontrolled by religion and reason, that the
consumption of wealth by nations as well as individuals can be limited
only by the extent of the supply. If, as seems probable, times should
again improve in less than a year, the prevailing stagnation in busi-
ness and industry giving place to great activity in every occupation,
then, if ever, should the poor be induced to husband their resources
and accumulate funds against adversity, come when it may.
42. Conclusion. — The love of improving his condition, of acquiring
wealth, is deeply implanted in man. It is a passion which, duly re-
gulated by sound principles, secures social improvement, and national
prosperity, and while each succeeding generation inherits the wealth
of all its predecessors, so it in turn should at least preserve, if not add
to, the great estate of humanity. Savings from income constitute the
only reliable accumulations of wealth. Speculation may and often
does lead to fortune, but that is the exception, not the rule : for one
successful speculator, there are thirty unsuccessful ones. Men see
the display of the one, and as the thirty silently retire into oblivion,
his example becomes popular with youth and inexperience, leading
thousands of noble geniuses to sacrifice themselves in wild adventures,
which terminate in cruel disappointments, wasted energies, shattered
minds, or enfeebled bodies. But who of us is perfect ? None, not
one !
To conclude, nearly in the language of another: He who knows, like
St. Paul, both how to spare and to abound, has a great knowledge ; for
if we take account of all the virtues with which money is mixed up—
honesty, justice, temperance, charity, frugality , forethought, self-sacrifice ,
and of their correlative vices, it is a knowledge which goes near to cover the
length and breadth of humanity ; and a right measure and manner in
getting, saving, spending, giving, taking, lending , borroioing, and be-
queathing, would almost argue a perfect man !
Digitized by
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UNIVERSITY OF CHICAGO
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Original from
UNIVERSITY OF.CHICAGO
1855.]
Banks of the United Stales.
793
THE BANKS OF THE UNITED STATES.
ANNUAL REPORT FROM THE SECRETARY OF THE TREASURY.
Treasury Department, Feb. 27, 1855.
Sir : I have the honor to submit a Report on the condition of the
Banks throughout the Union, in compliance with the following resolu-
tion of the House of Representatives, adopted July 10, 1832 :
“ Resolved , That the Secretary of the Treasury bo directed to Jay
before this House, at the next and each successive session of Congress,
copies of such statements or returns, showing the capital, circulation,
discounts, specie, deposits, and condition of the different State banks
and banking companies, as may have been communicated to the legis-
latures, governors, or other officers of the several States within the
year, and made public, and where such information cannot be obtained,
such other authentic information as will best supply the deficiency.”
In conformity with this resolution, reports on the condition of the
banks were made in 1835, and in each subsequent year up to 1840.
A change of administration then took place, and the resolution was
treated as a dead letter till Mr. Polk became President. The making
of the reports was then regularly resumed, and the accounts of the
back years brought up. Since then the reports have been regularly
made, except during part of the time of Mr. Fillmore’s administration.
Taken in their series, these reports supply facts which are indispens-
able to a correct understanding of the state of the country, and of the
many pecuniary embarrassments of the people.
These reports differ in one important respect from all the other
annual reports made by the department, or by any other department
of the general government. The materials for all the other reports
are supplied by officers of the general government, and at dates and
according to forms prescribed by the heads of the departments. For
statements of the condition of the banks, the Treasury Department is
entirely dependent on the courtesy of the officers of the State govern-
ments and of the State banks.
To letters from this department, soliciting such information as will
enable it to comply with the resolution of Congress, the officers of the
State governments and of the State banks have in almost every
instance replied with great courtesy, though not always with the
promptitude that is desirable. If the returns were made more early,
this department would make every effort to have them arranged and
published at the earliest day possible, which would greatly increase
their value in the eyes of the merchant and the banker. To the political
economist and the statesman, the delay is not so important, as it is
from the reports of various years, taken in connection, that they make
their inductions.
These reports would be greatly increased in value if the banks
would all make their reports at one and the same time — say the close'
52
Digitized by
Gck igle
Original from
UNIVERSITY OF CHICAGO
794
Banks of the United States.
[April,
of business hours on the last business day in each year. At present,
the banks in the different States make their returns in different months,
from April to December, and in some cities, as, for example, Phila-
delphia, though they make their returns in one week, they do not
make them on the same day of the week. Where this usage prevails,
the same parcels of specie may figure successively in the accounts of
different banks.
In Great Britain, of so much importance is knowledge of the fluctu-
ations of paper currency regarded, that weekly accounts are published
of the condition of the Bank of England, and quarter-yearly statements
of the circulation of all the banks of issue in the United Kingdom.
In the United States, owing to the issue of bank-notes of small de-
nominations, owing to the rapid development of our natural resources,
and owing to other causes, the fluctuations of paper money are much
more sudden, much more violent, and much more frequent than in
Great Britain ; yet we have no means of ascertaining exactly the range
of those fluctuations, because we have no means of ascertaining the
Amount of circulation of all the banks on any one day of the year.
This is a subject over which the general government has no control,
but it is to be hoped that it will attract the attention of the State
Legislatures. Some of them now require quarterly statements from
the banks; and the banks in New-York are even required to make
weekly statements of their condition. If the Legislature of each State
would require its banks to make statements of their condition at the
close of business hours on the last business day in the months of March,
June, September, and December, or, what would be still better, at the
close of business hours on the last business day of each month, (as is
now done by the Legislature of Louisiana,) the department might by
a collocation of the different reports, present such views of the fluctua-
tions of our paper currency as would be of great value to business
men in every department of life.
Eor obvious reasons such uniform returns would be of vast import-
ance to banks conducted on proper principles.
The present report includes returns from 1307 banks and branches,
with a reported capital of $332,177,288, showing an increase during
the year of ninety-nine in the number of banks and of $30,802,207
in the amount of capital paid in. But, though there has been an
ittoroaoo ill the number of banks and in the capital paid in, their specie
has been reduced between five and six millions, or from $59,400,253
to $53,944,540, and their circulation nearly eighteen millions, or from
$204,089,201 to $186,452,223. If the banks had all made their
returns on the first day of January, 1854, and the first day of January,
1855, it is believed that the reduction of circulation would have been
found to be much greater than is exhibited in the general tables. The
time for making the returns from the banks in some of the States was
that time of the year in which their issues were greatest.
As the account s now stand, while there was in some of the Northern
States an increase of bank-note circulation, the decrease in Virginia
Digitized by Gougle
Original from
UNIVERSITY OF CHICAGO
Bank Statistics.
795
1855.]
was in the ratio of twenty-four per cent ; in Georgia, of about thirty
per cent ; and in Michigan, of about sixty per cent.
In addition to this, it should be taken into consideration that, during
part of the year, the notes of many of the banks in some of the States
fell into such discredit as to serve but imperfectly as a medium of
business. I remain, very respectfully, your obedient servant,
James Guthrie,
lion. Linn Boyd, Secretary of the Treasury.
Speaker of the House of Representatives.
BANK STATISTICS.
Kentucky.
J. Bank of Kentucky , and Seven Branches.
Liabilities.
•Tam., 1846.
July, 1849.
July, 1851*
Jan., 1853.
Jan^ 1855.
Capital stock,
.$8,700,000
$8,700,000
$8,700,000
$8,700,000
$8,700,000
bv Schuvlkill Bank. 470.800
Circulation,
. 2,586^672
2,468,002
2,585,892
8,528,408
2,067,106
Individual deposits,
. 740,084
791,645
777,140
877,947
*855,978
Bank balances,
. 892,814
283,907
683, 854
662,760
901,673
Reserved fund by charter, ....
. 100,000
100,000
74,000
74,000
74,000
Schuylkill Bank Fond,
. 65,187
600,000
415,000
285,500
230,000
Contingent fund,
. 189,480
114,826
818,240
881,378
828,347
Doe Treasurer of State,
. 68,181
49,674
178,180
605,525
Dividends unpaid,
. 106,256
154,070
7,250
7,572
6,614
Total liabilities,
.$8,348,924
$8,247,121
$8,561,876
$9,690,740
98,769,241
Besouboes.
Jan^ 1846.
July, 1849.
July, 1851.
Jan., 1858.
Jan., 1855
* •
Notes discounted,
.$8,098,840
$2,645,581
$2,41T,610
$9,849,805
$2,000,491
Bills of exchange,
. 1,850,222
2,187,700
2,854,066
8,928,450
8,971,166
Suspended debt,
. 167,480
107,625
98,988
99^26
60,146
Beal estate,
. 262,205
197,892
178,687
151,994
185,701
Kentucky State
. 250,000
250,000
Louisville City Bonds,
. 200,000
200,000
190,000
181, no
101,000
Bank balances,
. 465,181
620,990
1,868,428
708^01
896,891
Schuylkill Bank fond,
. 470,300
262,228
212,500
Gold and silver,
. 1,275,308
1,241,068
1,082,697
1,828,540
985,527
Notes of other banks,
. 819,888
834,761
476,887
218,692
161,700
Miscellaneous,
•
512,070
409,070
80,094
20,SS6
Deposits in N. Y., Philip etc.,
487,200
258,788
Total resources,
.$8,848,824
$8,247,121
$3^61,876
$9,690,740
$8,769,241
0 Including 9130,000, Are per oent dividend, payable January, 1850.
Digitized by
Gck igle
Original from
UNIVERSITY OF CHICAGO
Ti>6
Bank Statistics.
[April,
Digitized by
II. Northern Bank of Kentucky , and four Branches .
Liabilities.
Jtofk*184fc
[July, 1856,
July, 1851.
Jan. 1, 1858.
Jan., 1855.
Capital.
. . ..$8,287,600
$2,250,000
$2,850,000
$2,250,000
$2*250,000
Circulation,
2,458,583
2,871,795
2,556.9*5
2,993,326
1*241,202
Individual deposits,
... 674*508
697,408
673,030
687,626
705,460
Bank balances,
.... 669,327
808,420
821,865
585,956
402,948
Profit and loss,
267,053
411,378
897,910
485,334
467*100
Miscellaneous,
.... 82,695
16,060
12,680
10,004
72,963
Total liabilities,
....$6,334,715
$6,055,561
$6,211,910
$7,062,796
15,169,678
Besoubcbs.
Jan., 1346.
July, 1850.
July, 1851.'
Jan. 1,1853.
Jan. 1855.
Notes discounted,
....$1,349,693
$1,707,240
$1,6S0,519
$1,478,932
8978,194
Bills of exchange,
.... 2,007,287
2,233,450
2,203,325
2,867,218
2,415,978
Suspended debt,
.... 123,268
82,100
82,142
78,021
130,118
Bank balances,
.... 928,281
665,103
890,508
1,073,130
863,696
Real estate,
.... 179,865
125,881
108,286
101,918
9S,15T
Kentucky State Bonds,
.... 5,000
5,000
6,000
6,000
Lexington City Bonds*
85,000
16,000
14,000
11,000
11,000
Gold and Silver,
909,704
1,016,383
1,003,891
1,289,164
797*948
Notes of other banks,
287,820
202,736
209,825
159,544
131,518
Miscellaneous,
8,792
1,218
9,970
3,769
4,0-05
Eastern exchange,
159,076
Total resources,
....$6,334,715
$6,055,561
$6,211*910
$7,062,796
$5,139,673
Net profit and loss, Dec. 81, 1854,
$467,100
Deduct five per cent dividend payable Jan., 1S55,. . . .
112,500
Undivided profits, (nearly sixteen per cent,)
$854*600
Ill Bank of Louisville , and two Branches .
Liabilities,
Jan., 1847.
July, 1S49.
July, 1851.
Jan „ 1858.
1855.
Capital
$1,082,000
$1,080,000
$i*oso,ooo
$1,080,000
$1,080,000
Circulation,
939,822
983,390
1,149,472
1,603,500
989*497
Individual deposits*...
168,930
902.236
270,432
225,235
232,050
Bank balances,
57,091
222,362
296,274
878*105
613*795
Profit and loss,
126,880
102,983
209,924
192*562
210,731
Total liabilities,.
$2,650,9*1
$3,006,152
$3,479,452
$8,076,074
Resources.
Jan., 1847.
July, 1849.
July, 1851.
Jan. 1858.
Jan n, 1855.
Notes discounted,
$736*700
$603,881
$683,866
$536*142
$323,164
Bills of exchange,
893,521
1,050,892
2,527*045
1,301,538
Louisville City Bonds,.
75,000
75,000
63,000
85,000
6,800
Hank balances,
182,830
295,578
898,610
471,640
671*768
4 appended debt,
83,448
46,030
29,985
80*198
27,926
Real estate*
99,641
98,736
95*510
90*798
Specie on hand*
627*394
614,653
688*890
871*293
Bank notes, etc.,
75,650
104,8*6
110,960
95,027
173,958
K astern exchange, ....
209,336
Total resources* .
$2*869,728
$2,650,921
$8,006,152
$8*479,409
$8,076,074
Profit and loss, Dec. 81, 1854*
$210,781
Deduct per cent profits of six months,
.... $48,600
M *
extra dividend,....
.... 27,000
75*600
Net surplus, (18K per cent,)
$185,181
Gck igle
Original from
UNIVERSITY OF CHICAGO
Digitized by
1855.] Southern Bank of Kentucky . 797
IV. Farmer s’ Bank of Kentucky.
Liabilities. Juris, 1851. JTovn 1851. June 80, *52. Jan,, 1855.
Capital stock, $880,800 $628,700 $722,090 $1,405,060
Circulation, 661,600 1,108,978 1,881,909 1,669,851
Individual deposits, 105,683 145,991 188,194 825,722
Discount, exchange, eta, 14,776 49,948 80,114 828,150
Due to banks, 512,041 818,941 414,504
Due State of Kentucky, ... ... 60,000
Total liabilities, $1,012^64 $2,445,658 $8,186,248 $4,202,787
Bisoxrmoxs. June, 1851. iTou., 1851. Juris 80, *52. Jaru, 1S55.
Notes discounted, $159,128 $249,420 $844,198 $703,885
Bills of exchange,... 446,488 1,188,172 1,260,654 8,049,548
Beal and personal estate, 21,856 8,873 . 8,872 22,665
Bank balances, 882 511,574 921,140 411,481
Specie, 299,884 412,407 492,844 908,306
Notes of other banks, 94,781 125,707 100,040 81,752
Suspended debt, 25,704
Total resources, $1,012,364 $2,445,658 $8,186,248 $4,202,787
Profit and loss, December 81, 1854, $828,149
Deduct dividend, five per cent, payable January, 1855, 70,253
Net profit and loss, (above 18 per cent,) $257,896
Southern Bank of Kentucky,
Liabiutim.
Capital paid in,
Circulation,
Due to other banks,
Duo individual depositors,
Profit and loas,...
1 July, 1851. 1 Jan., 1656.
.. $807,000 $1,488,075
.. 546,088 2,180,129
5,580 218,467
66,812 220,258
.. 19,418 285,886
Total liabilities,
$1,004,343 $4,337,767
Eksottrczs. July, 1851. \Jan., 1955.
Notes discounted, $171,183 $295,484
Bills of exchange, 272,638 2,001,286
Beal estate, 9,776 59,765
Bank balances, 48,008 226,190
Eastern exchange, 65,604 1 99,066
Notes of other banks, 77,218 43,686
Gold and silver coin, 214,966 849,894
Suspended bills, 150,000 73,806
State bonds, 600, (K)0
Total resources, $1,004,848 $4,837,767
The entire capital of the Southern Bank will be $2,000,000, of which the State of Kentucky has
subscribed one halt The charter was for about thirty years.
Profit and loss, and contingent ftind, Jan. 1, 1S55, $295,886
From which deduct dividend, 4 % per cent, 66,606
Net surplus, (nearly 15 per cent,) $219,230
Gck igle
Original from
UNIVERSITY OF CHICAGO
Digitized by
798
Bank Statistics.
[April,
NEW- JERSEY.
1
Liabilities and Resources of the Incorporated Banks of New-Jersey , Dec. 31, 1854.
%
LIABILITIES.
NAME.
i
£ ‘
|
c
iij
w
H
1
it
Pi
HS
Mechanics A Manufacturers’, .
$225,000
$161,947
$109,700
$85,569
$24,805
Farmers' Bank. Mt Holly, .. .
100,000
69.455
78,869
6,744
48.901
Fanners’ A Mceh., Rahway,..
Burlington Co. Bank, Medford,
Farmers’ Bank of Wantage,. .
State Bank, Camden,
800,000
73,718
53,682
18,993
15,049
70,000
58,816
62,475
21,023
65,000
260,000
69,429
176,556
12,870
889,688
4,345
26,624
9,040
89,962
Morris Co. Bonk, Morristown,
90,850
104,680
58,091
17,823
20,982
Mechanics’ Bank, Newark,...
500,000
177,877
838,427
57,739
89,194
Trenton Banking Co.,
210,000
1S5.114
184,061
34,559
86,222
Newark Banking A Ins. Co.,..
608,650
208,174
880, 43S
96,849
116.798
Mechanics’ Bank, Burlington,
50,000
49,806
78,846
3,299
41,096
Belvidere Bank
150,000
221,250
46,248
6,818
65,915
State Bank, Elizabeth,
200,000
125,947
129,858
86,619
41,989
State Bank, New-Brunswick,
200,000
208,852
158.444
22,848
88,485
Farmers A Merchants’,
100,000
61,446
87,385
13,535
Somerset Co. Bank,
70,000
185,486
81,818
4,787
4.369
Cumberland Bank, Bridgeton,
Salem Banking Co.,
52,050
75,000
100,000
185.000
450.000
97,607
111,721
124,066
210,006
152,538
49,128
98,261
84,982
75,177
40,023
28.215
88.097
i<\ COO
Union Bank, Dover,
Sussex Bank, Newton,
2,946
State Bank, Newark,
826,455
67,472
67,625
Orange Bank, Orange,
125,000
68,091
49,184
6,114
25,088
TotAl,
$3,985,950
$2,842,032
$2,723,181
$448,656
$901,710
RESOURCES.
NAME.
Iff
"l1
5 *•
2Jj
•
l
CQ
ih
r
|
a
m
i
i
CO
Mechanics Ac Manufacturers’,..
Farmers’ Bank, Mt Holly, . . .
Farmers’ A Mech., Rahwav,..
Burlington Co. Bank, Medford,
Farmers’ Bank of Wantage, . .
State Bank, Camden,
Morris Co. Bank, Morristown,
Mechanics’ Bank, Newark,.. .
Trenton Banking Co
Newark Banking A Ins. Co.,..
Mechanics’ Bank, Burlington,
Belvidere Bank,
State Bank, Elizabeth,
State Bank, New-Brunswick,.
Farmers A: Merchants',
Somerset Co. Bank,
Cumberland Bank, Bridgeton,
Salem Banking Co.,
Union Bank, Dover,
Sussex Bank. Newton,
State Bank, Newark,
Orange Bank, Orange,
Total,
$394,931
195.S65
261,470
141,465
183.286
669, 661
190,970
339,524
490,389
968.771
1.38.771
278,475
892,282
419,483
151,887
157,897
161,948
158.287
227,901
816,797
878,825
198,877
$98,158
24,868
60,886
1 8,4418
86,801
110,619
67,008
177,214
77,221
214,928
40,659
174,706
88,906
141,950
82,971
78.898
57.899
79,712
91,819
97,996
187,888
51,9S4
$48,958
81,436
21,578
17,055
6,648
72,681
8,089
57,500
60,242
59,254
24,888
81,818
28,007
84,291
18,698
22,430
87,968
60,702
18,492
33,955
88,717
10,204
$12,948
10,402
8,147
10,892
5.000
22,944
8,808
22,000
18,639
16,1 SO
8,932
4,180
20,418
18,841
4,S60
1.000
2,525
12,220
7,55S
11,207
5,008
7
i
•
i84
918
20
• •
• •
• •
61J500
18,563
5,366
10,450
19,000
88,465
4,814
11,662
8,000
4,000
17,840
5,078
275
8,500
$8.33
500
1,000
850
825 <1
1,800
271
2,500
1,078
2,548
250
750
1,000
1,000
800
273
260
875
500
675
2,250
625
$7,746,920 1,959,952 |
789,595
221,650
6,178
188,015 1 18,953
Go gle
Original from
1855.]
Banks of the State of Wisconsin ,
799
Digitized by
BANKS OF THE STATE OF WISCONSIN, JAN. 1, 1855.
RESOURCES.
NAME OF BANK.
Loans.
Stocks.
Specie.
Bank
Notes.
Due from
Bunks.
The State Bank, Madison,
$53,151
$82,000
$19,608
$7,714
$18,215
Wia Marine «! fc Fire Ins, Co.r
284,872
50,000
52,002
43,841
71,494
Bank of Racine, Racine,
70,266
53,134
16,960
22,785
27,608
Rock River Bank, Beloit,
78,028
56,000
9,251
11,704
7,809
City Bank of Kenosha,
100,796
51,000
10,057
15,411
8,129
State Bank, Milwaukee,
817,461
184,000
45,166
85,7:18
55,408
Farmers *fc Millers’, Milwaukee,...
56,246
40,000
6,664
14,604
7,501
Wisconsin Bank, Mineral Point*..
66,214
60,000
16,799
8,577
1,696
Jefferson Co. Bank, Watertown*..
28,879
55,000
17,161
12,152
10,570
Badger State Bank, Janesville,
60,299
25,778
18,911
83,339
21,792
Racine Co. Bank, Racine,
180,808
29,000
13,S47
80,980
18,970
Exchange Bank, Milwaukee,
62,762
27,006
5,951
12,661
16,069
City Bank of Racine,
85,849
45,000
11,794
9,945
6,68$
Bank of the West, Madison.,. .....
56,050
87,180
2,569
6,376
2,517
Bank of Fond du Lac,
82,202
84,725
26,680
42,662
18,874
17,480
16,351
7,480
Bank of Commerce, Milwaukee,. . .
8,741
18,579
Columbia Co. Bank, Portage City,
27,219
29,810
10,417
8,024
8,005
Fox River Bank, Green Bay,
8,467
25,000
2,521
2,009
788
Northern Bank, Howard,
580
46,000
8,414
7,973
1,868
Bank of Watertown,
24,716
88.000
10,453
4,297
1,941
Germania Bank, Milwaukee,
68,271
26,056
1,793
4,0S5
578
Dane County Bank, Madison,
49,466
59,000
18,469
10,999
10,187
People’s Bank, Milwaukee,
87,846
* 25,000
9,252
13,215
4,06$
Total Resources,
$1,678,629
$998,485
$884,888
$841,174
$806,982
LIABILITIES.
NAME OF BANK.
Capital.
Circulation.
Deposits.
Total TJabilitiw.
The State Bank, Madison,
$50,000
$30,300
$50,595
$189,782
Wia. Marine <fc Fire Ins. Cv.,
100,000
81,969
287,955
459,267
Bank of Racine, Racine,
50,000
42,948
69,211
198,687
Rock River Bank, Beloit,
50,000
48,790
80,176
165,612
City Bank of Kenosha,
60,000
89,525
95,754
197,886
State Bank, Milwaukee,
250,000
56.962
253, 1S8
660,150
Farmers Sc Millers’, Milwaukee,...
60,000
27,638
42,451
178,482
Wisconsin Bank, Mineral Point,..
50,000
46,968
41,041
144,572
Jefferson Co. Bank, Watertown, . .
50,000
45,707
SS,370
134,077
Badger State Bk., Janesville,
25,000
21,799
98,618
167,535
Racine Comity Bank, Racine, ....
100,000
25,289
80,442
228,460
Exchange Bank, Milwaukee,
50,000
18,641
88,824
186,464
City Bank of Racine,
50,000
40,000
24,201
129,734
Bank of the West, Madison, ......
100,000
84,858
15,781
154,591
Bank of Fond du Lac,
25,000
21,407
79,894
150,424
Bank of Commerce, Milwaukee,..
100,000
2!, 711
9,983
144,940
Columbia Co. Bank, Portage City,
25,000
24,998
20,298
81,544
Fox River Bank, Green Bay,
25,000
25,000
14,183
65,756
Northern Bank, Howard,
50,000
24,595
28,7*21
104,475
Bank of Watertown,
50,000
28,045
17,967
9*497
Germania Bank, Milwaukee,
25,000
22,257
50,042
102,889
Dane County Bank, Madison,
50,000
41,080
64,089
145,007
People's Bank, Milwaukee,
25,000
19,839
45,214
100,51
Total Liabilities,
*1,400,000
6740,764
$1,481,866
$4,079,557
Gck igle
Original from
UNIVERSITY OF CHICAGO
800
Bank Statistics .
[April,
Digitized by
BANKS OF THE CITY OF NEW-YORK.
I. Individual Deposits. II. Bank Balances. III. Undivided Profits. IV. Loans
to Directors. V. Real Estate. VI. Specie of the several Banks in the City of
New- York, December 30, 1854.
LIABILITIES. RESOURCES.
INCORPORATED BANKS AND
BANKING ASSOCIATIONS,
NEW-YORK CITY.
ft
1
J
1
i
I
Is
i
a
1
«
jT
o
E
to
Incorporat'd Banks.
$
$
$
$
$
$
Bank State of New- York,. .
1.990,41 4
8G0,730
290,068
264,791
741,6-29
Greenwich Bank,
2711,561
1,727
56,119
81,401
15,000
85,218
Leather Manufacturers’. ...
895,248
282,548
200,341
122,382
f 800
249,342
Manhattan Company,
2,116,050
604,873
410,162
876,149
302,688
747,571
Mechanics' Bank,
8,254,950
542,489
620,773
270,691
280,000
977,407
Mechanics «V Trailers’, ....
89*, 994
6.317
95,519
25,395
14.IM1
62,ir26
Merchants' Bank,
2,782,802
97*2,899
294,847
169,600
98,756
1*15,265
National Bank
670,557
76,870
116, 027
220,782
50,632
153,119
New- York Dry Dock,
142,513
11
8.061
2\6S6
10,278
16,972
Seventh Ward Bank,
650,221
12,214
181,422
71,915
88,250
177,411
Tradesmen's Bank,
652,620
25,781
187,801
126,466
24,000
108^68
Banking Aiiociation*.
American Exchango Bank,
18,688,425
2,885,959
2,349,090
1,728,098
774,645
4,46S,42S
2,687,416
1,808.909
119.275
63.500
733
509,204
Atlantic Bank,
188,171
18,372
25,318
27.979
60,889
Bank of America,
2,453,422
1,197,871
219,745
141,700
220,000
1 ,255,429
Bank of Commerce,
2,891,046
1,515,647
401,294
188,000
810,456
Bank of Commonwealth, . . .
622,650
280,660
81,105
87,600
155,560
91,400
Bank of New- York,
2,070,950
129,795
165,815
114,848
260,000
828541
Bank of North America,. ..
991,202
159,918
114,487
264,747
110,251
67,169
Bank of the Republic,
1,707,514
432,206
264,145
169,256
176.987
277,266
Bowerv Bank,
621,780
1 0,001
99,625
29,651
46,000
55.723
Broadway Bank,
881,484
as, 734
134,907
107,355
178,146
111,475
Bull's Head Bank
67,782
704,159
1
4,715
69,161 |
80,319
69,951
15,193
79,290
Butchers Drovers*
27,209
60,000
Chatham Bank,
288,748
• • • • •
84,256
88,501
63,870
6.%338
Chemical Bank,
996,565
62,670
512,845
101,460
62,458
2<U,575
Citizens' Bank,
461,767
248,161
50,886
105,762
43,741
59,400
69.182
80,000
94,983
175,374
City Bonk..
54,972
Continental Bank
1,061,000
566,493
116,641
108,615
67,088
117,254
70,116
851831
Corn Exchange Bank,
892,649
111.546
106,241
East River Bank,
156,410
.352
28,071
54,972
28,279
40,785
Fulton Bank,
Grocers’ Bank,
771,020
149,257
200,817
278,900
12,000
107,448
867,425
28,159
56,021
58,215
84,025
27.988
Hanover Bank,
589,900
62,118
55,694
91,s<u
80,869
Irving Bank,
827,689
10,000
87,611
66,400
42.000
67.884
Island City Bank,
106,390 |
88,753
4.901
80,012
Marine Bank,
863,780 1
55,185
25,201
27,120
75,000
67,898
Market Bank
645,800
16,672
45002
111,549
71,880
97,048
Mechanics' Banking Asso.,
689,198
90,505
57,840
124,882
11,158
97,210
Mm mdle Ba
801,281
1,287,468
481,451
556,763
184,186
149,255
92,500
267,119
2**0,858
Merchants’ Exchange,
286,945
•S,TO6
Metropolitan Bank,
1,588,844
1,942,750
255,696
18\929
282,000
696,089
Nassau Bank
598,999
124.928
84,601
75,800
94,737
66,226
New- York Exchange,
82,885
84,247
23,775
....
10,427
North River Bonk,
629,769
155,611
95,780
164,990
78,262
89,S76
Ocean Bank,
482,801
118,538
190,590
80,105
66.575
Oriental Batik,
248,276
891,688
20,168
43,535
29,976
4,050
50,172
Pacific Bank,
4,043
63,984
9,000
58,018
People’s Bank,
669,875
83,964
58,052
14.167
7,419
Sl,519
Phenix Bank,
1,284,406
447,462
189,072
204,216
175,000
294,735
Balnt Nicholas Bank,
277,154
2,492
22,651
54,318
69,196
6,202
Bhoe Sc Leather Bank,
259,372
81,180
22,872
85,650
58,139
82,S6S
Union Bank,
1,554,788
481,762
141,170
189,932
126, 000
512,011
Totals N. Y. City Banks,
47,985,284
14,017,887
6,540,421
5,722,887
#.091.147 f
li.214.9S3
Go gle
Original from
1855.]
Loam to Directors.
801
Loans to Directors. — Some doubts having arisen as to whether
“ Loans to Directors” by the Banks in this State included also “ the
sums due from Directors,” the Superintendent of the Banking Depart-
ment has made known his view of the case, as follows :
“ As to what should be included in the Quarterly Reports made by
Banking Associations under the head of ‘ Resources,’ item No. 2, in
the blanks furnished by this department, I would say that the blank
forms for Quarterly Reports were prepared to conform to and in
accordance with the provisions of Sec. 1, Chap. 419, laws of 1847,
which act particularly specifies the items to be reported, one of which,
in the language of the act, is ‘ Due from the Directors of the Bank or
Banking Association making the report.’ In the printed form fur-
nished to the banks, this item is put down under the head of resources,
‘2, all sums due from directors of this bank.’ This item should include
all notes, bills, drafts, or other evidences of debt made or issued by
any director or directors of the bank, and held by the bank as a loan
or discounted debt, whether the money was loaned directly to such
director or directors, or otherwise.
“ A loan to a firm of which a director is a member should be in-
cluded in this item, as well as the paper of firms discounted for other
parties of which directors are members.
“ Business paper given to a firm in the ordinary course of business,
and indorsed by that firm, a member of which may be a director, I
should not conceive as coming within the rule ; or could be considered
as a contingent liability only, and not a ‘ sum due from a director.’
“ The object of the law was undoubtedly to show to the public to
what extent or amount the directors of banking associations had loans ;
or rather to show the total amount of indebtedness to directors to
their own banks. If individual discounts to directors were alone
reported, the statement would not show the actual total amount of
indebtedness of directors, which I believe to be the intention of the
law.
“ This rule would not apply to incorporated banks, as the law in
that case restricts the amount of the liabilities, absolute and contin-
gent, of directors to one third of the amount of the capital stock, and
the amount of loans and discounts to three times the amount of capital
actually paid in.”
The law, as at present, is rather vague in its meaning. “ Due from
Directors,” is considered by some of our institutions as including all
the paper held, issued by the directors or their firms ; whereas by
others it is held to mean only the actual loans to the directors for their
use. In the former case, a bank may hold a large amount of the
paper issued by their directors without having loaned them one dol-
lar. In the other case, the directors may have borrowed large sums
as indorsers, but the bank would not return in their quarterly state-
ment anj amount as “ Dub from thr Directors.”
Digitized
bv Google
Original from
UNIVERSITY OF CHICAGO
802
Keic-York Stock Market.
[April,
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Digitized by
Co gle
Original from
UN
4
Digitized by
1855.] The Public Debt of the United States . 803
PUBLIC DEBT OF THE UNITED STATES.
The Register of the Treasury, F. Bigger, Esq., has communicated
to the Secretary of the Treasury the following information relative
to the condition of the Public Debt of the United States, on the 1st
January last :
On the 1st day of July, 1852, it was estimated that United States
stock was held by citizens of foreign countries to the amount of. $29,550,000
Which sum has been reduced every six months as follows :
January 1, 1853, $580,000
July 1, 1853, 1,970,000
January 1, 1854, 3,000,000
July 1, 1854, 4,000,000
January 1, 1855, 1,000,000
10,550,000
Leaving still in the hands of foreigners, $19,000,000
Requiring an annual payment for interest of about one million one
hundred thousand dollars.
It will be observed that out of about $7,000,000 redeemed between
January and July, 1854, four millions was from foreigners, and that
out of about $5,300,000 redeemed between July, 1854, and January,
1855, but one million was from foreigners, showing that, including the
premium, at least five million dollars has, within the last six months,
been distributed among the American stockholders.
There is still outstanding $1500 of the loan of 1843.
On the 1st day of July, 1854, the amount of the publio debt was. . $47,180,506 05
There have been since redeemed and paid off of the
loan of 1842, 1843, 1846, 1847, 1847, and Texan
indemnity, $6,298,025
Treasury notes, 50
Debt of the corporate cities, 3,600
$5,301,675 00
Amount outstanding this day,. $41,878,831 05
The total amount redeemed since the creation of these several loans
is as follows, namely :
Of the loan of 1842, $3,870,890 22
“ “ 1843, 7,002,731 35
“ “ 1846, 3,181,236 19
“ “ 1847, 14,307,600 00
11 “ 1848, 3,669,058 20
Of tho Texan indemnity, 865,000 00
“ Debt of corporate cities, 1,496,400 00
$34,392,915 96
Thero has been redeemed since the 4th day of March, 1853, 27,250,606 22
Gck igle
Original from
UNIVERSITY OF CHICAGO
Digitized by
804 The Public Debt of the United States. [April,
Statement slujuh.g the amount of United States Stock now outstanding on which
interest was payable on the lsi of January, 1855.
Where payable.
Loan.
Principal.
InberetL
New-Orleans,
.. 1842
$700 00
$21 00
Charleston,
H
6,000 00"
180 00
Washington,
It
327,311 64
9,819 35
Baltimore,
tt
44,600 00
1,338 00
Philadelphia,
It
189,970 00
6,699 10
New- York,
li
2,656,914 17
79,707 42
Boston,
It
206,700 00
6,201 00
New-Orleans,
.. 1846
$3,432,195 81
22,000 00
$102,965 87
660 00
Charleston,
<t
5,900 00
177 00
Washington,
u
104,713 26
3,141 40
Baltimore,
tt
63,500 00
1,605 00
Philadelphia,
tt
105,300 00
3,159 00
New-York,
tt
1,549,300 00
46,479 00
Boston,
tt
71,000 00
2,130 00
New-Orleans,
.. 1847
$1,911,713 26
26,000 00
$67,351 40
780 00
Charleston,
U
• •
147,600 00
4,428 00
Washington,
it
375,000 00
11,250 00
Baltimore,
ft
697,700 00
20,931 00
Philadelphia,
u
983,450 00
29,503 60
New-York,
tt
11,561,300 00
346,839 00
Boston,
U
234,850 00
7,045 50
Charleston,
.. 1848
$14,025,900 00
1,500 00
$420,777 00
45 00
Washington,
tt
136,791 80
4,073 75
Baltimore,
tt
137,050 00
4,111 50
Philadelphia,
tt
102,450 00
4,696,150 00
3,073 50
New-York,
tt
140,884 60
Boston,
tt
57,200 00
1,716 00
Coupon bonds,
... 1842
$5,130,141 80
1,095,000 00
$153,904 26
32,850 00
tt
... 1848
7,217,000 00
216,610 00
it
. . .Texan
4,135,000 00
103,375 00
$12,447,000 00
$36,946,950 87
To which add loan of 1843, outstanding, 1,500 00
Texan indemnity not issued, 6,000,000 00
Old funded and unfunded debt 114.118 64
Treasury notes outstanding, 112,56164
Debt of corporate cities, - 3,600 00
$42,178,731 05
And deduct stock redeemed and included in the
above, upon which interest was not paid, .... 299,900 00
Amount outstanding, per weekly statement of
January 6, 1855 $41,878,831 05
$352,736 00
$1,087,733 52
F. Biggek, Register.
Treasury Department, Register's Office, January, 1855.
Gck igle
Original from
UNIVERSITY OF CHICAGO
Statistics of Suicide .
805
i
i
i
I
I
I
1855.]
Redemption of the Public Debt of the United States. — The Secretary of the Treasury
has extended tho time for the reception of bids for tho government six per cents,
according to the terms proposed in liis circular, dated January 3, 1855, namely :
His notice is as follows :
Treasury Department, March 5, 1855. — Notice is hereby given to tho holders
of stocks of the United States described in the following notice of 3d January last,
that for the purposo of completing tho purchaso of tho amount therein named, this
department will continue to purchase, upon the terms of said notice, to the extent
of the residue of the sum proposed not yet obtained, say $1,159,685.05, if said stocks
are offered and received here prior to tho first day of June next
1. The par value, or amount specified in each certificate.
2. A premium on the stock of the loan authorized by the act of July, 1846,
redeemable November 12, 1856, of 2* per cent ; on the stock of tho loan authorized
by tho act of 1842, redeemable 31st December, 1862, of 10 per cent; on the stock
of the loans authorized by the acts of 1847 and 1848, and redeemable, the former
on the 31st of December, 1867, and the latter on the 30th June, 1868, of 16 per
cent ; and on tho stock of the loan authorized by tho act of 1850, and redeemable
on the 31st of December, 1864, (commonly called the Texan indemnity,) six per
cent.
3. Interest on the par of each certificate from the 1st January, 1855, to the date
of receipt and settlement at the Treasury, with the allowance (for the money to
reach the owner) of one day’s interest in addition.
Payment for said stocks will bo made in drafts of the Treasurer of the United
States, on the Assistant Treasurer at Boston, New-York, or Philadelphia* as the
parties may direct.
According to this proposal, the government six per cents of
1867-8 are now worth
Par value, $100 00
Two months and eight days’ interest, 1 12
Premium, 16 00
Total, $117 12
Money having become more abundant within the past two months,
the six per cents of 1867 and 1868 will appreciate in value, and there
will be but few applications to the Treasury for redemption at 16 per
cent premium.
Statistics of Suicide. — We learn from GolignanVs Messenger that tho French
Ministry of Justice has published an official return of tho number of suicides
which have taken place in Franco in tho course of twenty-seven years, making a
total of 71.418.
Year. No.
1826, 1739
1827, 1542
1828, 1754
1829, 1904
1830, 1756
1831, 2084
1832, 2156
1833, 1973
1834, 2078
Year. No.
1835, 2305
1836, 2340
1837, 2443
1838, 1586
1839, 2747
1840, 2752
1841, 2814
1842, 1966
1843, 2020
Year. No.
1844, 2973
1845, 2084
1846, 3102
1847, 3306
1849, 3583
1850, 3592
1851, 3598
1852, 3674
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Bank Notes — Robbery.
[April,
BANK NOTES— RO BBERY.
Liabilities of Banks for Stolen Notes.
An important case before the Court of Queen’s Bench, in which the
liability of a bank for stolen notes was elaborately argued on both
sides, was decided in favor of the bank. We copy the report of this
case in full from the London Bankers' Circular , February 17 :
A case, which is of considerable importance to the monied interest,
came before the Court of Queen’s Bench on Wednesday, and was
heard before Lord Campbell and a special jury, in the matter of
Spielmann against the Governor and Company of the Bank of England.
The case for the plaintiff was conducted by the Attorney-General and
Mr. Hawkins, and that for the defendants by Sir F. Kelly and Mr.
Bovill.
The plaintiff is a bullion-merchant and foreign banker in Lombard
street, who sued the Governor and Company of the Bank of England,
to recover the amount of two £500 Bank of England notes, of which
the plaintiff was the holder, and for which he had given valuable con-
sideration in his business as a remittance.
The defendants pleaded that the notes in question had been stolen
from Messrs. Brown, Shipley & Co., merchants at Liverpool, and that
the plaintiff had come into possession of them without having given a
valuable consideration for them, and with previous notice of the rob-
bery. The action, though formally defended by the Bank of England,
was in reality defended by Messrs. Brown, Shipley & Co., who had
indemnified the Bank. The object of the action was to establish
Messrs. Browm, Shipley & Co.’s claim not only to these notes but
to others, amounting in all to the sum of £3000, stolen from one of
their clerks on the 15th of November, 1852.
The evidence put in on behalf of the defendants, was intended to
show that proper notices had been served to the houses both of Messrs.
Adam Spielmann & Co., of Lombard street, and of Meyer Spielmann,
in Paris, the latter of whom received one of the notes from a person
named Howard, and the other from A. Monteaux, another money-
changer at Paris ; but Meyer Speilmann, at Paris, according to the
evidence of Kehoe, the detective officer, positively denied having seen
a copy of the notice said to have been delivered at his office ; nor did
Fontaine, whose duty it was to deliver such notices to the bankers at
Paris, remember that he had ever left one at the house of Meyer
Spielmann.
The evidence also showed that for the note exchanged for Howard,
value was given at the current rate of exchange for the day, which
was 24f. 93|c., and for the one received of Monteaux, 24f. 98
was given, on which M. Spielmann wrote “Achet6 de Monteaux/’
The evidence of A. Spielmann clearly proved that both the notes
were remitted to him from Palis in the regular way of business,
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807
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by his brother. In fact, it would be quite beyond the reach of sus-
picion, that a firm so highly respectable as that of Messrs. Adam
Spielmann & Co., of Lombard street, would in any way lend itself to
any collusion with parties holding stolen bank-notes. However desir-
able it may be to trace stolen notes to the parties originally implicated
in the robbery, the benefit of the law ought certainly to be given to
the innocent parties, where there are no facts against them.
It has been proved that a valuable consideration had been given for
both notes, for the amount is clearly stated. It was also shown that
their remittance to London was a bona-fide transaction. But it was
not proved that either of the Messajs. Spielmann had positively received
the notice of the notes having been stopped.
The jury, it appears, having retired till half-past 10 o’clock, could
not come to a decision on each of the separate points, and requested
to be allowed to give a general verdict; but this was refused by
Lord Campbell. They again retired, and at hall-past 12 o’clock gave
the following verdict: “That Meyer Spielmann did not receive the
notes bona fide for a good consideration; but that the plaintiff had
received them bona fide from his brother as a remittance.” The finding
of the jury was taken by the officer of the court.
If giving the full value for a bank-note, which is not disputed by the
defendants, is not a ubonafide consideration,” we are at a loss to know
what in reality is so. There may have been some charge of want of due
caution on the part of Meyer Spielmann, but even this was not proved.
Lord Campbell very properly said that the question was w purely one
of fact,” and yet the fact of giving value for the notes was not admitted
to be so.
Lord Campbell, upon this finding, directed a verdict to be entered
for the defendants. At the same time his lordship gave the plaintiff
leave to move the Court to enter the verdict in his favor upon the
finding of the jury upon the second question ; the defendants to have
the benefit of the finding on the third question.
• The Usury Laws. — The London Shipping Gazette of January 29th lias a column
of editorial on the policy of Usury Laws in the British provinces and the United
States, in which it says that it “ cannot conceive that a single argument can bo
advanced in support of the present restrictions upon the loaning of money;” and
it advocates their abolition in the colonies. It says:
“The Usury Laws having been abolished by the Imperial Parliament, wo trust
to seo them also repealed in the colonies. They aro opposed to every principle of
political economy, and have been almost universally condemned by every writer
upon that science. We have always advocated the removal of all unnecessary
restrictions from mercantile transactions ; and the very fact of its boing possible to
evade the law in a variety of ways — thus affording also a premium to dishonesty,
and inflicting injury on the conscientious borrower and londcr — affords a strong
argument for the repeal of the law.”
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Correspondence .
[April,
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CORRESPONDENCE.
Bake: or , State of Pennsylvania* Feb. 27, 1855.
To the Editor of The Bankers’ Magazine:
I have not had time* till last evening, to examine the decisions on onr
usury laws, so as to be enabled to answer your questions in your letter of 13th
?nst as fully as was desirable. I told you, however, in a brief note, that your
Almanac, page 5G, was right, which I now repeat The pith of the whole deci-
sions is to be found in Wycoff vs. Longhead, 2 Dallas, 92, (partly cited by you,)
in which the points decided were as follows, namely:
1. “ Where more than legal interest was included in any note, bond, or specialty,
the whole amount could not bo sued for and recovered ; but the plaintiff was
entitled in such case to a verdict for the just principal, and lawful interest.
2. “ That if a man, directly or indirectly, actually receive more than six per cent,
he incurs a forfeiture equal to tho money, etc., lent ; but if an action is brought to
recover tho amount of the loan, a verdict ought not to be given for the defendant,
as that would in effect be putting the money into his pocket instead of w orking a
forfeiture to the Commonwealth.
3. “ That a man may Iona fide purchase any security for the payment of money
at the lowest rato he can, "without incurring the penalties of usury.”
The first point is reaffirmed in Creed vs. Stevens, 4 Wharton, 225.
In Turner vs. Calvert, 12 S. and R., 46, the Court says: A mortgage given to
secure a usurious contract is not void, but tho mortgagee is entitled to recover the
amount actually ha tied, with legal interest.
In Oyster vs. Longenecker, 4 1L, 2G9, it is said: “The offence consists, by the
statute, in taking more than six per cent on the loan: and tiU more has been
taken , the penalty is not incurred.”
This principle is reiterated, in Brestle vs. Mehaffie, 7 H., 117.
1. These decisions settle these points, namely: That a man may legally receive a
note containing an usurious consideration, and recover the just amount of principal
and interest; but,
2. If ho receive or “ take,” as the law expresses it, more than six per cent per
annum, tho penalty of forfeiture is incurred ; and,
3. That a man may bona fide purchase any security, whether it contain an
usurious consideration or not , at any price he can bargain for, if he is not a party to the
usurious contract ; which cannot be done, I believe, in your State, as usury taints
the whole transaction, even when the paper is in the hands of an innocent holder;
as in your celebrated Dry Dock case, which procured the passage of a law pro-
hibiting corporations from pleading usury.
I send for your inspection a few curious specimens of the Bhinplastcr dynasties
of different periods of our oolonial and national existence, (observe the dates,) of
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1855.]
which you may make a “ bank item” if you please. Be good enough to return
them again, as I am desirous of preserving them.
Your obedient servant,
, Cashier.
P. S. — I wrote a series of articles on the usury laws, signed, “ A Borrower
which you will find in the Philadelphia North American of Jan. 30, and the five
subsequent numbers of that paper, six in all, with the hope that they might set
some of our Solons at Harrisburg to thinking. The Committee there to whom
that subject (usury) was referred, have reported against a change. Pennsylvania
is still too stupid to get out of the old track, but every essay written will change
one or more minds. The essays attracted a good deal of attention in Philadelphia,
and I thought you might perhaps wish to see them.
FOREIGN ITEMS.
Thu Bank or France. — The Bank of France has just published an account
of its operations for the year 1854. The total of the operations of the establish-
ment amounted to 3, 888, 000, 000C, to 3,964, 000,000f. in 1853, and 2,541,000,000f. in
1852, being a diminution of 7 6,000, OOOf. as compared with 1853. The discount
accommodation in Paris and the branch banks amounted to 2,842,000,000f. in 1853,
but reached the sum of 2,944,000,000f. in 1854, being an augmentation of
102.000. 000f. in favor of the latter year. The account-current of the treasury,
which had fallen to 24,000, OOOf. on November 6, 1854, had risen to 222,000,000f.
on the 17th of January, 1855, and was 184, 000, OOOf. on the 24th of January. This
augmentation was the natural consequence of the subscription to the late national
loan. The metallic reserve of the Bank amounted, on January 1, 1854, to
299. 000. 000f., of which amount 109, 000, OOOf. were in silver, and 190, 000, OOOf. in
gold. On the 1st of January, 1855, the amount was 364,000, OOOf., of which
183, 300, OOOf. were in silver, and 180, 700, OOOf. in gold. The reserve in gold has
consequently increased during the year by a sum of 71,700, 000C, while that in
silver has diminished 7, 300, OOOf. The operations of the branch banks present a
satisfactory result, as they are greater in their aggregate than the amount of busi-
ness at the main establishment in Paris. The operations of the branch banks
amounted, in 1852, to 1,305, 000, OOOf. ; in 1853, to 2, 098, 000, OOOf. ; and in 1854, to
2. 101. 000. 000f. The six in which the largest amount of business was done are :
Marseilles, 277,000,000£ ; Lyons, 210, 000, OOOf. ; Bordeaux, 179, 000, OOOf. ; LiHe,
151. 000. 000f. ; Valenciennes, 127,000, 000C ; and Besan^n, 107, 000, OOOf. On the
other hand, four have not covered their expenses, namely: Amiens, which has a
loss of 38,288f. ; Rochello, 24,884f. ; Toulon, 12,46Cf.; and Avignon, 1375C
These four have been recently established; three among them have not yet mado
up the cost of their establishment ; and at Avignon the produce has been exceeded
by the cost of conveying the specio required.
Austrian Finances. — A late letter from Vienna says : 11 The conferences held
on the subject of effecting a reform in the monetary system, and assimilating it to
those of other states, have been adjourned, aftor hitherto fruitless attempts to find
a basis on which all parties were agreed, till the middle of April. The Conference,
which met here in November last, is composed of representatives from the follow-
ing states : Austria, Prussia, Bavaria, Hanover, Parma, Modena, and Frankfort
53
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Foreign Item.
[April,
The reason of the adjournment is obviously the resignation of Herr von Baumgart-
ner as Financo-minister, and the present interregnum in that department. The
proposals hitherto made by Austria were confined to the discovery of a coin of
gold which should be common to all, and thus be used in all international money
transactions. But though the Commissioners saw the advantages likely to arise
from the introduction of such a gold coin, they appeared to bo more in favor of a
silver currency, as loss liable to great fluctuations ; and proposed to adopt a silver
coin answering the above description. But therein lies the difficulty. The systems
of coins in the different countries run in such eccentric courses that it will be next
to impossible to unite them ; for whilst Prussia and the north of Germany have
their thalers and groschens, Austria has the florins and zwanzigers, Bavaria and the
Rhino reckon by the light florins and kreutzers, and the Italians keep their
accounts in lire and soldi Travellers know from experience the difficulty of
changing one into the other, and will therefore readily understand the difficulty of
solving the problem of a universal coin common to all. Indeed, it is generally
believed that the only way is to make concessions on all sides, throw up all exist-
ing coins, and boldly introduce the most perfect system, theoretically and practi-
cally, known in the world — the French decimal system.”
The Russian Loan. — The New-York Tribune, speaking of the Russian loan
rocently taken at St Petersburg, by the house of Stiegliotz, one of the most eminent
banking establishments on the continent, says:
11 Mr. Stieglietz took the whole amount, fifty millions of silver rubles, or about
$35,000,000, in 4J per cent stock, on his own risk, at the rate of 92. The loan
already sells actively at 94 at St Petersburg. Foreign capitalists, such as the
Hopes, in Amsterdam, the Rothschilds, in Frankfort, with whom Mr. Belmont is
connected, and others, have bought a large amount, and if wo are well informed, a
house in Wall street is in possession of the official imperial papers connected with
this operation. The story told about it is, that the loan was made only to give
the lie to the assertion of French and English newspapers, that the Russian Trea-
sury does not enjoy any credit in Russia. It is likewise stated that Mr. Takowleff,
of St. Petersburg, one of the richest owners of mines in the world, whose accumu-
lated wealth alone amounts to some sixty or eighty millions of dollars, wished to
take this loan with his private capital ; but this was refused by the Emperor, in
order not to give an occasion to misrepresentations. We give this statement as
it roaches us, without vouching for its accuracy.”
The Vintage. — The following translations of a circular by Mr. J. Franke, of
Cotto, give an account of the result of last vintage in the south of France.
“ This year’s vintage has proved lamentably bad and deficient— even worse than
was expected ; in fact, the produce of the whole of the south of Franco scarcely
reaches the sixth part of a usual average.
“ The proportions, however, vary, some districts yielding a third, while in others
it is about a tenth or twentieth. The quality differs also greatly. Those growths
which havo suffered least from the vine disease, and been most abundant, are good,
while the others aro of the most wretched description.
“ The rod Montagnes are generally deficient in color, body, and the characteristic
softness and flavor peculiar to them. In Christol and St. Drezery, thero is nothihg
that can bo recommended : Langlade and Uchaud are, on the whole, superior to
’SS’s, but want body and finish. The small Rhone wines and the vtn dune nuit arc
quite unfit for shipment, being thin and poor. In St. Giles, some really good wine
has been made — fruity, with color. In Narbonne, owing to the gathering having
been too long delayed, the produce is too sweet, and as the fermentation lias not gone
on satisfactorily, there is much reason to fear that the sweetness will end in acidity,
and oven already many casks are presenting a sharpness of taste and flavor. This
rendors very great care necessary in selecting the wines of this district ; but it is
hoped that thoso which, while losing sweetness, gain body and flavor, will prove
excellent. In Roussillen, there are a few tolerably good growths, though rather
sweet, but the great proportion has been destroyed by the disease, and is barely
consumable.”
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1855.]
Miscellaneous .
811
Digitized by
MISCELLANEOUS.
The Usury Laws, — The Boston Board of Trade have held meetings for the pur-
pose of considering the majority reports on the subject of a modification of the usury
laws. The majority report closed with this recommendation : That a memorial be
prepared by the Board of Trade, and signed by the President and Secretary, and
forwarded to the Legislature now in session, for the passage of a law in substance
as follows :
It shall be lawful for all persons, except banking or other incorporate companies
authorized by law, to loan money, to pay and receive such rates of interest for
the use of money on contract, note, or account, as may be agreed upon by said
parties, when the time for such loan does not exceed six months.
The minority report recommended that no action bo taken upon the subject. The
pending question was, upon the motion of Mr. N. C. Nash, that the minority report
be substituted for that of the majority of the committee. Messrs. W. B. Spooner,
Thomas B. Curtis, George C. Richardson, Caleb Stetson, J. M. Forbes, and George
B. Upton opposed this, and urged the acceptance of the report of Mr. Upton.
Messrs. Zelotes Hosmer and Thomas Hopkinson defended the minority report.
It is hardly worth while to give sketches of the speeches, sinco wo have already
laid before our readers the full reports of the committees. Mr. Hopkinson supported
his report in a profound, philosophical, and logical argument. Tho debate lasted
until nearly ten o’clock. Only fourteen persons voted for Mr. Nash’s motion, so
that it was rejected. The majority report was then accepted by a largo vote, and
the president and secretary were directed to memorialize the Legislature for a
modification of the usury laws, in conformity with the recommendations contained
therein.
Appropriations by Congress for the Support op the Independent Trea-
sury.— For salaries of the assistant treasurers of the United States at New-York,
Boston, Charleston, and St Louis, thirteen thousand five hundred dollars ; and here-
after the annual salaries of the assistant treasurers at Boston and St Louis shall be
four thousand dollars each.
For additional salaries of the Treasurer of the Mint at Philadelphia of one thousand
dollars, and of the Treasurer of the Branch Mint at New-Orleans of five hundred
dollars, one thousand five hundred dollars.
For salaries of six of the additional clerks authorized by the acts of August sixth,
one thousand eight hundred and forty-six, August twelfth, one thousand eight
hundred and forty-eight, March third, one thousand eight hundred and fifty-one,
August thirty-first, ono thousand eight hundred and fifty-two, and August fourth,
one thousand eight hundred and fifty-four, six thousand five hundred dollars.
For salary of additional clerk in office of assistant treasurer at Boston, one thou-
sand two hundred dollars. v
For salary of a clerk to the treasurer of the branch mint at San Francisco, Cali-
fornia, two thousand five hundred dollars.
For salaries of clerks, messengers, and watchmen in the office of the assistant
treasurer at New-York, thirteen thousand nine hundred dollars.
For contingent expenses under tho act for the safe-keeping, collecting, transfer,
and disbursement of the public revenue of August sixth, one thousand eight hundred
and forty-six, sixteen thousand five hundred dollars : Provided , That no part of said
sum of sixteen thousand five hundred dollars shall be expended for clerical ser-
vices.
For compensation to special agents to examine the books, accounts, and money
on hand of the several depositories, under the act of August sixth, one thousand
eight hundred and forty-six, five thousand dollars.
For tho discharge of such miscellaneous claims, not otherwise provided for, as
shall be admitted in due course of settlement at the Treasury, five thousand dollars:
Provided^ That no part of the appropriation shall be drawn from the Treasury
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except in pursuance of some law or resolution of Congress authorizing the
expenditure.
For salaries of nine supervising and fifty local inspectors, appointed under the act
of August thirtieth, one thousand eight hundred and fifty-two, for the better pro-
tection of the lives of passengers by steamboats, with travelling and other expenses
incurred by them, eighty thousand dollars.
New- York State Loan. — The Commissioners of the Canal Fund opened the bids
for the canal enlargement loan of one million dollars, payable in 1873, at six per
cent There were fifty -six bids amounting, in the aggregate, to over $4,000,000.
Of the whole amount, as will be seen below, $682,000 wero taken at and above
thirteen per cent premium, and the remainder, $318,000, at and above $112.76—
only $33,000 being at that figure. This result affords most gratifying evidence of
the satisfactory manner in which the credit of the State has been sustained.
The loan was awarded in the sums, and at the rate specified, to the following
persons:
John Olm stead,
... $90,000 at |118 15
John J. Palmer,
....|50,000 at
|U2 66
Bank of Ulster,
.... 18,000
118 20
Wyoming Ca Bank, . . .
. ... 10,000
118 50
John 8. Ganson,
.... 6,000
118 10
do.
.... 10,000
114 06
do
.... 6,000
112 97
C. McKinney,
.... 5,000
118 00
C. R. Ganson,
.... 5,000
118 02
do
.... 6,000
118 50
do.
.... 6,000
112 81
Fort Plain Bank,
5,000
ns os
0. 8. Wilson,
.... 6,000
118 00
da
.... 5,000
113 50
do.
.... 6,000
118 60
do.
.... 6,000
112 90
N.T. Williams,
.... 6,000
118 00
B. Usher,
.... 5,i KH)
118 00
John 81U,
.... 10,000
118 96
da
5,000
113 50
da
... 10,000
118 50
H. H. Martin,
.... 25,000
118 05
do.
.... 10,000
118 26
do
.... 25,000
118 23
do
.... 10,000
118 06
do.
.... 50,000
112 25
Rufus II. King,
....100,000
118 10
John L. Schoolcraft,
.... 20.i hm)
113 08
do
... .100,000
118 01
do. . . . .
15,000
118 26
da
. . . . 100, 000
112 81
do. . . .
.... 20,ooo
118 53
da
.... 22,000
112 76
do. . . . .
.... 20.000
118 63
H. ,1. Miner’s Bank,....
.... 6,000
118 50
do. . . . .
... 20,000
112 77
J. Knyier,
. . . . 6,000
114 50
do.
6.000
113 91
R. C. Martin,
6,000
118 00
do. ....
.... 20,000
112 93
C. R. Richards, Troy,. . .
.... 16,000
118 00
Thos. W. Olcott,
.... rv*>o
118 25
do.
.... 16,000
118 10
do.
.... 5,000
118 60
do.
.... 5,000
118 20
do.
.... 5,000
118 75
do.
.... 6,000
153 40
do.
.... 6,000
113 80
da
.... 6,000
118 60
da
.... 5,000
118 90
do.
118 70
da
.... 6,000
114 10
do.
.... 5,000
118 80
do.
.... 5,000
114 80
do.
.... 6,000
118 90
H. PampeUy,
.... 10,tK)0
112 02
do.
— 5,ow
114 00
do
.... 11,000
112 76
do.
.... 5,000
114 26
da
10,000
118 80
do.
.... 15,000
112 SO
da
.... 15,000
112 81
T)e Rh&m k Moore,
.... 24,000
118 00
Farmers' Bank of Troy,.
.... 10,000
118 00
Win. Watson k Co.,
.... 5,000
118 60
B. P. Learned,
.... 10,000
178 06
do.
.... 5,000
118 25
Wyoming Co. Bank,....
... 10,000
118 80
Total,
.$1,000,000
Pitotog raphic Counterfeits. — A week or two since, we made known to our
readers the manner in which this new and much-dreaded style of counterfeiting
could be detected by the use of acids or alkali. We promised to keep “ posted” on
further or better methods as we should learn them.
A solution of corrosive sublimate (bi-chloride of mercury) is* wo find, preferable
to the former method.
This solution applied to the photograph, with a soft camel’s-hair penal, will
obliterate the counterfeit presentment entirely ; having no effect on the printed
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Miscellaneous.
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note. Nor doos it injure the paper, which strong acids or alkalies are liable to do.
A preventive Is better than a cure ; and it is only necessary to print the notes in
colors, in such a way that they cannot be effaced without injuring the designs or
letters printed in black, or damaging the texture of the paper.
Red or blue “backs” will do; but from conversation with engravers and photo-
graphers, we are satisfied that the most effectual way will be to print from a plate
44 faces” in different colors. Proper care, therefore, on the part of bankers or others
who obtain engraved paper, will tend to relieve the public of their anxiety on this
matter, as well as to greatly diminish the chances of deception. — Cincinnati
Columbian*
Thb Gardiner Claim. — The National Intelligencer refutes an erroneous impres-
sion that Corcoran <fc Riggs had a personal interest in the $90,000 recently
handed over by them to the government as part of the funds received by Gardiner
for his fraudulent claim. The facts of the case are, that when Gardiner received
the amount of the award, he made his own disposition of the money remaining in
his hands by depositing $140,000 with a New- York trust company, and the balance
he invested in different stocks, the certificates for which last ho deposited merely
for safe keoping with Corcoran & Riggs previous to his departure for Europe, taking
with him only a letter of credit from that house on their correspondent in London
for the purpose of providing for his personal expenses.
Whon suspicions were aroused as to the fraudulent nature of this claim, Mr.
Corcoran was tho first to give information to the government that he held in his
fire-proof safe, for safe keeping, these stocks belonging to Gardiner, and also stated
where the $140,000 were deposited in New-York. It was on the information thus
given that Mr. Corwin, the then Secretary of the Treasury, immediately attached
both tho stocks in Washington and the money in New-York. Since then Corcoran
& Riggs have always held these stocks ready for delivery, so soon as a regular
order of Court could bo obtained therefor, by which they would be released from
personal responsibility for handing them over to the government, or rather to the
Treasurer of the United States, who has been appointed by the Court administra-
tor of the estate of Gardiner ; and it is these stocks thus delivered under such an
order which have been the subject of the recent newspaper remarks.
The whole amount actually received by Gardiner for his threo fourths of the
claim was about $320,000, and it is principally, if not entirely, owing to the
prompt information given by Mr. Corcoran that the government has been able to
rogain so large a portion of it as this $90,000 of stocks and the $140,000 in New-
York.
Bills of Exchange — Protest. — Before the Superior Court of N. F, at Buffalo ,
Feb., 1855. Zimmerman vs. BidweU. — Action against an indorser of a note, payable
at a banking-office of a firm in the city of New-York. The defence was that the
demand of payment was made too late in the day. The notary testified that,
between three and four o’clock P.M. of the day when the note fell due, he went
to the office, found one of the partners in the back-room, and presented the note
to him, and demanded payment, and that such partner answered “no funds,” and
thereupon he, the notary, protested the note, etc. The defendant then proved, by
the notary, that tho usual and customary business hours of such banking offioes «
were from 10 A.M. to 3 P.fcL, though he knew some such offices which were kept
open until 5 P.M. The judgment of tho special term for the plaintiff was affirmed;
this Court holding that hero was evidence enough to justify a finding that the office
in question was open for business when payment was demanded, and that its
business hours extended to 5 P.M. Ganson for defendant ; Rogers for plaintiff.
Tennessee Railway Bond Cases. — We are glad to learn, states the Railroad
Record , that on tho 25th of January, the Supreme Court of Tonnessee decided
the Bond Cases in favor of the Railroad Companies. About a year since, the
county of Davidson (in which is Nashville) subscribed liberally to various railway
companies, as did several other counties. In tho mean time, the County Commis-
sioners of some of these counties raised the question of legality, which had to be
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submitted to the Supreme Court Our correspondent at Nashville, writing on the
25th ult., says :
“ The Supreme Court has this day decided the Davidson and Sumner County
Bond Cases in favor of the Railroad Companies. The Davidson County case
involves a million of dollars, being the subscription of the county to the Nashville
k North-western Railroad, of $300,000; Louisville k Nashville Railroad, of
$300,000; Edgefield k Kentucky Railroad, $200,000; Tennessee and Alabama,
$200,000. The Sumner County Case is a subscription of $300,000 to the Louis-
ville k Nashville Railroad.
“ This decision will, we presume, secure the success of the North-western and
the Louisville roads. Tho credit of Tennessee is very high, and the State gives
$10,000 per mile. The North-western Railroad will commence with $2,500,000
as a solid foundation.11
Philadelphia. — A suggestion was filed early in January, in the Supreme Court of
Pennsylvania, by St. George T. Campbell and M. Russel Thayer, on behalf of the
Attorney-General, setting forth that the Commercial Bank of Pennsylvania, in this
city, had violated the fundamental articles of its act of incorporation, in discounting
notes at usurious and unlawful rates of interest, and in dealing in promissory notes,
contrary to the express prohibition contained in said act of incoporation ; and sug-
gesting that by reason of such alleged unlawful practices and abuses of their
corporate powers, tho Bank had forfeited its charter. Tho Court ordered a writ of
quo wan'anto to issue against the Bank, returnable January 20th, 1855. At the
same time a bill in equity was filed by Messrs. Campbell and Thayer, on behalf of
Wm. L. Manderson, praying for a special injunction to restrain the Commercial
Bank from continuing to discount paper at usurious and unlawful rates of interest,
and from discounting any paper except such as might come before the Board of
Directors in a regular and lawful manner.
The recent decision of the Supreme Court granting an injunction against the
Commercial Bank of Pennsylvania^ took some persons a little by surprise. The
Court says if tho affidavits in the case are credited, the President and Cashier have
been in the habit of discounting promissory notes, after the adjournment of the
Board of Directors, at rates greatly excecdiug the rate of one half of one per cent
#per montlL The evidence the Court thinks on both sides lacking in precision, which
would, of course, render such evidence an unsafe and unsatisfactory foundation for
any final judgment ; and the Court does not regard it as settling the question of fact
relative to tho conduct of the officers of the Bank in the matters complained of Nor
is it material, they say, on the present motion, that tho charge should be conclu-
sively established. Conceding that the facts remain in doubt, the law of the case
is not so. If it bo clear that the officers of the Bank have no right to make use of
its funds in the manner charged, an injunction can do no injury, and is no more than
giving the stockholders a proper measure of protection. The Court says, “ It may
be a convenient practice for the President or Cashier to discount paper after the
adjournment of the Board of Directors, and to report the proceedings at the next
meeting of the Board, but it is one attended with peril to the stockholders, and if
any of them object to it, they have a right to insist on a strict compliance with the
fundamental articles, on the faith of which they invested their money in the insti-
tution. A violation of the rule in relation to the rate of discount may expose the
institution to the penalties for usury, and may also put the continuance of the
charter in doubt. A stockholder has a right to the necessary means to prevent a
course of practico which may produce such results. If a bank may indulge in this
practice, it is placed under constant temptation to withold all accommodations from
the business community at the very time when they are most needed.” It is not
the purpose of the Court, the decision says, to pass judgment in advance, that it has
been guilty of the crime laid to its charge. The present instance does not neces-
sarily involve a decision on that question. All that it now determines is, that
neither the President nor Cashier can lawfully discount notes in the manner
charged in the bill ; that under no circumstances can the Bank discount notes at a
greater rate than that prescribed in its charter — and that a reasonable ground has
been shown for the injunction demanded by the present motion. It is ordered that
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upon a bond, with sureties in the sum of $1000, being filed as required by the
statute, an injunction may issue, awarding to the prayer in the bill, to continue
until the further order of this court Judge Black so far dissented from the opinion
of the majority of the Court as to think it at least doubtful whether an injunction
should issue against a party who is charged with intending to do a wrong act with-
out proof that the charge is true.
Pittsburgh City Debt. — The Railroad subscriptions of the city of Pittsburgh
are as follows: Ohio A Pennsylvania Railroad, $200,000; Pittsburgh A Steu-
benville do., $550,000; Allegheny Valley do., $400,000; Pittsburgh A Connels-
ville do., $500,000; Chartiers Valley do., $150,000; total, $1,800,000. Of this sum
the bonds issued to the Chartiers road have never been used, and those issued to
the Ohio & Pennsylvania Railroad have yielded to the city some $4000 or $5000
a year over and above the regular interest* for a year or two past. The issues to
the other three roads havo either all been used, or sood will be, in the active prose-
cution to completion of the work upon them. All of fthem have heretofore paid
the interest on the bonds promptly, and al> of them profess an ability to continue
to do so. With regard to the redemption of the city’s bonds, as they mature, it is
meet to say that the uniform practice has been to take them up with new loans
when it was not possible to redeem them outright. Last year the amount of bonds
maturing was $19,631.47. A new loan to this amount was authorized to take up
tho bonds as they became due, and with the proceeds of this loan, ($19,600,) the
sum of $17,805 84 of the old loan was paid off as it matured. The balance would
have been paid had it been presented. We presume that loans maturing in this
and following years can be and will be met in a similar manner. So far, at least,
the city has paid her bonds regularly as they have fallen due^ and until she fails to
do so it is not generous to cast suspicion upon her.
An Exchange and a Robbery. — The gold received by the agent of Messrs.
Page, Bacon A Co. was sold to Messrs. Berend A Co., bullion brokers, who, upon
unpacking tho boxes, found two of them, which were supposed to contain $38,000,
were filled with old iron, heads of bolts, bits of bars, etc. The specie boxes of
Page, Bacon A Co. are about two feet long, made of inch-plank, and branded with
a hot iron D., S. A Co., with C., B. A Co. under. The false boxes are nearly square
— the usual shape of specie boxes, made of Central American Cedar — and the D.,
S. A Co. was cut in the lid with a knife. The exchange of the boxes containing
gold for those containing iron was probably made upon the Isthmus by parties who
were fully prepared and waiting for an opportunity to turn up. The difference in
the appearance of tho boxes excited the suspicion of the clerk of the Bank of
America, who received them from the ship ; and why the same effect was not pro-
duced upon the officers of the Northern Light when they were received at San
Juan remains to bo explained.
Illinois Central Railroad Co. — Vigorous efforts have been recently made to
depreciate the stock and bonds of the Illinois Central Railroad Company, but
these securities are fully established in the favor of New-York and Boston capi-
talists.
The whole quantity of lands possessed by the Company is about 2,595,000
acres, of which 2,000,000 acres were appropriated for construction bonds, and
250,000 acres set apart for tho Interest Fund, the proceeds of sales being appro-
priated to that fund as fast as made, leaving in free lands 345,000 acres which are
mortgaged for tho last issue of bonds. The preemption claims of about 100,000
acres were taken from the 250,000 acres, and the proceeds applied to Interest
Fund. Other sales have been made on account of the 2,000,000 acres, for which
bonds for deeds have been given, the payments in cash to be controlled by the
trustees who cannot give deeds until construction bonds to an amount equivalent
to the value of land sold shall havo been paid and cancelled. The government
owns no land upon the line of the road, all the alternate sections having been sold
about two years since at a largo advance upon tho government price.
The credit proposed to bo allowed on the land sales of tho Company, will
enhance their value largely during the next few years.
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New Postage-Law. — In addition to the official notice of tho Postmaster-General
on the subject, it may help to disseminate the information if we call special atten-
tion to the law, just passed by Congress, modifying the rates of postage, etc., par-
ticularly to those provisions requiring that all letters between places in the United
States shall be prepaid from and after the 1 st of April, 1856, by stamps or other-
wise ; and that from and after the lsf of January next, postmasters must place
postage-stamps upon all pre-paid letters upon which such stamps may not have
been placed by the writers, or which may not have been inclosed in stamped
envelopes.
From and after (he lstf of April, 1855, the postage to be charged on each single
letter for any distance in the United States not exceeding three thousand miles is
three cents , and over three thousand miles ten cents .
The law does not change the existing rates or regulations in regard to letters to
or from Canada or other foreign countries, nor does it affect the franking privilege.
The provisions in regard to the registration of valuable letters will be carried
into effect, and special instructions issued to postmasters on the subject os soon as
the necessary blanks can be prepared and distributed.
Unwise Legislation. — Mr. Benton has introduced into the House of Represen-
tatives a bill levying a stamp duty of forty cents on all notes under five dollars, of
twenty cents on all under ten dollars, and of ten cents on all under twenty dollars.
The object of tho bill is of course to suppress all notes under these denominations,
and all infractions of it are made punishable as a penal offence. Even if the
purposo of tho law was not open to objection, there are obvious and forcible rea-
sons why it should not be passed. The general government has heretofore wisely
loft tho control of tho paper currency to tho several States originating it, and any
attempt to interfere with that policy, especially by so unrepublican a process as
tho imposition of a stamp duty, must meet with the most strenuous opposition,
even if tho power to do so can bo exercised under tho Constitution. We presume,
however, that tho bill, if brought to a vote, will scarcely reccivo any support but
that of its author.
Railroads. — Tho Now-England railroads have produced for tho present, at
least, a heavy loss to their stockholders. Tho Boston Courier says of the Vermont
companies :
“ The brokers and outside operators must bavo something of an elastic nature
to trade in, and few stocks are so eligible for this purpose as the four railroad stocks
that offer tho widest margins for a big rise, namely, Vermont & Massachusetts,
Ogdensburg, Central, and Rutland, which can now be bought at the following
comparatively low prices :
Highest In ISM. Present prices.
Vermont & Massachusetts, 24 15 J
Ogdensburg, 16f 5f
V ermont Central, 13 j 3
Rutland & Burlington, 1 1 5
14 These stocks occupy similar positions in this markot to those of the New-York
Central, Reading, Eric, and Harlem in the New-York market It might be well
for some of tho New-York and Philadelphia operators to turn their attention this
way occasionally, where the margins for improvement have not yet been encroached
upon as they have been in that city. A vigorous Now- York movement for a rise
would carry up tho prices for Central and Rutland to former prices, without much
trouble or capital.”
Missouri. — A law regulating interest on money has been passed, and consider-
ing the opposition which it met with, and the good which is to result from it, this
may be regarded as one of tho most important acts of the session. Tho bill went
froin tho Senate with a proposition that it should take effect immediately. So far
as St. Louis is concerned, this would have been received as decidedly the most
acceptable form ; but the House, composed of different materials, and representing
the agricultural interest to a greater extent than any other, succeeded in engrafting
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upon it a provision that it should not take effect until January next. With this
the friends of the hill were forced to be content If immediate relief be not
afforded by this measure, it is satisfactory to know that the law is placed on the
statute-book, and that there will be ample time to establish its beneficial effects
beforo any attempt can be made at repeal. That it will have the effect of making
money more abundant by inviting it hither from all quarters of the world, and that
it will then be cheaper than it now is, is confidently expected by the friends of the
measure.
North-Carolina State Debt and Raelroad System. — The debt of the State
of North-Carolina amounts to $3,330,000. The revenue from all sources is esti-
mated at $200,000. As this sum is not sufficient to defray the State expenses and
discharge the annual interest, a scheme will be proposed to the next Legislature to
increase the taxes. The late loan of $260,000 was taken at Raleigh at 100£.
The Stato is pursuing its system of internal improvements, and several of the rail-
roads in which it is interested have commenced paying dividends. The Wilming-
ton & Raleigh Railroad, after sixteen years’ struggle, has been able to declare a
semi-annual dividend of 4 per cent. The Raleigh & Gaston Railroad has just
declared a dividend of 6 per cent for the last year ; and the recently-completed
Wilmington & Manchester Railroad, in its first year gives evidence of being good
stock.
Among various and important acts of a public nature passed by the Legislature
of North-Carolina, recently adjourned, were the following :
An act to incorporate the Greenvillo (Tenn.) & French Broad Railroad Com-
pany. Provides for a railroad from the Paint Road, on French Broad River,
through the counties of Madison, Buncombe, and Henderson, and to intersect with
such South-Carolina road as the stockholders may designate. The road is to have
the same gaugo of the North-Carolina road. The State extends no aid to the
Company.
An act to incorporate a company to construct a railroad from some point on the
wators of Beaufort harbor to the town of Fayetteville, through the counties of
Carteret, Duplin, Sampson, and Cumberland. (No State aid extended to the
Company.)
An act to incorporate the Western North-Carolina Railroad Company. Provides
for a railroad from Salsbury west to the French Broad, at or near Asheville.
Capital stock, $6,000,000, of which the State is to take two thirds, as soon ns one
third shall have been subscribed by individuals, and paid according to the pro-
visions of the charter. The road to be constructed by sections, and used os thus
finished ; and the State not to pay more than $400,000 per annum during the next
two years.
An act to increase the salaries of State officers. Provides for $3000 per annum
for the Governor, $2000 for Treasurer, and $750 for Treasurer’s Clerk.
The North-Carolina Legislature, at its recent session, inserted in all the new
charters the re-charters and amended charters of banks, a prohibition against the
issuing or paying out of bills under $5.
An act to" incorporate a company to construct a ship-canal to unite the waters
of Albemarle, Currituck, and Pamlico Sounds with the Chesapeake Bay. The
State is to indorse the bonds to the amount of $250,000.
Alabama Finances. — We find in the Montgomery Journal the reports of the
Comptroller and the Treasurer of Alabama, giving an account of the receipts and
disbursements of the State Treasury for the year ending 30th September, 1854.
The report of the Comptroller shows the total receipts to be $1,861,126, in
which is included the balanco from the prior year of $1,236,069. The receipts
from the tax assessments of 1853 were $549,890; from common-school fund,
$62,026. The disbursements were $1,046,293, including $400,000 to the Mobile
& Ohio Railroad Company; thus making the actual expenditures $646,293,-
among which is the sum of $29,081 for the Insane Asylum, and $74,441 xor in
terest on the sixteenth section fund.
The report of the Treasurer shows a balance in the Treasury'of $820,276.
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Pennsyl v a jtia Co kl-Mines. — The Philadelphia Board of Trade hare made their
Twenty-second Annual Report. It takes ground in favor of a repeal of the Usury
Laws, suggests the sale of the Public Works, recommends a census of Philadel-
phia, and comprises various valuable hints. The Board feel the importance of the
coal and iron business to the trade of Philadelphia. The following is its conclud-
ing passage:
“ An important fact, always operating to sustain the commercial prosperity erf
Philadelphia, is the wonderful resources of the great commonwealth of which it
is the chief emporium. With this natural and exhaustless capital at its back,
the credit and trade of this city can hardly ever suffer prostration. Individual
citizens may fail in business, and there may even occur temporary depressions
from extraordinary causes in the general condition of the mercantile community.
But with the two potential elements of coal and iron continually pouring wealth
into the lap of the metropolis, and maintaining in active operation its countless
factories and work-shops, it would bo almost impossible for the city to encounter,
for any long time, a serious reverse in its commercial fortunes. Were all other
sources of thrift and enrichment to fail, yet a persistent and energetic development
of the miueral treasures which are stored profusely in the hills of Pennsylvania,
and are destined to make this the great mart for their consumption and export,
would suffice to render Philadelphia one of the most productive and opulent cities
in America.”
The Reading Railroad brought 1,987,854 tons of coal to market in 1854. The
capital and receipts of the road have been as follows since 1849 :
Capital and
Debt*.
1849, $16,825,082
1850, 16.225,833
1851 16,649,515
1852 17,141,987
1853, 17,905,018
1854, 18,464,114
Tonnage ,
Freight, and
Passenger*.
1,198,062
1,461,168
1,771,670
1,796,260
1,782,758
2,233,874
Grow
Receipt*.
$1,983,590
2,363,938
2,814,880
2,430,626
2,688,287
8,781,629
Net
Profile.
$901,807
1,187,292
1,010,089
1.121.486
1,835,492
2,010,438
$10,243,793 $15,562,488 $7,546,507
The New Bounty-Land Law.— The Commissioner of Pensions has issued the
following instructions for carrying into effect the new Bounty-Land Law :
44 Where the service has been rendered by a substitute, he is the person entitle*,
to the benefit of this act, and not his employer.
44 In the event of the death of any person who, if living, would bo entitled to
certificate or warrant as aforesaid, leaving a widow, or if no widow, a minor chiL
or children, such widow, or if no widow, such minor child or children, is entitled
to a certificate or warrant for the same quantity of land such deceased persons
would be entitled to receive under the provisions of said act, if now living.
44 A subsequent marriage will not impair the right of any such widow to such
warrant, if she be a widow at the time of her application. Persons within the
age of twenty-one years on the 3d day of March, 1855, are deemed minors within
the intent and meaning of said act.
44 To obtain the benefits of this act, tho claimant must make a declaration, under
oath, substantially, according to tho forms hereto annexed. The signature of
the applicant must bo attested, and his or her personal identity established by the
affidavits of two witnesses, whose residences must bo given, and whoso credibility
must bo sustained by the certificate of the magistrate before whom tho application
is verified.
41 No certificates will be deemed sufficient in any case, unless the facts are certi-
fied to be within the personal knowledge of the magistrate or other officer who
shall sign the certificate, or the names and residence of the witnesses by whom
the facts are established be given, or their affidavits, properly authenticated, be
appended to the certificate.
41 The official character and signature of the magistrate who may administer tin
oath must be certified by the clerk of the proper court of record of his county
under the seal of his court Whenever the certificate of the officer who authenti
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cates the signature of the magistrate is not written on the samo sheet of paper
which contains the signature to be authenticated, the certificate must bo attached
to said paper by a piece of tape or ribbon, the ends of which must pass under the
official seal, so as to prevent any paper from being improperly attached to the certi-
ficate.
“Applications in behalf of minors should be mado in their names by their
guardian or next friend. Where there are several minors entitled to the samo
gratuity, one may make the declaration. The warrant will be issued to all jointly.
In addition to proof of service, as in other cases, the minor must prove the death
of his father, that no widow survives him, and that ho and those he represents are
the only minor children of the deceased.
44 If a party die beforo the issue of a warrant to which he would be entitled, if
living, tho right to said warrant dies with him. In such case the warrant becomes
void, and should be cancelled, and the party next entitled in right of the service
claimed should make an application ; and if there be no such party, the grant
lapses under tho limitation of the beneficiaries to the bounty. If the claimant die
after the issue of the warrant, tho title thereto vests in his heirs-at-law, in the
same manner as real estate, in tho place of the domicile of the deceased, and can
only be assigned or located by said heirs.
44 Applications mado by Indians must be authenticated according to tho regula-
tions to be prescribed by tho Commissioner of Indian affairs.
44 Accompanying the above instructions aro the necessary forma of declaration,
together with an official copy of the law.”
BANK ITEMS.
Bank Presidents and Cashiers. — There have been so many changes among the
officers of banking institutions within the past six months, that it would occupy too
much space to enumerate those that have occurred in the interior towns. The
whole are carefully stated in the Tabular View of tho Banks, contained in the
Bankers' Almanac , for 1855, published at this office.
New-York. — Tho appointment of President of the American Exchange Bank, to
which wo alluded last month, was declined by Mr. Booth. No successor to Mr.
Willets, as President, lias yet been announced.
New- York City. — Eighteen thousand and five hundred dollars in specie certifi-
cates, issued by tho Bank of America to the associated banks of this city, (three of
$5000 each, three of $1000 each, and one of $500,) were lost, on the 15th Febru-
ary, by a clerk of the Bank of the Commonwealth, on his way from the Clearing-
House to the Bank. As these certificates are payable only to the associated banks,
they can bo of no value in the hands of any private individual or any other corpo-
rations. All persons are requested to stop any one who may attempt to pass off
either of these certificates. A suitablo reward will be paid for their return to the
Bank of tho Commonwealth.
New- York City. — The Mechanics’ Bank intend to erect a new five-story building
on its valuable property in Wall street Tho work will be commenced on tho 1 st
of May next, when the Bank will remove to tho apartments in tho Merchants’
Exchange, fronting on William street and Exchange place, lately occupied by the
National Bank, and by the Bank of tho Commonwealth, remaining there until the
new edifice shall be completed.
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New- York City. — Wm. H. Mac y, Esq., was, on tho 20th March, elected Presi-
dent of the Leather Manufacturers’ Bank, in place of Fanning 0. Tucker, Esq.,
resigned on account of ill-health.
Another Fraud. — Several weeks ago, the officers of the Pacific Bank, a sound,
well-managed institution, located at tho corner of Grand street and Broadway, dis-
covered a forced balance in tho ledger, and called upon the book-keeper, John B.
Urmy, for an explanation. He pretended to go over the account, admitted the
error, but said that it was a simplo mistako which lie would rectify. His undisturbed
manner nearly disarmed suspicion, but still the inquiry was prosecuted. Urmy
staid away from the Bank a day or two, but at the solicitation of a friend returned
to his place, and lent his efforts to straighten the account, confident, it would seem,
that he should escape detection. It was not until another book-keeper commenced
a comparison of the checks with the ledger, that Urmy became alarmed and with-
drew. Disposing at once of his furniture and other property, he sailed for Califor-
nia. Meantimo the investigation proceeded, and frauds have been detected amount-
ing to between twenty and thirty thousand dollars, part of which will bo protected
by ilia bonds, so that the loss to the Bank will not be over sixteen or eighteen
thousand dollars. The fraud was perpetrated by a second use of a portion of the
chocks returned from the Clearing-House. They were given to him to be charged,
and ho would select such as would answer his purpose, and use them before they
wore cut or stamped. He formerly kept an account in his own name in the Bowery
Bank, but latterly in the Broadway, under the assumed name of Purdy. This
loss arose from the loose practice of allowing the chocks to bo passed from the teller
to the book-keeper before they were cancelled. Tho Mechanics’ Bank at Baltimore
lost sixty thousand dollars a few years since by the same means. Losses of this
kind can be obviated by cancelling all checks by the paying-teller, and by a transfer
of each book-keeper to another ledger every three months, or oflener.
. New- York Banks which have given notice, of closing their affairs : —
Armenia Bank,
American Bank,
Astor Bank,
Bank of Carthage,
Bank of the Empire State,
Bank of Lake Erie,
Bank of the People,
Bank of the Union, Belfast,
Bank of the Union, New-York,
Camden Bank,
Central Bank, New-York,
Champlain Bank,
Commercial Bank of Alleghany Co.,
Commercial Bank of Lockport,
Dunkirk Bank,
Empire City Bank,
Excelsior Bank,
Farmers’ Bank of Hamilton Co.,
Farmers’ Bank of Mina,
Franklin Bank of Chautauque Co.,
Freemen’s Bank of Washington Co.,
Hartford Bank,
Kirkland Bank,
Knickerbocker Bank, Genoa,
New Bank Building. — Tho Shoe k Leather Manufacturers’ Bank have purchased
tho marble building on the south-west comer of Chambers street and Broadway,
where they will remove on the 1st of May. The wholesale shoe business having
now become located in tho neighborhood of Chambers, Warren, and Murray streets,
^Knickerbocker Bank of New-York,
Leland Bank,
Lumberman’s Bank,
McIntyre Bank,
Mechanics’ Bank of Watertown,
Merchants’ Bank of Chautauque Co.,
Merchants’ Bank of Washington Co.,
Merchants k Farmers’ Bank, Putnam Co.,
New-York Bank of Saratoga Co.,
New-York Security Bank,
New-York Stock Bank,
New-York Traders’ Bank,
Northern Canal Bank,
Northern Exchange Bank,
Patchin Bank,
Phenix Bank of Bainbridge,
Putnam Valley Bank,
Queen City Bank,
State Bank at Saugerties,
Suffolk Bank, City of New-York,
Valley Bank, Boonville,
Western Bank of Suffolk Co.,
Whito Plains Bank.
Go gle
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Bank Items .
821
1855.]
the directors of the Bank deserve credit for changing their location bo as to accomo-
date their customers.
Greenwich Bank. — The banking-house, No. 402 Hudson street, occupied by the
Greenwich Bank, was sold on the 9th March at auction, by E. C. Halliday, for
$15,000. Also, the following stocks: 120 shares Greenwich Bank, 1624; 3,750
do. do. 160^-. This sale was preparatory to organizing the Bank under the general
law, as its charter will expire on the first Monday in June. Its present capital is
$200,000.
Circulation. — The Superintendent of the New-York Banking Department has
given notice that the notes of the Central Bank of New-York must be presented at
his office for redemption within two years from the 8th inst. Also that the notes
issued by I\ Webb, an individual banker, (Dunkirk Bank, of Chautauque County,)
must be presented within two years from the 9th inst ; all the circulating notes
issued to II. McCollom, an individual banker, (Bank of Carthage,) must be presented
for payment at the office of the Superintendent of Banks, in Albany, within two
years from March 17 tb, 1855.
It ho he- Island. — In the House of Representatives, on 27th February, the chief
topic of interest wras the act allowing the Merchants’ Bank, at Providence, to increase
its capital to one million of dollars. Mr. Clarke submitted an amendment, carrying
out the well-settled and long- established principle of Rhode-Island legislation,
making the stockholders of the Bank personally and individually liable for all the
debts of the corporation, which prevailed by a vote of 27 to 15. Mr. Clarke sup-
ported his amendment in a very able, spirited, and vigorous speech. He did not
make the motion because he believed the public interest would be endangered
without this provision, but because ho believed the unvarying practice of the State
ought not to be departed from to gratify individual banks. He paid the highest
tribute to the financial ability and integrity of the managers of the Merchants’
Bank, and deemed the institution worthy of the unlimited confidence of the public.
Mr. Jenckcs, with his accustomed strength of argument, opposed the amendment
He regarded the individual liability principle as of no practical importance.
Massachusetts. — The Managers of the Association of Banks for the Suppression
of Counterfeiting was organized by the choice of Andrew T. Hall, President; A.
D. Hodges. Treasurer r Charles B. Hall, Secretary; and Almon D. Hodges, Lemuel
Gulliver, Charles B. Hall, James G. Carney, James M. Thompson, Exceutive Com-
mittee ; Mr. Carney Chairman. It was voted that an assessment, at the rate of five
dollars on each one hundred thousand dollars ($100,000) of capital stock, be laid
upon the banks for tho ensuing year. Voted, That the thanks of this Association
be presented to Mr. G. W. Crockett, for his valuable services as President of this As-
sociation for the past two years.
Pennsylvania. — In the Pennsylvania Legislature the bank bills, as well for the
charter, as the re-charter of banks, meet with little if any serious opposition in
either branch of the Legislature. A number of them have passed one House or
the other, but only one or two have gone through both Houses, not having been
presented there as yet. The bill to incorporate the Bank of Allentown, Lehigh
county, with a capital of* $100,000, and power to increase it to $200,000, has passed
both Houses. A bill to incorporate a new bank to be called “ The City Bank of
Philadelphia,” having a capital of $500,000, passed the lower branch by a vote of
51 to 19. A bill to incorporate tho Bank of Pottstown, Schuylkill county, with a
capital of $100,000 ; a bill to incorporate a bank at Stroudsburgh, Monroe county,
with a capital of $100,000, and the privilege to increase it to $200,000; a bill to
incoqiorate a bank to be called “The Lebanon Valley Bank,” with a capital of
$100,000, with the privilege of increasing it to $200,000; a bill to incorporate an
institution to be called “The Bank of Newcastle,” Lawrence county, with a capital
of $150,000 ; a bill to charter a bank at Pittsburgh, to be called “The Mechanics’
Bank,” with a capital of $500,000 — have passed one branch of the Legislature.
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Bank Items.
[April,
Capital in Pennsylvania . — In the State Senate a day or two ago, a bill to incor-
porate the Mechanics’ Bank of Pittsburgh was under consideration, and Mr. Darsie
availed himself of the occasion to state some interesting facts. He said that there
were but three banks out of the city of Pittsburgh on the whole western region ot
the State. The whole capital of the banks in that city was only $2,400,000, being
about a million and a quarter less than it was fifteen years ago. The business
community throughout all the Ohio Valley, besides other portions of the western
region, depended on Pittsburgh for their banking facilities. There was not a single
bank west of the Ohio River in this State, except the Erie Bank, which was of no
account The whole region, therefore, depended on Pittsburgh, whilst their whole
banking capital was actually below the wants of her own citizens. Many of their
iron men, lumbermen, and others, got accommodations from private bankers, outside
of the regular banks, for which they were obliged to pay from one to two per cent
a month. An account of the business of that city would astonish senators. Their
population was from 7 0,000 to 80,000. The shipping of domestic manufactures from
Pittsburgh, on the Ohio River alone, amounted to about $15,000,000 a year. All
this immense business was done on the petty capital of $2,400,000. This state-
ment was indorsed by Mr. Hoge, and also by Mr. Clintock, after which the bill was
passed by a vote of 12 to 10.
North-Carolina. — The following wero among tho acts passed by the recent
Legislature of this State :
L An act moro effectually to secure a compliance with the terms of their
charter by the banks chartered at the present session of the General Assembly, or
that may hereafter bo chartered in this State.
II. An act to re-charter the Bank of the State of North-Carolina. Provides for
an increase of capital of five hundred thousand dollars; charter to expire in 1885.
III. An act to re-charter tho Bank of Capo Fear. Provides for an increase of
capital of five hundred thousand dollars ; charter to expire in 1880.
IV. An act to incorporate tho Bank of Wilmington, to be located in Wilmington,
with a capital of eight hundred thousand dollars.
V. An act to incorporate the Bank of Clarendon, to bo located in Fayetteville,
with a capital of four hundred thousand dollars.
Missouri. — One great measure expected from this session has been postponed
not defeated— and that is, the re-charter of the Bank of the State of Missouri It
was hoped that this would have been done, but the consideration of the subject,
though introduced at an early day in each House, was cut off by tho protracted
attempt to elect a Senator, and tho election of bank-directors ; and finally it got into
a position in the Senate, when its friends could not press it with efficiency and suc-
cess to a vote. At the fall session, it will come up among the first business of the
Senate, will be perfected, and, I have no doubt, passed in that body. There was
no attempt made to discuss the report of the committee in tho House, the friends of
the Bank waiting the action of the Senate ; but there is every reason to believe,
from the votes taken on the proposed amendment to the constitution, that the
“ individual liability” principle cannot bo adopted there, and that there is a majority
in favor of the re-charter of this institution. — SL Louis Republican.
Illinois. — The State Auditor of Illinois has given notice that, pursuant to an act
of the Legislature at its session just closed, ho is ready to receive the notes of such
banks as have gone into liquidation in oxchango, at par, for the securities deposited
with them by such banks, provided the notes presented equal the sum of one thou-
sand dollars, and shall bo presented within the next sixteen days. Alter the
expiration of that time the securities will be offered for sale in New*- York, and the
proceeds applied, pro-rata -, to tho redemption of the notes. The banks that have
suspended are the Union Bank, City Bank, Farmers’ Bank, and Phoenix Bank, all
of Chicago, and the Mechanics & Farmers’ Bank of Springfield.
Kentucky. — Tho Auditor of the State of Kentucky gives notice that he will
redeem the five, ten, and twenty dollar bills on tho Newport Safety Fund Bank as
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1855.]
Bank Items .
823
far as the means in his hands will enable him to do. Before any notes were coun-
tersigned by him, bonds of tho State of Kentucky to the amount of $25,000, and
mortgages of real estate, in Crawford county, were placed in his hands to secure
them. Tho money for which these mortgages were given is not yet due.
Covington . — The Cincinnati Commercial says that the affairs of the Kentucky
Trust Company Bank, at Covington, will wind up much better than was generally
anticipated. The Commercial says:
14 We learn from pretty good authority that the bulk of tho bad and doubtful debts
due tho Bank, have been paid, chiefly in the notes of tho Bank. The actual circu-
lation which the Bank was bound to redeem when it closed, was, in round num-
bers, $800,000, and the nominal assets $1,400,000, and, as we understand tho
matter, there is no doubt whatever but that every dollar of the present indebtedness
of the bank will be paid off, leaving a large surplus for the stockholders ; and if this
is so, those parties who have been buying in the paper of the Bank at forty cents
on the dollar, and now bold it, will make a handsome speculation.”
Bank Stocks in New- York. — Sales for the Week ending March 5.
Manhattan Bank, . . .
120
Metropolitan Bank, .. .
.... 105X
Com Ex. Bank,
. ... 90
Mechanics’ Bank,..,
..113X0115
Phenlx Bank,
... 105*
St. Nicholas Bank,
.... s9
Bank of America, .,
Ill
Bank State New- York,. . 104
Ohio Life A Trust,
.... 82
Broadway Bank, .
110
Continental Bank, . .
. ... 101 X
Ocean Bank
72
Bank of Cominorce,
107
Merchants’ Ex. Bank,
,... 100X
Chathar Bank,.
American Ex. Bk.,.
..105Mal06
Bank North-Amer.,..
... 101X
#
Sales for the Week ending March
12.
Merchants’ Bank,. .
. ,12Sal29
Bank of Com.,
lOStflOSX
Bk. North Vi »cr.,.. .98X0100
Fulton Bank,
138
Metropolitan Bk., . . !06Xal08X
Shoe A Loath or Hank,.
.. 96
Manhattan Rank,..
American Ex. Bk.,. . .
106al07
Com Ex. liank,
.. 97
Seventh Word Sank,. ... 122M
Market Bank,
.... 105X
Hanover Bank
.92«92X
Bank of the Republic,. . . 117x
Bank State New-York,. . 104
8t. Nichola- Hank*,....
.. 89
Union Bank,
114Xall6
Merchants’ Ex. Bank
,... 103X
Chatham
.. 68
Mechanics’ Bank,. .
116
Continental Bank, . .
.... 102
Ocean Banl .1...
.71a72
Bank of America,. .110 \a\ 13X
Nassau Bank,
.... 101
Ohio Lifo A Tru st, . . . .
... 66
Phenlx Bank,
. ... no*
For the Week ending March 19.
MerchuntV Bank, -
132
Bank of Com..
.109rtll0
Com Ex. Bank
. . . 9Sa99
Union Bank,
....119al20
Continental Bk.,. . .102X0104
Bk. Commonweal Ui,. . ,
. ... 9G
Mechanics’ Bankr
Merchants’ Ex. Bank,
104X
Hanover Bank,
95
City Bank,
119
Bank 8. N. York,....
,105al05X
SL Nicholas,
Bank of America, .
..118Xall5
Shoe A Leather Bk ,
.lOOalOl
Delaware A Hudso.),. .
Metropolitan Bank,
, no
Bk. North-Amer.,..
.100al01
The stringency of the money market last year, and the strong efforts to introduce
Western bank circulation in bulk into this city, served to curtail the issue?- of our
own city banks from $9,300,000 to nearly six millions It will bo seen that a
slight increase is now taking place in the latter. Many of our brokers an r -a ?d
in forcing uncurrent bills upon tho market, which thereby tako the place of a oetior
and more reliable circulation.
Mechanics’ Saving Bank op Savannah — Within the last few days wo have
seen some of the bills of this institution in circulation ; they aro well executed,
printed upon good paper, and present an exceedingly neat appearance. From tho
high character of its President and Directors at homo and abroad, together with the
sound basis upon which it is founded, w*e have no hesitancy in saying that this
Bank, like every other bank in Savannah, is justly entitled to public lavor and con-
fidence. We aro glad to see the banking facilities of Georgia increasing ; tho wants
and necessities and growing prosperity of our peoplo demand it. — Americns
Jtepublican.
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824 Bank Items. JT April,
Brooklyn Banks. — Condition of the Brooklyn banks according to the last quar-
terly returns to the Bank Department, December, 1854:
Brooklyn.
Capital.
Oir'la'n.
Profits.
Deposits.
Atlantic Bank,
$500,000
$204,14$
$181,220
$457,514
Brooklyn Bank,
101,272
T0.0T3
546,378
Central Bank,
95,481
17,782
171,935
City Bank,
82,824
25,804
164,620
Long-Island Bank,
184,817
80,683
867,662
Mechanics1 Bank,
HIST
80,591
220, 2S5
WUliam&urffh.
City Bank,
77,067
81,598
256,573
Farmers & Citizens1 Bank, ....
.. 200,000
72,477
7,629
43,693
Mechanics1 Bank,
69,167
15,632
68,748
Total,
*930,868
$410,661
*2,297,603
Brooklyn.
Loans .
Specie.
Bk.BaL
R. Estate.
Atlantic Bank,
$1,009,001
$29,777
$159,861
*28,000
* Brooklyn Bank,
$99,758
48,299
125,676
7,000
COentral Bank,
278,438
4,986
42,256
ciity Bank,
9,512
85,978
19,000
Lomg-Island Bank,
26,869
100,098
12,000
Mechanics1 Bank,
9,521
80,447
WUliiimsburgh.
City Bank:,
17,588
1,236
23,132
Farmers <6. Citizens1 Bank, . . . .
151,084
8,007
4,753
81, $90
Mechanics’ Bank,
222,171
4,053
18,890
Total,
$4,120,824
$158^12
$598,195
$116,072
Premium Bank-Note Paper. — From the Report of the Committee of the New-
England Association of Banks for the Suppression of Counterfeiting, appointed to
report upon tli.o specimens of bank-note paper which were offered for the premium
of $100, we glean some interesting particulars relative to the strength of bank-note
paper. Two of the most extensive bank-note paper manufacturers offered specimens,
and the premium was awarded to J. M. Wilcox & Co., Ivy Mills, Penn. These
papers were tested by Charles T. Carney, of LowelL Sheets were drawn at ran-
dom from five hundred sheets of each specimen, and their strength tested both
lengthwise or by perpendicular strain, and crosswise or by transverse strain ; also,
with and without sizing.
The first experiment was with paper made by Crane & Co., weighing 14 lbs. to
the ream. The first sheets used were each halved and weighed, each half sheet
being folded double when tested. A half-sheet weighing 3.165 grammes, having
64.81 square inches to support the strain, stood a perpendicular strain of 20.5 lbs.
Without sizing and weighing by its loss, 3.070 grammes, it stood a strain of
100.5 lba
For a transverse strain, a half-sheet weighing 3.227 grammes, with 53,375 square
inches, stood a strain of 254.5 lbs. Without sizing, and weighing 3.085 grammes, it
stood the strain of 146.5 lbs.
For the second experiment, paper made by Wilcox & Co., 14 lbs. to the ream was
used. A half-sheet as before weighing 3.505 grammes, and offering 61 square
inches to the strain, stood the strain of 120.5 lb. Transverse, a half-sheet weighing
3.180 grammes, with 53,375 square inches, stood a strain of 260.5 lbs. Without
sizing, and weighing 2.830 grammes, 105.5 lbs.
Experiment No. 3, was with paper made by Wilcox k Co., weighing 16 lbs. to
the ream. A half-sheet weighing 4.086 grammes, with 61 square inches, stood a
strain of 300.5 lbs. Without sizing, and weighing 4.530 grammes, it stood a strain
of 137.5 lbs.
The average results of Crane’s paper, 14 lbs. to the ream with sizing was an
average perpendicular strain of 3.35 lbs. to the square inch, with an average weight
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Bank Items.
825
[Ar
a
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3.
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of 3.151 grammes; and an average transverse strain of 4.75 lbs. to the square inch,
with an average of 3.134 grammes weight.
Wilcox <fc Co.’s, with sizing, 14 lbs to the ream, stood an average perpendicular
strain of 3.6G lbs. to the square inch, the average weight being 3.195 grammes ; and
a transverse strain of 4.81 lbs., with 2.991 grammes weight.
Indiana. — The Bank of the Capitol and the Central Bank, both free banks, located
at Indianapolis, are selling Eastern exchange at one per cent premium for first-class
free bank currency, according to the annexed list:
Batik of the Capitol, Indianapolis,
Bank of Indiana, Mich. City,
Bank of Syracuse,
Bank of Rockvillle,
Bank of Salem,
Bank of Monticgllo,
Bank of Cohen,
Bank of Elkhart,
Brookville Bank,
Bank of Mount Vernon,
Bank of Warsaw,
Bank of North- America, Clinton,
Central Bank, Indianapolis,
Canal Bank, Evansville,
Crescent City Bank, Evansville,
Cambridge City Bank,
Payette County Bank, Connersville,
Farmers’ Bank, Westfield,
Farmers & Mechanics’ Bank Ind’p’ls,
Grammercy Bank, Lafayette, .
Hoosier Bank, Logansport,
Huntington County Bank, u
Indiana Bank, Madison,
Indiana Stock Bank, Laporte,
Kentucky Stock Bank, Columbu^
Lagrange Bank, Lima,
Merchants & Mechanics’, Ncw-Albany.
New- York & Virginia State Stock Bank,
Evansville,
Prairie City Bank, Terre Haute,
Southern Bank of Indiana, T. llaute,
Salem Bank, New-Salem.
Savings Bank, Connersville,
Traders’ Bank, Indianapolis.
The Indianapolis Journal speaks as follows of the new law :
“We have now a free bank system as tightly tied up, wo think, as one can bo
made, and givo the bankers room to breathe. If properly enforced wo do not
think it possible for the bill-holder to bo injured to any considerable extent by a
bank suspension. The State Bank bill was amended in the House by striking out
all that transferred to the new organization the State’s interest in the old Bank, so
that those acting under it will not get the benefit of the State’s funds even by way
of a loan. Whether the want of that provision will interfere with the organization
under the bill, is a matter about which there appear to be different opinions.
“ At all events, we have now banks enough provided for; and as much time and
labor were spent upon these measures in the committee beforo they wont to the
two Houses, and both were thoroughly discussed before their passage, we have some
assurance that they will lack nothing that attention and industry can bestow.”
In addition to the increased deposits of securities required from the free banks,
they are also required, within six months, to establish a Clearing-House in Indiana-
polis, and to redeem the bills of all the banks at a discount of not over one per
cent, and receive oach other’s notes — whether they have failed or not — in payment
of debts.
The bank bill passed by tho Legislature of Indiana, over the veto of the Governor,
for the organization of a now State Bank, contains some strango provisions, in direct
violation of all legitimate banking, as we learn from the veto of the Governor. Tho
Governor says :
“ The bank is authorized to receive on deposit money, bullion, plate, and other
ar licks of valw1 of small bulk , upon such terms as may be agreed on between the
parties ; and tho bank has a right to discount paper to the amount of three times the
amount of the capital stock ]>aid in, and three times the amount of the deposits. Thus
the bank would seem to bo left to determine what are valuablo articles, other than
monies, bullion, and plate, provided they bo of small bulk, and also their valuo,
without reference to their immediate convertibility into money, and might discount
to an amount equal to three times such assumed value, as well as three times the
value of tho capital stock and other deposits. In case of a financial crisis, what kind
of security is furnished for the redemption of the paper? The security of issues,
resting on such a basis, is altogether illusory. It is believed, too, that the right to
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[April,
emit so largo an issue of paper, upon such an amount and kind of securities, is un-
paralleled in the history of legislation.’*
California. — Tho intelligence from California is^to the 26th ult., and is very
unexpected to our community. Messrs. Page, Bacon k Co., Adams k Co., Wells,
Fargo k Co., and Robinson k Co., had all suspended. These events were antici-
pated by a few only. It was not known in the Atlantic cities that these firms had
invested their deposits so largely, as it now is known, in securities not immediately
available.
Of Messrs. Page, Bacon k Co. it may bo stated, that letters have been received
at New-York, giving assurances that the firm would resume their business opera-
tions on the 28th ultimo, (Wednesday.) Their books show aggregate liabilities
amounting to $1,302,000, and assets amounting to $2,171,818, with an apparent
surplus of $868,868.
These assets are independent of the large real estate of the senior partner, Mr.
D. D. Page, of St Louis, which is represented to be worth $1,818,000, a species of
property rapidly increasing in value.
Extract from letter of Page) Bacon & Co ., to David Uoadley , of this city , dated F&ru-
ar y 25 th, 1855:
11 We are happy to inform you that we have to-day made perfect arrangements
to again resume, and shall do so in three or four days, when we hope to regain all
we may have lost.
“We have been so overcome the last week with the great excitement, that we
are unable by this steamer to say more, but the Golden Gate sails in three days,
from this port, and we shall write you moro fully by her. But one thing you may
assure our New-York friends, that we have ample funds, and that our firm will
again go on as usual.”
Adams & Co. — In reference to tho business of Adams k Co., it may be well to
explain that there are two firms of Adams k Co., one at California, the ot
New-York. The firm of Adams k Co., California, was established in September,
1849, and was composed of Alvin Adams, W. B. Dinsmore, and D. H. Haskell.
Mr. Haskell resided and had charge of the business in San Francisco. In May,
1854, tho firm was dissolved, Mr. Haskell purchasing the interests of his partners.
A new co-partnership was entered into immediately between Alvin Adams, D. H.
Haskell, and I. C. Wood. The business was from that time divided ; Adams, Has-
kell k Wood retaining tho banking, exchange, and express business in California,
and Adams, Dinsmore, and Sanford and Shoemaker holding the freighting business
to and from San Francisco. Adams k Co. of New-York became, by agreement, tho
agents of Adams k Co., California* while the latter supervised the express traffic to
San Francisco for the former.
The California drafts upon Adams k Co., at New-York, aro not paid. Unfortu-
nately, a large number of these drafts are held for small sums, by persons through-
out the United States, to whom they have been remitted as the savings of labor.
The Express arrangements of Messrs. Adams & Co. in California, were so extensive,
even as far as Salt Lake, (Utah,) that tho firm had extraordinary facilities for nego-
tiating drafts for small sums in nearly every town throughout the Pacific coast and
the interior. Hence, serious inconvenience will result to a large class of people,
with small means, who can ill afford to wait for their money.
Wells, Fargo & Co. — The following card will explain the position of this firm :
“TO THE PUBLIC.
“To allay all excitement, and put a stop to false rumors, we deem it our duty tc
state that in consequence of the suspension of the large bankers in San Francisco,
tho House of Wells, Fargo k Co. in that city, have advised us of their temporary
suspension.
11 It is proper for us to state that the course of business in California requires large
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827
1855.] iJUfia
amounts of coin to bo sent between the sailing of each steamer, to the mines for tho
nurehaso of gold dust This fact, together with the general panic and ran, left
the house without sufficient coin to pay their depositors. This occasioned the sus-
pension at tho San Francisco office, while many of the intenor agencies contin
*° t Co. are a jobt-.tock Company, with upww* of »n« hundrtd and
“^tnhS SS£tS "» »— »f *'»
WmA Fargo t Co., Ncw-York"
We loam th.t the drolls of Hesses. Wells, Fargo t Co., ot New-York, ore duly
honored and paid to-day.
Robinson & Co. — This firm held deposits to a limited extent only , pay ing an in-
terest at the rate of 12 per cent per annum. Of these failures, the San Francis
P^n kSgTofoUy over the whole of the occurrences of the week just pa^ed
we are compelled to the conclusion that California lias received a dreadful blow m
the failuro of her two heaviest banking houses, but one 13^°
doubt she will recover in a shorter time than any of her sister States could do.
al*o feel that tho banking business here has been conducted too loo^>“ J
general thing and that a greater number of checks should be imposed upon the
bankers by the Legislature, that the credit system which has gwwn
wants immediate and efficient systematizing; that the incorporatcd or co-?a
ship banking establishments should bo compelled to publish montUy^f 8 5
exhibits But we also find that the mercantile community of Sanl ranciscoliavo
come out of the present crisis with a firm front and a Wg“y
that California now stands in a most enviable, and as will yot be proven, a g y
distance from the scene of
causes of these disasters. Enough is, however, tao^ftoH^°^^eJ3ly
ff ,Sd iu “is 3 that URtawlll M, «« mrd.ana, mtetera,
£f^?ZmZe,lwkPi» that bmrncss Rl» )»•> “ “““ of “"*■
’“if examine more closely into tho commercial history ofGaiifomia, we ahallfiod
“Sok^HoZ »d7uhstaatial capital, wo cm, only say .0 o.pr^ c^jg
is well qualified. And the sooner tho separation is made, the better for thomsc
^NoTonly should ^express business, however flattering it3Pr^^ t^itsTegit?-
by a banking firm, but every thing else that does no stncUy permin to ds leph
mate sphere of business. Railroad speculations whether. as oontmetore 01 r 8n e
holder.? real estate investments, except for merely stock j ^
lations, should be cast aside entirely. We think t P . banking are
years will most abundantly show that those depa especially shown by
almost suro to end in losses to all parties concerned. -V
the failures in this city, Pittsburgh, Buffalo, Boston, and so it will always be.
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628
Government, State, and City Bonds.
[April
GOVERNMENT, STATE, CITY', COUNTY, AND RAILROAD STOCKS,
BONDS, Etc.
New- York, March 2 0, 1856.
KiMKS OF COMPANIES.
NATURE OF BONDS. IN WHEN PAYABLE AT
OFF*D.' ASK'D
Alabama k Tenn. River
Baltimore k Ohio
do. do
do. do.
Buffalo A State Line
do. do.
Buffalo k New-York City .
Bellefontaine & Indiana .
Cin.. Wilmington. & Zanesville
Cincinnati, Hamilton, k Dayton
do. . ...
Cincinnati k Marietta .
Cleveland, Painesville, A Ashtabula
Cleveland k Pittsburgh
do. do. . ,
Cleveland k Toledo
do. do. (Ohio June.)
Chicago k Rock Island, (Illinois)
Chicago k Mississippi
do. do.
do. do. • . .
Covington k Lexington
do. do. . .
Fort Wayne A Chicago .
Galena k Chicago
Indianapolis k Bellefontaine
Indiana Central .
Illinois Central ....
Illinois Great Western :
Jeffersonville (Ind. to Louisville)
do. do.
Lake Erie. Wabash, k St. Louis
Lawrenceburgh k ludianapolis
Little Miami
Maysville k Lexington .
Madron k Indianapolis
Michigan Central
do. do
do. do. . • , ,
Michigan Southern
Milwaukee k Mississippi . •
do. do. : . .
New-York Central
do. do. (Subscription)
do. do. convertibles
New-York & New-IIaveu .
New-York k Harlem .
New-Haven k New-L»»ndon . .
Ncw-IIaven k Hartford .
New-Albany and Salem
M do. do. .
Northern Indiana ....
do. do. Goshen Branch
Northern Cross . .
Ohio Central . .
do
do. Income
Ohio k Pennsylvania .
do. do
Ohio k Indiana ....
Panama
Pennsylvania ....
Reading, issued 1813 .
do. do. 1844. 48, 49 . .
do. do. 1840,
Scioto k Hocking Valiev .
Springf., Mt. Vernon, k Pittsburgh
Steubenville k Indiana .
do. do. Guaranteed
Tennessee R. R.’a guar, by State
Terre-Haute k Indianapolis
Terre-Haute k Alton
West Chester and Philadelphia .
>Y Uiniugton k Manchester (N. Ca.)
$ 833,000' 1st mort. con. till 1872 7 1 Jan. Uuly N.Y.1873 X
1,000.000 Transferable— taxed! 0 Quarterly, I Balt. 1885
1,128,000 Coupons, free of tax 0 January, July ** 1875
700.000 do. do. I 6 Half yearly " 1880
7 April. Oct.
700.000 do. do. 0 Half yearly I
600.000 1st mort., not conv. 7 April. Oct.
3U0.00U No mort., do. 7 January, July
1.200.000 1st mort. . . 7 Divers
000.000 1st do. convertible 7 January, July
1.300.000 1st do. do. 1 7 May, Nov.
600.000 2d mort., not conv. [ 7 1
1.000.000 3d do. do. | 7 May. Nov.
2.500.000 1st do., conv. till 1862 7 January, July
667.000 1st mort., not conv. I 7 Feb., August
800.000! do.
1.200,000 do.
685,000 ' do.
900.000 do.
2,000.000 do.
l.uuo.oon do.
do. convertible
do. 2d sec., couv.
do. not conv.
do. convertible
do. conv. till 1*58
do. do. 1857
l.OOO.OOn ,io. not conv. 7 April, C
1,600.000 2d mort. con. till 1858 7 Januar
7 Feb., August
7 March, Sept.
7 Feb., August
7 Divers
7 10 Jan., 10 July
7 April, Oct.
7 April, Oct.
** 11880
N. Y. 1806 X
;; i86i x
“ 1860-66 X
" 1866 X
1862 X
“ 1868 X
“ 1880 X
" 1868 Xj
** 1861 X
“ I860 IX
M 1873 X
“ 1863 X
90
8514 86
*N/4 88Vi
X 99 100
X 85 ! 90
X 93Mi 95
1 18*3-72 X 90
1870 X 92:
1863 X 88
X 0294 93
X 88 90
400,000 1st mort., not conv. 6 April, Oct.
1,000.000 2d mort., convertible' 7 March, Sept.
1,250.000 do. conv. till 1863 7 January, July
1.200.000 do. not conv.
450.W0 do. convertible
600.000 do. do.
17,000,000 Mort., not conv.
l.OOO.OOo 1st mort., do.
800,01)0 do. 1st sec. do.
800.000 do. 2d do. do.
7 January, July
I 6 April. Oct.
7 March, Sept.
7 January, July
7 Feb., August
7 January, July
7 May, Nov.
7 1 Oct., 1 April
10 April. Oct.
7 March. Sept,
7 April, Oct.
'18«3 X .. 75
\m xL. 731/2
x 84 ! 86
1863 X 913 4 93
1*30-61 X 97V2100
1866 ,X .. 88
1875 | 1 70V2, 71
3,400,000' do. conv. till 1859 7 Feb., Au
600,000 do. do.
l,600,0tt), do. not conv.
7 Feb., August
7 March. Sept.
6 April. Oct.
600,000 do. couv. till I860 6 January. July
6J0.8JJ0 do. convertible I 7 May. Nov.
« K5MSS' c,°* convertible
1.000,000 Mo mort., do.
1,805.0001 do. do.
1,200,000 do. not conv.
1 .OOO.OOo i9t mort.. do.
< 1
8 April, Oct.
8 April, Oct.
8 Semi-annually
“ Q875
M 1868 X
“ 189>I IX
“ 1873 X
M 1875 X
“ 1866 X
M 1«3 X
;; 1*73 ,x
M 1851 X
Dost. I860 X
“ 1855-56 X
M 1857-68 X
7 May, Nov. N. Y. I860
600.0001 do. lstsec.con.1867 8 January, July '* 1862
650,000' do. 2d do. 1868 8 April, Oct. “ 1863
8»287.00(* No mort., not conv. 6 May, Nov. “ Igtl
* do. 6 May. Nov. 11 1a*cj
8,000,000 Mo con. 15 Je *67 to *59 7 June, 15 Dec 1864
750.000 do.
1,800,0001 st mort.,
450,00') do.
1.000. 000 do.
600.000 do. on
2,325,000 do.othe
1.000. 000! do. no
do. do.
; mort., do.
do. do.
do. do.
do. on 1st sec.
7 June, Dec. II
7 May, Nov. \
7 lOM’ch, 10 Sep.
6 January, July!
no. do. | 0 January, J
do. on 1st sec. 10 Anril, Oct.
do.otherdo.con.*58 8 May, Nov.
1,600,000 do.
do. not conv.
7 Feb., August
PHHH 1— — 6 Feb., August
1.200.000 do. convertible 7 January, July *' 1873
1.200.000 do. conv. 8 Feb., August ** 1861
WOOJJ 2d mortgage. 7 May. Nov. M 1864
600.000 Income conv. 7 April, Oct. ** 18S8-
1.750.000 1st mort., conv. 7 January. July ** |186>
1,6/5.000 Income, no mor. con. 7 April. Oct. “ 1872
1.000. 000 1st mort., conv. 7 Feb., August '* 1867
2.378.000 No mort. con. 1856-68 7 January, July '* 1866
6.000. 01K) 1st mort. con. till 1860 7 1 Jan., 1 July N.Y. 1880
Mortgage, incon. 6 January. JulyPhil. 1860
• ?S*9!S ‘J0, con* 6 January, July; ** I860
3»J®.000i do. incon. 6 January, July, ** 1860
300.000' 7 May, Nov. I “ 1870
600.000 1st mort. 1st dlv. con. 7 January, July N. Y. 1868
1.600.000 do. convertible 7 January. July ** 1 8f>5
600,000 2dmort.guat.Pa.U.R. 7 April, Oct. j u 1806
1860 | 97 90
1862 x' W 98
1863 \ 96 100
1883 9lv2 9134
1893 . 84*.^ 88
1864 101V110134
long I 76 78
18M-72 X 92 W 941-2
1866 X ..I ..
1873 X 913,4 93
1858-62 X 101 105
1*54-75 X 80 85
1861 I 96 98
1*68 X 81 83 Vfc
“ 1872
H 1867
“ 1866
N. Y. 1880
11858-60 X ..
[1866-66 X 104
1872 X 87
'1867 X 95
1866 106
96 98
81 88Vfc
85
93 95
80
75
04 106
87 871*2
95 100
06 108
98 1U0
67 90
881*1 90
86 ; 87
831. 2; 85
600,000 do.
1,006.000 do.
1st mort. conv,
do. do.
do. do.
7 March, Sept.
7 Feb., August
400.000 do. conv. till 1863 7 January, July Phi. 1873
600.000 do. conv. till 1865 7 June, Dec. . “ 1866
‘ X stands ** for Ex-Interest.
Origirieal from
UNIVERSITY OF CHICAGO
1855.]
829
Government , State, and City Bonds .
tl. S. (lOT* Securil’s,
Loan, 6 per cent 1856,
do. do 1862
do. do 1867]
do. do ,
do. do Coup. b’a.1868
do. Sperct. do. 1865|
State SecuritlcN
N. Y.6 perct,...1860-*61-,62
do. do
do. do.
do. 6V* per ct 18<50-’61
do. do — '
do. do ...Hi
do. 4V* per ct. 18&8-*u9->>4,
Canal Certified, 6 p. ct..J861
1ST, PAYABLE.
opt’d.
Jan. July.
10334
do.
1111 1
do.
11714
do.
1171.1
do.
1171 a
do.
107
1 Jan. April.
107
1 July, Oct.
108
. an. July.
115
Iff
Jan. April.
>101
1 July, Oct.
Ohio, ' ’do. 1856
do. do. I860
do. do. 1870
do. do. 1875
do. 5 per cent 1865
Pennsylvania, 5 per ct Feb. August.
do. 5 per ct. coup. .1877] do.
•Massachusetts, 5 per ct....
Kentuck v. 6 p. c Ur d. 1869-72 jan. July.
ask’d] Railroad Bonds, int. pat’bl. opr’n.
Jan. July,
do.
do.
do.
«]<*.
do.
1111-2
117V2t
118
118
109
108 *
116
103
ltf2
102
1103
100
100 V* 102
.. lloeVS
110 113
110 ,112
’
Erie Income 7 p. ct. . .1875 Feb. Aug.
' do. Convertiblesdo. ..18711 do.
do. do. do. . .1862 Jan. July.
Ilud’n U. 1st mor.do. 1869-70 Feb. Aug.
1 do. 2d do. do. ..I860 16 Ju. 16 D.
Ilud’n II. conv. 7 p. ct. 1867 May, Not.
^ l.s\«t y*»r
It. It. C©.’S* Dur»<l*od
Baltimore A Ohio... .100; April Oct.
Chicngo k Rock-Isrd 100 £eb- Aug.
I Cin., Ham.. ADaytonlOO 10 l'^-Aug.
1 Cleveland, Col. k Cin.lOO 13 Jan. July.
Cleve. k Pittsburgh. .50 10 I do.
Cleveland k Toledo... 60 10 M ch, Sept.
Erie 100 7 April, Oct.
Galena A Chicago. ...100 20 Feb. Aug.
Harlem 601 4 T do.
do. preferred 50 8 ,Jan. Jjjly.
Hudson River 100
Illinois Central 100 7
Illinois, fnfc. Imp. 6 p. ct.l847i
do. 6 per cent. Interest
Indiana State, 5 per ct
do. 21 2 P-
do. Canal Loan, 6 per ct. |
do. Canal Pref. 5 do.
Maryland, 6 do.)
do. 5 do.)
Alabama, 5 do.
Louisiana, 6 per ct. bonds.
Tennessee, 6 do. do.
do. 6
Virginia, 6
Missouri, 6
N. Carolina 6
Georgia, 6 *<?.«]
California, 7 do 1870|
City .Securities
New- York 5 per ct...l858-*6o'
do.
do.
do.
do..
do.,
do. long
do.. 1886
do.. 1872
,1873
1872
do.
do.
do.
do.
do.
l,Tan. April.
July, Oct.
May, Nov.
Divers.
Jan. July.
1 do.
do.
do.
do.
do.
do.
8714
I 90
I ••
103
95
63
8534
62
95
15
|106
92
87V
90V2
101 ;
921*
72
»f4
60 '
87 V*
83
91
102
'.-1
73
106V4J1061/2
37 38
80V* 81
48U **'
92 V4
32
do.
do.
.1870-75
•Albany, Bond, 6 p. c. 1871-81
^Alleghany do. do. 18TO-J77 jan*. July.
) Feb.
May.
Nov.
ug.
Baltimore do. do. 1870-’90 ja. Xp. Oc.
• Boston dn.iiilo. I k
•Boston do.5dOc
Brooklyn do. 6 do ,
•Cleveland do.W.W7p.c.l879
•Cincinati do. 6 p. c I
•Chicago do. do. 1 673-77 1
April, Oct.
Jon. July.
do.
Divers.
Jan. July.
•Detroit W,W. 7 p.c.73-’78-f83 Kb Ana ■
•Jersey C. do. 6 do 1877 KJ*
•LouUvllledo. 6 do...l880-*83 Divers ‘
•Milw’kie do. 7 do 1873 March Sent
•Memphis do. 6 do 1882 jan Jiiv
•Norfolk do. 6 do IW Aoril OcL
•N. Orl’ns do. 6 do... 1^-^ jaPr, ju y
Philadelp. 6 do...187*-'90 y‘
•Pittsb’gh do. 6 do, VJ.78-’83 iai
•Rochest’rdo. 6 do 1878/ do
•St. Louis do. 6 do ,i0’
•Sacramentolo do.... 1863-73! .i0'
•8. Francisco 10 do 1871 May. Nor..
do. 10 do.. ...... ...i niiv nt N Y
Wheeling, mun. bnds. 6,1874 March, Sept!
County Ronds.
•M?.n^Pa 6
•Bourbon. Ky. Cdo. X.Sl ^i
•Mason, Ky. 6do.X.81-’82
•St. Louis, Mo. 6 do. X. .1*66
6do. X
7^:^::!^a!»hu5.oc,.i
7dS:x::lSre,J“^-
7 do. X.. 187.7 March, Sept.
Railroad ItomlN. i
Eric 1st mort. 7 p. ct. ..1867 May. Nov.
do. 2d do.conv.do. ..1859 March, Sept,
d-. ::d d... do. . .1883 do.
871*
92
l(-3l*
95V*
65
86
53
97
[107 ,
92V*
[May, Nov.
IIUIIUI8 . Jan. July.
Little Miami 60 10 June, Dec.
92V*1 93
80 ; I 82
94 I 95 ,
96V* 9634 1
943/4] 951/4
‘.*91 i
99
m
96
98
99 ,
76V*
vi i
99 v*
91
Wl/2
1»0
voyai 77
993/4 1001,4
, .. 100
101 102
102 m
, 97 98
- f 9M/2 94
102 I
96V*1
86
•Boyle,’ Ky.
•Clark, Ky.
•Muskingum,
•Belmont O.
•Putnam, 0.
•Knox. O.
do.
do.
do.
do.
90
78
80 ,
93 V*
82
86
86
103
;105
79
7614
771 *
77 V'2 1
76
8134
70
69*4
94
94
9434
111
103
941*
t03
97
88
91
78
82V*|
933/t
88
99
*;i 2
871/2
104
106
81
77
80
M0
80
.-2
721*
701/4
95
95
*95
|112
104
95
Macon A Western 10 9
Michigan Central 100 8
do. Southern . .100] 5
do. do. con. st. 100 18
New- Jersey 50 0
Northern Indiana . ..100 15
do. con. st. 100 18
N. Haven k Hartford. 100 0
New-York Central 100 15
N. Y. A New-Havenl00|
Ohio A Pennsylvania. 50 X
Panama 100 70
Pennsylvania 50 16
Heading 60 6
Rome A Watertown.. 100 10
IVIfiscellancou*.
N. Y. Life k Trust Co.100'10
Ohio do. 100 8
N. Y. Gas Light Co.. ..60 10
Manhattan do 60 10
Dela. A Hud. Can. ColOO! 9
Pennsylvania Coal Co.50 10
Ronton Ranks
par
Atlantic 100
Atlas 100!
Blackstone 100]
Boston 60]
Boylston 100
Broadway, (S. Boston)... 100
City 100
Columbian 100
Commerce 100
Eagle 100
Eliot, (new) 100
Feb. Aug.
Jan. July,
do.
|Feb. Aug.
Jan. July.
do.
Apr. Oct.
Feb. Aug.
,15 Fe 15 Au|
Jan. July,
do.
May 15 No.
Jan. July.
Feb. Aug.
6
40 1*
96V*
92
100
I 791/2
' 891*
83
123
88
83
121
93V*
Feb. Aug.
Jan. July.
May Nov.
Jan. July.
June, Dec.
]Feb. Aug.
Div’de.
1854.
4 4
M
4 4
5 5
3V* 3V*
3V* 8 1/2 1
4 4
•a?,
6434
72
150
86
135
125
123
106
93
3214
77
41
99
, 95
lot
B
90
124
BVfc
w
m
94
85
m
m
75
,87V*
140
H|
H
107
109
106
I04I*
581/*! „
112V* 113
110
107
105
New-England.
mu
106
106
1103V*
1107
10334
..100
4 4
107
..100
5 5
115
..100
4 <
115
..100
4 3V*
103
..100
4 4
102
..100
4 4
114
..100
4 4
102
.. 70
5 r.
88
. .250
3 31-5
256
..100
new.
99
..100
4 16V* 107
..100
4 4
110
..100
4 4
103*4
..100
4 4
112
..100
4 4
103 V*
..100
4 4
105
..100
4 4
107
..100
4 4
112
.. 60
3V* 31/2
66
..100
6 6
131
..100
4 4
105
..100
— —
90
..100
4 5
113
..100
4 4
113
..100!
4 4
103
..100!
31* 8I*HQ6 V*!
104
1<*7
107
HI
104
lit
I'W
116
116
106V*
lu3
115
102V*
90
J58
,100
|
104
112V*
104
luM 2
108
114
66V*
132
106
91
114
104
107
N.B. All Stocks not specified ns Bonds arc transferable by Inscription. All Bonds (except Hudson 1st and
2d Mortgage and Erie Convertibles) are payable to bearer. " • ” dcuotes Ex-interest or Ex-Dividend.
Digitized by Gougle
Original from
UNIVERSITY OF CHICAGO
830
Notes on the Money Market.
I
[April,
New Coins. — The new cent pieces will bo issued from the Mint in the course of a
few days. They are considerably smaller than the old cent pieces, and form a
really beautiful and attractive copper coin. On one side is the head of Liberty,
and the thirteen stars being omitted, the surface is plain and polished. The reverse
is the same in design as the old cent, but brighter and much more finished. There
is a certain amount of alloy mixed with the copper, and the perfection of the die
gives to the coin a finish and elegance that have never heretofore been attained in
our copper coinage. The new coin will be universally welcomed as a needed and
creditable improvement — Philadelphia Pennsylvanian.
Nones to Banks.— A gentleman who was formely employed as Teller In one of the Branches
of the Bank U. 6., and who has been engaged for some years past in the private banking business,
is desirous of obtaining an appointment as Cashier or Teller in a Bank. Beferences of the first
order in New-York, and other cities, can be furnished. Any communications addressed to the care
of the Editor Banker? Magazine^ will meet prompt attention.
Gold Pans.— Important improvements have been made by Messrs. Btimpson & Co., In the
manufacture of Gold Pena This articlo can be safely transmitted by mail. We refer to their
advertisement on the cover of this work.
jtfottfl on tije iHone£ i-Harftct.
New-York, March 24, 1855.
Exchange on London, sixty days' sight , 109} a 110 premium.
Since tho publication of our last No., there has been a gradual improvement in tho money
market of this and other cities. The banks have acquired a great strength in specie, and are
enabled to extend their loans, to tho great accommodation of their customers, and, through the
latter, to the community at large. Tho Increased movement In the banka of this city is indicated
by the annexed summary, being a continuation of a similar statement lu our March No., p. 748 :
Loans.
Circulation.
Deposits.
Sub-
Treasury.
Bank
Coin.
Aggregate
Coin.
Feb.
8,1858...
..$38,145,697
$7,000,766
$72,923,817
$3, 799,200
$17,439,200
$21,287,400
Feb.
1"
.. 69,861,569
6,967,788
78,778,842
4,183,800
17,184,400
21,268,200
Feb.
IT,
.. 90,850,080
6,941,006
75,108,630
4,580,200
17,889,000
21,919,200
Feb.
24.
.. 91,590,404
6,968,562
74,541.7:1
4,S20,500
16,870,800
21,196,300
March
8.
. 92,8S6,125
7,106,710
75,958,844
4,530,800
16,581,200
21,063,000
March 10,
92,881,789
7,131,998
76,259,489
4,440,100
16,870,600
21,810,700
March 17,
. 92,447,345
7,061,018
76,524,227
4,187,700
16,938,900
21,071,600
Tho Boston banks have enlarged their discount line from $4$,8S9,000, on the 2d of January last,
to $52,300,000 at this date.
The month has been prolific In financial reverses. The steamer which left San Francisco on the
26th ultimo, brings Intelligence of the suspension of four banking-houses in that city, besides several
of their branches in tho interior. During the week ending February 26, three of tho leading bank-
ing houses in San Francisco suspended, namely, Messrs. Page, Bacon k Co., Wells, Fargo k Co.,
Adams k Co. A run upon these houses continued several days, draining them of their immediate
cash resources to a very largo amount. A run took place upon all tho other firms. Of the latter,
Messrs. Drexol «fc Co. ably sustained themselves, and after paying out $339,000 in two days,
depositors began to return to them. Mr. Davidson, the correspondent of Rothschild, also paid
through, and Messrs. Tallant k Wild, with whom Mr. James Robb, of Ncw-Orleans, is a special
partner, and Messrs. Lucas, Turner k Co., a branch of Lucas & Slmmonds, of St Louis.
Digitized by
Go gle
1855.]
Notes on the Money Market .
831
The steamer that left Ban Francisco on the 1st March brings farther intelligence. The result is
that Messrs. Wells, Fargo «fc Co., of San Francisco, resumed payment on the 27th ultimo, and no
farther interruption to business on their part was anticipated. Messrs. Page, Bacon k Co. an-
nounced that they would in a few days be able to resume. Their friends are combining to sustain
the house in its attempts to resumo their ordinary banking business. Messrs. Adams k Co. have
gone into bankruptcy, so far as their money affairs are concerned, but announce that their Express
operations will not be interrupted. Their Express business in the Atlantic States and in the
interior, it is announced, will undergo no change.
Capital Is still abundant at six per cent on calL For business paper tho rates vary according to
tho means of tho lender and tho wants of the borrower. In some instances first-class paper is taken
at 7 a 8 per cent, while in others the parties have to pay 9 a 10. Nearly all the commercial paper
of the right stamp is taken by tho banks. Such as finds its way to tho brokers is readily taken at
7 a 8 per cent, sixty to ninety days. Longer paper is taken at 1 per cent additional. Our mer-
chants who havo a Southern and Western trade complain of the short payments from the cotton
region. At New-Orleans there is a stagnation in trade, owing to tho low water throughout Loui-
siana, Mississippi, Tennessee, and Arkansas. There are large quantities of cotton and sugar ready
for shipment from the plantations, but no means of getting them to market In this state of affairs,
the additional aid granted by our city banks within the past eight weeks has proved very service-
able. Tho unfortunate move at Albany, in reference to taxation, to which wo have alluded In
another column, will serve to check the aid which our banks were enabled to extend.
We havo advices from London to the 10th Inst, when tho English money market was easy.
Capital is abundant at tho minimum rates charged by the Bank of England.
There is a qnlet flow of foreign capital to the United States, which is not reported in any official
shape. It Is known, however, that American securities claim more attention in the British and
Continental markets than formerly ; and there Is among them a partiality for first-class railroad
mortgage bonds. There havo been recently limited orders for county bonds, tho market rates for
which are still extremely low.
Tho foreign exchange market is less favorablo than reported in our last Tho export of specio
from New-Yorkhas been $4,550,000 since the 1st January last, against $8,200,000 for the samo
period last year. The continued export for the past few weeks, added to tho short supply of
Southern bills on Europe, has induced a riso in tho prices at this point Wo quote for the last
steamer :
London, CO days,
Bremen, 60 days,
... 79* a 80
Paris, 44
5.1014 44 5.18*
Hamburg, 44
... 86* 44 86*
Amsterdam, 44
41* • 41*
Antwerp, 44
.. 5.18* 44 5.1614
Frankfort, 44
41* 44 41*
Berlin <fc Leipxie, 44
.. 74* 44 74*
Domestic exchanges arc gradually becoming more regular and easy. There Is little or no move-
ment in coin from or to the interior. The banks at the West are well fortified, and will, wo hope,
bo enabled to extend their circulation and loans. To show tho marked contrast In their business
at present, as compared with two years ago, it is only necessary to present tho comparative state
monts of the banks of Kentucky alone, namely :
Circulation.
1851.
1853.
1855.
Bank of Kentucky,
$8,528,000
$2,067,000
Northern Bank,
2,556,000
2,998,000
1,241,000
Bank of Louisville,
1,608,000
989,000
Farmers’ Bank, Ky.,
561,000
1,831,000
1,669,000
Southern Bank,
&46.000
2,180,000
Specie.
1851.
1853.
1855.
Bank of Kentucky,
$1,828,000
$935,000
Northern Bank,
1,289,000
797,000
Bank of Louisville,
688,000
871,000
Farmers’ Bank, Ky.,
289,000
492,000
908,000
Southern Bank,
848,000
This table may be considered a criterion of the business of tho Western banks generally.
Congress adjourned on the 4th Inst without having adopted any changes in tho Tariff. It had
been proposed to repeal the duties on raw wool, a measure strongly urged by tho wool -growers of
Pennsylvania, Vermont, eta, and by the woollen manufacturers of Ncw-England; but tho task of
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compromising tho various interests involved was found too difficult for the recent session. The
reciprocity treaties with the British Provinces have been fully confirmed by tho United States and
tho British government, and, in compliance therewith, the following articles will be admitted from
those provinces free of duty, and the President has issued his proclamation that they may be intro-
duced into the United States free of duty, so long as tho said treaty shall remain in force; subject,
however, to be suspended in relation to tho trade with Canada, on the condition mentioned in the
fourth article of the said treaty ; and that all tho other provisions of the said treaty shall go into
cfTcct and bo observed on the part of the United States.
This applies to tho Provinces of Canada, New-Brunswick, Nova Scotia, and Prince Edward'*
Island, to wit: grain, flour, and broadstufTs of all kinds; animals of all kinds; fresh, smoked, and
salted moats; cotton-wool; seeds and vegetables; undried fruits; fish of all kinds; products of
fish and all other creatures living in the water; poultry ; eggs; hides, furs, skins, or tails undressed ;
stone or marble in its crude or unwrought state, slate; butter, cheese, tallow; lard; horns;
manures; ores of metals of all kinds; coal; pitch, tar, turpentine; ashes; timber, and lumber
of 'all kinds, round, hewed, and sawed, unmanufactured, in whole or in part ; fire-wood,
plants, shrubs, and trees; pelts; wool; fish-oil; rice; broom-corn and bark; gypsum, ground or
unground; hewn or wrought or unwrought burr or grindstones; dye-stuffs, flax, hemp, and tow,
unmanufactured ; unmanufactured tobacco ; rags.
We have given in another portion of this No. a careful summary of the fluctuations in the stock
market for the past three months. The operations in Virginia and Indiana, Louisiana, Missouri,
and North-Carol ina securities during the month are, it is understood, for account of Western
bankers. North-Carolina six per cents are again quoted at par, and the Treasurer of that State is
now in the market for a sale of $1,000,000 six per cent bonds, tho interest payable at igh or at
New-York, at the option of tho purchaser; tho bonds will have thirty years to run, and will be
exempt from taxation. North-Carolina has, within a few years, undertaken an extensive system of
internal improvements, which will require the aid of capital from tho North, in addition to the
individual capital of shareholders, in these contemplated improvement*.
On the 23d February tho new Canal Loan of the State of New-York was awarded at Albany, at
an average of 118 per cent This loan is for $1,000,000, bearing six per cent, redeemable in 1S78.
The accepted bids range from 112.77 to 113.20, and the total amount bid was $5,076,000.
The only loan of any importance besides this during the month, was that of tho Terre TTante k
Alton Bailroad second mortgage loan of $1,000,000 bearing eight per cent interest This loan was
limited at 75 per cent at which the subscription was closed on Hie 20th March.
We look for a steady Improvement in the State loans during the next few month* Those of the
Western and Southern States are yet slightly under par. Those of New-York, Ohio, and Mary-
land bear a good premium in the markot. Those of North-Carolina and Virginia do not rate as
high, because it is known that those States are increasing their indebtedness, in aid of various rail-
road undertakings, and other improvement*.
County bonds have advanced since our last publication, and are now In moderate demand for
remittance to Europe. The most markod Improvement of the month is in bank share* and railroad
bonds. It will bo noted that all the Boston bank shares, with ono exception, are above par. In
New-York they are not so uniform. Tho actual sales for the month of March are stated on a
previous page.
DEATH.
At Havxrhill, Mass., March 19th, Dr. Burr* Losglvt, aged 6S years, President of the Mer-
rimack Bank, Haverhill.
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Statistical ftegiater.
Vol. IV. New Series. MAY, 1855.
No. XI.
FREE BANKING*
An Act to Authorize the Business of Banking.
Passed 1853.
The people of the State of Wisconsin, represented in Senate and
Assembly , do enact as follows :
Bank Comptroller.
Sec. 1 For the purpose of carrying into effect the provisions of
this act, the Governor of this State is hereby authorized and required,
so soon as this act shall be in force, to appoint, by and with the con-
sent of the Senate, a bank comptroller, who shall hold his office until
the first Monday in January, A.D. 1854, and until his successor is
elected and qualified. At the general election to bo held in this State
on the Tuesday next succeeding the first Monday in November, A.D.
1853, and every two years thereafter, there shall be elected by the
people a bank comptroller, whose term of office shall commence on
the first Monday in January, A.D. 1854, and continue two years,
and until his successor is elected and qualified ; the canvass and re-
turn of the election of said bank comptroller shall be made in the
same manner as the election of other State officers are canvassed and
returned.
* We have had so many inquiries for the Free Banking Law of Wisconsin,
t hat we consider it desirable to our subscribers to republish the entire Law, as foV
lows.— Ed. B. M.
55
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834 j Free Banking uiw uj Wisconsin . [May,
The compensation of bank comptroller shall be, including office-
rent, clerk-hire, stationery, fuel, and all other contingent expenses,
two thousand dollars per annum, to be paid out of the State Treasury,
in the same manner as other State officers are paid. The bank comp-
troller shall, before he enters upon the duties of his office, take and
subscribe the oath required by the constitution, and give a bond to
the State of Wisconsin, in the sum of fifty thousand dollars, with not
less than ten sureties, who shall be resident freeholders of this State ;
said bond to be conditioned, approved, and preserved in the Execu-
tive Office, in the same manner as is provided for the State treasurer’s
bond, in sec. 27, chap. 9, of the Revised Statutes. The bank comp-
troller shall keep his office at the seat of government of this State,
and carry into effect the provisions of this act in the manner herein-
after specified : Provided, That the salary of the comptroller shall in
no case exceed the amount paid into the State Treasury, under the
provisions of this act.
Duties of Deputy Bank Comptroller.
Sec. 2. The bank comptroller shall appoint a deputy, who, in the
absence of the comptroller from his office, or in case of a vacancy in
said office, or in case of any disability of the comptroller to perform
the duties of his office, may perform all the duties of the office of
bank comptroller, until such disability be removed, or vacancy be
filled by appointment, as provided in the succeeding section ; for
whose acts said comptroller shall be liable on his official bond : Pro-
vided, That the said deputy be paid for his services out of the salary
allowed the comptroller by the preceding section.
Vacancy in the Office of Bank Comptroller .
Sec. 3. In case the office of bank comptroller shall become vacant,
or in case the comptroller from any cause shall be incapable of dis-
charging the duties of said office, the governor of this State shall
appoint a suitable person to perform the duties of bank comptroller ;
and the person so appointed shall be invested with all the powers
and shall perform all the duties of such comptroller until such vacancy
shall be filled or such disability be removed, and he shall give bonds
in the same manner as is required of the comptroller in the first sec-
tion of this act.
Engraving Circulating Notes.
Sec. 4. The bank comptroller is hereby authorized and required
to cause to be engraved and printed in the best manner, to guard
against counterfeiting, such quantity of circulating notes, in the simili-
tude of bank-notes in blank of different denominations, not less than
one dollar, at the expense, to be paid in advance, of any person or
association of persons applying for the same, as he may from time to
time deem necessary to carry into effect the provisions of this act.
Such blank circulating notes shall be countersigned, numbered, and
registered in proper books to be provided and kept for that purpose
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Railroad Bonds.
835
in his office, so that each denomination of such circulating notes shall
bear the uniform signature of such bank comptroller or his deputy,
and the plates, dies, and materials to be procured by the comptroller
for the printing and making of the circulating notes provided for here-
by, shall remain in his custody or under his direction.
Stocks receivable for Circulating Notes.
Sec. 5. Whenever any person or association of persons formed for
the purpose of banking under the provisions of this act, shall duly
assign and transfer in trust to the treasurer of this State any portion
of the public stocks issued or to be issued by the United States, or
any State stocks on which full interest is annually paid, said stocks to
be valued at a rate to be estimated and governed by the average rate
at which said stocks have been sold in the city of New-York, within
the next six months preceding the time when such stocks may be left
on deposit with the comptroller ; such person or association of per-
sons shall be entitled to receive from the bank comptroller an amount
of such circulating notes of different denominations, registered and
countersigned, equal to and not exceeding the amount of public stocks
assigned and transferred as aforesaid ; but such public stock shall in
all cases be, or be made to be, equal to a stock producing six per
cent per annum ; and it shall not be lawful for the bank comptroller
to take such stock at a rate above its par value, nor above its current
market value in the city of New-York, at the time of deposit by such
person or association of persons : Provided, That if in the opinion of
the bank comptroller and governor any stocks offered shall be deemed
insecure, they shall not be received as such securities under the pro-
visions of this act.
Railroad Bonds.
Sec. 6. Any person or association of persons formed for the pur-
pose of banking under the provisions of this act, may at his or tneir
option assign and transfer in trust to the State treasurer of this State
bonds or obligations bearing a rate of interest not less than seven per
cent per annum, payable semi-annually, issued by any railroad com-
pany in this State incorporated by any act of the Legislature of this
State, or of the territory of Wisconsin, duly organized under such
act of incorporation, the payment of which bonds or obligations shall
be secured in the manner hereinafter provided, by a mortgage or
deed of trust of the whole or a portion of a railroad constructed by
such railroad company in this State ; which bonds or obligations shall
be received by the said treasurer in lieu of the public stocks issued
or to be issued by the United States, or by any State as hereinbefore
provided in this act ; and upon making such assignment and transfer,
such person or association of persons shall be entitled to all the privi-
leges, immunities, and benefits which by the provisions of this act
he or they would be entitled to if the whole amount of securities so
assigned and transferred were public stocks of the United States or
of any State : Provided, That such bonds or obligations shall not be
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Free Banking Law of Wisconsin.
[May,
received or held as securities for more than one half of the amount
of bills or notes issued to such person or association : And provided,
further, That no railroad corporation shall ever engage in the business
of banking under the provisions of this act.
First-Mortgage Bonds only receivable.
Sec. 7. The mortgage or deed of trust executed to secure the pay-
ment of such bonds or obligations shall be executed to a trustee or
trustees, shall contain the usual and appropriate provisions for the
security of the holders of such bonds or obligations, shall be the first
lien on a portion of continuous railroad, of not less than forty miles,
or on the whole of a railroad, of not less length than twenty miles in
extent, and shall convey the same, together with its equipments,
depots, fixtures, machinery, and the name and franchises appertaining
thereto.
Certificate of the Completion of Railroads.
Sec. 8. No such bonds or obligations shall be received until the
governor, bank comptroller, and attorney-general, or two of them,
shall file with the treasurer of the State a certificate, by them signed
from actual view and inspection, that such requisite portion of road
has been constructed in a substantial manner, with a solid road-bed,
and with a rail of T or H, or other approved pattern and weight, of
in no case less than fifty pounds to the yard, similar to other roads of
the first class, and has been fully equipped and in actual operation,
and has earned for the year next preceding a net revenue greater than
the interest on the bonds or obligations secured thereon by such
mortgage or deed of trust ; nor until the attorney-general shall file
in like manner his certificate from actual examination, that such
mortgage or deed of trust has been duly executed in the manner and
with the provisions required by this act, and is the first lien on such
portion of road, its equipments, depots, fixtures, machinery, income,
and franchises ; nor until the directors of such railroad company shall
file in like manner a statement under the oath of its president and
secretary, setting forth the cost of such portion of road, and the net
revenues thereof for the year next preceding.
Railroad Bonds limited to Eighty Cents per Dollar.
Sec. 9. Such bonds or obligations shall not be received at a rate
higher than eighty cents on every dollar of the current and actual
value thereof, nor at a rate, estimating the whole number of continu-
ous miles in such portion of road, and the amount of bonds or obliga-
tions secured thereby, exceeding the one half of the average cost and
value of such road, nor at a rate, to be ascertained by such estimate,
exceeding eight thousand dollars per mile, for every mile thereof.
Substitution of Fresh Securities.
Sec. 10. The bank comptroller, in conjunction with the governor,
shall reject such bonds or obligations the security of which shall be
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1855.] Revocation of Power to Receive Dividends.
found upon examination to be doubtful or liable to be seriously im-
paired, and, in case the current or actual value of said bonds or obli-
gations shall have depreciated, after they shall have been received,
the bank comptroller shall reduce the rate at which the same shall be
continued to be held as securities, and require other bonds or obliga-
tions, or public stocks of the United States, or of any State, to be
deposited to make good the deficit, in like manner as is provided for
in this act, in case of the depreciation of the value of such bonds or
public stocks.
Record of Deeds of Trust
Sec. 11. Every such mortgage or deed of trust by which such
bonds or obligations shall be secured, shall be recorded in the office
of the secretary of State, in a proper book kept for that purpose,
whose certificate of such registering indorsed on such mortgage shall
be evidence thereof ; and the said mortgage or deed of trust so re-
corded shall have the same effect as if recorded in the several counties
through which such road may be built.
Record to be kept of Notes Issued.
Seo. 12. A descriptive list of the circulating notes so registered
and countersigned by the bank comptroller, or his deputy, as pro-
vided in Sec. 4 of this act, shall be delivered to the State treasurer,
who shall copy the same in the book hereinafter required to be kept
by him for recording descriptive lists of securities deposited with
him for safe-keeping.
Triplicate Lists of Notes Issued.
Sec. 3. Three descriptive lists of the securities transferred to the
State treasurer in trust as aforesaid, shall be made and signed by the
bank comptroller and persons making the transfer ; one in a well-
bound book to be kept by the comptroller for that purpose, one in a
like book to be kept by the treasurer, and one in a book to be kept
by the association ; and said securities shall then be delivered to the
State treasurer for safe-keeping, who shall receipt to comptroller for
the same, and who shall be responsible for any loss or destruction
thereof growing out of or resulting from negligence or the want of
reasonable precaution or care. The whole or any part of said securi-
ties may be re-delivered to the comptroller for the purpose of being
sold under the provisions of this act, or being used or disposed of
under any order or decree of court, or of being returned to the owner
in conformity with the provisions of this act, the comptroller in either
case giving a receipt upon the book kept by the treasurer aforesaid,
specifying therein the purpose for which such re-delivery was made,
which receipt shall discharge the treasurer from all further responsi-
bility for the securities so re-delivered to the comptroller.
Revocation of Power to receive Dividends.
Sec. 14. The treasurer may give to any person or association of
persons so transferring securities in pursuance of the provisions of
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838 Free Banking Law of Wisconsin . [May,
this act, powers of attorney, to be countersigned by the bank comp-
troller, and recorded by him in a book to be procured and kept for
that purpose, to receive interest or dividends thereon, which such
association may receive and apply to their own use ; but such power
may be revoked upon such person or association of persons failing to
redeem the circulating notes so issued, or when, in the opinion of the
bank comptroller, the principal of such securities shall become insuf-
ficient security ; and the bank comptroller, upon application of the
owners of such transferred securities in trust, may in his discretion,
with the approval of the treasurer in writing, change or transfer the
same for other securities of the kind before specified in this act, or
may transfer the said securities or any part thereof, upon receiving
and cancelling an equal amount of such circulating notes delivered by
him to such person or association of persons, in such manner that the
circulating notes shall always be secured in full by securities as in
this act provided.
Notes secured by Public Stocks .
Sec. 15. The bills or notes so to be countersigned and registered,
and the payment of which shall be so secured by the transfer of public
stock, shall bo stamped upon their face, “ Secured by the pledge of
public stocks,” and the bills or notes, the payment of which shall be
secured by the transfer of public stocks and railroad bonds, shall be
stamped upon their face, “ Secured by the pledge of public stocks and
railroad bonds,” and the amount of capital stock of the bank shall be
stamped on all such bills or notes.
Banks to pay a State Tax of 1$ per cent.
Sec. 16. Every bank and banking association organized under the
provisions of this act shall pay to the State treasurer, on the first
day of January and July of each year, a semi-annual tax of three
fourths of one per centum on the amount of capital stock of such
bank or banking association ; the first payment of such tax to be
computed at the rate of one and a half per centum per annum, from
the time of filing the certificate required in section nineteen, to the
first day of January or July then next succeeding. If any bank or
banking association, as aforesaid, shall neglect or refuse to pay said
tax for ten days after it shall become due, notice of non-payment shall
be sent to such delinquent by the State treasurer ; and if the payment
be not made within twenty days thereafter, such delinquent bank or
banking association shall, in addition to the tax aforesaid, forfeit and
pay to the said treasurer for the use of the State one per centum on
the amount of its capital stock. The above semi-annual tax and for-
feiture shall always constitute a lien on the interest of the securities
deposited with the treasurer, as provided in sec. 5, and in case of
non-payment of such tax and forfeiture, or of either of them, the
treasurer is authorized and required to revoke the power of attorney
granted such delinquent, as provided in sec. 14, collect the interest
of such securities, and apply the same to the payment of said tax and
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Chartered Title and Location.
839
1855.]
forfeitures, or of either of them, and hold the balance, if any, subject
to the order of such delinquent. If the interest of said securities shall
he insufficient to pay said tax and forfeiture, the treasurer, after de-
ducting the amount of said interest, may collect the balance by action
of debt in any court of competent jurisdiction in the county where
such delinquent is located, in the name and on behalf the State. Said
capital stock shall be exempt from all other taxes except on that por-
tion of said capital stock which shall consist of and include the real
property of such bank or banking association ; and the real property
of all banks and banking associations shall be assessed and taxed in
the city, ward, village, or town where the same is located, for all
state, county, town, and corporation purposes, in the name of such
bank or banking association : Provided, That the owner or holder of
shares of stock in any bank or banking association shall not be taxed
as an individual for such shares of stock.
Individual Liability of Directors and Stockholders.
Skc. 17. Before any person or banking association formed under
this act shall receive from the comptroller any circulating notes as
provided in sections 5 and 6 of this act, the directors or stockholders
shall give to the comptroller good and sufficient bonds, to be approved
by him, to the amount of one fourth of the notes that the said associa-
tion shall propose to receive, as an additional security to indemnify
the bill-holders against any loss that may be sustained, in case the
securities deposited with the comptroller shall be insufficient to
redeem said bills ; and such person or association of persons is hereby
authorized, after having executed and signed such circulating notes in
the manner required by this act, to make them obligatory promis-
sory notes, payable on demand at the place of business within this
State, to loan and circulate the same as money, according to the ordi-
nary course of banking houses.
Limit of Capital, $25,000 to $500,000.
Sec. 18. Any number of persons may associate to establish offices
of discount, deposits, and circulation, and become incorporated upon
the terms and conditions, and subject to the liabilities prescribed in
this act ; but the aggregate of the capital stock of any such associa-
tion shall not be less than twenty five thousand dollars, nor more
than five hundred thousand dollars.
Chartered Tide and Location.
Sec. 19. Such persons under their hands and seals shall make a
certificate which snail specify :
1. The name assumed to distinguish such association, and to be
used in all its dealings, which name shall not be that of any other
banking association in this State.
2. The place where the business of discount and deposit of such
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association is to be carried on, designating the particular city, town,
or village.
3. The amount of capital stock of such association, and the number
of shares into which the same shall be divided.
4. The names and places of residence of the shareholders, and the
number of shares held by each of them respectively.
5. The period at which such association shall commence and ter-
minate ; which certificate shall be acknowledged and recorded in the
office .of the register of deeds of the county where any office of such
association shall be established, and a copy thereof filed in the office
of the State treasurer, and of the comptroller ; and upon the record-
ing of which certificate, the person or association of persons aforesaid
shall become a body politic and corporate, by the name assumed as
aforesaid, for and during the time fixed in the certificate, and by such
name shall have power to contract and be contracted with, and shall
have all other powers, privileges, and immunities incident to corpora-
tions, as provided in Chapter 54, Title 13, of the Revised Statutes of
this State.
Record of Charter.
Sec. 20. A copy of the certificate required by the preceding sec-
tion, duly certified by the register of deeds of the county, or comp-
troller, or either of those officers, may be used as evidence in all
courts and places, for or against any such association, or any other
person for or against whom any such evidence may be necessary on
any civil or criminal trial.
Privileges conferred on Banks.
Sec. 21. Such association shall have power to carry on the busi-
ness of banking by discounting bills, notes, and other evidences of
debt; by receiving deposits; by buying and selling gold and silver
bullion, foreign coin, and foreign and inland bills of exchange ; by
loaning money on real and personal securities, and by exercising such
incidental powers as may be necessary to carry on such business ;
may choose one of their number as president, and appoint a cashier
and such other officers and agents as their business may require ; but
no association or banker shall commence the business of banking
under this act until such association or banker shall have deposited
with the treasurer the securities required by law, to the amount of
twenty-five thousand dollars, exclusive of the bonds of directors or
stockholders.
Shares, Personal Property.
Sec. 22. The shares of such association shall be deemed personal
property, and shall be transferable on the books of the association,
in sueh manner as may be agreed on in the articles of association ;
and every person becoming a shareholder by such transfer shall, in
proportion to his shares, succeed to all the rights and be subject to
all the liabilities of prior shareholders. No change shall be made in
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1855.] Public Sale of Securities at New -York. 841
the articles of association by -which the rights, remedies, or securities
of its existing creditors shall be weakened or impaired ; such associa-
tion shall not be dissolved by the death or insanity of any one of the
shareholders therein.
Fax lure to redeem Notes — Public Notice.
Sec. 23. In case the maker or makers of any circulating note or
notes, countersigned and registered as aforesaid, shall at any time
hereafter, on lawful demand, during the usual hours of business,
between the hours of ten and three o’clock, at the place where such
note or notes is or are payable, fail or refuse to redeem such note or
notes in the lawful money of the United States, the holder or holders
of such note or notes making such demand may cause the same to be
protested, in one package, for non-payment, by a notary public, under
nis official seal, unless the president, cashier, or teller shall offer to
waive demand, and notice of the protest, and shall, in pursuance of
such offer, make, sign, and deliver to the party making such demand
an admission in writing, stating the time of the demand, the amount
demanded, and the fact of the non-payment thereof ; and the bank
comptroller, on receiving and filing in his office such admission or
protest, together with such note or notes, shall forthwith give notice
in writing to the maker or makers of such note or notes to pay the
same ; and if they shall omit to do so for five days alter such notice,
the bank comptroller shall immediately thereupon (unless he shall be
satisfied that there is a good and legal defence against the payment
of such note or notes) give notice that all the circulating notes issued
by such person or association of persons will be redeemed out of the
trust-funds in his hands for that purpose, which notice shall be given
by publishing the same in some newspaper printed in the county
where the business of such association is established, or, in case there
is no newspaper printed in such county, such notice shall be published
in some newspaper printed at the seat of government of this State ;
and the comptroller shall be required to apply the said trust-funds
belonging to the maker or makers of such protested note or notes to
the payment, pro rata, of all circulating notes, whether protested pr
not, put in circulation by the maker or makers of such protested note
or notes, pursuant to the provisions of this act, and to adopt such
measures for the payment of such notes as will in his opinion most
effectually prevent loss to the holders thereof.
Public Sale of Securities at New - York.
Sec. 24. In case Such person or association of persons shall fail or
refuse to pay such bills or notes on demand, in the manner specified
in tfio preceding section of this act, the comptroller, after the expira-
tion of the five days’ notice mentioned in the preceding section, shall,
after giving thirty days’ notice by publication in some newspaper
printed at the seat of government of this State, and in one daily
paper published in the city of New-York, proceed to sell at the Mer-
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842 Free Banking Law of Wisconsin. [May,
chants’ Exchange, in the city of New-York, at public auotion, the
securities so pledged, and out of the proceeds of sale shall pay and
cancel all the bills or notes which have been issued and put in circula-
tion by such association under the provisions of this act, to be applied
pro rata to the payment of all such circulating notes ; but nothing in
this act contained shall be considered as implying any pledge on the
part of the State for the payment of said bills or notes beyond the
proper application of the securities pledged to the treasurer for their
redemption.
When additional Security thaU be furnished by Banks.
Sec. 25. In case the current market value of any portion of the
securities transferred by any banking association to the State treasurer
in trust, as provided in this act, snail at any time for the period of
ninety days be less than the value at which they were deposited, the
comptroller shall notify such bank of the depreciation in value of
such securities, and such banks, within thirty days after receiving
such notice, shall cause securities of the kinds before specified, or an
equal amount of their circulating notes, to be transferred to the trea-
surer of state, in trust, to an amount equal to the difference between
the current market value at the time of notice and the value at which
the same were deposited ; and if said banking association shall neglect
or refuse to deposit securities or circulating notes to the amount of
such difference, within the thirty days after the date of said notice,
the said association shall be deemed to have forfeited their rights*
powers, privileges, and immunities as banking associations under the
provisions of this act, and it shall be the duty of the comptroller to
make application to the Circuit Court of the county in which said
association may be located, to have receivers appointed, as provided
by sec. 9, chap. 54, title 13, Revised Statutes, who shall have the
powers and perform the duties that arc required by that section.
But this section shall not be so construed as to require the surrender
to such receiver of any securities deposited with the treasurer or
comptroller, pursuant to this act, and the comptroller shall sell such
securities for the payment of the bills or notes issued by the bank,
as he is required to do in other cases.
Penalty for over-issue of Notes.
Sec. 26. It shall not be lawful for the comptroller or his deputy
to countersign bills or notes for any association to an amount in the
aggregate exceeding the securities, at their value, as before provided
in this act, deposited with the treasurer in trust by such association ;
and any comptroller or deputy who shall violate the provisions of
this section shall, upon conviction, be deemed guilty of a misdemeanor,
and shall be punished by a fine of not less than five thousand dollars,
or be imprisoned not less than five years in the State prison, or by
both such fine and imprisonment.
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Notes to be Issued only Where Payable.
843
Increase of Bank Capital
Sec. 27. It shall be lawful for any association of persona organized
under the provisions of this act, by their articles of association, to
provide for an increase of their capital, and of the number of their
association from time to time, as they may think proper, the aggre-
gate capital not to exceed five hundred thousand dollars, as before
provided.
Contracts.
Sec. 28. Contracts made by any such association, and all notes
and bills by them issued and put in circulation as money, shall be
signed by the president or vice-president and cashier thereof.
Real Estate.
Sec. 29. It shall be lawful for such association to publish, hold,
and convey real estate for the following purposes :
1. Such as shall be necessary for its immediate accommodation in
the convenient transaction of its business ;
2. Such as shall be mortgaged to it in good fhith by way of security
for loans made by or money due to such association ;
3. Such as shall be conveyed to in satisfaction of debts previously
contracted in the course of its dealing ; and
4. Such as it shall acquire by sale on execution or decree of any
court in its favor. The said association shall not purchase, hold, or
convey real estate in any other case or for any other purpose what-
ever ; and all conveyances of such real estate shall be made to the
corporation, and which real estate the president and cashier may sell,
assign, grant, or convey, under the direction of the association, free
from any claim thereon, in favor of or against the shareholders, or
any person claiming under them.
. Penalties for Non-Redemption, Five per cent
Seo. 30. Such association shall be liable to pay the holder of every
bill or note put in circulation as money, the payment of which shall
have been demanded and protested, five per cent damages for the
non-payment thereof.
Names of Shareholders.
Sec. 31. The president and cashier of every association formed,
pursuant to the provisions of this act, shall, at all times, keep a true
and correct list of the names of all the shareholders of such association,
and shall file a copy of such list in the office of the register of deeds of
the county where any office of such association may be located, and
also in the office of the bank comptroller, on the first Monday in
January and July in each year.
Notes to be Issued only where Payable.
Sec. 32. It shall not be lawful for any association formed under the
provisions of this act, to make any of its bills or notes, to be put in
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844 Free Banking Law of Wisconsin. [May,
circulation as money, payable at any other place than at the office
where the business of the association is carried on and conducted, and
said bills or notes shall be made payable on demand and without
interest.
Insufficiency of Securities.
Sec. 33. Whenever the securities deposited for the redemption of
circulating notes, shall, in the opinion of the comptroller, become
insufficient for that purpose, he may receive the interest and dividends
on all securities, and shall deposit the same with some safe banking
association ; the deposit to be made on such terms and at such rate of
interest as the comptroller may deem most conducive to the interest
of such association, and to be withdrawn and paid over whenever, in
the opinion of the comptroller, the securities of such association shall
be sufficient to warrant it.
lies for Protesting.
Sec. 34. All fees for protesting the circulating notes issued by any
banking association, shall be paid by the person procuring the services
to be performed, for which said association shall be liable, but no part
of the securities deposited by such association shall be applied to the
payment of such fee.
BeUnquishment of Business.
Sec. 35. When the officers of any banking association desirous of
relinquishing the banking business, shall have redeemed at least ninety
per cent of their circulating notes, and shall have returned, cancelled,
the said notes to the comptroller, and shall produce to the comptroller
a certificate of deposit to his credit in such bank as he shall approve,
to an equal amount with the circulating notes of such banking associa-
tion unredeemed, it shall bo lawful for him to receive the same, and
to give up all the securities theretofore deposited by such banking
association for the redemption of circulating notes issued.
Notice of two years Required.
Sec. 36. Such banking association, after having complied with the
provisions of the last preceding section, shall give notice for two years
in some newspaper in the county where such bank shall have been
located, that all the circulating notes issued by such banking associa-
tion must be presented at the comptroller’s office within two years
from the date of such notice, or that the funds deposited for the
redemption of the notes will be given up to the banking association ;
and on receiving satisfactory proof of the giving of such notice for the
time aforesaid, the comptroller shall surrender to the order of such
banking association, any securities which he may hold for the payment
of any unredeemed notes of the said banking association.
Substitution of Specie for Securities.
Sec. 37. Any banking association wishing to withdraw any of the
securities by them deposited with the comptroller, may do so by
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Semi-Annual Reports.
845
depositing in lieu thereof, an equal amount of specie, or of the circu-
lating notes which have been issued to said association by the comp-
troller, in sums of not less than one thousand dollars.
Appropriation of Securities.
Sec. 38. The securities to be deposited with the treasurer in trust
by any association, shall be held by him exclusively for the redemp-
tion of the bills or notes of such association put in circulation as
money, until the same are paid and returned to the comptroller, as pro-
vided in this act ; but the treasurer may assign said securities to said
association transferring the same, upon receiving therefor equivalent
securities, or upon being notified by the comptroller that such bank
has deposited with him an equivalent amount in specie, or circulating
notes issued by such bank as provided in section thirty-seven of this
act.
Notes Returned to be Destroyed.
Sec. 39. All the circulating notes of banks and banking associations
returned to the comptroller, shall be destroyed by him after he shall
have made a record of the same, which record shall specify the number
of each bill, its date, and by whom it was countersigned, and shall be
made in the books to be kept by him for registering circulating notes,
as provided in section four of this act ; and said comptroller shall also
furnish the State treasurer with a copy of the record required by this
section, who shall record said copy in the book in which he is required
to copy descriptive securities and circulating notes, by sections twelve
and thirteen of this act.
Dividends of Profits— "When to be Withheld.
Seo. 40. If any portion of the original capital of any banking asso-
ciation shall be withdrawn for any purpose whatever, whilst any debts
of the association shall remain unsatisfied, no dividends or profits in
the shares of the capital stock of the association shall thereafter be
made until the deficit of capital shall have been made good, either by
subscription of the shareholders, or out of the subsequent accruing
Erofits of the association ; and if it shall appear that any such dividends
ave been made, it shall be the duty of any judge of the circuit court
of the county in which said association may be located, on application
of any person in interest, to make the necessary orders and decrees
for closing the affairs of the association, and distribute its property
and effects among its creditors and shareholders.
Semi-Annual Reports.
Sec. 41. Every bank and banking association shall, on the first
Monday of January and July in every year, after having commenced
the business of banking, as prescribed in this act, make and transmit
to the comptroller a report, which said report shall be made on the
oath of the president and cashier, and shall contain a true statement
of the following items, on the morning of the said first Mondays of
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846 Free Banking Law of Wisconsin . [May,
January and July, before any business of that day: loans and dis-
counts ; over-drafts ; due from banks ; due from directors of said
banks ; due from brokers ; real estate ; cash items ; stocks and pro-
missory notes ; bills of solvent banks ; bills of suspended banks ;
loss and expense account : capital ; circulation ; amount due to
State treasurer; amount due to depositors on demand; amount
due not included under either of the above heads. And it
shall be the duty of the comptroller to publish said report together,
once in some newspaper printed at the seat of government, accom-
panied with a summary of items of capital, circulation, and deposit,
specie and cash items, public securities, and private securities ; and
the expense of such publication shall be defrayed by a per centage
assessed upon the capital stock of all the banks and banking associa-
tions in this State ; and if any bank shall fail to furnish to the comp-
troller its semi-annual report in time for such publication, or shall fail
to pay the per centage assessed by the comptroller under this section,
when the same shall be demanded by him, it shall forfeit and pay the
comptroller the sum of one hundred dollars, to be applied by him to the
payment of the expense of publishing the semi-annual reports ; and the
comptroller is authorized to collect the said forfeiture in his name,
upon application to any court of competent jurisdiction in the county
where such delinquent bank may be located. The bank comptroller
shall also transmit annually to the Legislature at the commencement
of its session, a condensed summary of all the items reported to him
by all the banks, which summary, verified by his oath, shall contain a
true and correct statement of the condition of all the banks in the State
at the time of the making of their last report. Every bank and bank-
ing association shall also file a copy of the report required by this sec-
tion, in the office of the register of deeds of the county where such
bank is located, on the first Mondays of January and July in each year.
It shall be the duty of the comptroller, on the last days of January
and July of each year, to publish in some paper of general circulation,
printed at the seat of government, the number of banks in operation,
and a descriptive list of the securities transferred to the treasurer in
trust, for each banking association respectively.
Substitution of New for Old Notes.
Sec. 42. It shall be the duty of the comptroller to receive mutilated
circulating notes issued by him, and after making a record of them,
their denomination and amount, to deliver in lieu thereof other circu-
lating notes to the same amount.
Banks may charge Ten per Cent.
Sec. 43. Such banks or banking association may demand and receive
for loans on real and personal securities, or for notes, bills, or other
evidences of debt discounted, at a rate of interest not exceeding ten
per cent per annum, until the first day of January, A. D. 1860, and
not exceeding seven per cent per annum thereafter. It shall be lawful
to receive the interest in advance, according to the ordinary usage of
banking institutions and to charge for collecting foreign or inland bills,
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Popular Vote on the Law.
847
1855.]
or other evidences of debts, the usual current rate of exchange, and in
the commutation of time, thirty days shall be a month, and twelve
months a year.
Circulation to be received in Payment of Debts.
Sec. 44. All the bills and notes of such banking association shall at
all times be received by said association on all judgments, executions,
or demands, payable to, or the property of, such banking association.
General Application of the Law.
Sec. 45. That each and all the provisions of this act shall apply to,
and control, in all respects, any banker who shall conduct business
under the provisions of this law, whether the word banker is, or is
not used in any such provision.
Circulation of Illegal Paper.
Sec. 46. The officers or agents of any banking association, who
shall pay out to be put in circulation as money, in this State, any bill,
note, certificate of deposit, or other paper having the similitude of
a bank-note, knowing the same to have been issued without the
authority of this or any other of the United States, of the Congress
of the United States, or of Canada, shall upon conviction, be adjudged
guilty of a misdemeanor, and shall be punished by fine not less than
one hundred dollars for every piece of paper so put into circula-
tion, or imprisoned not less than six months, or by both fine and
imprisonment.
Liabilities of Stockholders.
Sec. 47. The stockholders in every corporation or association or-
ganized under the provisions of this act, shall be individually respon-
sible to the amount of their respective share or shares of stock, for
all its indebtedness and liabilities of every kind.
Amendments of Bank Law.
Sec. 48. This act may be amended by any future legislature, but
no amendment thereto shall take effect or be in force until it shall
have been submitted to a vote of the Sectors of the State in a similar
manner as is provided for in this act, and been approved by a
majority of all the votes cast on the subject.
Popular Vote on the Law.
Sec. 49. At the general election, to be held on the Tuesday next
succeeding the first Monday in November, in the year one thousand
eight hundred and fifty-two, at all the usual places of holding elections
in this State, for the election of all officers required by law, then to be
elected, the question, whether this act shall go into effect, or in any
manner be in force, shall be submitted to the people, and if the same
shall be approved by a majority of all the votes cast on that subject,
it shall go into effect, and be in force from and after the date of said
election ; otherwise it shall not go into effect, or in any manner be in
force.
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848
Banking in Massachusetts.
[May,
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Ballots for Bank Law.
Sec. 50. The votes cast on the subject specified in the preceding
section, shall be by separate ballot, and shall have written or printed,
or partly written and partly printed on each of them the words,
“ For the Bank Law,” or “Against the Bank Law,” which words shall
indicate the vote of the elector for or against the approval of this act ;
and the ballots so cast shall be canvassed and returned in the same
manner as the votes cast for State officers are required by law to be
canvassed, and the Secretary of State shall immediately, on the com-
pletion of said canvass, publish a statement of the result thereof in
some newspaper printed at the seat of government, and shall commu-
nicate the same to the next legislature, at the commencement of its
session ; and he shall also deliver to the State treasurer a certified
copy of this act, if the same shall have been approved, and a state-
ment of the result of the canvass of votes upon this subject, imme-
diately after the completion of said canvass.
\
BANKING IN MASSACHUSETTS.
Exb'ads from the A nnual Report of the Bank Commissioners of Mas-
sachusetts, December , 1854.
The number of banks incorporated in this Commonwealth, at the
date of our last annual report, was one hundred and fifty-three; and
the amount of bank capital, actually paid in, was §50,935,650.
During the present year, twenty new banks have been chartered,
with an aggregate capital of §2,500,000, and one of the old banks (the
Manufacturers’, at Georgetown) has brought its affairs to a close ; so
that the present number of incorporated banks in Massachusetts is one
hundred and seventy-two.
Five of the twenty banks ctyirtered by the last Legislature had not
commenced business on the first Monday of December; conse-
quently, the number of banks in actual operation in this Common-
wealth, at that time, was one hundred and sixty-seven ; of which
thirty-eight are in Boston.
Tho capital stock of thirty-six of the old banks was increased by the last Legislature
to the amount of $4,640,000
Which, added to the capital of the new banks, 2,500,000
Makes the amount of new bank capital authorized by the Legislature
of 1854, $7,140,000
This amount, however, has not as yet been wholly paid in. The
total amount of bank capital in Massachusetts actually paid in, on the
first Monday of the present month of December, was §57,103,843.*
We remark, finally, of the Georgetown Bank, which has had but a
* This sum does not include the capital of the Cochituate Bank.
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aualified existence for the last three years, that the amount of bills of
le Bank, which now remain out, is three hundred and forty-seven
dollars. The Bank was in operation from October 25, 1836, to Sep-
tember 30, 1851, the charter expiring on that day. The final dividend
to the stockholders, beyond the original capital paid in, was
per share. The average annual dividend during the existence of the
Bank, (or while it was in active operation,) was about five and seven
eighths per oent, and, with the above $10/^, about six and one half
per cent for the whole term.
The following tables show the banks incorporated, and those whose
capital was increased, by the Legislature of 1854 :
Banks Incorporated— 1854.
Name of Bank.
Location, Authored CapVl.
CapClpaidin BemarU
Monument,
.. Charlestown,
$150,000
Not commenced Dec, 1.
Monson,
.. Monson,
160,000
#T7,600
Commenced Oct 5.
Bass River,
.. Beverly,
100,000
67,068
Commenced Oct 2.
North-Bridgo water, . . .
.. North-Bridge water,.
100,000
100,000
Commenced Aug. 81.
Pemberton,
. . Lawrence,
100,000
68,287
Commenced Oct 18.
City Bank of Lynn, . . .
.. Lynn,
100,000
28,612
Commenced Oct 6.
Grafton,
.. Grafton,
100,000
100,000
Commenced Aug. 26.
Conway,
.. Conway,
100,000
90,664
Commenced Sept. 18.
Merchants’,
.. Lowell,
100,000
99,662
Commenced Aug. 6.
City Bank of Worcester, Worcester,
900,000
200,000
Commenced Sept. 9.
Northborough,
. . Northborough,
100,000
Not commenced Dec. 1.
Maverick,
. . East-Boston,
400,000
878,900
Commenced Sept IS.
Townsend,
.. Townsend,
100,000
80,468
Commenced Sept 16.
Miller’s River,
. . Athol,
100,000
96,962
Commenced Sept 16.
Brighton Market,
. . Brighton,
100,000
100,000
Commenced Sept 19l
Provincetown,
.. Provincetown,
100,000
Not commenced Dec. 1.
Holliston.
. . Holliston,
100,000
67,500
Commenced Oct 20.
South-Reading,
.. South-Reading,
100,000
100,000
Commenced Aug. 6w
Blackstone River, . . . .
.. Blackstone, ..6
100,000
Not commenced Dec. 1.
Vineyard,
.. Edgartown,
100,000
Not commenced Dec. 1.
Total, $2,600,000 $1,624,6*3
The following-named Banks , incorporated in 1853, whose capital \ in
whole or in part , had not been called in at the date of our last Report ,
have since received the addition in each case authorized by law , and
within the period prescribed :
Name of Bank. Location .
Metacoraet, Pall River, $195,000
Hopkiuton, . . Hopkinton, 100,000
Lecbraere, Cambridge, 100,000
Cambridge City, Cambridge, 1,600
Wamesit, Lowell, 60,000
Eliot, . Boston, 160,000
Broadway, Boston, 60,000
Rockland, , , Roxbury, 60,000
Pynchon Springfield, 14,600
Mount W ollaston, Quincy, 30, 660
Spicket Falls, Methuen, 60,000
Total, $851,650
Add amount paid last year, 3,348,350
Total capital of banka chartered in 1853, $4,200,000
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850 Banking in Massachusetts . [May,
The acts of the Legislature of 1854, bearing on the subject of banks
and banking, require a brief notice.
By an act passed February 6, 1854, it is provided that loans by
banks to the Commonwealth 44 shall not be deemed debts due to said
banks within the intent of the 9th section, 136th chapter, of the
Revised Statutes,” provided that a loan of not more than five per cent
of the capital stock of said banks shall be so exempted.
It will have been noticed, that the loan of some banks, as published
periodical lv by the Secretary of the Commonwealth, has frequently
exceeded the legal limit; but, in most cases, if not all, (except where
it has been otherwise accounted for,) the Commissioners have found
such excess to have been occasioned by a loan to the Commonwealth.
By act of April 15, 1854, provision is made for more frequent
returns, in certain particulars, to be made by the banks, a requisition
obviously so reasonable and desirable that it is surprising it has so
long been delayed.
No sound and well-conducted bank can fear to have its condition
disclosed, and no weak or badly-managed one should be able to avoid
it. A knowledge, too, of the aggregate resources of the banks is of
great advantage to the commercial community ; and the public good,
and not the convenience or emoluments of directors and stockholders,
being the great end for which they are incorporated, we have never
failed to urge the required publication of all such statements as are
necessary to secure this paramount object.
These returns should scrupulously set forth, as due from other banks,
only what can instantly be collected of them. In some instances, due-
bills and memorandum checks have been classed among debts due
from other banks — to small amounts indeed — but entirely objection-
able, and so pronounced by us.
By another act of same date, the annual returns required by law to
be made by each bank to the Secretary of the Commonwealth, showing
the condition of the Bank on the first Saturday of such preceding
month as the Governor shall direct, shall hereafter be made, showing
the condition of each bank at 7 o’clock in the afternoon of any Satur-
day that the Governor shall designate, provided that no distinction shall
be required between bills of $5 and upwards and smaller bills, and
none between bills of the banks of this State and bills of the banks of
the other New-England States.
The abstract contemplated by this act for the current year is based
upon the condition of the banks as of the second Saturday in August.
The acts under which this return is made, we still think, might, upon
a revision, indicate certain other items wrhich would serve better to
illustrate the condition of the several institutions. For instance, it is
not unusual for a bank to incur contingent liabilities by procuring
re-discounts of its own paper, whereas there is no provision of law for
exhibiting to the public such transactions ; though it would seem to be
the object of the acts calling for such abstracts to present these opera-
tions among the liabilities of the bank.
In regard to the legality or propriety of this practice, as we believe
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there is a diversity of opinion, it seems fitting that the Legislature
should interpose. If it is allowable for banks to re-discount their own
paper when the loan is up to the legal limit, with a viewr to affording
aid to customers, a ready wray seems opened for evading the law
restricting the amount of debts due to a bank. If the practice is not
legal, it would be wrell for the public to be apprised of it.
Embarrassments have of late occurred in relation to organizing
certain banking corporations, some conflict having arisen between per-
sons named in the act of incorporation and other subscribers to the stock.
The Supreme Court has settled the question, that the persons author-
ized to hold and enjoy the franchise and privileges granted by an
act of incorporation are the petitioners and those associated with them
prior to the approval of the act. Still, one clause in the general laws,
(Rev. Stat., ch. 44, sect. 3,) authorizing any person named in the act
to call the first meeting, might leave room for difficulties, as different
times and places for meeting might be selected by different persons
clothed with the same authority. Hence, an intimation is given from
a very high source that “ the Legislature may perceive the importance
of providing, by more accuracy and precision in their enactments, against
any such difficulty in future.” [Case of the Lechmere Bank, Shaw,
Chief-Justice. Law Reporter , January, 1854.]
By the 15th section of the general banking law, every bank is
authorized to hold such real estate as may be requisite for the conve-
nient transaction of its business, not exceeding twrelve per cent on the
amount of its capital, exclusive of what it may hold on mortgage or
on execution, or take as security for, or in payment of, any debts.
Notwithstanding the liberal provision in this respect, banks have
occasionally transcended the above-named limit, and that, too, without
appropriating the estate entirely, or mainly, to the purposes pre-
scribed. This excess may be, perhaps, in part owing to the advance
in value of the property after purchase. But when such a case arises,
the time has arrived to consider whether the difficulty can be obviated
by a partial sale, or by special authority, if it can be obtained for that
purpose. Several banks, however, have a summary mode of disposing
of the subject by charging “ profit and loss” and crediting “ real estate”
with an amount necessary to bring them within the requirement of the
law. We apprehend this practice will be found to be at variance w ith
the letter and spirit of the law. If real estate is held in excess or
otherwise, it should, in our view, have a place among the resources of
the bank, and appear at its true or presumed value upon the books
and in all the public exhibits of the bank.
In some banks the real estate is marked down to figures notoriously
below its real worth, and in others charged off entirely ; equal interests
in the same property are sometimes rated very unequally ; and an
instance occurs to us where one institution states at $500 the same
proportion of an estate which is placed at $2500 by another.
We understand the general view taken in justification of this course
of proceeding is, that, so long as the capital of the bank is unaffected
by it, an institution whose net profits allow of it may charge off real
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852 Banking in MauachruetU. [May,
estate at will, and that the Legislature designed only to guard against
inroads upon the capital beyond twelve per cent.
Our opinion is, that a literal restriction is intended, and that banks
can only hold real estate to the amount of twelve per cent of their
capital, and that merely for banking purposes ; especially should this
construction prevail when taken in connection with the broad margin
for what it may hold on mortgage or execution, or as security for or
in payment of debts.
Again : it does not by any means appear that the Legislature had
no design in framing the above section beyond that of merely protect-
ing the capital of a bank. It is more consistent with the policy of the
Commonwealth to presume that it intended to guard against an undue
concentration of this species of property in the hands of corporations,
apprehending, as it might, their tendency to encroach inordinately on
the real estate in their vicinity, thereby ((plaoing property out of
commerce.”
The Commissioners find that, in general, more care than heretofore
is used in the custody of bank-bills unsigned. We remarked at con-
siderable length upon this subject in our last report. Banks may do
all they can in this particular, and still some legislation is wanted.
Instances have been made public within the last year of banks out of
this State having been surprised by the sudden returns upon them of
unwonted amounts of their own bills, which it afterwards appeared
had been stolen and then filled up by strangers. Within a few months
several small bills of different denominations were offered at banks
and public places in this vicinity, in some instances blank as to date
or names of officers, and in others with a forged signatuture, the same
being impressions said to have been furnished to the order of a bank
in Maine.
In this case, upon inquiry, we find it stated that the bank in ques-
tion had reason to belive that blanks to an amount less than $50 had
been lost or abstracted from a package in transitu from the engraver
to the bank.
The example illustrates the danger to be apprehended from loose or
diverse modes of obtaining and keeping blank bank-notes. More uni-
formity and some further checks are desirable. Recent experience
teaches us that the issuing of a bank’s own bills — this “ almost regal
privilege,” as it is ; this “ immense bounty,” as it is called — should be
guarded, in all practicable ways, against the possibility of casualties or
of over-issues.
What the Commissioners consider excessive loans have existed in
some banks where the contrary appears by the published returns.
This arises from the fact that such banks loan to each other, and claim
that such indebtedness constitutes no part of the loan proper. This
Board has repeatedly alluded to the practice of banks borrowing of
each other on interest as objectionable, though the balances ordinarily
arising between them may lawfully draw interest ; but we deem it
quite another thing for one institution to resort to another for direct
aid to enable it to extend its own loan ; and still more to be repro-
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853
1855.]
bated is the extending of loans to banks out of the State. It has hap-
pened that such loans have been made upon business paper to mature,
for -which the bills are sent forward for circulation. Such negotiations,
in any view undesirable, we have not hesitated to pronounce a part of
those debts due the bank which are not immediately available, and
therefore to be placed in the loan. But, furthermore, we object
entirely to loans of this description, that is to say, mere circulation
loans unconnected with the business of the vicinity, whether made to
banks or individuals, especially at remote points, and most of all at
the West.
The rules laid down by the Committee on Banks and Banking at
the last session of the Legislature, in recommending additional bank
capital, were: 1st. “That the business of any given locality clearly
needed the use of the capital asked for and, 2d. “ That there was
capital there, or in the neighborhood, seeking that form of invest*
ment.”
Now, there is a very considerable portion of the loan of some banks
represented by names and collateral remote from home — most fre-
quently at the West. This usage operates harshly on those in the
vicinity who look for business accomodations at these banks. Here,
then, is a departure in practice from the rules supposed to govern our
banks in the distribution of discounts.
In some cases bank officers may have it in their power to satisfy the
Commissioners of the perfect safety of such loans, though the evidence
at other times falls far short of it : still, in any view, such loans are
unwise, and for reasons too clear to need much detail. Many of them,
seemingly very well secured, made on advances for railroad and other
enterprises incomplete, must now be renewed ; for, however urgent
may be the wants of the neighborhood, they cannot be called in. If
banks will loan much beyond their capital and average deposits, it
should be on early call ; and, in a word, they must be content with
more moderate profits, and thus escape the cares and risks incident to
such a business as we are considering. All paper that comes from
abroad for discount should, from that fact, be treated with some dis-
trust. Directors cannot maintain a suitable knowledge of distant par-
ties ; and it has been remarked that such paper exposes the banks to
greater danger of forgeries ; while sureties or indorsers will feel less
repugnance to resorting to subtle and evasive defences, to escape a
liability which debtors nearer home would shrink from setting up.
The Commissioners look with satisfaction on a loan which is made up
from the offerings of the business men of the vicinity whose interests
are identical with those of the bank ; for we can estimate its value, and
be sure the directors have been able to do the same.
It is needless to remark that the Commissioners have remonstrated,
in the strongest terms, against this course of banking, as impolitic,
illiberal, and unjust. But we do not consider the public, thus far,
endangered by it from the banks now in operation, though we are
very sure stockholders, in some instances, will begin to experience a
diminution of dividends therefrom.
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UNIVERSITY OF CHICAGO
854
Banking in Massachusetts.
[May,
An act was passed at the last session of the General Assembly of
Connecticut, whereby any bank in that State is prohibited from loan-
ing out of its borders more than one quarter part of its capital and
deposits ; in consequence whereof, these applications from without
have multiplied in our quarter.
Cases have occurred in which banks allege that their capital is suffi-
cient for domestic purposes and for these* foreign calls besides. It has
happened that the increase of capital granted at the last session is
alleged, in some instances, not to have been needed, (contrary to
expectation, indeed ;) and thus the design of the committee reporting
upon the case (keeping in view the two rules referred to above) has
been so far frustrated.
We have known an opinion expressed that banks are not bound to
regard the wants of their own neighborhood, or to be oonfined within
the Commonwealth even, in dispensing discounts; thus making all
public considerations give place to the supposed interest of stockhold-
ers— a doctrine, we are happy to say, which is very rarely advanced,
and which will never find favor with the public or the Legislature.
From all this the inference is plain that the banking capital of the
State is, at the least, large enough; or, if not so, any increase at
present does not promise much benefit to the business community,
unless dispensed with a just discrimination.
The further multiplication of banks, if they are not likely to increase
business facilities, seems hardly desirable. As has before been inti-
mated, a sharp competition prevails ; the banks, generally, are loath
to lessen their dividends or fall below their neighbors in this particu-
lar ; and the creation of new ones induces old as well as new to pro-
cure by indirection what does not arise naturally out of the current
business. The circulation, to which country banks look mainly for
profits, as it becomes more subdivided by the creation of new banks,
mils to satisfy the stockholders ; while, in the dty, the distribution of
deposits among an increased number of banks detracts from their
earnings.
Now, if, as we fear is apt to be the case, the banks resort to circula-
tion loans abroad to enable to keep up their profits to the old mark,
our business men must be deprived of aid which they need, and to
which they are entitled.
This subject, though heretofore remarked upon by us, has been
deemed too serious to be now passed by without special comment.
The desire of gain, which is rather increased than diminished by the
multiplication of banks, induces them to look to other sources of
income, and the rates of exchange charged by them are far from being
alleviated — rates which are often submitted to, rather than acqui-
esced in.
Exchange, as taken by the banks, which has long been a subject of
great though often vague complaint, is more generally charged than
ever before. Institutions of long standing, that have avoided making
a profit in this way, have latterly fallen into the example of other and
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UNIVERSITY OF CHICAGO
Banking in Massachusetts.
855
1855.]
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more recent corporationa — all of them impelled by the same motive
that actuates them in sending abroad their circulation.
Banks are authorized, in discounting drafts and bills of exchange, or
notes payable at any other place than where they are located, to charge
the “ existing rates ” of exchange between the places of discount and
of payment ; but the difficulty lies in determining the clement of those
existing rates. It is almost universally conceded by the banks that
the length of time the paper has to run, enters into the estimate. So
long as the “ existing rates ” are not based merely or chiefly on what
would be the amount of freight and insurance between the places, the
elements of exchange not being fixed by law, there is great danger that
banks will exact high rates under the pretext of such uncertainty.
Again : the high rates of interest ruling outside, tend to increase this
species of profit, on which so many banks rely, for escape from the
restrictions imposed by our usury laws.
Legislation, with a view to modifying those laws, or fixing a maxi-
mum of interest and exchange to be taken by banks, or, if practicable,
by specifying what shall compose exchange, has been suggested as a
remedy.
Good notes, well indorsed, or accompanied by collateral, offered by
responsible men in business, ought ordinarily to be taken at simple
interest, in preference to drafts on distant places, where, perhaps, the
drawer may neither have nor expect to have funds. W e have met with
instances of notes having been made payable elsewhere, but really
taken up at the place of discount ; and it has been admitted that paper
has been so framed “ for the purpose of receiving exchange.” No
becoming excuse can bo offered for a fiction like this, which needs only
to be named to be condemned. We have invariably reproved this
course of conduct, wherever, though seldom, it has been noticed ; after
which it has not, to our knowledge, been repeated.
By section 6, chapter 196, of the Acts of 1838, directors are pro-
hibited from being liable individually, directly or indirectly, to the
bank with which they are connected, for a sum greater than eight per
cent of its capital, or $40,000- — or, collectively, for a sum greater than
thirty per cent of its whole capital stock — unless the stockholders, at
a legal meeting, shall, by express vote, authorize a greater sum ; and
no vote shall be valid for that purpose for a longer period than one
year and thirty days from the passage thereof, nor unless it shall
name the greatest amount to be so authorized.
We referred particularly to this subject in our First Annual Report,
and our experience since induces us to reurge the importance of more
certainty in the terms of this extension of the privileges of directors.
It has seemed to us that the law above cited contemplated a simul-
taneous advance, if at all, in both respects, individually and in the
aggregate ; but, however that may be, further reflection has confirmed
us in the opinion that it is essential to the validity of a vote for the
purpose that the stockholders be notified of the special object in view,
when it is designed to act on so grave a matter as the modification of
a standing law of such importance.
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UNIVERSITY OF CHICAGO
856
Banking in Massachusetts.
[May,
The question has been discussed in various parts of the Common-
wealth, whether the renewal of a charter of a bank operates such a
change between the principal and the party to whom he owes duty as
to discharge the surety upon a cashier’s bond, bearing date prior to
the re-charter, from liability for the subsequent conduct of such officer.
We have invited the attention of various legal gentlemen connected
with banks to this subject, as being one which interests many of them.
In several cases, banks have terminated the uncertainty by calling for
new bonds. W c have finally, acting under advice, concluded to ad-
dress a circular to the re-chartered institutions, suggesting the pro-
priety of causing new bonds to be substituted for those of doubtful
validity now held by them.
By the first section of an act approved April 19, 1837, banks are
prohibited from loaning or issuing any of their notes or bills with an
express or implied agreement that such notes or bills shall not be put
into immediate circulation, or that they shall not be returned to the
bank for redemption within a limited time.
The officers of our banking institutions have not acknowledged any
violation of the above law. But the Commissioners have discovered
once or twice the counterpart of the practice there forbidden, where
banks have made loans upon the pledge of bills of other banks, though
the latter disclaimed all knowledge of such a transaction. It is evident
that loans on such security, though they may not violate any law of
the Commonwealth, tend to produce the mischief designed to be coun-
teracted by the act of 1837, the objects of which are liable to be de-
feated without the interposition of the Legislature.
The First Annual Report of the Association of Banks for the Sup-
pression of Counterfeiting, has been published within the current year.
It bears evidence of dilligence on the part of the officers and members
of the Association in the performance of the duties assumed by them,
and of their fidelity to the trust reposed in them by the State. The
allowance, not to exceed $2500 per annum, by the Commonwealth,
for a term of years, for the purpose of preventing and detecting the
crime of counterfeiting, was judicious in its design, and is evidently
well applied.
The report contains many valuable hints for promoting the object
they have in view, which cannot fail to interest men of business gene-
rally, as well as all who would eradicate the insidious evil in question
from the community. We place in an appendix to this report a
public advertisement of the Association, holding out suitable rewards
for useful information, and will remark, that we believe it has aided in
bringing to justice offenders who might otherwise have escaped. It is
not our province to enlarge on this subject, as the forthcoming report
of the Association will doubtless detail, so far as consistently niay be
done, its operations for this year.
The “ Little Androscoggin Company,” a manufacturing corporation
in the State of Maine, is mentioned in the first report of this Associa-
tion as having employed the New-England Bank Note Company of
this city to engrave a large quantity of notes of the customary deno-
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UNIVERSITY OF CHICAGO
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1855.]
Banking in Massachusetts .
857
minations in the style of bank-notes. The Company, it seems, claimed *
the right, and the Bank Note Company innocently supposed they were
empowered by their charter to issue bills. Bills were printed and
about to be delivered by the Bank Note Company; to prevent which,
steps were taken ; and the claim of right to issue them seems to have
been abandoned by the manfacturing company, as the Secretary of the
State of Maine denied the intention of the Legislature to grant banking
privileges. The report of the Association very properly remarks,
that, “ it being apparent that bills issued upon so questionable au-
thority would be considered spurious, and occasion loss to the holders,
and create prejudice against our paper currency, the engravers were
urged to suppress them.”
The incidents of this case strike us as worthy the attention of the
public. It is suggestive of dangers arising from the facilities at present
existing for issuing bills designed to be put in circulation as money —
a remedy for which the Legislature may see fit in its wisdom to attempt
by means of a State registry, or otherwise.
In the month of February last, the Commissioners examined the
Cochituate Bank.
The state of the Bank, presented by the Cashier at that time, was
as follows :
Capital,
Circulation,
Deposits,
Certificates of deposit,
Dividends unpaid, . . .
Reserved,
Gain,
Duo to banks, (bal.,).
Loan,
Suffolk Bank,
Due from banks, ....
Bills of other banks, .
Checks,
Specie,
$250,000 00
, 275,227 00
74,258 29
335 02
224 00
16,619 75
11,766 00
6,000 00
$634,430 06
$438,819 25
5,000 00
, -77,883 22
45,684 00
, 38,200 52
, 28,843 07
$634,430 06
Upon as careful and thorough an examination of the loan as the
Commissioners could make during the week devoted to the Bank, they
came to the conclusion that, objectionable as was a very considerable
portion of the paper, still the condition of the Bank was not such as to
render its further progress hazardous to the public. But they required
the directors to get rid, as rapidly as possible, of the paper objected
to, by obtaining other and better security, and to reduce essentially
the circulation. And they were assured that these recommendations
should be carried into effect.
The Commissioners deemed it important to avoid, consistently with
a due regard to the security of the public, the extremity of an injunc-
tion ; and they saw no reason to doubt, at the time of this examination,
that there was in the loan an amount of good and available paper more
than sufficient to meet all the engagements of the Bank.
57
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858
Banking in Massachusetts .
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[May,
After this examination, the Commissioners continued to keep an
eye upon the proceedings of the Bank, by occasional visits, and by
dills upon the proper officers from time to time for the character and
condition of the loan. In this way they found that the Bank was
apparently getting rid of the paper which had been objected to, thus
warranting the expectation of its soon being able to confme itself to its
true purposes — the demands of home business. But this expectation
turned out to be fallacious ; for, notwithstanding our recommendations,
much of the paper that was withdrawn was replaced, as it afterwards
appeared, by loans of an equally objectionable character.
On the 14th of April, the Commissioners were apprised of the fail -
ure of the President of the Bank. This event precipitated the failure
of the institution.
The state of the Bank at this time, as compared with that of the
February examination, exhibited a small diminution of the circulation
and a considerable increase of deposits; whilst the specie balances,
which at that time were but $G000, had gone up to $100,000 against
the Bank.
An application for an injunction was made on the 15th, which was
granted and immediately served.
Among the liabilities of the Bank — not included in its statements —
were $24,648.86, upon paper re-discounted by the Bank of the Re-
public, and $33,806, negotiated by the President for the temporary
use of the Bank, in settling daily cash balances.
Of the loan, more than a quarter part consisted of paper connected
with Railroads, Hydraulic Works, Williamsburgh Water Works, and
other concerns abroad, the availability of which depended upon a
variety of contingencies, and as to the security of which the Commis-
sioners were unable to obtain any satisfactory account. The liabili-
ties of the Directors at this time exceeded the maximum allowed by
law, as did also the liabilities of the President the amount allowed to
an individual director.
Since proceedings were commenced against the Bank, it has been
alleged, by a committee of the bondholders of the Lyons, Iowa, Cen-
tral Railroad Company, that the Bank had entered into an agreement
to loan that Company $100,000 for two years. This loan, it is now
stated, was effected through the agency of Messrs. Bryant, Allen &
Co., of which firm the President of the Bank was a partner, though
the evidence of this negotiation is not afforded by the books of the Bank.
At a hearing before Chief-Justice Shaw, on the 28th of April, it was
ordered, that E. R. Colt, A. T. Hall, and Solomon Lincoln, Esquires,
who, by consent of parties, had, on the fifteenth, been appointed
Agents, be Receivers to lake the custody of the Bank and its con-
cerns; and, on the fifth of June following, the injunction was made
perpetual.
As to the causes of the failure of this institution, two leading points
may be referred to :
First. The amount of foreign paper in the loan. This was taken,
as the Directors averred, with a view to circulation and ample divi-
dends. So disproportioned an amount of tlie loan in paper of this
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description is not to be justified by any possible view of legitimate
banking. Our opinions on this point have already been given. We
concur fully with a former Board of Commissioners on this subject.
In a report to the Legislature, made in 1843, after referring to the fact
that there were “ several banks not now needed in their vicinities,”
they add, “ In the absence of business paper in the vicinity, we find
them going abroad for it.” 44 A bank that has the prospect of habitu-
ally depending upon such paper to employ any considerable part of
its capital had better close its concerns.”
The large amount of this foreign paper in the Cochituate Bank crip-
pled its operations, and may be regarded as a prominent cause of the
disastrous result. This paper was fortified, indeed, by a variety of
bonds as collateral, such as those of the Lyons, Iowa, Central Railroad
Company, of the Niagara Hydraulic Company, of the Williamsburgh
Water Works, and of the County of Johnson, in the State of Iowa —
which seemed, at our examination in February, to be entitled to some
value. But they are believed now to be almost entirely worthless.
The second point to which we refer is the failure of the President.
This caused the failure, or led to the severe embarrassment, of many
individuals and concerns that were relying more or less upon him and
upon t he Bank for their resources. In this way, no small amount of the
paper, which, at the examination in February, appeared fair and avail-
able, became entirely unavailable when the failure occurred.
Nor should we overlook here the large over-draft of about $20,000,
which was allowed on the very eve of the failure.
These causes are abundantly sufficient to account for the downfall of
the Bank. It is unfortunately true of this, as it is indeed of very
many of the banks, that the stockholders fail in the duty of regular
and thorough examinations. We do not find that the stockholders of
the Cochituate Bank made any examination of its concerns ; every
thing was left to the Directors. The Board of Directors consisted of
the smallest number which the law allows — five ; and these gentlemen
seem to have intrusted the management of the Bank very much to the
President ; all of which we regard as inconsistent with just policy and
prudent forethought.
In August last, a dividend of fifty cents was ordered to be paid to
the creditors of the Bank. The full amount of the dividend has been
paid over, within a small fraction.
The amount of assets found by the Receivers was $583,422.56 ; the
net receipts, $1G8, 762.40; the claims proved, $290,117.37; amount
of dividend, $145,058,68.
The assets of the Bank in the hands of the Receivers, at the date of
their report, consisted of
Notes and bills unpaid, $305,757 60
Memorandum checks, 60,565 00
Over-drafts, 21(348 85
$436,671 45
Regarded as of doubtful value, 305,251 41
Value of assets estimated good .$131,420 04
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860 Banking in Massachusetts . [May,
The estimated amount of liabilities of the Bank, not then proved, is
as follows :
Circulation, $72,749 00
Deposits, 1,649 36
Dividends unpaid, % 1,424 00
$76,822 36
To which may be added claims in controversy, amounting to about
$25,000.
By the decision of the Supreme Judicial Court, no one class of
claimants has any preference in the distribution of assets — bill-holders
having a remedy by law for any deficiency against stockholders.
The failure of a bank is always to be regretted ; but in this case the
public will be losers, if at all, to but a small amount. The fact is not
a little gratifying, that a failure of this kind has not before occurred in
Massachusetts for many years.
In passing judgement on the misconduct of banks, we are bound
to discriminate between evils inherent in the system and those which
are the consequence of the neglect or remissness of stockholders. If
the banks are almost universally managed securely, and afford remu-
nerative returns to those interested, the system should not be con-
demned for a single disastrous result. It has been well said, that “ no
legislative acts that can be passed will supply the place of prudence,
skill, and integrity, in those who administer the concerns of a bank.”
The following statement exhibits a comparison of the general con-
dition of the banks included in our biennial examination, as presented
in our report of last year, with the condition of those in operation on
the first Monday of December, 1854, as derived from the returns
recently made to the Secretary of the Commonwealth :
Condition op the Banks— 1854.
Capital.
Circulation .
JDepoiU.
Sptcie.
Loan .
107 Bank*, 1854,
157,108,843
$24,295,490
$17,056,161
$8,190,255
$93,468,639
137 Banks, 1853,
43,881,950
19,912,839
15,290,101
8,591,709
73,72S,932
Increase,
$18,821,893
(4,8S2,65T
$2,860,060
$19,784,707
Decrease,
$895,507
It will be borne in mind that the interval between the two periods
preceding is more than a year and a half, and that the number of banks
for 1854 includes all the banks incorporated in 1853, and fifteen of
those chartered in 1854.
It will be seen that the specie item is below the figures of last year,
when we considered it should be raised. Some of the best country
banks are the most remarkable for this deficiency ; and it would not
be so censurable if their specie balances in the city were correspond-
ingly large. Here, too, they are apt to be remiss, and we fear will
continue so, till stockholders are content with smaller dividends, and
cease to importune directors to use their means so closely.
Finally, though we have freely enumerated those practices which
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861
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fail to meet our approbation, it is not to be inferred that we have not
seen much to commend. On the contrary, our knowledge of the offi-
cers and resoures of our banks enables us to bear willing and equivo-
cal testimony to the general ability and integrity with which they
are conducted.
Thereupon, wc congratulate stockholders and the public ; for, what-
ever restraints and limitations may be placed by law upon these insti-
tutions, their safety and utility must in a great measure depend, as has
before been said — and it cannot be too often repeated — upon the intel-
ligence and honesty of those who are intrusted with their management.
Boston.
Dividends of the Boston Banes for the Tears 1853, 1864, and April, 1865.
Name.
Capital.
Year,
1849.
Year ,
1860.
Year ,
1851.
Year ,
1652.
Year ,
1858.
Year f
1854.
April ,
1856.
Boylston Bank,
400,000
8
9
9
9
W
10
4*
Freeman's Bank,
400,000
9
9
9
9
9
10
5
Market Bank,
660,000
10
10
10
10
10
10
5
Suffolk Bank,
1,000,000
10
10
10
10
10
10
6
Tremont Bank,
1,250,000
7*
8
8
8
8
9
4
Atlantic Bank,
600,000
8
8
8
8
8
8
4
Atlas Bank,
600,000
7
7
6 X
7
7
7X
4
Bank North America,. .
760,000
. ,
new
7
8
TX
8
3X
Bank of Commerce, ....
2,000,000
..
new
9
8
8
8
4
Blackstone Bank,
750,000
. .
..
new
7
8
8
4
Boston Bank,
900,000
8
8
8
8
6
8
4
Broadway Bank,
127,000
. .
Commenced Dec. 20, 1858.
6
4
Eagle Bank,
700,000
7
7
7
7
7tf
8
4
Eliot Bank,
- 468,000
..
Commenced Oct 6, 1853.
..
4
Exchange Bank,
1,000,000
8
8
8
8
8
8
4
Fanenil Hall Bank, ....
500,000
„
new
8
8
8
4
Globe Bank,
1,000,000
8
8
8
8
8
8
4
Grocers’ Bank,
660,000
8
8
8
8
8
8
4
Hamilton Bank,
600,000
7
7
8
8
8
8
4
Harvard Banking Co.,. .
600,000
Commenced Aug, 23, 1853.
. .
4
Mechanics' Bank,
260,000
8
8
8
8
8
•8
4
Merchants' Bank,
4,000,000
8
8
8
8
8
8
4
National Bank,
650,000
. .
Commenced Aug. 1, 1S53.
. .
4
New-England Bank,. . .
1,000,080
8
8
8
8
8
8
4
North Bank,
760,000
7
7
7
7
8
4
Shawmut Bank,
750,000
7 X
8
8
$
8
8
4
Shoe A Leather Bank, . .
1,000,000
8*
8*
8
8
8
8
4
Traders’ Bank,
600,000
8
8
8
7X
8
8
4
Union Bank,
1,000,000
7
8
8
S
8
8
4
Washington Bank, ....
750,000
6
6
6
c*
8
Massachusetts Bank, . . .
800,000
6
6
6
6
6
6i-5
8i-f.
Granite Bank,
900,000
7
7
7
8
8
7*
*X
City Bank,
1,000,000
7
7*
7
7
7
7
sx
Columbian Bank,
760,000
7*
7
7
ex
7
3X
State Bank,
1,800,000
7
7
7
7
7
Webster Bank,
1,600,000
. .
Commenced Aug, 15, 1S53.
SX
Maverick Bank,
400,000
..
..
..
new
8
Total Capital, .... $32,855,000
• Ami an extra dividend of 12^ per cent
For details as to prior dividends, Sec Bankers' Magazine, June, 1S53, pp. 1000, 1007.
Gck igle
Original from
UNIVERSITY OF CHICAGO
Banking in Massachusetts.
Digitized by
862
[May,
1854.
Week ending
Capital.
Loans.
Specie.
Due from
other ITks.
Due to
other irk*.
Deposits.
Circu-
lation.
June 5,
80,833,000
48,369,492
2,860,277
8,715,943
6,651,S25
18,270,002
8,277,019
44 12,
80/412,750
4S,5S6,008
2,983,521
9,624,542
6,758,406
13,129,602
8,400,250
44 19,
30,496,706
49,110,478
9,929, 756
9,180,088
18,^93, S87
8,221337
44 26,
80,542,002
49,243,099
2,796,914
8,597,740
6,479,145
18,014916
8,058,265
July 8,
80,762,892
49,220,099
2,644,533
8,952,760
6,177,370
13,138,196
8,099,089
44 10,
80,796,925
49,116,057
2,889,025
10,092,794
6,848,480
12,758,605
9,158,459
44 17,
80,870,885
49,452,549
2,907,795
^0*000
6,434148
12,917,429
8,562,122
44 24,
80,945,189
49,814,787
2,984,940
9,478,802
6,826,785
12,672,918
8,541,494
44 81,
80,953,135
49,625,045
8,574,786
6,454,892
13,159,033
7,859,255
Aug. 7,
80,966,460
50,835,906
2,904,012
8,725,706
6,873,367
13,567,854
8,207,597
“ H
81,014,935
50,907,742
2,873,393
8,538,104
6,637,463
13,504750
8,184, 828
44 21
81,067,960
51,335,439
2,859,634
8,019,020
6,725,177
18,367,561
8,087,003
44 28,
81,038,185
51,589,519
2,972,742
7,458,857
6,674,529
13,209,477
7,972, SS8
Sept 4,
81,108,085
51,857,622
2,826,442
7,458,702
6,712,598
18,182,571
7,995,792
“ ii
81,130,035
52,102,499
2,584,491
8,019,725
6,950,576
12,799,689
44 18.
31,206,675
51,759,905
2,295,152
7,928,583
6,633,725
12,464,852
8,504,865
44 25,
81,468,050
50,9S7,G43
2,345,892
8,188,105
4327,606
11,903,930
8,885,306
Oct 2,
31,548,000
50,175,005
2,334,597
8,179,029
5,426,825
12,208,225
8,218,210
“
81,755,688
49,706,004
9,464,953
5,838,045
12^16,662
9,049.165
“ 1«
81,755,650
50,060,406
8,058,359
9,878,827
5,755,884
18.794,878
8,815,761
44 23,
82,087,050
50,417,690
8,812,555
9,187,049
5,895,417
14,052,928
6,718,781
“ 30,
82,081,250
50,867,242
8,399,289
8,878,262
6,017,152
14,245,487
S, 568,184
Nov. 6,
82,110,650
51,183,713
3,422,096
8,977,444
6,045,960
14570,980
8,585,116
44 13,
82,186,750
51,423,284
8,086,900
8,314,811
5,904,258
13,985, 8S7
8,656,451
44 20
94114100
51,025,471
2,859,565
8,078,462
5,728,519
13,812,995
8,612,489
44 27,
82,140,850
60,550,733
2,647,934
7,678,409
5,578,216
12,773,879
8,170,810
Dec. 4,
82,152,525
49,877,638
2,261,905
8,232,469
5,899,293
12,133,908
8,846,458
44 11,
49,395,192
49,092,969
2,319,783
2,275,177
11,506,777
11,582,601
8,072,769
7,706,193
44 18,
82,179,800
7,8S4,898
5,221,271
“25,
82,179,800
48,489.559
2,500,094
8,050,768
5,218,017
11,211,833
7,682,273
Jan. 1,
82,181,750
48,889,808
2,757,867
7,494,050
5, in, 967
11,494,876
7,217.724
44 8,
48,826,864
49,889,841
8,001,112
3,253,640
11,720,417
12,488,868
7,665,719
“ 15.
82,236,270
8,284.991
5,850, it J
* 22,
82,240,830
49,989,862
8,394,422
7,927,535
5,938,843
12,842,181
7,246,159
44 29,
82,244,625
60,842,060
8,364,861
7,504,725
6,022,046
12,830,082
7,148,586
Feb. 6,
82,246,125
60,961,878
8,380,798
7,470,701
6,118,041
18,207,450
7,086,221
44 12,
82,247,125
61,417,824
8,885,605
7,206,645
6,336,609
18,119,752
7,046,870
44 19
32,247,525
51,829,922
8,425,083
7,280,082
6,526,565
13,501,900
7,050,919
44 26,
82,296,675
52,114,800
8,261,274
7,858,666
6,610,S45
13,567.488
6,921,020
Mar. 5,
82,344,275
52,843,489
8,870,444
8,842,065
6,670,232
14808,918
7,124,678
“ 12,
82,854,075
52^60,060
8,811,840
7,790,948
6,782,871
14,187,420
6,936,870
44 19,
83,855,275
52,622,210
8,258,208
7,908,190
6,922,187
13,935,403
6,943,900
44 26,
82,855,275
52,555,805
8,844,351
7,888,888
6,677,821
14,229,384
6,987,190
Apr. 2,
82,860,575
62,242,260
8,2S3,818
7,686,365
6,460,530
14,241,888
6,844,831
“ 9.
82,892,775
62,890,455
8,362,218
9,644,347
7,368,676
15,159,814
7,94S,597
44 16
82,570,550
52,606,474
8,215,880
8,642,826
7,007,261
15,098,605
7,512,973
Country Banks op Massachusetts.
1851
Week ending
Capital.
Loans.
Specie.
Due from
Other R'ks.
Due to
other R'ks.
Deposits.
Circu-
lation.
July 1,
22,659,760
41,877,965
906,560
8,941,912
484189
5,451,106
16,215,000
Aug. 5,.
23,312,750
42,030,582
939,826
8,889,623
450,413
5,419,875
16,087,006
Sept 2
28,503,887
*407,005
928,598
8,960,141
412,008
6,647,772
15,981,496
44 80,
22,618,892
40,561,900
903,591
4,186,014
450,219
5,815,832
15,377,207
Nov. 4,
24,814,797
43,844,205
oni,-M2
4,886,311
459,167
5,952,827
16,705,836
Dec. 2,
24,951,819
43,586,006
934,450
8,817,068
460,061
6,522,253
15,949,088
44 80,
25,182,S53
42,800,468
970,145
8,885,691
488,580
5,106,755
14,865,138
Feb. 8,
25,283,908
41,961,443
1,012,577
3,2S7,610
860,281
5,384,367
14,107,160
Mar. 8,
25,214,653
42,140,868
1,003,415
8,985,769
859,043
6,542,635
14,038,649
“31
25,405,453
43,156,189
1,086,110
4^17,440
385,740
5,798,783
14,788,584
Go gle
Original Item
UNIVERSITY OF CWICAGO
Digitized by
1855.]
Maine .
863
Maine.
Condition of the Banks in Maine, 1848-1855.
LIABILITIES.
May, 1848.
May, 1880.
May, 1651.
Jan., 185S.
Jan^ 1855.
Capital
...$2,820,000
$8,143,000
18,580,100
$4,2S8,000
$7,826,802
Circulation,
... 2,815,520
2,801,150
2,994,905
4,880,675
5,057,297
Deposits,
... 1,129,774
884,455
1,889,187
2,048,743
2,448,998
Profits,
... 122, 877
158,290
169,890
265,766
580,629
Due to Banka,
... 112,955
85,260
111,728
102,450
145,727
$6,601,126
$6,577,155
$3,251^60
fll, 025, 634
$15,559,154
neoFRCKS.
Loans,
. . . $,6189,090
$5,850,660
$6,450,460
$8,157,288
$12,770,181
Bank balances,
... 579,140
487,850
818,282
1,425,988
1,408,817
fipede,....
... 581,586
424,196
680,296
928,491
877,165
Beal Estate,
... 189,006
118,464
102,570
189,887
108,19*
Bills of Maine Banks,.
... 99,570
181,048
150,016
218,925
288,905
Bills of other Banks,. .
82,784
09,742
104,686
165,610
110,89$
Total,
...$6,601,126
$6,577,155
$8,251,260
$11,025,634
$15,559,154
The following Banks have increased their Capital Stock since Jan., 1853.
Manufacturers <fc Traders’, $50,000
Ellsworth Bank, 75,000
Merchants' Bask, Bangor, 50,000
{Lewiston Falls Bank, 50,000
Waterrille Bank, 50,000
Freeman's Bank, 85,000
Atlantic Bank, Portland, 100,000
Calais Bank, 48,000
Canal Bank, Portland,.. 200,000
Traders’ Bank, Bangor, 60,000
Stockland Bank, 60,000
Casco Bank, Portland^ $200,000
City Bank, Bangor, 50,000
Merchants' Bank, Portland 75,000
Union Bank, Brunswiok, 25,000
Coboesee Centee Bank, 50,000
Bank of Cumberland^... 100,000
Biohmond Bank, 25,000
Fanners’ Bank, Bangor, 50,000
Eastern Bank, Bangor, 50,000
York Bank, 25,000
Northern Bank, Hallowell, 85,000
New Banks Chartered bt the Legislature of Maine, 1855.
Xame,
1. The Oakland Bank,
% The City Bank, . . .
3. The Alfred Bank, .
4. The Bath Bank,. . .
A The People’s Bank,
Location,
Authorised
Capital,
Gardiner, .$50,000
Biddeford, 100,000
Alfred, 50,000
Bath, 50,000
Waterville, 60,000
6. The Fairfield Bank, Kendall’s Mills, Fairfield,. . 60,000
7. The Canton Bank, . China, 50,000
8. The West Buxton Bank, West Buxton, 60,000
9. The Danville Bank, (name afterwards altered to
The Auburn Bank,) at Auburn, 60,000
Increased Capital Authorized, 1855.
JTamo, Location, Capital ,
1. The Casco Bank, Portland, $100,000
2. The Union Bank, .
3. The Ocean Bank,
4. The Bucksport Bank, . .
6. The Eastern Bank, . . . .
6. The Bank of Winthrop,
7. The Ticoaic Bank,
8. The State Bank,
9. The Belfast Bank,
Brunswick, 26,000
Kennebunk, 60,000
Bucksport, 25,000
Bangor, 50,000
Winthrop, 25,000
Waterville, 26,000
Augusta, 26,000
Belfast, 25,009
The China Bank, at China, Maine, has relinquished its Charter.
Gck igle
Original from
UNIVERSITY OF CHICAGO
864
Savings Bunks of New- York.
[May,
Foreign Money Redemption at the Suffolk Bank, Boston.
January, . .
February, .
March, ....
US:.-:
June,
Jaiy,
AugU6t . . .
September,
October, . . .
November,
December,
Year 1853.
$23,408,796
. 22,840,953
. 28,139,854
. 28,448,762
. 24,869,798
23,6S5,064
. 24,892,426
27,554,008
. 27,325,792
. 25,697,856
Tear 1S54.
January,
February,
March,
April,
27,618,184
May,
29.295.869
June,
July,
August
September,
October,
November,
December,
Total, $291,019,206 Total, $833,717,970
In tho month of October, 1854, there was quite a panic about the banks, both at
the West and the East, which will account for the accumulations at the Suffolk
Bank during that month. It is believed that tho redemption by this bank, (about
$1,075,000 per day, in 1854,) exceeds the redemption of country money in New-
York. Tho notes of the Massachusetts banks return more rapidly than others, be-
cause no bank is permitted to pay out any other than its own notes.
SAVINGS BANKS OF NEW-YORK.
Report of the Committee on Banks in relation to Savings Banks in the
Counties of New- York and Kings .
The Committee on Banks, to which were referred the reports of the
savings banks in the counties of New-York and Kings, made in pursu-
ance of the resolution of the Senate of the 3d January last,
Report : That reports have been received from all the savings
institutions in those two counties, that one bank has failed during the
past year to meet its engagements, and has passed into the hands of
receivers. The Committee, therefore, exclude the Knickerbocker
Savings Bank from their report, but have attached thereto the report
sent them by the receiver, which will show the state of that institution
on the 7th of February last, and they regret to say, shows there will
probably be a loss to the depositors of 55,091.14 dollars.
From all the other institutions, sixteen in New-York and three in
Kings county, the reports are made in strict compliance with the resolu-
tion calling for them, and from which the Committee have made the state-
ment annexed. This statement shows the deposits in New-York alone
to be over twenty-six millions, and in the two counties, $28,598,720.41
on the first day of January, and the number of depositors to be 133,801.
To meet this large indebtedness, these institutions hold in bonds and
mortgages $14,459,840.75 ; in stocks believed to be convertible into
money at short notice, $11,886,868; in real estate, $756,942.44; and
in cash on hand and in deposit, $2,029,305.15, making together
$29,130,956.34, and showing a surplus of assets above their liabilities
of $532,229.93. During the last year alone, 13,411,538.93 have been
received, and $15,734,061.68 have been paid out, a decrease of
Original from
UNIVERSITY OF CHICAGO
Digitized by
Savings Banks of New- York.
865
1855.]
$2,322,523, and showing clearly that on the first day of January, 1854,
the deposits were $30,921,249.
This difference, it is believed, does not proceed from any want of
confidence in these institutions, but is to be accounted for by the press-
ing demand for money during the past year, and to the necessities
arising from the pressure of the times upon that class who make up
the large list of depositors.
The Committee are unable to give a complete statement of the
deposits in the savings institutions in the whole State, but from such
returns as they have received, a statement of which is also hereto
annexed, they are satisfied the banks in the other parts of the State
hold at least $4,000,000, making together $32,598,726.41.
It will be seen that this sum compared with the deposits held by
similar institutions in older countries, with reference to population,
speaks favorably for that class of our people who avail themselves of
our savings institutions, showing the deposits to be larger in propor-
tion to our population than they are either in England or France.
Our minister in England, in 1852, ascertained from official sources,
that the deposits in the savings banks in the United Kingdom, were
£30,184,603 11s., or $144,886,101.96, and in France they were repre-
sented to be about $150,000,000.
It is believed that large as the deposits are now found to be in our
savings institutions, a steady increase may be confidently expected,
an increase equal at least to that of the general wealth and growth
of the State, thus bringing together through them, sums individually
small, but in the aggregate immense, which otherwise would have been
hoarded in unproductiveness, or wasted in extravagance, and all lead-
ing to habits of forethought, providence, and economy, diminishing
pauperism and all its attendant evils, while they elevate the social
position and promote the happiness of the classes which practise them.
So high is the value placed upon these institutions in England, that
after years of trial government has, by a recent act of Parliament,
made itself responsible for all monies paid into the savings banks of
the kingdom.
The committee believing that the policy of the State requires that
these institutions should be so guarded and protected as to inspire
confidence in their safety, and leave them as far as may be undisturbed
by frequent legislation hereafter, have, after much deliberation, deter-
mined to recommend to the Senate to place them under the super-
vision of the Bank Department, requiring from them quarterly reports,
and giving the Superintendent the same power in respect to examin-
ation, he now has over banks of issue.
It is believed that this plan will inspire and increase confidence, save
much legislation, and that the reports will afford highly valuable inform-
ation, and it may be stated that it has the approval of the officers of
the oldest and best conducted institutions in the State. In accordance
with these views, your committee have prepared a bill, and ask leave
to introduce the same. E. Sherrill,
M. Spencer,
Robt. A. Barnard.
Digitized by
Gck igle
Original fro-m
UNIVERSITY OF CHICAGO
Abstract or Reports op Saving* Banks in the Counties op New- York and Kings.
860
Savings Banks of New- York.
Digitized by
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UNIVERSITY OF CHICAGO
IS bk‘« In N. T. 4 8 In King* Co. |18,411£83.93 $18,734,061.88 148,837 $708,98188 $717,008.84 $1,991,48461 $118,068,87 47,700
Digitized by
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UNIVERSITY OF CHICAGO
868
Local Bank History.
[May,
Reports of Eighteen Country Savings Banks.
January l$f, 1855.
Westchester County Savings Bank, duo depositors, $36,927.24
Sixpenny Savings Bank, Albany, “ 5,538.50
Erie County Savings Bank, 44 132,291.73
Newburgh Savings Bank, 44 38,921.80
Sixpenny Savings Bank, Rochester, 44 22,997.57
Ulster County Savings Institution, 44 40,364.74
Western Savings Bank, Buffalo, 44 69,498.34
Brockport Savings Bank, 11 7,447.46
Rome Savings Bank, 44 26,612.87
Auburn Savings Institution, 44 28,679.93
Monroe County Savings linstitution, 44 192,958.25
Buffalo Savings Bank, 44 685,142.74
Yonkers Savings Bank, 44 „ 9,204.84
Syracuse Savings Institution, 44 62,053.39
Hudson City Savings Institution, 44 28,162.64
Savings Bank of Utica, 44 327,455.35
Cohoes Savings Bank, 44 12,270.17
Central City Savings Institution, 44 70,405.14
Total, due depositors, $1,796,932.80
LOCAL BANK HISTORY.
I. Bank of Chenango, Norwich , New- York. II. The Providence
Bank.
The charters of nine banks in this State will expire in the current
year, and three in 1856, namely :
Name*
Location.
Chartered . E&pir'n of Charter.
Capital .
Bank of Alban v,
.... Albany,
1829, April,
1855, January,
$240,000
Broom© County Bank,
... Binghamton,
1881, «
a
44
100,000
Central Bank,
... Cherry Valley,
1829, «
u
44
120,000
Mechanics’ Bank,
... New- York,
1881, February,
M
a
1,440,000
Tradesmen’s Bank,
u
1881, January,
a
44
400,000
Greenwich Bank,
44
1880, April,
1855, June,
200,000
Hudson River Bank,
... Hudson,
1880, March,
44
44
150,000
Livingston County Bank, . .
... Genesee, 1
1880, April,
1855, July,
100,000
Bank of Lansingburgh,
... Lansingburg,
1832, February.
44
44
120,000
Bank of Chenango,
... Norwich,
1829, April,
1856, Jan. 1,
120,000
Ontario Bank
... Canandaigua,
«( u
44
a
200,000
Ontario Branch Bank,
... Utica,
u u
U
41
800,000
I. The Bank of Chenango, Norwich.
The Bank of Chenango was chartered in the year 1818, to continue
fourteen years, with a capital not to exceed $200,000 in shares of $50
each. The provisions of the charter were similar to others granted at
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UNIVERSITY OF CHICAGO
1855.] The Bank af Chenango , Norwich. 869
that period, with one exception. The Bank was required to receive on
deposit all monies offered, and to pay an interest of 2 per cent on
deposits of one month ; 3 per cent on deposits of two months, and 5
per cent on deposits for three months or for any longer time. This
peculiar and unusual feature was repealed in the year 1832. The
commissioners to receive subscriptions for the stock were Thompson
Mead * Charles Knap,* Robert Monell, Samuel Ladd,* and Samuel
Campbell. Those marked with an asterisk (*) are dead. The desire
to invest money in banking business had not then become such a
mania as it has in our day, for it was with difficulty one quarter of the
capital stock was taken. Even two and a half years after the Bank
had been in operation, the first dividend was declared upon a pro-
fessedly paid-in capital of only $50,000. It stood at this sum for
six years, and up to 1829 it reached only $100,000. Among the
original subscribers we notice only six men who, through all vicissi-
tudes, have continued to be stockholders down to the present time,
namely : Noah Ely, Jabez Beardslee, and Charles Medbury, of New-
Berlin ; David Buttolph, of Norwich ; Dr. Levi Farr, of Greene, and
Cyrus Strong, of Binghamton. The number of stockholders was
about sixty.
The following gentlemen constituted the first board of directors,
namely : Charles Knap,* Tilly Lynde, Henry Mitchell, James Birdsall,
Joseph S. Fenton,* Mark Steere,* Joshua Pratt, John Noyes, Sen.,*
Cyrus Strong, Robert Monell, Jonathan Johnson,* David G. Bright*
and Nathan Chamberlin.*
In July, 1818, they organized by electing Charles Knap, President;
Matthew Talcott, of Utica, Cashier ; and Giles Chittenden, Teller, and
commenced business in a two-story wooden building, occupying the
site of Ralph Johnson’s hardware store. The present brick banking
house was erected two years afterwards.
Mr. Talcott performed the duties of Cashier for six months, when
he resigned, upon request , and Joseph S. Fenton was appointed in his
stead. In 1823, George Field succeeded Mr. Chittenden as Teller.
In 1824, David I. Perry became the Teller in place of Field. In the
year 1825, Mr. Fenton resigned the Cashiership, after a service of
seven years, and James Birdsall was appointed his successor. In
1826, Walter M. Conkey was appointed clerk, and on the retirement
of Mr. Perry, in the spring following, became Teller. In the year
1827, William B. Pellet was also appointed a clerk. In the next
year, 1828, Charles Knap, who had been President of the Bank from
its organization, tendered his resignation, and Thomas Miller was
elected President.
In the year 1829, the Legislature passed the celebrated Safety Fund
Law. The directors of the Bank, at the same session, asked and
obtained a renewal of the charter for twenty-seven years, subject to
the provisions of that act. Under it they were required to fix their
capital at a stated amount, (not exceeding the original limit of $200,000,)
which wras to be wholly paid in, in cash. The capital was accordingly
fixed at $120,000 in shares of $30 each.
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870
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[May,
lu the winter of 1830, upon the application of Mr. Stebbins, the
Bank Commissioner, to the Court of Chancery, representing that the
capital stock had not in fact been all paid in, but that the private notes
of a portion of the stockholders were received and treated as cash, to
the fraud of the public, that court granted an injunction to wind up
and close the business of the Bank. The circulation of this intelligence
produced a temporary panic among the bill-holders. At the request
of the directors, an examination of the state of the Bank was made by
a committee of prominent citizens, who, notwithstanding its admitted
irregularities and disregard of law, pronounced the Bank in a safe and
solvent condition. Public confidence was forthwith restored. Monied
men were readily found who paid as well as subscribed for their stock.
In a short time, proof was submitted to the Chancellor that the entire
capital was in the hands of bond-jidc stockholders, and every dollar
paid in in cash. The injunction was removed. The direction of the
Bank was reorganized by the retirement of several directors and the
election of others. Mr. Miluer resigned the office of President, and
was succeeded by Ira Wilcox, of Oxford. Smith M. Purdy was also
appointed to the office of Vice-President.
The Bank was thus placed for the first time on a rock bottom of
absolute security. Whatever defects existed in the Safety Fund law,
it must be acknowledged that the compulsory provision of pre-pay-
ment of all bank capital, as a condition of doing busiuess, was a signal
blessing. Without it the community had no guarantee from ruinous
loss. W ithout it, the Bank of Chenango had been subjected through-
out its whole existence to the shifts of loaning, shinning, and exchang-
ing. \\ ithout it, the Bank was exposed to annoying litigation and
harassing demands for specie ; demands stimulated by personal and
political hatred, and made frequent in proportion as its funds and
means ran low. It was not so much the sin of this particular Bank
that it started and went on doing business on a false basis, as the fault
of the times. It could plead in extenuation of its course, that it was
the fashion ; that other institutions did the same tiling ; that there was
uo restraining power to prevent it, and they were not required to be
wise or virtuous beyond their generation. It may seem strange at
the present day that such a vicious system of banking should have
been tolerated for an hour; and men wonder that the checks and
safeguards of the Safety Fund were not sooner applied. And yet ten
years had not rolled away before the “Safety Fund” itself became
insecure and was voted a humbug. The free banking law pronounced
State stocks to be the only infallible remedy for the bill-holder. As
nothing is brought to perfection at once, we may perhaps live to see
free banking upon stocks regarded as a failure, and something else
substituted as a specific. But happen what will, the great principle of
a cash paid capital must always be deemed the corner-stone of solvent
banking.
There was no change effected from the revolution of 1830, until
February, 1833, when Mr. Birdsall resigned his office of Cashier. Mr.
(monkey was appointed Cashier in his place, and Mr. Pellet was made
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1855.]
871
The Providence Bank, KhodeJsland .
Teller. In February, 1835, Samuel Kent was appointed Vice-Presi-
dent, in place of Smith M. Purdy, resigned. Under a cautious and
prudent administration of twenty-three years, the Bank has grown
strong in popular favor, and still stronger in its own resources. Its
published quarterly statements demonstrate its unshakable solidity.
The number of stockholders is thirty-five, and a decided majority of
the stock is owned by the thirteen directors. The charter of the Bank
will expire on the first day of next January. It is not to be supposed
that the community will, after that period, be left without ample
banking facilities.
We will not tire our readers with any more details, and we close
by giving the names of the present officers of the Bank, with the dates
of their first election :
President, Walter M. Conkey, Dec, 1852.
Cashier William B. Tellet, Dec, 1852.
Teller , John R. Conkey, Dec., 1852.
DIRECTORS.
Noah Ely, Oct, 181S.
Alvah Hunt, Nov., 1824.
Samuel Kent, : Dec., 1830.
Ethan Clarke, Dec., 1830.
Charles A. Thorp,. Dec., 1830.
David Oviatt, Dec., 1830.
John Randall, May, 1833.
Benjamin Chapman, Dec., 1833.
Benjamin F. Rexford, Dec, 1884.
Walter M. Conkey, Feb., 1835.
David Buttolph, Dec, 1840.
Devillo White, Dec., 1840.
William Snow, Dec, 1862.
II. The Providence Bank, KhodeJsland.
The Providence Bank was the first institution of the kind established
in KhodeJsland ; the Exchange Bank was the next, and when that was
projected by the “ Young America” of the day, it was looked upon as
a very wild speculation. It might succeed, said the old gentlemen,
shaking their heads, as they contemplated the speculative spirit of the
day, running so far ahead of the public wants ; but the chances were all
against it. Where was all the capital to come from ? where were the
men to be found capable of managing it ? and then was it not virtually
an infringement upon the vested rights of the bank already chartered?
These questions were gravely discussed, but the new bank went into
operation, and was followed by others, and still others, till the banks
in the State number eighty-seven, with an aggregate capital of eighteen
millions of dollars.
These banks have been, upon the whole, admirably managed, and
the regulations imposed by the General Assembly for the security of
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872
Local Bank History.
[May,
the public have been, on the whole, judicious. The result is. that our
banks have afforded a safe and profitable investment to capital, not
only for large accumulations, but for little savings — have rendered
incalculable benefit to trade, and have maintained {l high credit all
over the country. The old limit of $500,000 has been surpassed by
two of them, and they ask permission to increase their capital still
farther. This is objected to, on the ground that small banks are safer,
but why safer we do not see. The larger the capital, certainly the
safer are the issues and the deposits, and these, especially the
former, are what the public have to do with. A bank of a
million keeps up hardly any greater circulation than one of half the
capital. There has been a great accumulation of capital here, and
bank stocks are favorite investments; all of our bank stocks are
above par. If men havo money to loan, and choose to combine and
make a bank, or to increase the capital of a bank already chartered,
we do not see why the General Assembly should refuse them the
privilege on the same terms that it has been granted to others. The
capital thus invested is taken out of the market, where it would be
tempted to usurious interest, and is restricted to the legal rates ; it
yields a revenue to the State, both upon the original investment and
upon the aimual profit ; it is kept here for the benefit of our own trade,
when, if denied the privilege of investment under bank charters, it
might go elsewhere. Undoubtedly, the General Assembly should
take all precautions that the capital be actually paid in, that the banks
make returns of their condition, and that a strict supervision be kept
over them. This done, we would let the people have bank charters
to their hearts’ content. When we get too many, we shall discover it
in the diminished business and profits. But the trade of our city, so
rapidly increasing, demands constantly additional banking capital.
Let it be accommodated, and let it find here all the facilities that it
requires for its operation and for its extension ; let it not be driven
abroad to hire money at illegal rates, or to pay the profits of banking
— which are greater than the profits of trade — to those communities
where a more liberal policy prevails, and where the wants of business
are better understood.
The apprehension that so many have of too much banking capital
may be reasonable ; we have felt it, and have disfavored the expansion
of the currency occasioned by it ; but this expansion is by no means
in the ratio of the capital ; and so long as the public is protected, the
evil of over-banking will fall chiefly on the bankers, and will speedily
correct itself. But thus far this apprehension, which commenced with
the project of the Exchange Bank, has not been justified. The busi-
ness of the city has required for its healthy transaction all the capital
which the banks have furnished. Such, we think, will continue to be
the case.
For the particulars contained in this sketch, we are indebted to the
Providence Daily Journal.
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..UNIVERSITY OF CHICAQg
1855.]
TJtury Laws.
873
THE USURY LAWS OF NEW-YORK.
The committee of the New- York State Senate, to which was referred the
memorials of the Chamber of Commerce of the state of New-York, pray-
ing for a modification of the Usury Laws ; also a memorial of the Corn-
Exchange of the city of New-York, praying for a like object; also the
memorial of James Smith, Carey <fc Co. and four hundred and seventeen
others, citizens of New-York; also the memorial of Abraham Bell &
Sons, George Ackerman, and two hundred and fifty other citizens of
New-York ; also the memorial of John A. Clark, Samuel Russel, and one
hundred other citizens of New-York, besides numerous petitions and
papers of a miscellaneous character, all asking for a repeal or reform
in the existing Usury Laws of the State of New-York, respectfully
REPORT:
That these several memorials come from the leading commercial men
and great business interests of the metropolis of the state and of the
Union.
The Chamber of Commerce of New-York, though organized in the
city of New-York, is a state institution in form and in fact. Its mem-
bers represent all departments of trade, and are hardly less identified
with the great interior interests of the country than with our home and
foreign navigation. The voice of this body of men, composed of per-
sons engaged in practical trade, some as importers, others as exporters,
others as shippers, and many as borrowers of money, as well as capital-
ists having money to lend, is unanimously in favor of a repeal of the
Usury Law of 1837, now the law of the state, but almost from the time
of its enactment a dead letter upon the statute book.
The Chamber of Commerce have, from time to time, given to this
objectionable law a most careful consideration, and of its practical and
moral effect, in their last memorial to the legislature of the state, they say :
“ We have for many months witnessed in our city a most grievous
pressure in our money market, — a pressure almost heyond a parallel for
intensity. The cost of raising money has weighed down the energies of
many enterprising men. Usury law restrictions have afforded no allevi-
ation in the hour of need. The very reverse of this has been their in-
fluence.
“ Partly the imaginary, and in part the real dangers resulting from
these laws, drive away large amounts from the very places where they
are most needed.
“ This most onerous evil can be traced with great precision as coeval
with the enactment of our present Usury Law in 1837. A system of
intricate devices, of real as well as pretended evasion, commenced in
1837, and has been gradually acquiring a darker hue, and showing a
more and more degrading cupidity ever since that time.
“ The criminal provisions of this law have never in one instance been
enforced. And whenever the pecuniary provisions are resorted to, the
58
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874
Usury Lam.
[May,
party draws upon himself the most unenviable notoriety, and subjects
himself to the most indignant terms of reproach.
44 Your memorialists cannot but regard it as a stain upon the fair
reputation of our great state, that a law so utterly at war with the
moral sense of men, should be allowed to remain eighteen years upon
our statute books.
44 The actual experience of a great portion of the commercial world
warrants the most confident belief or even assertion, that stability as
well as moderation in the price of money, would immediately ensue here
from lenient usury laws.”
The law of 1837 was enacted to protect borrowing of money from
what is deemed to be the unjustifiable avarice of lenders. The motive
' which prompted that act was the very creditable desire of protecting
the weak against the strong, and it received the sanction of the legisla-
ture, on the assurance and in the belief that it would benefit those whose
credit was based upon individual character, energy and industry, rather
than upon large accumulations of money. The legal rate of interest —
seven per cent, on one hundred dollars — was thought to be a liberal
compensation for the use of money in this state, and all the more so as,
in some other states, the rates ruled as low as six per cent., and, in
Europe, at that time, from three to five per cent.
In the judgment of your committee, the law has entirely failed to ac-
complish the good purposes designed by its framers. We come to this
conclusion upon the testimony of men who are not lenders of money,
and who have been in business ever since the act passed. The restric-
tions imposed upon lenders have operated against the advancement of
trade, injuriously to a wholesome credit system, and disastrously to busi-
ness generally, particularly in the city of New-York, which is the great
focus of the trade and commerce of the country.
If the experience of the past demonstrates the truth of the foregoing
propositions, your committee believe the legislature cannot desire the
continuance of a law so injurious to trade, and altogether wanting in
means of benefit to any portion of the community. Commercial laws,
unenforced and unenforcible, are a stain upon the statute book, and the
effect of their existence is to weaken those useful moral enactments which
are in accordance with a wholesome public sentiment Even if the pro-
visions of an act which compels a lender of money to lose his entire in-
terest and principal were just^ its expediency or utility would be very
questionable in a community where theory and practice were both in
direct opposition to the law.
It is to be remembered, too, that New-York is the great commercial
state of the Union, and that our advantages of trade are founded not
merely upon the fact of our favorable position, geographically, as lying
on one of the shores of the great ocean which divides us from Europe —
near those inland oceans of the West, which are to the states of this
government what the great Mediterranean Sea is to the Old World — but
upon a liberal system of commercial law's.
In several of the states, the legal rate of interest is more than it is in
the state of New-York, and the tendency of the New-York law is to
t
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Usury Laws.
875
take business and capital from us to points where the loan of money
yields the largest interest to the lender. The capitalist of New-York
who should ask the same return for the use of his money in his own
state as he would legally exact elsewhere, would not only be deemed
criminal, but forfeit all the money he had invested. The New-York law
of this date is only an improvement upon the harsh enactment of Queen
Anne, (12 Anne, chapter 16tb,) which forfeited the principal, three
times over, whenever more than five per cent, was demanded for the use
of money.
In more than two thirds of the American states, the odious features
of the old English law, which was based upon a system almost universal
in the dark ages and anterior, have been abandoned. Twenty states in
this government are emancipated from the oppressive features of the
New-York statute ; and where the semblance of such laws now exists —
for they have no parallel in fact — they are discussed, and in the process
of melioration, as, sooner or later, they must be here. Truly, the lead-
ing commercial 6tate in the country ought not to be behind the sister
states, either in the legitimate freedom of trade, or in liberal provisions
of laws for the use of capital.
The laws of trade are as certain and permanent as the ebb and flow
of the tides. They may be and are embarrassed by legislative enact-
ments, as business communities are frequently crippled and injured by
attempts to control that, which, if left to itself would often end in a cor-
rection of public and private evils.
The speculations of trade, as disconnected with a regular and whole-
some business, may be injurious to persons and states, but you cannot
prevent them, nor dissuade men from them, nor even abridge them, by
such laws as the one now under consideration. The experience of the
world is against the wisdom of such enactments. While the best judg-
ments of intelligent men of the Old World condemn such provisions of
laws, the examinations of the most experienced persons in our own coun-
try result in an entire correspondence of opinion. The law of 1837,
which was suddenly passed, grew out of a general fever of speculation,
but we have had, since then, corresponding schemes of speculation, and
a money market, if not equally stringent, not at all relieved by the exist-
ence of a stringent usury law.
Indeed, the very risks attending the loan of money, under the existing
laws, often operate as a stimulus to speculation. Those who borrow
are required to give better security to the lender than would otherwise
be exacted, in order to protect the lender from the risks of the law, the
effects of which men are constantly exhausting their ingenuity to avoid.
The borrower must have money, and the lender will have his extra
security or protection, if the rates of money permit the loan at any
excess of interest above seven per cent
Capitalists, who dislike to evade the law, often loan their money at
7 per cent to persons less scrupulous than themselves as to the morality
or such a statute, and these parties loan at ten, twelve and fifteen to-
necessitous borrowers, who, but for the existence of such an act, would
resort to the first party, and secure the money they need at eight, nine-
or ten per cent per annum.
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Usury Laws.
[May,
Innocent parties, among tlie lenders of money, equally with the guilty,
may also be subjected to the stringent provisions of our usury laws. The
man who holds the note of his neighbor, received at a value different
from its face, and given, it may be, to relieve the necessities of a friend,
precisely as if he received it for purposes of speculation, may be a
usurer in the eye of the law. The third person who receives such a
note as security for a debt due him, from the relieved party in interest,
may lose note and debt if the original transaction was founded upon
usury. In a word, a principal may borrow money at eight per cent
interest, and refuse, in the end, to pay interest or principal, even when
the note he gave has passed at its par value into the hands of third,
fourth or other remote parties, entirely ignorant of the original excesss
of interest, and guiltless of all offence. The moral sense of every man
must be shocked at the existence of a law which is made to accomplish so
much injustice to innocent persons, but the moral effect upon the whole
community is hardly worse than these constant schemes of individuals
to avoid the effect of the law.
The memorialists before the committee represent that the law of this
state is unparalleled for its severity in the history of the commercial
world. So far as we are informed, the representation is true. While
there are usury laws in existence at home or abroad, their features are
less harsh than here, while in more than twenty states, as we have said,
there are no such laws.
In the city of NewT-York, the grand jury have recently made a pre-
sentment of the usury laws, on account of their non-observance. The
law of 1837, passed at the period of the commercial crisis which resulted
in a general suspension of specie payments, besides imposing upon the
lenders of money, who received more than seven per cent., the loss of
the whole sum lent, and the penalty of one thousand dollars, with six
months’ imprisonment, also required the respective grand juries to
inquire into all violations of the act. The grand jury have been charged
for eighteen years to take notice of the violations of this act, and yet
the only grand jury which has reported upon the subject at all lias
asked for its repeal, on account of its impracticable character, and the
general non-observance of its provisions.
The sentiment of almost the entire business community is embodied
in the prayer for repeal or modification, and, it is believed, the more
the subject is investigated in its moral and monetary effects, the more
general will be a demand for a reform. All men must admit the
injustice of an act, to characterize it by no harsher name, which would
prompt the borrower of money, after using what ho had borrowed, and
receiving benefits therefrom, to sue the lender of this very money, in
order to avoid the enforcement of an obligation which he had volunta-
rily contracted ; and hence, in part, the general contempt in wdiich the
law is held.
The existence of usury and interest acts are as old as the laws of sup-
ply and demand. Each is a profit on the investments of capital or
money. The borrower invests in business, or otherwise, the principal
which is loaned him, and often receives a benefit in dollars, and profit
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far beyond that conferred upon the capitalist. The fair pr^umption is,
that the receiver would never borrow money for investment at a rate of
interest above six or seven per cent., unless convinced that the loan was
for his own advantage.
Nor is it just to say that every contract for money shall be placed
upon the same basis. Security and risks are subjects which enter into
every monetary transaction, and for incurring an extra risk, it may be
very proper at times to receive an extra rate of interest. A capitalist
could well afford to lend money at a lower rate of interest upon securi-
ties by bond and mortgage, than upon loans made upon personal secu-
rity alone. In this view of the case a large number of states authorize
their citizens to make special contracts at a rate far above the limit pre-
scribed in the laws of interest. (See appendix for rates of interest in
all the states, and for penalties arising from a violation of the usury
laws.)
The old idea of Aristotle was, that as money did not produce money,
no interest should be paid for its use.*
Many also thought there was force in the old Mosaic law, which
says :f
w Unto a stranger thou mayest lend upon usury : but unto thy brother
thou shalt not lend upon usury”
The parable of the talents in the New Testament, however, encour-
ages the use of money, and the payment of interest for that use. There
can be no greater error than to suppose that any immorality is involved
in the existence of what are called the laws of interest or usury. We
sell lands and houses for what they will bring. We dispose of all the
products and commodities of life for their value, according to the na-
tural laws of trade. Why then should men be restrained in the returns
received for their own money ? The uses of money, like the love of
money, may lead to great abuses ; but abuses growing out of the em-
ployment of one’s own means, and the consequences flowing from them,
like all individual acts, are to be regulated more by the laws of God
than the laws of man. The coinage of gold and silver, the regulation
of the value thereof, and of foreign coin, like the power to fix the standard
of weights and measures, and the power to provide for the punishment
of counterfeiting* the securities and the current coin of the United States,
is very wisely left to the federal government and to Congress, The
stages-, too, are wisely prohibited, in order to secure uniformity upon all
matffers regarding money or currency, from coining money, emitting
bills of credit, and from making gold or silver coin a tender in the pay-
ments for debts.
The states undertake to regulate the price and use of money by fixing
an arbitrary value upon that use, regardless of value, times, circumstances
or facts. The Spartan law, making leather a currency, was hardly more
arbitrary in its provisions. The moral effect of that act and of our own
usury laws, have produced about the same results there and here ; each
* In the 411th year of Borne, alt Interest was prohibited at Borne, and the consequence was a
general embarrassment of trade, which finally fell Into the hands of the moat vicious people.
t Deuteronomy, c. 28, y. 20.
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878 Usury Laws. [May,
act rather excited than allayed the cupidity of the people for whom the
acts were framed. Perjury and deceit are the fruits of our own New-York
law. We also punish the lender of money by fines, imprisonment and
losses, while we let the borrower, who seduces the lender to violate the
law for his own advantage, pass unscathed. Confession of truth on the
part of the lender of money at rates above seven per cent, results in
losses and punishments. Omitting the truth involves the party arraign-
ed in the worse alternative of the guilt of falsehood.
It is admitted that usury in use may become odious from its abuse,
and the parties to it should be estimated and shunned like all other
Shylocks in trade.
The practices and theories upon the subject have been different in
different countries, and at periods of time. Thus, while Solon allowed
the Athenians to regulate their own interest, French, English, Chinese
and Mahommedans have usually held the practices of usurers in aver-
sion. Just in proportion as communities have become civilized, how-
ever, commercial laws regulating the use of money have become liber-
alized.
Our New-York law is an exception to all laws by general confession.
Hanging, banishment and the pillory, have been among the modes of
punishment prescribed, even in England, as resources for prevention for
this practice, and according to the severity of the laws, forbidding this
regulation of interest, have been the embarrassments of trade.
England, since August last, has been without any usury laws, and the
absence of them has worked no detriment to the community ; on the
contrary, we are assured the best expectations promised from their en-
tire abrogation have been realized. For many years, however, there
have been no usury laws, upon what is called commercial paper, and,
therefore, nothing corresponding to our own severely penal statute. By
the 3d and 4th of William IV. ch. 08, bills or notes at or within three
months were exempt from the operation of the usury laws. By the act
of 2d and 3d Victoria, ch. 37, no bill or note having more than twelve
months to run, nor any contract for loan or forbearance of money above
the sum of ten pounds, could, by reason of any rate of interest, be void.
The restrictions upon the free use and loan of money were all swept
away by the unanimous act of the two houses of parliament of August
5th, 1854, and steps are already taken to remove the usury laws in
Canada and elsewhere.*
The firot law against usury in this state was passed in 1717. It was
* The money writer of the London Times regards Canadian usury laws as working Injuriously
on the provinces, causing much of the available capital of the country to be attracted to the United
States, at the time when its detention was most needed. The London Shipping GazcUc, of Jan.
29th, has a column of editorial on the policy of usury laws in the British Provinces and the United
States, in which it says, that it “ cannot conceive that a single argument cau be advanced in sup-
port of the present restrictions upon the loaning of money and it advocates their abolition m
the colonies. It says—
The usury laws having been abolished by the Imperial Parliament, we trust to see them also
repealed in U s. They are opposed to every principle of political economy, ami have
been almost universally condemned by every writer on that science. We have always advocated
the removal of all unnecessary restrictions from mercantile transactions; and the vary fact of its
being possible to evade the law in a variety of ways — thus affording also a premium to dishonesty,
and inflicting injury on the conscientious borrower and lender— affords a strong argument for the
repeal of the law.”
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limited to five years, and established the rate of interest at six per cent.
In 1718, however, the rate was altered to eight per cent., and with a
proviso, punishing all excess of interest, with forfeitures similar, except
in extent of penalty, to those in force under the act of 12 Anne, chapter
16, which compelled the return of treble the value of the moneys loaned.
The present rate of interest was made by the act of 1737, which con-
tinued in force until 1830, when the seven per cent was still continued,
but with power given to the borrower to recover any excess. This sec-
tion, however, did not extend to bills of exchange, nor to promissory
notes, payable to order or bearer, in the hands of an endorser or holder,
who received the same in good faith, and without knowledge that they
were based upon a usurious consideration. The act of 1837 swept away
all such saving reservations, and instituted misdemeanors, fines and im-
prisonments— bottomry and respondentia bonds alone being excepted —
from the severity of the rule.
The practical effect of the present law is admitted to be the existence
of a system of shaving and per centage on money, altogether unknown
prior to its amendment. As in no other American state has there been
so severe a law passed, so in no other state has there been such per-
nicious examples of Shylock voracity.
We shall now show briefly how the New-York usury law is evaded,
in both town and country, and the examples we give are such as reliable
gentlemen have offered to prove before the committee.
It is no uncommon thing for shrewd men to receive seventeen instead
of seven per cent, upon their loans. Land companies, with small lots
valued at $150, borrow $100 on each of these lots, at seven per cent.,
giving deeds for the security, to be returned on payment of the loan.
The borrower then hires the lots thus deeded, for the sum of $10 per
annum. This complicated transaction is performed solely to avoid the
operations of the usury laws — the borrower making no use of the lands,
and yet he is glad to secure money at seventeen per cent, which other-
wise would be secured to him at eight, ten or twelve per cent.
Another example in practice stated to the committee, is where a city
lawyer received from a client ten thousand dollars, to be loaned out on
satisfactory real estate security in New-York and Brooklyn. The bor-
rower gave a bond and mortgage, at twelve months, at seven per cent.,
and then paid a fee of one thousand dollars to the lawyer for making
the searches ! Here was another seventeen per cent, transaction, which
the borrower, in part, has to thank the usury law for. Nine, ten and
fifteen per cent, are frequently paid on these twelve months’ transac-
tions, through the employment of agents whose business it is to loan
money.
Sometimes loans are made through fictitious buyers and sellers of
merchandise. A. wants, for three months, $800, and purchases mer-
chandise for $1,000, giving his note for three months, and then sells,
upon the spot, the nominal $1,000 in goods for $800 in cash. Here is
a premium of six per cent, per month, instead of seven per cent, a year.
When the borrower retires, the capitalist and his broker restore things
as at first. The leading stocks on the market are made constant foot-
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880
Usury Laws.
[May,
balls for avoiding the penalties imposed by the usury laws. John Jones,
who owns 100 shares of a leading stock, sells to John Smith, at 46, cash,
and buys back the same stock, deliverable in thirty days, at 48, and
here is twenty-four per cent, a year, instead of seven. Notes are sold at
all hours of the day at two and three per cent a month, in seasons of
pressure, and this is practical usury of the w orst kind.
Nor are such transactions confined to the city of New-York. In the
country there are the same sort of evasions, if not upon a scale so impos-
ing. Money is loaned by lawyers and agents, nominally at the legal rates,
but pointedly for much more, according to the stringency of the money
market. Money is loaned in the country upon short time, in small sums,
with judgment, confession and bonds, and large fees to agents. A cloud
of witnesses could bo produced to testify to such occurrences, and they
are day by day becoming more and more common and alarming.
Jeremy Bentham, who has written so elaborately upon this subject, was
right when he said, that the usury laws extend a corrupting influence
upon the morals of the people ; and Mr. Whipple, of Rhode Island, was
wrong, in his able and elaborate pamphlet, wherein he undertakes to
prove to the contrary. The one wrote upon the subject in 1787, and
the other wrote in 1836 — fifty years later; but the truth elicited by the
experience of this whole fifty years is adverse to the practical wisdom
of such a law as that now upon the statute book.
The theory of the usury laws may be sound in the estimation of good
citizens, who are opposed to the practice of what they deem to be beyond
a fair interest for money. We shall not discuss the theory, nor enter
upon the argument that a man has a right to make the same use of his
gold and silver, watch and spoons, or other species of property, that he
has to dispose of his gold and silver dollars. Nor shall we enter upon
the questions involved in the claim of free trade in the use of property
in goods or value in money. We choose rather to speak of the law as
it is, and to pronounce it as inoperative and void for all good purposes,
and at the same time productive of great practical mischief.
Nor shall we now discuss more at length the question involved in a
repeal of the law as it is. We propose only a just modification. We
think it wrong to compel a man to lose both the principal and interest
of his money for receiving more than seven per cent, when it may be
worth more to the borrower and lender. If w re disliked the principle of
undue exaction even more than we do, and we certainly cannot defend or
excuse it, we should still be impressed with the injustice of penalties which
we feel to be intrinsically wrong in themselves. The penalty, if enforced,
now accrues to the advantage of the dishonest borrower or informant.
The practice, we have endeavored to show, does not result in any good to
the general community, for whose protection and benefit the law was fram-
ed. We cannot legislate against the sordid and miserly citizen, on the
ground of his avarice, any more than we can legislate against the rich man
on account of his extravagance and luxury. The lender of money in one
case may ruin the borrower by his extortion, and in another aid him by
the uses to which the money loaned is appropriated. The borrower, in
either case, regards himself as accommodated by the lender, otherwise
he would not borrow.
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Usury Laws.
881
1855.]
The whole subject is one of fruitful interest. While the ablest writers
on currency and interest have discussed the question with opposing opin-
ions for long periods of time, the best judgments of the business men,
we think, are in favor of the views embodied in this report.
The legislature, at its present session, has repealed the small bill law,
enacted twenty years ago, on account of its non-enforcement. The gene-
ral practice of the community made it a dead letter, and brought it into
disrepute. The violations of the usury laws, if not equally common,
are equally without enforcement. The most scrupulous may obey them,
but the mass of mankind hold them, in practice, almost in entire
disrespect.
The advocates of the usury laws base their defence rather upon pas-
sion and prejudice than on sober fact. They speak of money as a
power which is abused, and of money lenders as men who are selfish
and sordid. They invoke the sympathies of the poor against covetous-
ness, and arouse the jealousies of the honest-minded men of the coun-
try against those who are called the crafly capitalists of the seaboard.
There is neither justice nor manliness in appeals or arguments tempered
with such weapons. For they serve no good purpose, and produce only
envy and hatred between different classes of people and different sections
of territory. All our best instincts condemn the man who uses the
means he has to oppress the poor. The laws of God and the judgments
of good men censure him. He also, who uses his means to enhance the
price of the necessaries of life, and whose avarice is so great as to make
him insensible to human woe, has neither the respect nor sympathies of
his fellow-men. But we look in vain to human laws for a remedy for
selfishness. The instrumentalities of the Church rather than the State,
afford the best means of correcting evils which belong rather to the
school of conscience and morals than to bodies appointed for framing
civil laws.
The committee, in conclusion, find the following facts to sustain them
in the foregoing arguments :
First. — That in the richest and most commercial countries, like Eng-
land, Holland and the free city of Hamburgh, for example, the rates
of interest rule at the lowest points. There the rates of interest have
varied in the sixty years past from two and a half to six per cent.
Secondly. — The highest rates of practical interest rule in this Btate,
where usury is made punishable with a fine of $1,000, imprisonment
for six months, and the loss of the whole debt, principal and interest, if
more than seven per cent, is received for money. The rich buyers of
notes at two per cent, a month in New-York are the leading advocates
of usury laws.
Thirdly. — Money is not cheapened to borrowers by stringent usury
laws, nor can any legislative acts fix permanent rates of interest for the
use of money. Where there is no contract for the use of money, it is
necessary and right for the state to establish a rate of interest. The
bill reported, however, only goes to the extent of modifying the existing
law so as to give the bare principal, without interest, in cases of suit, to
the lender.
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[May,
Fourthly . — The rates of money will always be according to the strin-
gency of the money market, and the degree of confidence in business.
Sometimes it will be under seven per cent., and sometimes above, and
it is frequently loaned by the banks at five and six, and 6even per cent ;
but when money is scarce, and the rates of interest high, the lender will
secure himself indirectly, if not directly, for all risks incurred for the
use of his capital, and this, without regard to the rate fixed by law.
Fifthly. — With an exception or two, of the two or three thousand
memorialists petitioning for a repeal of the law of 1837, all are bor-
rowers of money, and your committee believe that the modification they
propose to the existing law, will result in benefiting this class of persons.
All of which is respectfully submitted.
(Signed,) ERASTUS BROOKS, )
JAS. H. HUTCHINS, ]
Committee.
REFORM IN THE USURY LAWS.
The parties who are now asking a change in our usury laws will
fairly state the arguments of those who have favored the stringent sys-
tem, and will set in an opposite column some brief answers to such
arguments.
REASONS FOR RESTRICTIVE USURY LAWS.
1. Money is the creation of sovereignty, is brought into existence by government,
and is the only article or thing made a legal tender in payment of debts. There-
fore it is not only the right, but the positive duty of government to regulate the
price for its use.
Answers. — 1. No government in the world can create money, they
can only modify, to a certain extent, that which already exists. The
federal government, clothed with power from the people, for general
good, merely gives money such additional facility and convenience, as
stamping the value confers upon it.
This is duly paid for, under certain United States Mint regulations,
so that the proprietor of the metal then takes his money home, with an
ownership as perfect and absolute as that in which he holds any other
item of his estate.
The federal government has been clothed with power, under the con-
stitution, to coin money. The states have no such power ; they are
expressly prohibited. The federal government makes gold and silver
a lawful tender in the payment of debts. The states have nothing to
do with such power. The federal government has the exclusive power
to regulate weights and measures, but has neither the right nor the oner-
ous task of regulating the price of articles weighed and measured.
States may charter cotton factories and insurance companies, but
they never arrange the price of cotton fabrics, nor can they fix upon
some one rate of premium that would suit all degrees and grades of
risk. True, they could name, in a statute, some maximum per contage,
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883
1853.] Reform in the Usury hates.
perhaps fifty per cent, to cover all degrees of risk, but we should all
pronounce it utterly beneath the dignity of law-making to commit such
gratuitous nonsense.
2. Hie state governments authorize the issue of paper money by banks, and
ought, therefore, to regulate the rate of interest on bank loans.
2. Banks stand in the same relation to our State governments that
other incorporations under our state laws do.
Our legislature does not compel insurance companies to insure poor
ships at the same rate as for good ones. They should, upon the same
principle, refrain from all attempts to force capitalists or others to
loan on poor securities upon the same terms they lend on good ones.
When any iron rule operates to hinder a needy, yet useful and enter-
prising man, from borrowing, merely because he cannot find a party
willing to lend at the maximum rate of interest fixed by law, it works
a hardship of much cruelty and oppression.
8. High rates of interest have been talked against and denounced from the
earliest agea
3. So have all high prices, as compared with low ones, for all the
comforts and luxuries of life. Severe laws, too, have been enacted
against usury, and so, too, have the most severe and cruel laws been
enacted against religious freedom. In both cases such laws have been
a great deal worse than idle.
4. The relaxation as to usury on business contracts will advance the rate of in-
terest and disturb loans in the country and in towns, cities and villages, on the
mortgage of farms and other real estate, causing them to be forthwith allied in for
the purpose of being re-loaned at higher rates.
4. Relaxation has never in one instance failed to lower the rate of in-
terest. Our opponents may, upon the other hand, search back for cen-
turies, and it will be found that stringent usury laws have always been
accompanied by frequent and violent disturbances in business.
Two-thirds of our own states have long been trying vastly more
lenient usury laws than we are under, some of them forfeiting the in-
terest and many only the extra interest as a penalty for usury. The
result of this relaxation has been salutary and useful to all business
men.
The freedom we are seeking would be signally beneficial to parties
needing to borrow upon bond and mortgage. There is probably no
class of our citizens who have been subjected to more grinding oppres-
sion than have been the smaller borrowers upon the mortgage of house
lots, and other real estate of a kindred character. They have, in many
instances, been either ignorantly or wickedly deluded into the belief that
the law could be evaded, but that the risk of such evasion must be
bountifully paid for. These intimations can, at any time, be sustained
by detailed proof.
6. Capital does not bear the same relation to enterprise and industry here that it
does in Europe.
The laboring and producing classes here predominate largely over the capitalists.
Our capitalists must therefore be restricted, in order that the producing classes may
be enabled to borrow at lower ratesi
5. We will quote from the Chamber of Commerce memorial for a re-
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[May,
Reform in the Usury Laws .
ply : 44 It is a well-known fact that in all new countries, where the area
of rich soil, as compared with the population, goes far beyond the old
countries in Europe, and where we greatly surpass the older nations in
mauy of the elements of prosperity, the rates of interest, stimulated by
these increased facilities for profit, will, for many years to come, exceed
the prices of money in Europe ; and yet the very policy that conduces
to stability and moderation in Europe has exactly the same tendency in
America.” They have now no usury restrictions at all in any of the
principal portions of commercial Europe, and, as a natural consequence,
the rate of interest has been gradually becoming lower and lower for
years past.
6. If the whole power to regulate interest rests with the capitalists, the rates
cannot be brought down.
C. Very true, provided capitalists had such power; but they have
not. If they had, they would never allow the rate of interest to go
below seven per cent, per annum. We all know that the average mar-
ket rate, in a succession of years, is, in this state, below that rate more
than two-thirds of the time. We want usury laws repealed so as to
alleviate panics during other portions of time.
The laws of supply and demand will be, as they always have been,
quite sufficient to keep greedy capitalists in check.
7. It has been said, by a recent writer upon our usury laws, that there is a given
amount of capital among us, seeking investment; and, if our usury laws are firm
and inflexible, such capital could be had at legal rates.
7. We have already shown the impossibility of keeping down the
rate of interest, in violation of the immutable laws of supply and de-
mand. If wTe could compel capitalists and others to lend their money
now at seven per cent, per annum, when the average market rate is ten,
then Philadelphia and Boston, and other places surrounding our 44 Golden
Goose” of a state, wrould borrow every dollar of our money
Very true, our capital wrould bo “had at legal rates,” — but not by
New - Yorkers .
Our money wrould run aw?ay from us as rapidly as all our flour would,
were we forced by law to sell it three dollars a barrel under the market
price.
Nothing but the profound disrespect and aversion with which this
law is regarded, prevents its throwing our trading community into even
greater embarrassments than we now witness.
We thus answer the more prominent reasons that have been put forth
for continuing our usury laws in their present shape.
For a more detailed exposition of their evil tendency, reference may
be had to the reports and documents recently issued by the New-York
Chamber of Commerce.
The principal initiatory moves for this reform, go from the city of New-
York, because inevitable circumstances cause our city to be the great
receiving and distributing centre for the whole American continent, so
that in the nature of things, any disturbing check to the free and whole-
some circulation of money, first shows itself at such a place.
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UNIVERSITY OF CHICAGO
885
1855.] The Bank of France.
In seeking to remedy the evil, we of the city benefit our fellow-citi-
zens of the country as much as we do ourselves. Self-interest may be
our moving principle in this matter, and yet benefit to others be the
incidental good.
Viewing this city merely as a part of the political machinery of our
state, we are confident that, when candidly considered, our great agri-
cultural and manufacturing interests will discard all sectional feeling
that may have been occasioned by the move for reform, coming from a
great commercial city. The supposition entertained in some quarters
that lenders originate this step, is entirely a mistake. In all great com-
mercial communities full nine-tenths of the persons who carry on trade
and commerce borrow much more money than they lend. Hence the
reason that nine-tenths of the hundreds upon hundreds now pouring in
their names for repeal, are from the borrowing class of our citizens.
OPERATIONS OF THE BANK OF FRANCE FOR 1854.
[From the London Economist, March 8, 1855.]
The annual account of the Bank of France, presented to the general
court of proprietors by the Governor, Count D’Argout, on January 25th,
confirms the fact, previously elicited from the reports of our joint stock
banks, that the year 1854 was extremely favorable to the banking in-
terest. The business done by the Bank of France was not in its total
amount so great in 1854 as in 1853, the totals for three years being:
1862. 1868. 1864.
Business done,.. .Fes. 2,641,000,000 8,964,000,000 8,888,000,000
Gross results, 14,800,000 19,700,000 28,900,000
In 6pite of increased expenses and diminished business, says the re-
port, the profits in 1854 exceeded the profits in 1853, in consequence of
the high rate of interest prevailing through the early part of 1854.
A short analysis of the principal operation of the Bank shows that the
discount on commercial hills, which figures in the first rank of business,
including the branches and the Metropolitan Bank, was —
In 1863,-. Fes. 2,842,000,000
la 1864, 2,944,000,000
Increase 1864, 102,000,000
The average monthly amount of discount for six months was—
First Six Mouths. Second Six Months.
In 1858 Fes. 1,857,000,000 1,486,000,000
In 1854,. 1,672,000,000 1,271,000,000
From which it appears that the difference in favor of the first six months
of 1854, as against the second six months of the year, was 401,000,000f.
It also appears that the excess in the last six months of 1853 over the
same period of 1854 was 214,000,0000f., while the excess in the first
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UNIVERSITY OF CHICAGO
886 The Bank of France. [May,
six months of 1854 over the first six months of 1858 was 315,000,000f.
In France, then, just as in England, the greatest activity of commorce
was in the year between July, 1853, and June, 1854, inclusive. The
greatest monthly amount of discount between January, 1853, and De-
cember, 1854, was in January, 1854, 309,000,000f., and the smallest in
May, 1853, 179, 000, OOOf.
The dividend for the first six months of 1854 was 112f. — a sum never
before reached ; the dividend on the last six months was 82f. — a sum
before reached, but rarely surpassed. For 112 days in the first six
months the rate of discount was 5 per cent., which explains the large
profits of the Bank in that half year, while the subsequent decline in
rate explains the diminished profit of the last half year.
The paper in the Bank (the Portefeuille) amounted,
On Nov 2, to Fes. 260,000,000
On Dec. 28, to 839,000,000
Increase, 79,000,000
At present, Jan. 25, it is. 408,000,000
The advances made by the Bank on rentes were, in the year of the
conversion, 1852, 330,000,000f. ; in 1853, 216, 000, OOOf ; they were
reduced in 1854 to 100, 000, OOOf.
The advances on railway shares and bonds were 347, 000, OOOf. in
1854, and the advances on the canals, &c., of the city of Paris, fell
from 35,000,000f. to 25,000,000f. The discount of Treasury bonds for
the public was 5,900,000f. in 1853, and 8,300,000f. in 1854. The
discount of Mint bonds for the purchase of ingots increased from
246.000. 000f. in 1853 to 285,000,000f. in 1854.
In relation to the transactions between the Bank and the State, it is
enough to say that the latter has reduced its debt to the former from
7 5.000. 000f. to 65,000,000f. ; that subsequent credits opened at the
Bank for the Treasury have been repaid ; and a credit for 30, 000, OOOf.,
opened on December 7, has not been used, and a previous advance has
been repaid. The balance in favor of the Treasury was 24,000,000f. on
November 1, and has since been, on January 17, 222,000,000f., and is
at date, January 25, 184,000,000f.
The total of the movements of the Central Bank has not varied much,
and amounted,
In 1853, to Fca, 26,049,000,000
In 1864, to 26,089,000,000
Aod the dimunition, 960,000,000
is confined to payments at sight. The movements of specie have in-
creased from 1,536, 000, OOOf. to 1,791, OOOf., or 255,000,000f. The
amount of bills increased from 7,4 88, 000, OOOf. to 7,76 8, 000, OOOf.
1863. 1854.
The maximum of current accounts was. .Fes. 227,000,000 . . 212.000,000
The minimum ditto .... 152,000,000 .. 129,000,000
Average, 172,000,000 .. 162,000,000
or a slight diminution.
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UNIVERSITY OF CHICAGO
1855.] The Bank of France. 887
The maximum of the metallic reserve in 1844 was in the metropoli-
tan establishments and in the branches :
Hie maximum on Sept 7,
The minimum Feb. 16,
On Dec. 28 last, -
At date, Jan. 26,
The total metallic reserves were —
On January 1st, 1854. January 1st, 1855.
Gold Fes. 100,000,000 Gold, Fes. 180,700,000
Silver, 190,600,000 Silver, 188,800,000
Fee. 600,000,000
.... 276,000,000
.... 880,000,000
.... 424,000,000
Total 299,600,000 Total* 864,000,000
By which we see that in the year the gold had increased 71,700,0001,
and that the silver had diminished 7,800,0001 In a note the importa-
tion of gold into England in 1854 is estimated at 22,000,0001, and the
exports at 24,000,0001, or the exports exceeded the imports by 2,000,0001
In 1854 the Paris Mint coined 502,000,0001 of gold, and 2,000,0001
silver. The customs report an importation of gold in 1854 to the
amount of 480,000,0001, and 100,000,0001 silver; the exports are put
down at 82,000,0001 gold, and 252,000,0001 silver. It is admitted,
however, that in these figures the exports by private hands are not in-
cluded, and they are not exact ; but it is asserted, whatever amount of
gold may be supposed to have been carried away by individuals, that it
could not have equalled the amount imported. There exists, the report
says, much gold in France.
On Jan. 1st, the Bank possessed of coined gold money, Fes. 180,700,000
“ “ in ingots, 900,000
There was at the same time in gold at the Mint, 84,000,000
215,600,000
To this must be added the gold hoarded in the several departments,
and the gold in circulation in Paris, Marseilles and other commercial
towns. From these facts it may be concluded that the importations of
gold into France in 1854 have exceeded the exportations by about as
much as the exports of gold from England exceeded the imports.
Though the Bank recovered in 1854 285,0001 of the debts outstand-
ing since the revolution of 1848, it is still in arrears on this account
1,215,0001 It suffered, also, at the commencement of the last year, to
the extent of 872,0001 from commercial failures, of which it has since
recovered 570,0001
The operations of the branch banks have gone on increasing, and in
their totals exceed the operations of the Metropolitan Bank. They
were :
1862. 1868. 1864.
Operations of branches, Foe. 1,806,000,000 .. 2,098,000,000 .. 2,161,000,000
Operations of Central Bank, 1,089,000,000 . . 1,790,000,000 . . 1,566,000,000
The branches at Marseilles, Lyons, Bordeaux, Lille, Valenciennes,
Besanqon, have been successful ; those at Amiens, Avignon, La Ro-
chelle and Toulon, have not paid their expenses. In conclusion, the Bank
\
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exults at the services it has rendered in 1854 to commerce, industry, the
Treasury, to capitalists and the public, and the governor assures the pro-
prietors that it will always walk energetically in the same path.
STOLEN BANK NOTES.
The liability of a bank for notes stolen and afterwards presented for redemption,
is an important question for banking institutions. We therefore publish, from a Lon-
don cotemporary, his remarks on the recent case of the Bank of England. (See pp.
806, 807, April No.)— Ed. B. M.
Spielmann vs. The Bank of England. — In our last number we gave
an outline of this remarkable case, remarkable, not so much for the
facts which are connected with it, as for the verdict which was given by
the jury. The opinions that have been stated upon it in various quar-
ters, and the importance which attaches to the question, have induced
us to make some additional remarks, and in doing so it will be neces-
sary to advert to the chief points given in the evidence on the trial.
Although the Governor and Company of the Bank of England are
the nominal defendants in this action, Messrs. Brown, Shipley & Co., of
Liverpool, are the ostensible defendants, they having given an indemni-
fication to the Bank. The defendants pleaded that two £500 Bank of
England notes had been stolen from Messrs. Brown, Shipley & Co., mer-
chants, at Liverpool, on the 15th of November, 1852, and that the
plaintiff’ was the bearer of them, without having given value for them ,
and with notice of the robbery.
Sir Fitzroy Kelly, in opening the case, said he should be able to estab-
lish the charge by evidence that 44 the plaintiff, and the money-changers
of Paris, from whom he had received the notes, had become possessed
of them, with a knowledge that they had been stolen ”
This charge is one of a very serious character, independently of the
technicalities which arose out of the transaction, and is certainly not
calculated to impress the minds of the foreign dealers in exchange with
a very favorable opinion of our legal advocates. In order to place the
case in a clear light before the reader, it will be best shown by the
separate points which Lord Campbell put to the jury, and then to com-
pare them with the evidence. The following were the points placed
before them for their decision :
Firstly. Whether Moyer Spielmann, the brother of the plaintiff, re-
ceived trie two £500 notes bona fide for a good consideration.
Secondly. Whether the plaintiff received the notes from his brother,
Meyer Spielmann, bona fide as a remittance.
Thirdly. Whether the notices of the robbery had been delivered at
the place of business of the plaintiff.
It is somewhat remarkable that after hearing the evidence which had
been given on each point, the jury should have sat until 10 o’clock at
night, and then have declared that they could only 44 find a verdict gen-
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Stolen Batik Notes.
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1855.]
erally, for the plaintiff or for the defendants,” and that they could not
agree on the first two points, but they agreed that the notices had
been distributed. In two hours and a half afterwards they returned
a verdict on the other two points :
Firstly. That Meyer Spielman did not receive the notes bond fide for
a good consideration.
Secondly. That the plaintiff had received them bond fide from his
brother as a remittance.
The first of these two decisions must be measured by what the
term bond fide is intended to convey. It has no other construction in
our language but to signify that a transaction is done in good faith
and honesty, and without any collusion of a suspicious character.
Was this borne out by the evidence1? We are told that Meyer
Spielman purchased one note of a Mr. Howard and gave in exchange
for it French money in 1000 franc notes, 400 franc notes, 200 franc
notes, and some 20 franc pieces. The other he purchased of Monteaux,
another exchange-agent in Paris, at the current rate of exchange for
the day. If Meyer Spielman did not receive the notes bond fide he
must have received them maid fide , which is contradicted by the most
unquestionable evidence. The bond fides was the payment for the
notes fairly and honestly, as Lord Campbell expressed himself, and the.
“ good consideration,” was the money given for them, and yet the
jury decided to the contrary.
With regard to the plaintiff the bond fide remittance was indisput-
able, but the good consideration with him was equally true, although
covered by credits due to him, to the extent of £8000. But how does
he stand with the verdict that has been given 1 The bond fide remit-
tance is valueless without the good consideration demanded from the
bank.
With regard to the notices left at the houses of business of both
parties, no attempt was made to disprove the fact ; but it should be
observed that both the Messrs. Spielman stated that they had not
seen them, nor could the Paris agent appointed to deliver them to the
bankers and money-lenders in that city, remember any thing of such
notices. But even supposing that this point were clearly established,
does it entitle the defendants to refuse payment of their notes to
“ bearer on demand” ?
It was contended that if the delivery of the notices could be
established, that it was conclusive on all other points in favor of the
defendants ; but this was objected to by Lord Campbell. Indeed if
this were admitted, a power would be given to the Bank to refuse the
payment of their notes upon the most trivial evidence. It is well
known that the common phrase “stopping bank-notes” is a mere
fiction ; the practice is simply that of registering any notes that may
have been lost or stolen. We once had a practical illustration of its
working, and the only aid we received in our loss, was a letter from
the secretary, to inform us that the missing note had been presented
through Messrs. Kobarts, Curtis & Co., and had been cashed. Why
the Bank should have engaged to put themselves in the position of
59
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The Usury Laws in Maryland.
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defendants in the present action, we cannot understand ; and we think
in doing so that it is not calculated to strengthen the interests of that
institution. While we admit that every means should he exercised
to facilitate the discovery of stolen Bank of England notes, we think
it would be conferring an extraordinary stretch of power upon the
company, to allow them to refuse payment in the face of such evi-
dence as was adduced on this trial ; and we feel confident that unless
the decision of the jury be reversed, the credit of the Bank notes will
be materially injured. Lord Campbell plainly stated to the jury that
it was purely a question of fact ; but singularly enough they have
ignored the facts altogether.
THE USURY LAWS IN MARYLAND.
The following decision was delivered by Chief-Justice Taney in the United States
Circuit Court for Maryland, about a month since. Judge Giles, who was his asso-
ciate on the bench, fully assenting. It will be read with general interest, and will
doubtless attract wide-spread attention :
Circuit Court United States, Maryland District. Before Chief-
Justice Taney, November Term , 1854.
Dill vs. Ellicotts. This action is brought by the indorsee of a bill
of exchange drawn upon the defendants and accepted by them for
$1000.
The defendants plead that the bill was given to secure the payment
of money loaned by the plaintiff to the payee of the bill, upon which
an interest, exceeding six per cent was reserved, and that such contract
was usurious, and the plaintiff not entitled to maintain an action upon
it. To this plea the plaintiff demurred, and the question submitted to
the court on these pleadings is, whether under the Constitution of
Maryland, adopted in 1851, an action can be maintained upon a con-
tract for the loan of money where an interest of more than six per
cent is reserved or received.
The clause of the Constitution is in the following words :
“That the rate of interest in the State shall not exceed six per cent
per annum, and no higher rate shall be taken or demanded, and the
Legislature shall provide by law all necessary forfeitures and penalties
against usury.”
This provision is contained in art. 3, sec. 49, under the head of
“ Legislative Department,” and by the third article of the Declaration
of Rights, all acts of Assembly in force on the first Monday in No-
vember, 1850, which had not expired at the adoption of the Constitu-
tion, and were not altered by it, were continued in force, subject,
nevertheless, to the revision of and amendment and repeal by the
Legislature of the State.
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The Usury Laws in Maryland.
891
The acts of Assembly material to this question, which were passed
previous to the adoption of the Constitution were the acts of 1704 and
1845. The first section of the act of 1704 declared that no person
should exact or take above the rate of six per cent per annum upon the
loan of any monies, goods, or merchandise, or other commodities to
be paid in money ; the second section declared that all contracts by
which a higher rate of interest was received should be void ; and the
third section inflicted penalties for taking or receiving more than the
rate of interest limited by that act. The provisions of this law were
materially changed by the act of 1845. By this act the lender was
entitled to recover the amount actually loaned with six per cent
interest upon it, although the contract was usurious and stipulated for
a higher interest, and it repealed altogether the third section of the act
of 1704.
The act of 1845 was still in force when the Constitution was
adopted, and the point in issue between the parties, upon the demurrer
is, whether the provisions of this act are inconsistent with the clause
of the Constitution before recited, and therefore repealed by it. In
determining this question the wisdom or policy of usury laws is not a
subject for the consideration of the court. That was a question for the
people of Mary laud, when they adopted the Constitution : and it is the
duty of the court to carry into effect the provisions of that instrument
according to its true intent, to be gathered from its own words ; and
referring to the previous legislation of the State, only so far as it may
contribute to illustrate the meaning of doubtful or ambiguous lan-
guage, if any such be found in the Constitution, and to ascertain what
previous acts of assembly are still in force. It would be difficult, we
think, to raise a doubt as to the meaning of the prohibitory part of the
section of which we are speaking. It declares “that the rate of
interest shall not exceed six per cent per annum, and no higher rate
shall be taken or demanded.” These words are free from all ambi-
guity. They prohibit, in plain, positive, and direct terms, the taking
or demanding of more than six per cent interest, and on this point it
refers nothing to future legislation. The Constitution itself makes the
prohibition, and all future legislation must be subordinate and con-
formable to this provision. And whoever takes or demands more
than six per cent, while the Constitution is in force, does an unlawful
act ; an act forbidden by the Constitution of the State. Nor do the
words which follow qualify or restrain in any degree the meaning of
the words above quoted. They declare that “ the Legislature shall
provide by law all necessary forfeitures and penalties against usury.”
Now usury consists in taking an interest for money above that allowed
by law. The taking of more than six per cent is therefore usury.
And the words last quoted treat it as an offence, and direct the
Legislature to punish it with penalties and forfeitures. The words do
not merely give the power to punish ; they are mandatory and make
it the duty of the Legislature to punish disobedience to that provision
by forfeitures and penalties.
Certainly, if the taking or demanding of more than six per cent was
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not intended to be absolutely prohibited by the preceding part of the
section, there would be no propriety in commanding it to be fur-
nished.
The words last quoted, therefore, do not qualify or restrict the
meaning of the preceding words. On the contrary they show that the
framers of the Constitution, after fixing the amount of interest which
a party might lawfully take or demand, proceed to make that provi-
sion more effectual by requiring the Legislature to enforce it, and to
inflict forfeitures and penalties upon any one who should thereafter take
or demand an amount of interest exceeding that prescribed by the Con-
stitution.
This being the evident meaning of the language of this section, can
a contract, by which a higher interest is taken or demanded, be enforced
in a court of justice? It is true that the Constitution does not say in
express terms that such a contract shall be void. Nor was such a
provision necessary to invalidate it. For it is well settled by a mul-
titude of decisions in this country and in England, that a contract to
do an act forbidden by law is void and cannot be enforced in a court
of justice. We do not stop at present to refer to judicial decisions to
support this proposition. Many cases to this effect are quoted in the
opinion delivered by the Supreme Court of the United States in the
case of the Bank of the United States against Owens, reported in 2d
Pet., 527, and we are not aware of any decision in any court in which
a contrary doctrine has been held. Indeed, in a State where the
Legislature, executive and judicial departments are separated, it would
render all law uncertain and ineffectual, if the judicial power enforced
in whole or in part the performance of a contract to do an act which
is altogether forbidden to be done by the Constitution or laws of the
State. And as the Constitution has forbidden the taking or demand-
ing of more than six per cent, no contract made in this State can be
enforced when a higher rate of interest is taken or demanded by the
contract.
This view of the subject is fully supported by the decision of the
Supreme Court in the case of the Bank of the United States vs. Owens,
herein before referred to. The charter of the Bank contained a pro-
vision in the following words: “It (the Bank) shall not be at liberty
to purchase any public debt whatever, nor shall it take more than at
the rate of six per cent per annum for or upon its loans or discounts.”
And in an action brought by the Bank upon a promissory note, the
defendant pleaded that it was discounted upon an agreement to pay
the Bank a higher rate of interest than six per cent. To this plea the
Bank demurred, thus bringing the question before the court, in the
same mode of pleading adopted by the council in this case. And Mr.
Sargeant, who argued the case for the Bank, contended (as the counsel
for the plaintiff have done here) that a mere prohibition to take more
than six per cent did not avoid a contract to take more ; and that
where an agreement is avoided it is always in consequence of an
express provision by law to that effect, (2. Pet., 531.)
But the court held otherwise, and the language of the Supreme
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893
Court in deciding that question is so appropriate and directly appli-
cable to the case before us that we give it in the words of the court.
They are as follows :
“ Some doubts have been thrown out whether, as the charter speaks
only of taking , it can apply to a case in which the interest has been
only reserved, not received. But on that point the majority of the
court are clearly of opinion that reserving must be implied in the word
taking , since it cannot be permitted by law to stipulate for the reserva-
tion of that which it is not permitted to receive, (1 Hawk, P. C. 620.)
In those instances in which courts are called upon to inflict a penalty
upon the lender, whether in a civil or criminal form of action, it is
necessarily otherwise, for then the actual receipt is generally necessary
to consummate the offence. But when the restrictive policy of a law
alone is in contemplation, we hold it to be an universal rule that it is
unlawful to contract to do that which it is unlawful to do.” And after
deciding this point and remarking briefly on the manner in which it
came before the court, they proceed to say :
“ To understand the gist of the question, it is necessary to observe
that although the act of incorporation forbids the taking of greater
interest than six per cent, it does not declare void any contract reserv-
ing a greater sum than is permitted. Most, if not all, of the acts
passed in England, and in the States, on the same subject declare such
contracts usurious and void.
“ The question then is whether such contracts are void in law upon
general principles.
“ The answer would seem to be plain and obvious that no court of
justice can in its nature be made the hand-maid of iniquity. Courts
are instituted to carry into effect the laws of a country. How can
they then become auxiliary to the consummation of a violation of lawt
To enumerate how all the instances and cases in which this reasoning
has been practically applied would be to incur the imputation of vain
parade.
“ There can be no civil right where there is no legal remedy, and
there can be no legal remedy for that which is itself illegal.”
We forbear to quote further from the language of the Supreme
Court, and it is sufficient to say that after having stated the principles
of law in the manner set forth in the foregoing extract from the
opinion, it proceeds to refer to many adjudged cases in support of the
doctrine, showing that it applied to all cases where the act was pro-
hibited by statute, although there was nothing morally wrong in the
transaction. And upon this ground decided that the Bank could not
maintain an action on the note, as the demurrer admitted that it had
been discounted upon an agreement to take more than six per cent
interest. We do not see how the case before us can be distinguished
from the one decided by the Supreme Court. They present precisely
the same question, and the established principles of law which decided
the one in favor of the defendant must decide the other in like
manner.
It will be observed also that the opinion we have quoted points out
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clearly the distinction between a statute merely forbidding an act to
be done, and one imposing a forfeiture or penalty for doing it, and is,
in effect, an answer to that part of the argument on the part of the
plaintiff, which relied on the last words of the section of the Constitu-
tion, requiring the Legislature to impose forfeitures and penalties
against usury.
The absence of any provision inflicting a penalty (say the Supreme
Court) docs not give the party a right to maintain an action on the
contract, if the law forbids the contract to be made. And the reason
of the rule thus laid down is, that the contract being forbidden, the
party can acquire no legal rights under it, and consequently cannot
maintain an action in a court of justice to enforce it. Iiis incapacity
to maintain an action upon it is no forfeiture or penalty, for he
acquires no rights under it and therefore there is nothing to forfeit.
The money he loans is not forfeited, for if he chooses to rely upon the
promise of the borrower and the borrower repays him the money he
may lawfully keep it. It is not forfeited to th6 State or to any one
else. But a court of justice cannot lend its aid to recover it because
the contract for the loan is one entire thing and consequently is alto-
gether invalid or void, and it would be contrary to the duty of a court
of justice to assist a party in consummating an act which the law for-
bids. The absence of any penalty, therefore, is no argument in sup-
port of this action. But in this case there is something more than the
absence of penalties and forfeitures. It is made the duty of the Legis-
lature to inflict them, and the prohibitory clause of the Constitution
must be construed now in the same manner, and have the same effect
as if the Legislature had performed the duty enjoined upon it. It is
true no penalty or forfeiture is incurred until the Legislature shall
prescribe it. But when that duty shall have been performed (be the
penalty more or less) no body, we presume, would contend tnat an
action could still be maintained on the contract upon payment of the
penalty. And the act of no future legislation can alter the meaning
of the words used in the Constitution. They remain the same, and
must always be construed and administered in courts of justice accord-
ing to their legal import as they stand in that instrument, whether
future Legislatures do or do not obey its mandates, and pass laws to
enforce its provisions. It follows from what wo have said that the
first four sections of the act of 1845 are no longer in force. These
sections made an usurious contract legal for the amount actually
loaned, and authorize the lender to recover the amount with six per
cent interest. It makes it void only so far as the usurious interest is
concerned, and as a necessary consequence of this provision it repealed
expressly the third section of the act of 1704.
The act of 1845 does not therefore prohibit an usurious contract,
but sanctions and supports it to the extent above mentioned. The
Constitution, on the contrary, by the prohibiting words used in it,
makes the whole contract illegal, and thereby incapacitates the party
from maintaining a suit upon it, fur the money he actually loaned or
any part of it ; and moreover treats the taking or demanding more
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The TJmry Laics in Maryland.
895
than six per cent as an offence, and commands the Legislature to pro-
vide penalties and forfeitures against it. The provisions of this act of
Assembly and those contained in the Constitution are consequently
inconsistent with each other, and the former is repealed. In relation
to the act of 1704, the plaintiff claims nothing under it. But inasmuch
as the first section of that act, like the Constitution, prohibits the tak-
ing of more than six per cent, and the second section contains an
express provision making void the contract where more is taken, the
plaintiff contends that the omission of the second provision in the Con-
stitution proves that it was not intended to make void the contract,
but to leave it as provided for and legalized by the act of 1845.
But it is evident that the second section in the act of 1704, like
similar provisions in the English statutes, against usury was intro-
duced to remove any doubt which might be raised upon the words,
“ exact or take,” and to show that the prohibition was intended to
apply to contracts in which usurious interest was reserved to be
paid at a future day, as well as to cases in which it was actually
exacted and taken, or received at the time of the loan. They are
introduced for greater cautions and to prevent nice distinctions upon
the words used. This is constantly done in acts of legislation, and
the omission in the Constitution of a provision of this description, con-
tained in a previous act of Assembly, would hardly justify the court
in inferring that it was intended to authorize an action on a contract
which the Constitution itself prohibited. In expounding an instrument
so solemn and deliberated as a Constitution containing the funda-
mental law of the State, we are hardly at liberty to suppose that either
those who framed it, or those who adopted it, intended to recognize
or sanction the principle that an action might be maintained upon a
contract to do an act which the law forbade. On the contrary, a com-
parison between the language of the act of 1704 and the Constitution
tends strongly to support the construction we have given to the latter.
The prohibition in the act of assembly is to “ exact or take,” and the
second section, as we have said, was introduced for greater caution, in
order to show more clearly that while the penalties by that law were
confined to the actual receiving, the prohibition extended further, and
embraced contracts in which usurious interest was reserved, although
payable at a future time.
But the Constitution does not use the prohibitory words of the first
section, but provides that no higher rate shall be “ taken or demanded .”
Now these words clearly embrace a contract by which usurious
interest is to be paid at a future day, as well as contracts in which it
is taken and received. It does not mean usurious interest demanded
in the negotiation previous to the loan, but demanded by the contract
itself when actually made. And if so demanded it is evidently
included in the constitutional prohibition, even although the words
“ exacted and taken” should be regarded as confined to actual receipt.
In an instrument like this we are bound to presume that every word
was deliberately weighed and considered before it was inserted. And
with the act of 1704 before them, and about to establish under a con-
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Forgeries on Banks.
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stitutional sanction the principle contained in its first section, it ought
not to be supposed that its words were lightly or carelessly changed,
or the word “ demanded” substituted in place of the word u exact,”
without an object. And the natural and proper object would be to
condense in a few words the substantial provisions spread out in the
first and second sections of the act of 1704. And we think they have
used words sufficient to accomplish their purpose, and that the com-
parison between the words of this act of Assembly and the Constitu-
tion of 1851 tends to confirm the construction we have placed upon
the latter — and which its lauguage naturally and legally imports.
Upon the whole the court is of opinion that the demurrer of the
plaintiff to the plea of usury cannot be maintained, and judgment must
be entered accordingly.
FORGERIES ON BANKS.
Last year an ingenious fraud was committed by a man named
Kissane, on the Chemical Bank, of New-York, by means of forged
letters of introduction, with which he was enabled to open an account
in that Bank, and by further means of % spurious certification of checks
on other banks, which he deposited and drew for.
It has been said that Kissane was detected passing counterfeit money,
but this is not so. His detection was caused by passing altered bills,
by which means he made eleven hundred out of ten hundred bills.
That is, he would take ten twenty-dollar bills of the same bank and
make them eleven. It is done thus : Suppose we take, for example,
a bill and mark it in this form-
10
I 1 2 | 3
We take the 1st bill up, and part No. 1 is tom off and laid aside.
The bill passes, of course, as many bills arc tom by accident. The
second bill is torn up to No. 2, and part No. 1 is pasted on, and this
bill also passes. The third bill is torn off at No. 3, and Nos. 1 and 2,
which is one piece, is then stuck on. By this means eleven bills are
made out of ten, the eleventh bill having just as much and no more
torn off of it than the first bill had. It is not our business to explain
the combination, but Kissane is an adept at this art. It is more diffi-
cult to detect a bill of this character than a counterfeit. The secret
formerly was confined to Kissane, Finley, and Cole ; others are now
in possession of it, and the public should carefully scan all such bills,
and if there is any doubt, at once refuse them.
Kissane, within a few days past, has been convicted of forgery on the
Chemical Bank, and has been sentenced to confinement in the State
penitentiary.
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Suicide of a Bank Teller.
897
SUICIDE OF A BANK TELLER.
Considerable excitement was occasioned in State street, Boston, in
March last, by the announcement that Mr. Thomas W. Hooper, the
Paying-Teller of the Merchants’ Bank had committed suicide. It
seems that in examining the Teller’s cash account on Monday, tho
President was induced, in consequence of the presence of an unusual
amount of bills of one or two other banks, to question him with regard
to the matter. The Teller replied that his cash was correct, and,
upon examination, his account with tho bank was found to be so.
The President was at the bank early yesterday morning, being still
suspicious that all was not right, and renewed the inquiry of Mr.
Hooper why it was that he had on hand so large an amount of bills
of the Grocers’ and Atlantic banks. The reply was not entirely
satisfactory, and Mr. Hooper seemed displeased that the matter should
be pressed, in view of the fact that his “ cash account ” had been found
to be correct. This was about nine o’clock in the morning. Mr.
Haven said his duty as President demanded a close inquiry, and Mr.
Hooper replied that this was true, and expressed the hope that the in-
quiry would be pursued without delay. He seemed cheerful about the
matter. At the close of this conversation, and without returning to
his desk he left the bank, and nothing was heard of him until about
half-past ten o’clock, when the porter found his lifeless body suspended
from a beam in the cellar of the bank building. The porter, greatly
frightened, and without having recognized the body, informed the
directors of the bank that a “ man had hung himself in the cellar.”
It appears that immediately upon leaving the bank, he proceeded to a
store on Commercial street, purchased a clothes-line, and with it
returned to the basement of the bank. He doubled tho cord, and
having made a noose in one end, tied the other to a beam in the ceiling.
The halter thus adjusted, he got upon a stool, tied his legs fast, put
his neck in the "noose, and allowed his body to suspend. Three
strands of the rope were found to be broken, and it is supposed that
this was occasioned by the first shock.
Inquiry was now instituted as to the presence of [so large a number
of the bills of other banks, and it is supposed that on Monday after-
noon, when Mr. Hooper knew that the cash was to be examined by
the directors, he obtained, on certified checks, through the agency of
a broker, Mr. Augustus S. Peabody, the sum of $25,000 from the
Atlantic Bank, and an equal sum from the Grocers’ Bank. It was
also ascertained that he borrowed some $8000 from a friend.
The Directors on Tuesday reexamined the “ cash account” of the
late Teller, and found it to be correct ; and so far as they have been
able to ascertain, none of the Merchants’ Bank funds have been em-
bezzled. The tellers of the Atlantic and Grocers’ Banks — who loaned
$50,000 of their employers’ funds on unauthorized and illegal certifi-
cates, and that, too, in the face of the statement of the broker, Mr.
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Peabody, that the Directors of the Merchants’ Bank were about to
examine their Teller’s cash account, and that Mr. Hooper wanted the
money in order to make it good — will find it difficult to give an explan-
ation which shall he satisfactory, for conduct so unwarrantable. What
done with the money raised by Mr. Hooper, does not yet
appear to any degree of certainty, but it is supposed that he has been
dabbling in stock operations.
Since the above was written, we have heard of two other parties
from whom loans were obtained by Mr. Hooper to the amount of
15,000, which makes the total amount borrowed — to make his “cash
lit for inspection — to be $73,000. Had the teller committed
in on Sunday, the burthen which has now fallen on
the Grocers’ and Atlantic Banks, and individuals, would have fallen
on the Merchants’ Bank.
Mr. Hooper was formerly a clerk in the office of Messrs. Gilbert &
Dean ; and on the dissolution of the firm became the partner of Mr.
Dean; upon the establishment of the Merchants’ Bank in 1831, he
was appointed to the post, in which he had continued. He resided in
Charlestown, where ho has left a wife and three children. — Boston
Courier .
CASES IN LIFE INSURANCE.
Forfeiture of Policy. — The case of Woodyard, administrator of
Harper, vs. The Phoenix Life Insurance Company, was decided yester-
day by Judge Treat of the Court of Common Pleas, in favor of the
defendant.
The facts in the case, as we have gathered them, are substantially
as follows :
Mr. Harper, a resident of Canton, Lewis county, had his life insured
for the sum of $2000, in the Phoenix Insurance Company in this city.
He subsequently became involved in a difficulty at Canton with a Dr.
Correll of that place. They had an altercation, and the evidence
seemed to prove that in it Harper drew a pistol and snapped it at
Correll, who, in his turn, fired the contents of nis own pistol at Harper,
causing his death. The Insurance Company refused to pay the policy,
on the grpund that the act of Harper in first drawing the pistol on
Correll was a violation of the provisions enjoined upon him when the
policy was issued. The estate sued the Company for the amount of
the insurance, and the decision was rendered yesterday against the
plaintiffs. — St. Louis Intelligencer , Jan 7.
Fraud. — The Albany Circuit Court has recently been engaged in
trying the important case of Gerhart Valton and Amos Adams vs.
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The National Loan Fund Life Insurance Society of London. The
Atlas states the facts as follows :
During the spring of 1850, Gerhart Valton and Daniel Martin
were partners in the liquor business in the city of Albany. About
the 1st of May, 1850, Martin negotiated an insurance upon the life of
one Conradt Schoonmaker, a porter in the store of V. & M., for
$10,000, the premiums to be paid quarterly during the lifetime of
Schoonmaker, who, in the application for the policy, was described as
a merchant.
The policy bears date May 14, 1850. Immediately after the same
was issued, and on the 30th of May, 1850, the parties, Valton, Martin,
and Schoonmaker, entered into a written agreement to commence
business as co-partners. This agreement stated that if either Valton
or Martin should die, the amount of the capital which they each had
in the co-partnership should remain in the concern for the benefit of the
co-partners and their legal representatives — Schoonmaker at the same
time agreeing that should he die the amount of his life policy should
remain in the concern for the benefit of the other parties.
About the 1st of September, 1850, Schoonmaker went to New-York,
and put tfp at the Shakespeare Hotel. On the 14th, he accompanied
one Chas. Oilman, who w\as a porter for the new partnership firm, in a
small boat, which they procured for the purpose of going a fishing near
Iloboken. After they had been out some time, they started to
return.
After they had proceeded a short distance, Schoonmaker proposed
to change places in the boat; they both arose; Schoonmaker was
taken with a fit of cramp, and both fell into the river ; Schoonmaker
was drowned ; Oltman got back into the boat, staid near the spot
where the boat was upset until dark, when he went ashore and told a
grocer what had happened, and requested him to take charge of the
boat, when he went away. Next day Oltman put a notice of the
drowning in the N. Y . Sun.
On the 7th of September, a body was seen floating down the river
opposite Jersey City. The coroner had it brought ashore ; the lips
had been eaten off by fish. It w as interred with the clothes on. On
the 20th, it was disinterred in the presence of Oltman and Martin.
Oltman recognized the body as that of Schoonmaker. The handker-
chief, being the half of a square, corresponded with another produced
in court, found in the possession of Val ton’s family. The pantaloons
were recognized as those worn by Schoonmaker. Oltinau was arrested
and examined on a complaint against him for causing the death of
Schoonmaker, but was discharged.
After the alleged death of Schoonmaker, Solomon M. Park took
out letters of administration, and demanded payment of the policy,
which was refused. Some time in 1851, Martin assigned his interest
in this policy to Amos Adams, and afterward left for Germany, after
which Volton and Adams commenced this suit.
Two sums of $68.75 had been paid on the policy, being the premium
for the first and second quarters, and the articles embodied the usual
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declaration, that any fraudulent or untrue statement would annul the
policy. The principal witness of the death of Schoonmaker (Charles
Frederick Oltman) left the city and the State, and went to Wisconsin,
to Michigan City, to La Porte county, and has been a laborer on the
Michigan Central Railroad, the South Railroad, and the La Porte
{>lank road, and was, at the time of his examination, in La Porte,
ndiana.
The counsel for defence argued — 1st. That Schoonmaker was not
dead ; 2d. That the policy was obtained by fraudulent representations ;
and, 3d. That the whole affair was a conspiracy to defraud. The jury,
however, rendered a verdict for the plaintiffs, assessing the damages
at $11,377.85.
The court then granted an order that all proceedings on the part of
the plaintiffs be staid forty days, and that in the mean time the plain-
tiffs have leave to make a case, with liberty to turn the same into a
bill of exceptions, or to move upon affidavits to set aside the verdict,
the plaintiffs to have, if a case is made, forty days thereafter to pro-
pose amendments.
COINS, COINAGE, AND BULLION.
I. Improvement in the Currency. II. Value of Foreign Coins. III.
Coinage at the Mint. IV. Notes on Coinage , by J. H. Alexander.
I. Improvement in the Currency.
Some modifications of the coinage are suggested by Mr. Snowden,
the Director of the Mint It is also proposed to make some experi-
ments in the introduction of a small per centage of nickel, as a substi-
tute for tin and zinc in the manufacture of the copper coinage.
We have seen a few specimens of the new cent, yet an experimental
coin, with devices sufficiently varied to be readily distinguishable ; is
intended to be less cumbrous and perhaps less exposed to oxidation
than the old copper coins ; is one inch in diameter ; of the weight of
96 mains, composed of 95 per cent copper, 4 of tin, and 1 of zinc.
The act of Congress, authorizing the coinage of the three-dollar piece,
left a discretionary power in respect to the devices, which had not been
given in relation to the other coins. It was thought desirable, by those
intrusted with the execution, to make the opportunity available for
the introduction of designs more nationally characteristic than had
previously been adopted.
The “ cap,” as a “ device emblematic of liberty,” had long been
regarded as of questionable propriety in its adaptation to the United
States of America, and had given place to the Roman Head of Liberty,
on the obverse of the gold coins; but there was nothing peculiarly
“ American” in this.
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Value of Foreign Coins .
901
The “ feathered cincture” has been by common consent, as it were,
among artists abroad, adopted as the distinguishing decoration on the
head of ideal America, and sanctioned by the genius of Canova, is as
near an approach to classic authority as modern art can make. From
these considerations, the occasion was considered suitable to present
it on the face of the new coin, even at the risk of its being sometimes,
rather strangely, mistaken for a crown. It seems generally, however,
to have been well received by the people. This cliange in the obverse
has also been increased by the inscription being attached to the same
side of the coin.
The reverse is a wreath intended to represent some of the staple
productions of the country, as the wheat, com, cotton, and tobacco.
The diameter of the coin is one tenth of an inch less than the half
eagle ; its thickness is, in consequence, less in proportion to the
diameter.
The new one dollar gold coin, presents in the devices an application
of the above-described designs on a reduced scale. There is no devia-
tion in weight or standard from the previously coined and apparently
smaller gold dollar ; but the diameter is increased one tenth of an inch,
and the thickness proportionably reduced.
II. Value of Foreign Coins.
From a report of the Director of the Mint, transmitted to the Senate
by the Secretary of the Treasury, we gather some information of
general interest as to the value of foreign coins.
The gold coins of Great Britain, if not less than 915J thousandths
fine, are receivable at 94.6-10 cents per pennyweight ; the gold coins
of France, not less than 899 thousandths, at 92.9-10 cents ; the gold
coins of Spain, Mexico, and Colombia, of the fineness of 20 carats, 3.7-8
carat grains, (which is equivalent to 869 14-100 thousandths,) at
89.9-10 cents ; and the gold coins of Portugal and Brazil, not less than
22 carats, (91 6| thousandths,) at 94.8-10 cents.
Of the above only the coins of Great Britain and France fulfill the
terms of the act of Congress, and there is an upward tendency in the
fineness of British coins ; but neither class has been received here for
rc-coinage for more than two years past, except in trifling parcels,
owing to the course of trade which has cut off the importation of
foreign gold coins.
The standards of gold coinage in New-Granada, formerly a State of
Colombia, are so entirely altered as to render the act of Congress
obsolete in respect to that coinage. The fineness of the doubloon has
been raised to about 894 thousandths, but by decrease of weight it has
fallen in value from about $15.60 to $13.30.
Of silver coins, the dollars of Spanish American coinage, and those
re-stamped into reus of Brazil, as also the five-franc pieces of France,
are made receivable at certain rates by the acts of Congress ; but as
these coins arc purchased at the Mint for re-coinage at a premium, the
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provision for making them current may be considered nugatory and
obsolete.
In general, the halves, quarters, etc., of these dollars are very near
in fineness to the whole piece, but the public are informed that the
half and quarter dollars of Bolivia commencing with the date of 1830,
and those of South Peru of 1835 to 1838, are greatly debased in
quality, and worth only about three quarters of their nominal value.
Such pieces are occasionally seen in our circulation. The fractions of
a dollar coined within five years in Central America, or rather in
Costa Rica, are still more depreciated, and very irregular, but their
misshapen appearance will exclude them from currency here.
The Director of the Mint submits a tabular statement of the average
weights and fineness, and of the value per piece and per dime of these
dollars, according to the rate at which our dollars are coined :
Price
Denomination.
Weight.
Fineness.
Value in Cents.
at the
Mint.
Grains.
Thousands. Per piece. Prem.
In Cents.
Spanish pillar dollar and Brazilian re-stamped, 412)4
900
100
116.36
122.50
Dollar of Mexico, mixed,
901
101
116.50
122.64
* Peru, A
906
101.2
117.14
123.32
M Bolivia and Chill,
902
101.8
116.68
122.77
“ Central America,
670
97.5
112.4S
118.42
Five-franc pieces of Franoe, mixed,
901
98.1
116.50
122.64
The Director of the Mint repeats the suggestion, contained in his
report of the 28th of January last, that the laws which legalize the
circulation of coins of these countries are no longer necessary or expe-
dient. In no other nation, he says, is this mixture of legal currencies
admitted or allowed. Whatever necessity or expediency there was at
the time they wxrc passed, in view of the inconsiderable coinage then
executed, has now ceased to operate, when our annual coinage is
scarcely inferior to that of any other nation. If this suggestion should
be approved, and the laws in question repealed, it will be proper to
provide that the Director’s annual report on the coinage operations of
the Mint should embrace a statement of the weight, fineness, value, and
of the purchasing price at the Mint, of such coins as are bought here
in the course of trade or by immigration. This would include not
only the coins above mentioned, but those also of Germany, Sweden,
Norway, Sardinia, Switzerland, etc.
III. Coinage of tiie United States.
Prior to 1850. 1S50 to 1951. TotaL
Gold, $85,849,201 50 $259,750,915 97 $844,100,117 47
Silver, 75,681,464 90 21,646,893 00 97,228,857 90
Copper 1,251,743 52 304,482 00 1,556,175 52
$162,192,409 92 $280,702,240 97 $442,884,650 89
No. of pieces, 355,947,909 00 197,883,270 00 553,331,179 00
The immense production and coinage since the discovery of gold in
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903
Notes on Coinage.
California are demonstrated in the following tabular view for five years
only, (1850 to 1854, inclusive.)
The total coinage of the United States, (including fine bars at San
Francisco and New York,) during the years 1850-1854, (both inclu-
sive,) has been valued as follows :
Gold.
Silver.
Copper.
No of Pieces.
Total value.
1550, ...
.... $31,9S1,733 50
$1,866,100
$44,407 50
14,588,220
$30,592,301 00
1851, ...
.... 62,614,492 50
774,397
99,635 43
25,701,955
63,48^,524 93
1S52, ...
.... 56,846,187 50
1,309,555
60,630 94
82,964,019
58.200.073 44
1S58, ...
.... 55,218,907 00
9,077,571
67,059 79
76,484,062
64,858,537 78
1854, . . .
.... 52,094,595 47
8,619,270
42,638 35
44,645,011
60,756,503 82
$288,750,915 97
$21,646,893
$804,432 00
197,358,270
$280,702,240 97
The operations of the Mint and branches for the past year, (1854,)
are shown as follows :
Cold.
Mint United States, $87,693,069 5S
M Ban Francisco, 9,781,574 21
M New-Orleans, 1,274,500 00
a Dahlonega 292,760 00
tt Charlotte, 214,652 50
A asay Office, New-York, 2,888,089 18
Total, 1354, 152,094,595 47
Silver. Copper. Total.
$5,378,270 $42,638 85 $43,108,977 93
9,731,574 21
8,246,000 4,520,500 00
292,760 00
214,652 50
2,98^,089 18
$8,619,270 $42,638,35 $60,756,503 82
Of the coinage executed at the parent mint, $17,643,270.58 was in
fine gold bars, $5863.16 of the coinage at San Francisco was in fine
bars, and $5,641,504.05 were in unparted bars. The fine bars made
at the Assay Office, New-York, amounted to $2,888,039.18.
IV. Notes on Coinage.
Professor J. H. Alexander, of Baltimore, has published a pamphlet
on an “ International Coinage for Great Britain and the United States.”
He concludes that by the adoption of comparatively slight and unim-
portant changes, a compromise may be ellcctcd which will secure the
following results of identical value between leading gold coins of the
two countries :
Great Britain. United States.
Sovereign equal to Half Eagle.
Double Sovereign, equal to Eagle.
Half Sovereign, equal to Quarter Eagle.
The end which the writer has in view is the establishment of an
international coinage by the United States and Great Britain, whose
extended commercial intercourse, identity of language, origin and
other characteristics demand an identity of coinage as n matter of
mutual advantage. Mr. A. has, evidently, given close attention to the
subject, and he urges the fitness of the present time for making the
desired change when the measure of adopting the decimal mode of
computation is engaging the earnest attention of the British govern-
ment.
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Coins, Coinage , and Bullion .
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It is not proposed to make any change in the names of the coins,
the coins of each country continuing to be called by their own national
names.
On the subject of the silver coinage we quote as follows:
“ The next step is the mutual adjustment of the silver coinage. This
includes, also, a determination of relative value between gold and
silver, and is, theoretically, the most difficult part of the whole subject;
for such determination implies the arbitrary settlement, covering a
long and prospective period, of what the contingencies of commerce
are causing continually to fluctuate. Thus, from the date of the first
gold coinage in Great Britain, more than five hundred years ago, up
to the present year, gold has been rated at one period less than four
times and at another more than fifteen times the value of silver. And
in our own country, during little more than 60 years, the ratio
between the two metals has varied 1.15 and 1.16,002, and since 1853,
for the new silver coins, descended to 1.14,884, nearly. The average
of these fluctuations for this comparatively short period is 1.15,300
very nearly, while a similar average in Great Britain through the
whole five hundred and ten years results in .12,796 nearly. Again,
the average of these two ratios would be 14,049. But it would be
obviously improper to rest upon averages of this sort, or indeed to
refer to them at all, farther than collaterally. In point of fact, the
theoretical difficulty in the matter is almost removed by experience ;
as, in Great Britain (the requirements of whose commerce for any
considerable period may fairly be taken as an index of the wants of
the commerce of the whole world,) where, ever since the great
re-coinage of 1816, it has been found perfectly convenient, in restrict
ing the legal tender of silver coin to payments of small amount, and
thus rendering it incapable of supplanting gold in the circulation, to
assume an arbitrary value for silver different from and higher than
that which, from time to time, it has or may have intrinsically or in
trade, as plate. In this way the silver coin becomes a mere token for
the convenience of trade, as it ought to be ; the small excess of price
that it bears as a token, is sufficient to prevent any speculation in it for
the purpose of being melted down into plate, and thus save the country
the expense of its re-coinage when the trade prices have again varied;
while, if in addition to the other mark upon the coin, each piece were
made to bear its absolute weight upon its face, all confusion betweeu
the mint price and trade price, in transactions other than speculative,
would be effectually avoided.
“ But however all this may be, it is easy to see that the adoption of
any identical rate, nearer or farther removed from the actual trade-
price at any time between two countries so connected in commerce as
Great Britain and the United States, would have the effect of prevent-
ing the transfer of silver either in coin or bullion from one to another,
merely as a profitable trade transaction, for which a difference in rate
not unfrequcntly offers a temptation ; and that, in so far, an identity
would be a mutual advantage. Ajid also, it is hardly necessary to
observe that an excessive mint value for silver above the trade-price,
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Notes on Coinage.
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tends to prevent the hoarding of the coin ; a category which has been
exemplified in this country more than once within the reach of not a
very remote memory.
44 In view, then, of all that has been said of the acknowledged incon-
venience of our own low rate for silver, which we have had to raise
twice ; of the convenient uniformity in this respect which has been
maintained in England for a long time ; and especially of the geologi-
cal developments of the last five or six years, under which the supply
of gold, both actual and prospective, is vastly increased, while that of
silver remains stationary or nearly so ; it would seem that a higher
rate for this latter than what has been hitherto admitted even in
England, may be reasonably applied. These general considerations
and a certain arithmetical convenience of numbers, which will be more
manifest presently, appear to warrant the adoption of a ratio, as
between gold and silver coin, of 14 to 1.
44 If this be assumed, it results in a silver dollar weighing 350 grains
instead of 384 grains, as contemplated in the act of 1853 ; and in a
half-dollar of 175 grains instead of 192 grains, as actually minted and
* current ; and in a diminution of the intrinsic value of all our silver
coins of rather less than 4 per cent. The actual ratio more nearly is
1.0,9615, an alteration that would not be felt in commerce. Farther,
if these coins be compared with the existing English ones, their rela-
\ tions would be as under :
i 44 Crown or 5 shilling piece would be worth $1,2 14 nearly; florin
l or 2 shilling piece, $0,5125; shilling, $0,2563; sixpence, $0,1281;
i five-penny bit, $0,1068 ; four-penny bit, $0,0854 ; penny, $0,0214.
t 44 The nearness of these values to a binary division, such as prevails
i in our decimal system, serves to show how easily the English one can
[' be made to correspond. In point of fact, the deviations in fractions
i of American cents are all within the limits of mint remedy; and the
i probability is, that without any attempt at alteration at all, from five
to ten per cent of new coins from the respective mints would bo found
? identical in value, that is, the florins and half-dollars, the shillings and
i quarters, and so on. At the same time, it must not be forgotten that
f a change in the alloy of the English coin, which is implied in what has
i been said already, would bring them still nearer equality ; so that the
? comparison avails to prove that, in the event of adopting a new sys-
l tern, the old coins need not be rejected on account of incompatibility,
but remain in circulation without embarrassment until they are worn
out. Of this, we in the United States have to this day practical proof
in the contemporaneous and convenient circulation of the Spanish
pecetas and reals, which intrinsically harmonize with our coin less than
i would the English with the new that is proposed.”
The subject of the copper coinage is also examined, and is shown to
present less difficulty than any other, in its adaptation to the scheme
i of international coinage.
The pamphlet throughout evinces thorough research and lucid illus-
tration on the part of its intelligent author. He seems to have been
fully aware of the difficulties which environ a proposition of this
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nature ; but we cannot but think that many who read his essay will,
like ourselves, be led to the conclusion that the establishment of an
international coinage between the United States and Great Britain may
be practically effected. We quote his concluding paragraph, as
follows :
“ All violent changes are here avoided. That one, the hardest of all
to be effected in great national masses, the change of name (which is,
in its degree, a change of language, and so of thought, which in general
finds life but in language,) is here neither necessary nor even contem-
plated. Quietly, with prudent management, almost without manage-
ment at all, the existing systems blend with and melt away in the new
one, whose convenience in the mint and in the market there is no need
of experience to affirm ; until finally, if the present suggestions or some
modification of them be adopted, the twro great branches of the Saxon
family will realize, wrhat history shows to have been the uniform des-
tiny of their forefathers, the carrying with them and impressing where
they tread, the characteristics of their institutions, and will be able to
point out, as among their peaceful triumphs, the establishment of one
weight, one measure, and one money, first for themselves and then for
all the world.”
The British Parliament have had for one or two years, under con-
sideration, various plans for a decimal currency in lieu of the present
absurd system in use in Great Britain. France has long since set an
example of an improved coinage and coin values.
A change most desirable could be readily brought about here, in
making the quotations of sterling bills at a certain price per pound
sterling, instead of a nominal premium. Thus instead of 9 per cent
premium (when actually no premium exists) the quotation should be
4.84, or 4.85 instead of 9£, 4.80 instead of 9£. These values could be
readily appreciated by the masses who are not now familiar writh the
machinery by which a bill on London at par is quoted at 9^ or
premium.
Mint of tub United STATEa— The following are the appropriations by Congress
for support of the Mint for tho year 1855 :
At Philadelphia . — For salaries of tho director, treasurer, assayer, melter and
refiner, chief coiner and engraver, assistant assayer, assistant melter and refiner, and
seven clerks, twenty-seven thousand nino hundred dollars.
For wages of workmen and adjusters, fifty thousand dollars.
For spocimens of ores and coins, to bo reserved at tho Mint, three hundred
dollars.
For transportation of bullion from New-York Assay Office to the United States
Mint for coinage, ten thousand dollars : Provided , That all bullion required by law
to be transmitted from said office to the Mint for coinage, shall, if practicable, be in
the form of refined bars.
For incidental and contingent expenses, including fbel, materials, stationery,
water-rent, gas, wastage, freight on bullion, in addition to other availablo funds,
sixty thousand dollars.
At New- Orleans. — For salaries of superintendent, treasurer, assayer, coiner,
melter and refiner, and tliree clerks, seventeen thousand seven hundred dollar*
For wages of workmen, thirty-seven thousand dollars.
For incidents and contingent expenses, including fuel, materials, stationery,
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wastage, in addition to other availablo funds, forty-two thousand three hundred
dollars.
At Charlotte, North- Carolina* — For salaries of superintendent, coiner, assayer,
and clerk, six thousand dollars.
For wages of workmen, four thousand one hundred dollars.
For incidental and contingent expenses, including fuel, materials, stationery,
wastage, in addition to other available funds, one thousand five hundred dollars.
At JDahlonega, Georgia . — For salaries of superintendent, coiner, assayer, and
clerk, six thousand dollars.
For wages of workmen, throe thousand six hundred dollars.
For incidental and contingent expenses, including fuel, materials, stationery,
wastage, in addition to other availablo funds, two thousand five hundred dollars.
At San Francisco , California. — For salaries of superintendent, treasurer, assayer,
melter and refiner, coiner, and five clerks, twenty-eight thousand dollars.
For wages of workmen and adjusters, one hundred thousand dollars.
For ordinary expenses, including wastage, in addition to other available means,
twenty thousand dollars.
Assay Office, New - York. — For salaries of officers and clerks, fourteen thousand
four hundred dollars : Provided, That the Secretary of the Treasury be authorized
to fix tho salaries of such officers and clerks, so as not to exceed those allowed by
law to like officers and clerks in the Mint or its branches.
For wages to workmen, in addition to an availablo balance of former appropria-
tions, forty thousand dollars.
For incidental and contingent expenses, repairs, including fhel and materials, and
wastage on gold and silver, in addition to other available means, seventy thousand
dollars.
Spurious Coin. — The Quebec Canadian cautions the public against the circula-
tion of spurious coins intended to represent English shillings, and so well executed
that it is with difficulty their baseness can be discovered.
The Montreal Transcript also cautions the public against receiving counterfeit
American ten cent pieces, whoso finished appearance is well calculated to deceive
the eyes of the most experienced.
Counterfeit Detector. — A useful publication has been issued for the conve-
nience of bankers and brokers, entitled “ Dye’s Bank-Note Plate Delineator,” the
object of which is to furnish the community with an accurate description of the
genuine notes of all the banks in the country, so that when a counteifeit is pre-
sented, it may bo compared with the vignette and details of tho genuine. The
utility of this publication is fully acknowledged by the foreign money clerks of the
Suffolk Bank, Boston ; the Metropolitan Bank, New-York ; tho American Exchange
Bank, New-York; Bank of North America, Philadelphia, etc.; and by the New*
England Association for tho Suppression of Counterfeiting. Messrs. Jocelyn, Draper,
Welch & Co., of the “American Bank-Note Company,” who are among our most
accomplished artists as engravers on steel, state that tho Delineator is a “ desider-
atum in a manner so simple and so easy of reference, that the possessor can deter-
mine at once, in any doubtful case, what devices, portraits, and other principal
parts, are found among spurious bank-notes,” and thus distinguish them from the
genuine. Similar testimonials are given by Toppan, Carpenter & Co., and by Dan-
forth, Wright^ & Co, whose opinions as professional men, are worthy of all confix
<lence.
Digitized by
Gck igle
Original from
UNIVERSITY OF CHICAGO
V
908 Government, State, and City Bonds. [May,
GOVERNMENT, STATE, CITY, COUNTY, AND RAILROAD STOCKS,
BONDS, Etc.
New-York, April 24, 1 866.
SAMK3 OF COMPANIES.
Alabama k Trnn. River
Baltimore A Ohio
do. do
do. do.
Buffalo A State Line .
do. do.
Buffalo k New-York City .
Bellefontaine k Indiana .
Cin., Wilmington, k Zanesville
Cincinnati, Hamilton, A Dayton
do. ...
Cincinnati A Marietta .
Cleveland. Painesville, A Ashtabula
Cleveland A Pittsburgh
do. do. . •
Cleveland A Toledo
_ do. do. (Ohio June.)
Chicago A Rook Island. (Illinois)
Chicago A Mississippi
do. do. . . .
do. do. ...
Covington A Lexington
do. do. ...
Port Wayne A Chicago . .
Galena A Chicago . . ,
Indianapolis A Bcllcfontaln©
Indiana Central ....
Illinois Central ....
Illinois Great Western
Jeffersonville (Ind. to Louisville)
do. do.
Lake Erie. Wabash, A St. Louis
Lawrcnceburgh A linliauapolis
Little Miami
Maysville A Lexington .
Madison A Indianapolis
Michigan Central
do. do
do. do. . . . ,
Michigan Southern
Milwaukee A Mississippi .
do. do. . . .
New-York Central
do. do. (Subscription)
do. do. convertibles ,
New-York A New Haven . . |
New-York A Harlem .
New-IIaven A Ncw-London .
New-Haven A Hartford .
Now-Albany and Salem
do. do. .
Northern Indiana ....
do. do. Goshen Branch
Northern Cross
Ohio Central ....
do. Income
Ohio A Pennsylvania .
do. do
Ohio A Indiana ....
Panama
Pennsylvania ....
Reading, issued 1841 .
do. do. 1844. 4s, 49 . .
do. do. 1849,
Scioto A Hocking Valley .
Spring!., Mt. Vernon, A Pit
Steubenville A Indiana
do. do. Guaranteed
Tennessee R. R.’s guar, by State
Indianapolis
NATURE OF BOND?. IN WHEN PAYABLE
♦ 833,000,1st raort.con.ti»1872
1.000,000 Transferable— taxed
1,128,000 Coupons, free of tax
700.000 do.
do.
600.000 1st mort., not conv.
300.000 No mort., do.
1.200.000 1st mort.
600.000 1st do. convertible,
l.BOO.OOujlst do. do.
600.000 2d mort., not conv.
1,000.000 3d do. do.
2.600.000 1st do., conv. till 1862
667.000 ist mort., not conv.
■0,000
1 .200.000
686,000
900.000
2.000.000
1,000,000
1,000.000
do.
do.
do.
do.
do.
do.
do.
convertible
2d sec., conv.
not conv.
convertible
conv. till 18o8
do. 1857
not conv.
1.500,000 3d mort. con. till 1858
400,000 1st mort.. not conv. 6 April. Oct.
,000,000 2d mort., convertible 7 March, Sept.
DUE. 1 lOrr*D.,A9E,D
1 .250.000
1.200.000
450.000
600.000
17,000,000
do. conv. till 1863
do. not conv.
do. convertible
do. do.
Mort., not conv.
1,000,000 1st mort., do.
OnA AAa1 * « .
300.000
300.000
3.400.000
600.000
1.600.000
600,000 1
600,000
do. 1st sec. do.
do. 2d do. do.
do. conv. till 1859!
do. UM
not conv.
conv. till I860;
convertible
do.
do.
do.
— - do. V„M,V1 ,
1.000. 000 No mort., do.
l,305,00ui do. do.
1.200.000 do. not conv.
1.000. 000.1st mort., do.
600,000 do. 1st sec.con. 1857' . _
650,000| do. 2d do. 1858, 8 April, tfet.
8.287.000 No mort., not conv.! 6 May, Nov.
. 750*000 do. do. 6 May. Nov.
3.000. 000 No con.15 Je ’57 to W 7 June. 15 Dec.
_ept.
7 January. July
7 Feb., August
7 January, July!
7 May, Nov.
7 1 Oct., 1 April
10 April, Oct.
7 March. Sept.
7 April, Oct.
7 Feb.. August
7 March, Sept.
6 April, Oct.
6 January. July
7»Iay. Nov.
8 April. Oct.
8 April, Oct.
8 Semi-annually1
7 May, Nov. 1
8 January, July!
1862
1868
1880
1868
1061
1860
1873
1863
Bast
N. Y.
Pittsburgh
Terre-IIaute A
Terre-Haute A Alton
West Chester and Philadelphia
Wilmington A Manchester (N. C
Ca.)
750,0001 do.
1,800,0001 s t mort..
450.000,
1,000,000
600,000
I4BJ00
1.000.000
1.600,000
1.200,000
1,250.000
do.
do.
do.
do.
do.
do.
do.
on 1st sec.
' f UUU| Iv A/l
» 7 June, Dec.
7 May. Nov.
7 10 M’ch, 10 Sep.
6 January, July
10 April, Oct.
do.other do. con.’58 8 May, Nov,
do. not conv. 7 Feb., August
do. do. 0 Feb., August
do. convertible 7 January. July
do. conv. 8 Feb., August
800.000 2d mortgage. 7 May. Nov.
600.000 Income conv. 7 April, Oct.
1.750.000 1st mort., conv. 7 January, July1
l.GTo.000 Income, no mor. con. 7 April. Oct.
mort * conv. 7 Feb., August
2.378.000, No mort. con. 1856-58 7 January. July
If1 mor^- con. till 1860 7!1 Jan., 1 Jul;
1.674.000 Mortgage, Incon. ' c "
3.389.000 do. con.
3.469.0001 do. incou.
300.0001
500,000 1st mort. 1st div. con.
1,500.000 do. convertible
600,000 2dmort.guat.Pa.R.K.
list mort. conv.
600.000, do. do.
1.000. 000 do. do.
400,000; do. conv. till 1863
600,000 do. conv. till I860
| 82V^|
I 84
25
7 1 Jan. lJuly N.Y.lgfc
6 Quarterly, Balt.,1885
6 January. July Il876
6 Half-yearly “ 1880
7 April, Oct. N.Y. i860 X
7 January, July 44 118G1 'X
7 Divers 44 1860-66'X __
7 January. July 44 ,1866 X 99
7 May, Nov.
7 May, Nov.
7 January, July
7 Feb., August
7 Feb., August
7 March, Sept.
7 Feb., August
7 Divers
7 10 Jan., 10 July
7 April, Oct. 1
7 April, Oct.
January. July
11863-72 X
1870 |X>
X 85
X 921 %
X 80
X
X
X
X
X
83
[100
N.Y.
100
X *
X
1860
1802
1868
18S3
1883
1864
long! ,
I80I-72 X
1866 X
1878 X
1868-62 X 104
1864-75, X 80
N.Y.
6 January.
6 January. July
6 January, July
7 May, Nov.
7 January, July N.Y.
7 January, July
7 April, pet.
7 March, Sept.
7 Feb., August
7 January, July
7,June, Dec.
Phi.
1 1863
1974
1862
1883
1863
[1860-61
1866
1875
1*6*
1861
1873
1*75
1*66
1883
,1873
1861
1860 _
1855-66X1
1867-68 X
91
93
89
78
90
1=
ixi ::
X 80
X 93
X *
7-;l
Xj ..
X 84
X 90
X 86
h
97
1101
90
96
83
aav*
96
90
80
m :
S3 V*
94
90
72V11
85
96
83
7634
75*
75
86
■
8T
H
99
|ioi
97, 99
WVfc 9234
66 | 90
1014^1013 4
76n I 78
9034 91
9i34
Mil
1868
1873
1861
1864
100
X 85
X 8*1-2
X 93
X| 81
1858-COX ..
1865-66 X 104
1*?3 |X! 903 4
mm !x M 1
93
105
85
In .7
1866
urn
Phil. 1860
1860
1870
1868
1*65
1866
:18C6
1866
m i
M06
80
95
ftJVa
Kl
106
,»l
10O
10114 10134
9714
90
90
82Ml
91
83 V*
821/2 86
X
X
X
X
X 101
X 88
X ..
, 90
I100
102 Vi*
90
85
* X stands” for Ex-Interest.
Digitized by
Google
Original from
UNIVERSITY OF
. 1855.]
Government, State, and City Bonds.
909
U. s. Gov. Security. litT- PAT*BIJ-
[opt'd.
Loan, 6 per cent 1856 Jan. July.
do. do In. 2; do.
do. do 1867 do.
do. do 1868] do.
do. do Coup, b’e.l 868 do.
do. fiperct. do. 18651 do.
State Securities.
N. Y. 6 per ct. . . .1860-’61-’62 ) Jan. April.
do. ao. lW4-’6.> } July, Oct.
do. do 1872 Jan. July.
do. 5Vi per c t 1860-*61 1
do! # per °cL..7.’.T«! tig-
do. do i*ui I July, Oct.
do. 4V2 per ct. 1868-'59-’«V4’ )
Canal Certific’s.O p. ct... 1861 Jan. July.
1041/4
111*5
1 1 7‘* 4
1170 4 [118
U8:*/4 ..
1071.5 109
Ohio, do. 18561
do. do. 186l)|
do. do. 1870
do. do. 1875 j
do. 5 per cent i860
Pennsylvania, 5 per ct
do. 5 per ct. coup.. 1877
•Massac husetts, 5 perct....
“ - i*
do.
do.
do.
do.
do.
Feb. August,
do.
ask'd!
112
*1181.4
Kentucky, 6 p. ct.bvd.l869-’?2,Jan
Illinois, Int. Imp. 6 p. ct.1847
do. 6 per cent. Interest
Indiana State. 5 per ct
do. 21- 2 per ct.
do. Canal Loan, 6 per ct.
do. Canal Pref. 6 do.
Maryland, 6 do.)
do. 5 do. 1
Alabama, 5 do.
Louisiana, 6 per ct. bonds.
Tennessee, 5 do. do.
do. 6
Virginia, 6
Missouri, 6
N. Carolina 6
Georgia. 6
~ "'ornia, 7
do. do. long
do. do.. 1883
do. do.. 1872
do 1873
do 1872
do 1870
Califoi
City Securities*
July.
do.
do.
do.
do.
do.
Jan. April.
July, Oct
May, Not.
.Divers.
Jan. July.
1 do.
do.
do.
do.
do.
do.
108
110
116
104 ,
104M2,
10.W
1031/21
99
103
1<«6
112
112
86 14
90
103
95
64
mi
filial
95
15
106
90
91
81
94
97
99
93
|109
111
117
105
,105
New- York 5 per ct. . .1858-’6o!
_ do. _ do. . . .1870-*75l ( Aug. Nov,
] Feb. May.
-’60)
^-’75'C
•Albany, Bond, 6p. c.l871-’81 Feb. Aug.
•Alleghany do. do. l«7o-,77jjan. July. ,
Baltimore do. do. 187Q-’90 ja Ap Ju Oc
•Boston do. 5 do ] April. Oct.
Brooklyn do. 6 do 'Jan. July.
•Cleveland do.W.W7p.c.l879| do.
•Cincinati do. 6 p. c Divers
•Chicago do. do. 1873-’77 Jan. July.
•Detroit W.W. 7 p.c.73-’78-’Kl Keb. Aug
•Jersey C. do. 6 do 1877 ja„. July.
•Louisvilledo. 6 do...l880-*83 Divers.
•Nlilw’kio do. 7 do 1873 March! Sod t.
•Memphis do. 6 do 18*2 'Jan July
•Norfolk do. 6 do April,
*N. Orl’ns do. 6 do.. .1^2-^!Jan. July
Philadelp. 6 do. . .1876- ’90 1 do<
•Pittsh’gl, do. 6 do, 'OO-’TM-’K’.Injyg- ’
* KochestYdo. 6 do 1878, do
•St. Louis do. 6 do do.
•Sacramentolu do... .1862-73 do!
•ri. Francisco 10 do 187 1 May* Nov
* 60. 10 do. ... .. ..! pay at N. Y,
Wheeling, mun. bnds. 6,18<4 March, Sept.
County Bonds* I
•Allcghany.Pa.6p.ct. X — It-- jniv
•Fayette, Ky. 6do.X1881-83!Jadn’ Julj’
♦Bourbon. Ky. 6do.X.81*’83
•Mason. Ky. 6do.X.81-’82 d°*
•St. Louis, Mo. 6 do. X. . 1866!
•Boyle, Ky. 6do.X | ao* ■
* f'i"- y"!/^ April 15,'Oct. 1,
Z' « X" ^ Divers. i
7do.x::l«7/a“-IoJu1^
7 do. X. .IS?:) Sept.
100
164
107
113
113
86Mij
92 1
>1031/2
951/2
65
85
52141
97
[107
91
9ivb
)8
95
971/4
8121
r4
Erie Income 7 p. ct. . .1875,
do. Convertiblesdo. . .1871 f
do. do. do, ..1862
Hud’n R. 1st mor.do. 18G9-70
do. 2d do. do. ..I860
Hud’n R. cony. 7 p. ct. 1867
Luftt year
R* R. CO.’S* Dividend
Baltimore A Ohio... .100i
Chicago A Rock-Isrd 100
Cin., Ham., A DaytonlOO1 10
Railroad Bonds. [irr.PAT>BL.|orPD.|ABK'a
88
84V2
91
104
961/2
77 VS
Feb. Aug.
1 do.
Jan. July.
Feb. Aug.
16 Ju. 16 D.|
May, Ncv.
8734
84
91
103 ,
77
98
100
100
761/2 77
98 l/i i 99
100
10-3
104 !
97 j
94
102 1
96
86
90
74
80
93
83
97
86
9 J3 4
102
1063 4
79
1021/2
105
98
95
103
97
88
91
75
821/2
93
83
99
861/2
91 '
104
107
81
75V/i 76
781 /2I 80
771, 2; 80
•Clark, Ky.
•Muskingum,
•Belmont O.
•Putuani, O.
•Knox, O.
Railroad Bonds.
Erie 1st mort. 7 p. ct. ..1867 May. Nov.
do. 2d do.conv.do. . .1*59 March, Sept,
do. 3d do. do. ..18X5 do.
74
8134
70
72
94
94
9434
1121 2
90 1 2
93 * 4
'7
82 ,
72l/'2|
95
95
95
113
100
94
Cleveland, Col. A Cin.100 13
Cleve. A Pittsburgh. .50 10
Cleveland A Toledo... 60 10
Erie 100 7
Galena A Chicago.... 100 20
Harlem 50 4
do. preferred 60 8
Hudson River 100
Illinois Central 100 7
Little Miami 60 10
Macon A Western 10 9
Michigan Central. ...100 8
do. Southern . .100> 5
do. do. con. st.100 18
New-Jersey 60 1 0
Northern Indiana... 100 15
do. con. st.100 18
N. Haven A Hartford.100 0
New-York Central... .100,15
N. Y. A New-HavenlOO
Ohio A Pennsylvania. 50 1 X
Panama 100 70
Pennsylvania 50 16
Reading 60 1 6
Rome A Watertown. .100 10
miscellaneous.
N. Y. Life A Trust Co.l00|10
April, Oct.
Feb. Aug.
Feb. Aug.
Jan. July,
j do.
M’ch, Sept.
April, Oct.
Feb. Aug.
I do.
Jan. July.
May, Nov.
Jan. July.
June, Dec.
Feb. Aug.
Dec.
Jan. July,
do.
Feb. Aug.
Jan. July,
do.
Apr. Oct.
Feb. Aug.
15 Fe 16 Au
Jan. July,
do.
May 15 No.
Jan. July.
Feb. Aug.
Ohio do. 100
N. Y. Gas-Light Co.... 60
Manhattan do 60
Dela. A Hud. Can. ColOO
Pennsylvania Coal Co.50
Feb. Ang.
Jan. July.
May Nov.
Jan. July.
June, Dec.
Feb. Aug.
4
4
4
5 4I/2I
3Mi 31/2
31/2 31 2
4f4
88
73
1041/3
33
76
61 14
903.4
31 ;
771/2
96l/i
98
100 .
8IV2
98
90
123
98
90
115
94
84’
99 ,
863.4
Slw!
46
89
75
106
85
761/2
511/2
91
311/4
781/5
39 1/2
961/S
100
103
82
99
91
134
99
91
117
9414
85
961/2
87
863.4
80
pm
88
136
137
194
106
Boston Ranks Oiw’ds.
par 1851-6.
Atlantic 100
Atlas 100
Blackstone 100
Boston 60
Hoylston 100
Broadway, (S. Boston). ..100
City 100
Columbian 100
Commerce 100: 4 4
Engle 100 4 4
Eliot lOOl 4 4
Exchange 100] 4 4
Faneuil Hall 100 4 4
Freeman’s 100 5 6
Globe 100! 4 4
Granite 100; 31/2 3Vh!
Grocers’ 1001 4 4
Hamilton 10U| 4 4
Howard 100 4 4
Market 70 5 6
Massachusetts 250 31-5 31-5,
Maverick 100 new. 3
Mechanics’, (8. Boston).. 100
Merchants’ 100
National, 100
New- England 1001
North.. loo;
166
nf*
180
136
1051/2
!*4
1013/4,102
North America 100
Shawmut 100
I Slice and Leather 100,
SUtc 00,
| Suffolk 100i
I Traders’ loot
'Tradesman’s, iCIicl.) 100
Tremont 100]
Union 10oj
Washington l00i
Webster, (new) 100>
4
4
4
4
4
4
4
41/2
3»/2
5
4
4
5
4
4
31 '2
4
4
4
4
4
31/2
4
3I/2I
6
4
4
4
4
31/2!
31-2
561/2
1091 2
100
104
103
993 \
106
100
1< 91/2
106
113
1141/2
99
97
113
95
87
250
33
104
IO6I/2
67
110
101
105
104
100
107
loul/i
no
107
113
115
101
98
115
‘>7
, 88
[251
95
101
107
1021 1 1021/2
1071/2 109
101 103
1001/2 101
103*4 104
109b 2* 110
64 | 6tl/2
139W130
103 1105
90 91
110 112
no !m
10014,10a
10> >106
N.B. All Stocks not specified as Bonds are transferable by inscription. All Bonds (except Hudson lit ud
3d Mortgage and Erie Convertibles) are payable to bearer. ” • ” denotes Ex-interest or Ex-Dividend.
Digitized by
Gck ,gle
Original from
UNIVERSITY OF CHICAGO
910
Miscellaneous.
[May,
Digitized by
MISCELLANEOUS.
Bank Robbery. — The Branch of the Bank of the State of Georgia, at Washing-
ton, was entered through the front-door, opening on the Public Square, between
seven and eight o’clock Wednesday morning, March 21, and robbed of fifteen thou-
sand two hundred and twenty -five dollars in bills, all of which are payable in this
place. The Teller had just been in the room and removed the till from the vault
to its usual place in the counter preparatory to the day’s business, and retired to
breakfast, locking the side-door leading into the passage after him, and supposing
the front-door secure, as it had been locked the evening previous. A negro boy,
whose business it is to sweep out the banking room every morning while the Teller
is present, has been arrested, and confesses, that by agreement with a white man,
the night before, ho secretly turned the key in the front-door while sweeping. The
robber, all this while, was secreted in the privy at the corner of the building, and
but a few steps from the door. As soon as the bell rang for breakfast he emerged
from his hiding-place, entered the building, secured his booty, and effected his
escape unseen. The robbery was discovered a little over an hour after it occurred,
yet all attempts to track tho villain failed. We doubt if the annals of crime furnish
a more daring adventure. — Wilkes Republican , March 23 d.
New- York Bankh — The clause in the New-York general banking law, which
makes every individual stockholder of a bank liable to tho extent of his stock for
the liabilities of the bank, is working powerfully in the case of the Knickerbocker
Bank. The assets in the hands of the receiver will not prove enough to discharge
the debts of the bank, and the law of 1 849 compels the receiver to mako a divi-
dend at the end of six months, to the amount of the funds realized in that time, and
then to proceed against the stockholdera From a sense of this, the leading stock-
holders held a meeting on Thursday, to form some plan of self-protection : which
appears to consist in raising among themselves a subscription to buy, whenever
offered at auction, the securities, real estate, etc., of the bank, so that if sacri-
ficed, they can get the property low enough to make up for whatever they may
have to pay, when applied to by the receiver. Those stockholders who do not
subscribe are to be excluded from any benefit in this plan.
Fraudulent Bills op Exchange. — The New-Orleans Picayune publishes the
following narrative of an adroit case of swindling, said to have taken place in
Charleston, S. C., to which we have seen no allusion in the papers of that city :
41 J. C. Nichols, formerly a shipmaster from Belfast, Me., took up his abode in
Charleston this season, and having a good opinion of cotton, bought moderately for
shipment to England, and passed his bills with shipping documents attached, prin-
cipally through one of the leading banks there.
“A fortnight since, tho parties holding the drafts were notified that they bad
been refused acceptance. This led to inquiries, and to application at the consignees
of the Sarah Ann, tho vessel on which the cotton was shipped, all in order. Tho
examination at once disclosed a most stupendous fraud. It appears that Nichols
had actually shipped 308 bales of cotton ou the vessel, but by means of adroit
forgeries, had succeeded in passing off bis drafts based on fictitious bills of lading,
purporting to represent property on bond to tho amount of 14 S3 bales, or nearly
1200 more than tho reality, being equal to a money value of about $40,000...
14 The process by which this piece of rascality was accomplished was very pimple.
A number of small marks were shipped say from 20 to 30 bales each, ami^iUs of
lading signed accordingly, but tho blank space in tho document was sufficiently
largo to prefix two hundred or three hundred, so that an original shipment of
twenty bales or so, was made to represent two hundred and twenty, or three hun-
dred and twenty bales, as the caso might be.
“In addition to this a parcel of tlnrty-ono bales shipped on board the Royal
Victoria was changed to 131, and for aught that is known to the contrary,
Gck igle
Original from
UNIVERSITY OF CHICAGO
Miscellaneous.
911
1855.]
there may still be in existence some farther evidence of the sagacity of this new
aspirant to financial fame. Before leaving Charleston, Nichols left instructions to
pay over any balance that might accrue from his shipments to his wife, resident
somewhere at the North. It now turns out that he went to Havana, having been
actually seen thcro ten days ago.”
Page, Bacon k Co. — Mr. H. D. Bacon, of the firm of Page, Bacon k Co., it is
announced, has executed a general deed of assignment to S. L. M. Barlow, Attor-
ney, of this city, of all the firm and his own individual property, real and personal,
at St. Louis, New- York, in the Western States, and in California, for the benefit of
the creditors of both houses and of his own. A telegraphic dispatch from St. Louis
states that the firm there have issued a card, assuring their friends that their assets
largely exceed their liabilities, although they are not immediately available, and
that they will be faithfully applied to the payment of tlio demands against them.
Wheeling. — The City of Wheeling has issued $250,000 of bonds, bearing six per
cent, and payable in New- York in 1874, in order to pay off a loan of $100,000, negoti-
ated twenty years ago with Messrs. Rothschild, which loan falls due the 1st of March,
and will be paid by the Ohio Trust Company ; and, secondly, to fund the floating
debt of the city. To pay the interest on the above loan the city has levied a special
tax of $15,000 a year, and the revenue from the wharves of the city is placed,
monthly, in the hands of Commissioners to form a Sinking Fund, for the ultimate
redemption of the principal
New-Jersey. — The City Bank of Newark (a free bank) has taken the new loan
of the city of Newark, fifty thousand dollars, at five and a half per cent premium.
The bonds are redeemable in 1880 ; and are available as security for circulating
notes under an amendment of the general banking law, adopted by the Legislature
of the State at its late session.
Savannah. — The city debt of Savannah, according to a statement made by the
Mayor, is as follows :
Central Railroad bonds, redeemable in 1859, $221,000
South-Western Railroad bonds, 150,000
Augusta k Waynesboro R R bonds, 200,000
Columbus Branch S. W. R R bonds, 100,000
Bonds for purchase 1000 acres land, 28,000
Gas stock bonds, 6,000
Ogechee Plank-Road bonds, 6,000
City Water-Work bonds, 200,000
Total $909,000
TriE Texas Debt. — The Texas State Gazette takes ground against the payment
of the creditors of that State. The Gazette is deemed the organ of tlio Texas admin-
istration. The Gazette thus states the objections to the acceptance of the recent act
of Congress as providing for the payment of the debt 1. It does not acknowledge
the right of Texas to settle with her own creditors. 2. It compels Texas to pay
a portion of the creditors more than she owes them by her adjustment bill, and to
pay another portion less. 3. It compels Texas to enact a law relinquishing her
hfy claim of $3,600,000 for indemnities which, according to Senator Rusk, “created one
* half of our entire debt.” 4. Texas must loso about $3,000,000 in the scttlomcnt.
The article concludes thus: “Shall, then, the United States, with our assent, set
aside its contract with us under the boundary act, granting U3 tho ten millions of
dollars? and shall wo reliquish all our monies in her hands to tho creditors of the
Republic, and relinquish also all our claims upon tho United States for Indian
indemnity ?”
Rings as a Currency. — Mr. Charles Edwards, in his work entitled, 11 Tho His-
tory and Foetry of Foreign Rings,’’ says: “ Want of a circulating medium probably
Digitized by
Gck igle
Original from
UNIVERSITY OF CHICAGO
Digitized by
912 Miscellaneous . [May,
first gave metallic currency to rings. Money rings were common even in Ireland ;
and they were never buried with the dead, like those rings which the piety of the
Romans secretly slipped into tho urns of their dear departed. It is well known
that the Roman law forbade the burying of gold with the dead. There was, how-
ever, one curious exception to this rule. The law ‘ permitted the burial of such gold
as fkstened false teeth in the mouth of tho deceased, thus sparing the children and
friends of the dead the painful task of pulling from their heads the artificial teeth
which they had been accustomed to wear.’ ”
Damages on Bills. — The Legislature of Louisiana, during the last session,
passed an act relative to damages on bills of exchange, which provides as follows:
§ 2. That tho rate of damages to be allowed and paid upon the usual protest for
non-acceptance or non-payment of bills of exchange drawn or negotiated within tliis
State, shall bo as follows : On all bills drawn on and payable in foreign countries
ten dollars upon tho hundred upon the principal sum speciticd in such bills ; on all
bills drawn on and payable in any other State in the United States, five dollars
upon the hundred upon tho principal sum specified in such bilL
3. That damages shall bo in lieu of interest, charges of protest, and all other
charges incurred previous to and at the time of giving notice of non-acceptance or
non-payment, but tho holder shall be entitled to demand and recover lawful interest
upon the aggregate amount of the principal sum, and of the damages thereon from
the time at which notice of protest for non-acceptance or non-payment shall have
been given, and payment of such principal sum shall have been demanded.
Pennsylvania. — The Harrisburgh correspondent of the Philadelphia Ledger
states that Governor Pollock has vetoed the bill to extend the charter of the York
County Bank, and the bill to incorporate the Mercer Bank, not upon the ground
stated in his veto of the Pottstown Bank, but because the proper notice required
by law was not given of these applications. The veto in the case of both banks
wds unanimously sustained in tho House. In the caso of the York County Bank,
the Governor gives as a reason why ho cannot approve it, that the notice given by th#
Bank of its intended application for an increase of capital, designated such increase
at $200,000, while tho bill passed and presented for his approval called for an in-
crease of but $150,000, which ho does not regard as a compliance with the require-
ments of tho law providing how notice shall be given. Although the House unani-
mously sustained this veto, it must not be taken as a unanimous indorsement of
the view's of tho Governor on this point, several who voted against the bill having
expressed their dissent to the novel opinion advanced by the Executive. The veto
further stated that tho notice given was deficient in another particular, not stating
tho present capital of the bank, upon which point the veto was sustained unani-
mously. On Tuesday the House negatived, by a very largo vote, the bill to char-
ter the Fanners & Traders* Bank of Philadelphia, the first bank application that
has not met with favor from the House ; and then immediately turned around and
passed tho bill to incorporate the Commercial Bank of Harrisburgh, which is no
more called for by tho business wants of Harrisburgh, than the Fanners & Traders’
Bank is by tho business wants of Philadelphia, and either is no more wanted than
a wagon wants a fifth wheel
Virginia. — George W. Carny, Esq., has resigned the office of Treasurer of tho
Norfolk & Petersburgh Railroad Company, and has accepted the appointment of
Cashier of the Exchange Bank of Virginia, Norfolk, as successor to Wright South-
gate, Esq., deceased.
New Books. — The American Almanac for 1855, is one of tho most valuable of
tho series hitherto published. Tho lists of government and Suite officers are com-
piled with great care. Tho finances of the several States are carefully exhibited,
and copious information given as to their judiciary, schools, etc u The Chronicle
of Events of the Year,” and “American and Foreign Obituary,” supply the place in
part of an Annual Register. Published by Phillips, Sampson & Co., Boston.
Gck igle
Original from
UNIVERSITY OF CHICAGO
1855.]
Bank Items.
913
Digitized by
BANK ITEMS.
Bank Officers. — A revised list of the Banks in (he United States , with (he names
of President and Cashier of each, is now in preparation for publication in the June
No. of the Bankers’ Magazine ; the publisher of which will be glad to receive notifica-
tion of any changes in the various States of the Union.
New-York. — Andrew V. Stout, Esq., has been elected President of the Shoe A
Leather Bank, in place of William H. Cary, Esq., resigned.
The Directors presented a service of plate to Mr. Cary on his retiring, in recog-
nition of his valuable services, which have been rendered gratuitously. Mr. John
Harper, of the firm of Harper A Brothers, has been elected Vice-President. The
Bank will take possession of its new premises on the first of May. The Bank will
pay, on Monday, tho dividend of four per cent, which it has just declared out of the
profits of the last six months,
Albany. — The Albany Exchange Bank has the contract for the deposit of the
City Funds for the next two years, from the 26th instant, on the following terms :
Said Bank to receive all monies, usually taken by the city, at par ; to allow interest
thereon at the rate of five and a half per cent per annum, to be calculated on
weekly balances, and to furnish necessary drafts on New-York at par, with tempo-
rary loans, at short dates when required.
The Commercial was the only bank that did not make proposals. The rates
offered by the others were as follows:
Albany Exchange Bank, 5^ per cent
Union Bank, 5 J 44
Merchants’ Bank, 5 6-100 per cent
Mechanics A Farmers’ Bank, 41-5 11
City Bank, . . 5 44
New-York State Bank, 4 44
Bank of Albany, no interest
New - York Bank Law. — An act repealing the act prohibitory of the circulation of
the bills of banks not chartered by tho laws of this State, under tho denomination
of five dollars. Passed March 27, 1855.
The people of the State of New- York, represented in Senate and Assembly, do enact
as follows :
§ 1. The act entitled, “An act to prohibit the circulation of tho bills of banks
not chartered by tho laws of this State, under the denomination of fivo dollars,”
passed April 20, 1830, is hereby repealed.
§ 2. This act shall take effect immediately.
New Bank Buildings. — The Shoe & Leather Bank has purchased tho lot and
building recently owned by the Central Bank, at tho Corner of Broadway and
Chambers street, and will proceed to finish tho building, which is wrell designed for
banking purposes.
Tho Bank of Commerce has purchased the property at the north-west comer of
Nassau and Cedar streets, and will at an early period erect a suitable structure for
the use of the Bank.
The Bank of tho State ofNow-York has purchased tho lot comer of William
street and Exchange Place, and will erect a substantial bank edifice during tho
present year.
The Mechanics’ Bank has removed temporarily to rooms in tho Merchants’ Ex-
change, and will proceed to erect a large and commodious building on their lot No.
33 Wall street. The new edifice will bo constructed somewhat on tho plan of tho
Phcnix Bank building; the front portion to be used for insuranco offices, and tho
banking rooms to be on the rear of tho lot.
Maine. — Among acts of the Legislature of Maine, were tho following: I. To
punish the fraudulent issue and transfer of certificates of stock in corporations.
Gck igle
Original from
UNIVERSITY OF CHICAGO
914
Bank Items.
[May,
Digitized by
IL To change the name of the Danville Bank, to that of the Auburn Bank. IIL
To facilitate the detection and prevent the circulation of counterfeit bank bills*
(For list of now banks in Maine, see p. 863.)
Massachusetts. — Some few of the Banks in Massachusetts have passed their
usual April dividends, and the question very naturally arises why the omission has
boon made. It is reported that these non-paying banks have not met the demands
of the business community, where they are located, but have taken paper from
parties at a distance, in order to profit by the exchange . By this course, a bank in
Eastern Massachusetts has got into the iron business, and several of the banks in
Western Massachusetts have gone into what is popularly called a u Western busi-
ness,” where the profit is largo but the pay slow. These institutions do not deserve
the least sympathy in their misfortune, for when they go out of the places where
they arc located, to get, by indirect means, a higher rato of interest than they could
obtain from the business men of their vicinity, they violate tho spirit of their char-
ters, and become merely shaving mills. They operate against the interests of tho
place where they are, and bring our wholo banking system into disrepute. — Boston
Transcript.
Certified Cheeks . — It is stated that a suit has been brought by the Merchants’
Bank against tho Grocers’ Bank, by which means the question connected with tho
checks certified by the late Paying-Teller of tho Merchants’ Bank, will be settled
by the Supreme Court.
New- Jersey. — The Legislature of Now- Jersey has adjourned after having re-
chartered tho following banks : I. Farmers’ Bank, N. JM Mount Holly ; II. Mor-
ris County Bank, Morristown; III. Burlington County Bank, Medford; IV. Tho
Sussex Bank, Newton; V. Tho Trenton Banking Co. ; VI. Mechanics’ Bank, Bur-
lington ; VII. The Bordentown Banking Co.
The following now banks were chartered : I. The Farmers Jt Mechanics’ Bank ;
IL The Central Bank of New-Jersey ; III Tho Burlington Bank ; IV. Tho Hackets-
town Bank ; V. Tho City Bank, Perth Amboyj VL The Hunterdon County Bank,
at Flemington.
The capital of the State Bank at Elizabethtown was increased.
Maryland. — James W. Allnutt, Esq., has been chosen President of the Bank of
Commerce, Baltimore, in place of Charles R. Taylor, Esq., resigned.
Bcdiimore. — Charles R. Coleman, Esq., of the Merchants’ Bank, has been elected
Cashier of the Mechanics’ Bank, Baltimore, in place of Mr. Allnutt, now of the Bank
of Commerce.
Bank Dividends. — Tho bank dividends payable in April, as compared with 1854,
are as follows :
Banks.
National Bank,
Shoe A Leather,
Bank Commonwealth,
1S54.
April. October.
..5 5
• • 4
1S55.
April.
5
4
3*
The increased business indicated by the weekly statement warrants a greater
rato of prolit3 for tho current half-year, without a commensurate increase of
expenses.
Kentucky. — Tho following changes have occurred in the Branches of the Bank
of Kentucky :
Branch.
Bowling Green, J. R. Underwood, President, in place e/J. Hines,
Greensburg, John Barrett, “ “ Josi ah Brum well.
Lexington, Henry Bell, “ “ J. B. Til ford.
Hopkinsville, Isaac H. Caldwell, Cashier, “ J. II. Van Culin.
Gck igle
Original from
UNIVERSITY OF CHICAGO
Bank Items .
915
Digitized by
1855.]
Ohio. — 0. F. G-araghty, Esq., has been elected Cashier of the Hocking Talley
Bank, Lancaster, in place of M. A. Daugherty, Esq., who has resumed the practice
of the law, in the firm of Messrs. Hunter k Daugherty.
The New- York Bank Department. — The New-York State executive has seen
fit to nominate Mr. M. Schoonmaker as successor to Mr. D. B. St John, as Superin-
tendent of the Bank Department. Changes of this character are objectionable gene-
rally, but they are peculiarly so in an office where talent, experience, and integrity
have been known. The Bank Superintendent should bo changed only upon
grounds of incom potency or inattention to his duties. In the present case, nothing
of the kind is intimated. The banks of the State and city were generally in favor of
Mr. St. John being retained in the office, and the true interests of the State have
been unnecessarily sacrificed by the change. The opinion is expressed by his
political oponents, that Mr. St. John has combined with the faithful and rigid per-
formance of the functions of his office, a courtesy and spirit of accommodation —
characteristics of the real gentleman — which have been especially agreeable to all
who had business transactions with the Department,
Mr. Schoonmaker, who now succeeds to this office, is abundantly competent for
the position, and is in all respects a gentleman of integrity of character, and will, we
doubt not, make an excellent Superintendent. It is much more grateful to us to
be able to speak well of the appointments of our political opponents, than to feel
called upon to condemn them.
In tho chango which occurs in this office, it is of course important, both to the
retiring and the incoming officer, and to the banks, to have every thing relating to
the immense amount of securities of the office definitely settled and understood. To
facilitate this, Mr. St. John has appropriately addressed tho following circular to
the banks:
Bank Department, Albany, April 7, 1855.
To , Cashier:
Dear Sir: On Monday morning, the 16th instant, I shall surrender to my suc-
cessor in office, Hon. M. Schoonmaker, all the securities held by mo in trust, as
Superintendent of the Bank Department, together with the custody of the plates,
impressions, books, and papers connected with the same.
I shall immediately thereafter send you a statement of the securities held in trust
for your Bank, as the same appears on the books of this Department on that day,
so that you may be able to compare the same with your books, and test the accuracy
of the statement; and in case there should be any discrepancy or disagreement
between the account of the Department and your Bank, that the same may be
explained and corrected. Kespectfully yours,
Daniel B. St. John, Superintendent.
Mr. Schoonmaker has filed his bond with the Comptroller, and entered upon the
discharge of his duties as Superintendent of tho Banking Department.
The Albany Argus states that Mr. St. John, his predecessor, retires with tho
friendship and confidence of honorable, upright bankers, taking with him tho
good wishes of tho community, with whom ho has ever held agreeable business,
political, and social relations.
Sales of Bank Shares at New-York. — Tho demand for bank shares during
tho present month has been quite limited. The shares of the old established banks
command a liberal premium, even where they have divided their surplus at a lato
date and commenced business under the general law. The dividends of lato indi-
cate that the banks will mako a profit this year of 7 a 10 per cent.
For the week ending March 26.
Bank of Republic, 118
Bank of America, 115
Union Bank, 120
Metropolitan Bank.. .109lX<ill0
Continental Bank,. . . .104K«105
Merchants’ Ex. Bk.,..106tfl06X
Shoo «k Leather Bk., 101 X<ilrt2 V
Bk. Com'n wealth, 94a9VAo9i
St. Nicholas Bank, 90
Hanover Bank, 96
Ocean Bank, T4
Farmers & Citizens' Bank, 53>$
Del. A Hudson Bank, 124
Island City Bank, 74
Marino Bank, 100
Gck igle
Original from
UNIVERSITY OF CHICAGO
016
[May,
Coinage of the U. S. Mint , Philadelphia .
For the week-ending April 2.
Manhattan Bank,...
125
Market Bank,
.105)$
nanover Bank,
.. 96
Mechanics* Bank, . . .
117
Continental Bank,
.105)$
St Nicholas Bank,
.. 94
Bank of America, . . .
115)$
Bank State New-York,..
.105
Bank Commonwealth,. . .
.. 98
Bank of Commerce,.
109
Bank North- America,.. .
.103
Ohio Lifo A Trust Co,...
.. 85
Metropolitan Bank, .
109
Mechanics' Banking Asso, 100)$
Chatham Bank,
.. 75
Shoe A Leather Bk.,
.102*108
Corn Exchange Bank,99)$a99X
Far. A Citizens* Bank^.52)$a56
Merchants' Ex. Bk.,.
.105*106
Marine Bank,
. 99
For the week ending April 9, 1855.
Fulton Bank 185 Metropolitan Bank, 109 Corn Exchange Bank,... 99)$
Manhattan Bank, 125 Bank of Commerce, 109 a 109)$ Marine Bank, 99
Union Bank, 120 Continental Bank, 105)$ a 105 X Hanover Bank....... 96 a 96j$
Bank of the Republic,.. . 119)$ Bank State New- York,. . 105)$ St Nicholas Bank, 96
Bank New-York, 117)$ a 119 Bk. North- America, 102 a 103 Bank Commonwealth, . . 93)$
Mechanics' Bank, 117)$ Nassau Bank, 102 Ocean Bank, 74K a 75
Bank of America, 1153k Shoo k Leather Bank,.. . 100 Suffolk Bank...... 2K
For the week ending April 16, 1855.
Merchants* Bank, 185 Continental Bank, 105)$ St Nicholas Bank,. .94)$ a 96)$
Union Bank, 121 Bank North- America,.. . 108 Corn Exchange Bank,.. . 99fc
National Bank, 125 Nassau Bank, 102 Ocean Bank, 75
American Exchange Bk^ 115 Shoe A Leather B)l,9S)$ a 100 Chatham Bank, 75
Metropolitan Bk., 108)$ a 108 \ Hanover Bank, 96 a 90)$ Mechanics* Bk. (W*bglL,) 50
Market Bank, 107
COINAGE OF THE U. S. MINT, PHILADELPHIA.
JA NUABY, FEBRUARY, MARCH, 1955.
January. February. March. Three mo'Lht.
13,966,180 00 $2,594,860 00 $802,540 00 $6,S63,390 00
477,100 00 278,920 00 181,420 00 937,440 00
82,930 00 107,575 00 155,075 00 345,680 00
83,510 00 88,510 00
118,985 00 174,360 00 293,845 00
25,000 00 208,756 00 228,756 00
$4,615,245 00 $3,213,725 00 $848,091 00 $3,702,061 00
$12,000 00 $46,000 00 $59,000 00
86.000 00 26,000 00 16,000 00 78,000 00
142,000 00 14,000 00 14,000 00 170,000 00
89.000 00 34,000 00 11,000 00 84,000 00
$229,000 00 $120,000 00 $41,000 00 $390,000 00
Copper, 5,175 85 5,175 85
Gold, 4,645,245 00 8,218,725 00 843,091 00 8,702,061 00
Total, $4,874,245 00 $3,888,725 00 $339,266 85 $9,097,286 85
Bitllion Deposited.
From California, $4,260,600 00 $1,176,180 00 $123,000 00 $5,559,980 00
From other sources, 8, GOO 00 16,670 00 5,000 00 30,470 00
Silver, including purchases, 170,000 00 75,800 00 186, 300 00 881,600 00
$4,489,400 00 $1,268,300 00 $264,300 00 $5,972,000 00
Silver.
Half-dollars . . . .
Quarter-dollars,
Dimes,
Half-dimes, —
Denomination.
Doable eagles, . ,
Eagles,
Half-eagles,
Three dollars, . .
Qnorter-eaglcs, .
Dollars,
Digitized by Gougle
Original from
UNIVERSITY OF CHICAGO
1855.]
Notes on the Money Market
917
NEW-YORK ASSAY OFFICE.
DEPOSITS OF GOLD AND SILVML
January. February . March . Total.
Foreign coins, $81,000 00 $4,000 00 $8,300 00 $93,800 00
Foreign bullion, 24,000 00 8,740 00 11,840 00 44,080 00
' United States bullion, 4,243,729 86 1,625,934 86 1,121,200 00 6,990,864 79
Total gold, $4,848,729 86 $1,688,674 86 $1,140,840 00 $7,128,244 72
Silver.
Foreign coins, $1,122 00 $765 00 $2,700 00 $4,587 00
Foreign bullion, 695 93 1,691 00 1,700 00 4,086 78
United States bullion 80,011 97 11,770 00 8,914 00 50,695 9T
Total silver, $31,829 70 $14,226 00 $18,814 00 $59,869 70
Total gold and silver, 4,8S0,559 56 1,652,900 86 1,154,154 00 7,187,614 42
Gold ban stamped, 1,698,478 80 1,707,986 92
Notes on t f| e intones Sttarfeet.
New-York, April 24, 1855.
Exchange on London, at sixty days' sight, 10 a 10$ per cent premium.
Tsx&i are various causes to disturb the money market, and to Interrupt the steady improve-
ment that was visible in the months of January, February, and March. Capital has been abundant
for legitimate business, and the rates on loans have gradually approached the legal terms, seven per
cent In fact, largo amounts have been recently loaned temporarily, on call, at five and six per
cent; but there is a disinclination to invest for long periods, in consequence of the intimations from
official sources of a rupture with Spain. The most remote probability of a war, with either a
strong or a w'eak nation, has an instantaneous effect upon capital and upon capitalists. There is no
portion of the community so sensitive as money-lenders, and slight causes at times affect seriously
the values of all public securities that are in the market for negotiation.
Another source of continued uneasiness is the protracted war In Europe. Although far removed
ourselves, from the seat of war and from the governments engaged in it, there is necessarily a sym-
pathy between commercial nations that will always influence the whole, although unfavorable
events may directly affect hut one. Although wo are thus geographically remote from Europe and
Its strifes, every important commercial interest in this country is directly or indirectly affected by
the events of the war. Tho first effect is in a disordered state of the English cotton-man ufacturing
districts, and a diminished demand hero for this important staple.
The price is kept up, however, by tho decreased crop as compared with 1S52-8, and ’4. At Ncw-
Orleans, the comparative arrivals, exports, and stocks of cotton and tobacco for ten years— from 1st
8ept. each year to date— have been as follows :
Yean.
1864-55,
1968-54,
1859-58,
1861-69,
1850-51,
1849-50,
1848-49,
1847-48,
1846-47,
1846-46,
COTTON— BALI8. TOBACCO — HDDS.
Arrivals.
Export*.
Stocks.
Arrival*.
Export*.
Stock*.
999,188
918,489
109,870
17,897
82,881
8,561
1,187,059
854,746
292,823
18,170
13,704
28,632
1,618,245
1,172,777
885,036
86,114
17,725
87,220
1,210,646
1,088,481
187,555
26,050
88,732
16,189
876,510
668,981
229,141
24,920
17,531
22,289
785,088
574,188
176,880
26,864
28,271
16,886
994,769
785,878
246,285
14,796
17,627
12,028
1,018,496
780,259
261,924
94,662
81,739
15,259
640,696
440,468
906,560
18,750
21,966
9,708
894,260
690,449
911,867
24,743
18,982
13,434
Digitized by Gougle
Original from
UNIVERSITY OF CHICAGO
918
Notes on the Money Market.
[May,
As to prices, there is an improvement when compared with 1854, m shown by the following
table of the comparative prices of cotton at New-Orleani, in April, in the following years, with rate
of freight to Liverpool and of sterling exchange :
1855. 1854. 1858.
Inferior, — a 6* cent* 4* a 6* cents. 6* a 7 oenta
Ordinary to good ordinary, 7 a 8 M 6* a 7* 14 7* a 8* “
Low middling, 8* a 8* 44 7* a 8 w 8 * a 9*
Middling, 8* a 9* “ 6* a 8* “ 834 a 10 “
Good middling, Ha 10 14 9 a 0)4 44 10)4 a 10* “
Middling fair, 10)4 a 1034 “ 9* a— “ 11 a — «
Freight to Liverpool, 5-16 a X — Q> % 9-16 a —
Sterling exchange, (p. c. prom.,) 9 a 9* 7* a 9 834 a 9)4
The money market at New-York is not favorable to any new schemes of finance. North -Carolina
and Virginia are in the market for new loans, and can obtain all they want at or near par, for six
per cent bonds; but there is a manifest disinclination to encourage any new railroad enterprises.
For first-class railroad stocks and securities the market is better than early In the year; more
confidence is felt In the management of the important railroad lines— both in the increased receipts
and in the economy of running them.
The demand for State loans is fully equal to the supply, and prices will be maintained as long m
bank circulation in the West shall be based upon State bonds. W© annex a summary of stock
values for the past five weeks, showing very slight changes since our last report :
March 28.
March 30.
April 6.
April 13.
April 90,
U. S. 6 per Cents, 1SG7-8, ....
.... 117*
11734
117)4
117*
118*
Ohio Six per Cents, 75,
.... 107
110
113
111
110
Kentucky Six per Cents,
... 101
103
103
101
108
Indiana Five per Cents,
.... 85)4
8434
85
84*
88k
Pennsylvania Five do.,
. .
. .
86*
86*
Virginia Six per Cents,
... 96*
97
97
96*
96*
Georgia Six per Cents,. ....
..
98*
99
99
California Seven do.,
> . . • . .
..
. .
93
90M
North -Carolina Six do.,
9T
98
99
99
Missouri Six per Cent,
... 94*
9434
93*
93*
92*
Louisiana Six per Cent,
.... 91 X
92
90
90
89
N. Y. Central R.R. Shares,-,
... 9834
94
94
94
N. Y. Erie R.R. Shares,.. . ,
.... 4834
49*
61*
52
«K
Harlem R.R. Shares,
... 82)4
82*
81
80*
80
Long-Island R.R. Share*-.. . .
... 88)4
8834
88*
88
si*
Prov & Stonlngton,
... 5334
5234
55
54
04
Nor. & Wor. R.R. Share*.. . .
... 85)4
8534
87*
87*
«X
Beading R.R. Share*
... 84
8434
86
86*
85
Hudson River B.R. Share*..
... 49
4134
41
89*
88*
Mich. Central R.R. Share*..
... 7034
82)4
82
82
88
Mich. Southern R.R. Share*. .
... 9134
98*
96*
97*
97
Panama R.R. Share*
... 102
104
100*
95
95*
Balt, <fc Ohio R.R. Share*. . . .
... . .
. .
..
46
45*
Illinois Central R.R. Share*.. .
... *734
9534
96
97
96
Cleveland & Toledo R.R., . . .
... 7734
68
72*
78*
78*
Erie Railroad 7* 1859,
.... 101
10134
101
100
100
Erie Income Bond* 75,
... 67)4
88*
69
8S*
87*
Erie Convertible* 1871,
... 8834
84
88*
84*
84
Hud. Rlv. R.R. 1st Mortr...
... 102
10234
103*
108
799*
Panama Railroad Bond*. . . .
... 105
102
100*
100*
98
Illinois Central 7s^
... 82*
81
77*
76*
75*
N. Y. Central R.R. Bond*-..
... 92*
91
92
91*
92
Canton Co. Share*
... 27*
28
27*
26*
96
New-Jersey Zinc Co.,
... .4*
434
4*
5
4*
Nicaragua Transit,
... 16*
16*
15*
16*
16*
Pennsylvania Coal Co^
... 106j
10534
106
105*
194*
Cumberland Coal Co.,
... 84
83
32
80*
28*
Del. & Hud. Canal Co.,
...128
120
125
125*
188
Original from
UNIVERSITY OF CHICAGO
Digitized by Gougle
1855.]
Notes on the Money Market.
919
Tbo following are the clo)ing price* of stocks at Philadelphia:
Philadelphia City Cs, . .
. 92k a 93
Bob. Nav. 6s, ’82, .
. 77k « 78
Beading R.R.,
. 42K a 42k
Do. Stock, . . ,
17Wn WtW
Beading Bs. 70,
. S2KaS3X
Da Prefd,
. 80k a 30k
Beading M. (xs '00,
. 90 a 91
Vicksburg,
■ >X
Penn. R., int oil;
. 43k a 43k
Girard Bank,
. 18k a 18k
Morris Canal,
. 13k a 14
Lehigh Zinc,
. 2X a 2H
Union Canal,
. bVo 0
The State debt of Missouri up to 1863 was $802,000, as follows :
By Act of Hate of Int.
Amount,
By Act qf
Bale of Int.
Amount.
1837, 5>£ ....
$03,000
1851,
6
. ... $200,000
18;!7, c
Khi.OOO
1853^
$ M1tl
. . . . 200,000
1833, 6
199.000
1333, « ... .
40,000
$S(*2,000
Since then the State has loaned its credit to five railroad companies to the amount of $2,050,000,
and has authorized the issue of $0,200,000. The following is a tabular statement of the amount of
State credit loaned to tho several railroad companies ; the amount of State bonds issued to each,
and tho balance of Stato credit due to each 1st October, ISM :
Name of Company.
Pacific Railroad Co., $3,000,000
Hannibal & St Joseph Railroad Co., l,5uo,000
North-M issouri Railroad Co., 2,000,000
8t Louis «fc Iron Mountain Railroad Co., 750,000
South-west Branch Pacific Railroad Co., 1,000, 000
State Bond* Bond* to
issued. be issued.
$1,800,000 $1,300,000
100,000 1,850, 000
60,000 1,950,000
60,000 700.000
1,000,000
The Legislature of this State, during tho recent session, authorized the Ogdenshurg Railroad
Company to free itself from debt by consolidating all its securities into stock, according to 6uch a
plan as may be mutually agreed upon by the holders of tho bonds and shares. The application to
the Legislature was officially made by tho corporation, with the sanction of the directors and trus-
tees, who, it is said, have matured a proposition which promises to bo generally acceptable to all
parties interested.
Tho New-York Legislature did not, at its late session, repeal the Usury Laws of tho State. It la
believed, however, that public sentiment is fully demonstrated In favor of such repeal, and that
the desired chango will be effected at tho next session. The Legislature, has, however, passed an
act repealing the act of April, 1530, which prohibited the circulation of bills of less than five dollar*
Issued by banks of other States.
The following have been the leading loans for the mouth of April :
I. Brooklyn City six per cent loan, $450,000, in sums of $1000, with coupons attached, interest
payablo in January and July; $300,000 redeemable in ten years, and $160,000 in twenty years.
The old loans of this city are now quoted at 101 a 102, Portions of tho new loan were taken at
102; the wholo has not been negotiated.
IL North-Carol Ina six per cent loan of $1,000,000. These bonds will be in sums of one thousand
dollars. These bonds will mature in thirty years, and are issued by tho Stato of North -Carolina
for tho construction of the North-Carolina Railroad ; and in addition to tho faith of the State, all the
stock held by the State in said road, and tho dividends arising from 8Aid stock, are pledged for
their redemption. They will bear date the first day of April, 1865, and will have coupons attached
for the interest at six per cent per annum, payablo the first days of April and October in each
year.
Both interest and principal will bo payable at the Bank of the Republic, in the city of New-York
unless where the pnrebaser prefers to have them payablo at the Treasury of North-Carolina.
The present quotations for North-Carolina six per cents are 99 a 100. The new loan was taken
at par.
The following loans ore now proposed, and frimish abundant material for saTo investment:
I. Detroit City seven per cent bonds, $250,000, of which $50,000 will be reimbursed in twenty-
live years, $100,000 in thirty years, and $100,000 in thirty five years; principal and interest pay-
able In the city of New-York. Bids will be received by tho Water Commissioners of the city of
Detroit until the 11th of June next The old Water Works bonds are selling at 102 a 103.
«
Digitized by Gougle
Original from
UNIVERSITY OF CHICAGO
Digitized by
920 Notes on ths Money Market . [May, 1855.
IL New-York k Harlem Railroad second mortgage bonds, $150,000, bearing interest at seven
per cent, payable in February and August, with coupons attached. This issue, added to the first,
will make the mortgage incumbrance upon the road four millions of dollars— less than fifty per cant
upon its cost up to this time. The proceeds of the bonds now offered, will be used— first, to extin-
guish the floating debt of the Company, and second, to complete the double track to White Plains,
and erect some few station-houses required on the line of the road, all of which it is expected may
be done so as to close “ construction account” at the end of the year. The bonds will mature on
the 1st August, 1854. Bids will bo received until 15th May next by W. B. Draper, Treasurer of
the Company. The old seven per cents of this Company are quoted at 92# a 94#.
III. Virginia k Tennessee Railroad second mortgage bonds, $1,000,000. They aro dated 1st
July, 1S54, and payable to bearer, in the city of New-York, on the 30th June, 1834, with interest
coupons attached, at the rate of 6 per cent per annum, pryable semi-annually, at the Bank of
America, on the 1st of January and July of each year, and one half their amount convertible Into
the stock of the Company at the option of the holder.
Bids will be received by Mr. A. H. Muller, of 88 Wall street, until Thursday, May 84. Du
terms of subscription are easy, namely : 25 per cent in cash, and 10 per cent monthly until paid.
IV. Toledo and Illinois, and Lake Erie, Wabash, and 8t Louis Railroad first mortgage bonds,
$800,000, bearing seven per cent interest and redeemable August 1, 1865 ; or convertible into fltook
of the Companies within six years from 1st August, 1S53.
The shipments of coin to Europe are larger this year than in 1853-'4 or '5; the aggregate to this
date being as follows, (three months and twenty-four days :)
To April 24, 1852,....,. $7,282,761 1854, $$£34,470
“ 1858, 8,784,199 1855, 7,840,11$
We have advices to the 7th instant from Liverpool, per steamer Nashville. At the last date
three per cent consols were quoted at 92H a 92 *V. The highest prico during the month of March
was 98k, and the lowest 91. The London money market had improved under the advices from
the East. At Paris the Bourse shows no filling off, and prior quotations it was stated were fbBy
maintained. It Is understood that the amount which government have succeeded in temporarily
borrowing from tho Bank of England on deficiency bills is £8,500,000.
There is at present some demand in London for ^parting gold" (that is, gold containing an
unusual proportion of silver.) for transmission to the continent; but at present rates of exchange no
other description of gold can be transmitted at a profit. Some parties are disposed to apprehend,
however, that the easier position of the money market may cxerclso an unfavorable influence upon
the exchanges, as between this country and the continent.
Further advices from London to the 14th Inst., state that the English market is somewhat dis-
turbed by the rumor that a government loan to tho extent of fifteen or twenty millions sterling,
will be put upon tho market immediately, to meet the exigencies of the war. Consols at once
declined to 91 X. The Bank of England has reduced the rate of interest from 5 to 4 per cent, a
most remarkable feature of the money market, and indicating a large unemployed capital.
From California we learn that Messrs, Page, Bacon A Co., bankers at San Francisco, resumed
business on 29th ultimo; but their drafts on tho New-York agent are protested this week, in con-
sequence of the assignment made by Mr. Bacon, and the appropriation of gold received to former
drafts. Messrs. Burgoyne & Co. had agreed to pay their creditors In toll, in instalments of one, two,
and three months.
DEATH.
At Lancaster, Pa., on Saturday, March 81st, Robert D. Carson, Esq., Cashier of the Lan-
caster County Bank.
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UNIVERSITY OF CHICAGO
THE
BANKERS’ MAGAZINE,
AND
Statistical Register.
Vol. IV. New Series. JUNE, 1855.
No. XII.
EULOGY ON A BODY CORPORATE.
Addressed to Henry B. Gibson, Cashier of the Ontario Bank , Canan-
daigua. By A. B. Johnson , President cf the Ontario Branch Bank ,
Utica, iV. Y.
The Ontario Bank was incorporated March 13, 1813, and soon
thereafter commenced business at Canandaigua. The Legislature, on
the 15th of April, 1815, authorized it to establish a branch, which
commenced business at Utica, December 26, 1815. The directors of
both institutions were the foremost men of their respective localities,
and the President of the mother bank was Nathaniel Gorham, who,
only twenty-five years previously, owned, with Oliver Phelps, the
whole county of Ontario ; while the branch was honored by the
Presidency of Benjamin Walker, residuary legatee with General
North, of the last will of his friend, Baron Steuben ; and still more
fortunate in having been an aid of General Washington, at the sur-
render of Cornwallis.
The corporation was originally to endure till June, 1833, but the
Legislature of 1829 extended its existence to the 1st of January,
1856, when it must expire ; and, as you and I have been connected
with it from its origination, except its first six years, you, as autocrat
of the Bank at Canandaigua, and I, somewhat so of the branch at
Utica, I desire to sketch its history, as due to you, its primutn mobile,
and that haply the Bank in its example may, “ though dead, yet
live.”
61
%
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UNIVERSITY OF CHICAGO
922
I
Eulogy on a Body. Corporate.
[June,
For many years the corporate capital ($500,000) was equally
divided between both offices, but since November, 1843, three
hundred thousand dollars have been located in the branch, and two
hundred thousand dollars in the mother bank. The first dividend of
profits was paid May 1, 1814, and dividends have been paid semi-
annually ever since; each office contributing thereto ratably, after
paying its own taxes, salaries, and other expenses of every kind ;
issuing also separately its own bank-notes, and' providing funds for
their redemption. One omission, however, of a half-yearly dividend
occurred in 1819, on an untoward occasion, which caused my appoint-
ment to the branch in September of that year, and your appointment
to the mother bank a month or two subsequently. You were wholly
unknown to the directors at Canandaigua, who acted therein on my
judgment, an event of which, our learned and venerable friend, the
Hon. Daniel Appleton White, of Salem, Mass., says : I have similar
? rounds to exult at as John Adams had at having nominated Chief-
ustice Marshall to the United States bench. The responsibility we
severally undertook was not small. The corporation was prostrate
in credit and literally a ruin. I forsook no employment for my new
post, and therefore hazarded only my reputation ; but you were at
New-York, in mercantile business, ana had already acquired thereby
$30,000, a largo accomplishment wo then thought, though it equals
in amount only about half your present established annual cash
income; acquired, too, not by making other men poorer, but by
varied operations that benefited all their instrumentalities.
We omitted one other dividend, by compulsion of the Legislature,
on the suspension of specie payments throughout the Union, in May,
1837 ; but on the day the law terminated, May 16, 1838, our cor-
{ >oration paid its stockholders ten per cent for the suspended year,
n that suspension of specie, our two institutions were among the last
in the State that submitted to a necessity originating elsewhere ; and
at a convention of bankers from all parts of the Union, held in New-
York, some months after the suspension, our corporation said, through
us as its delegates : “ If we designate a day for the resumption of
specie payments, persons may say that the designation is to frustrate
the sub-treasury bill ; and if we adjourn, without designating a day,
we may be suspected of striving to create a National Bank. The
dilemma in these suspicious times may be inevitable, but if our deci-
sion shall conform to our moral and legal obligations, its propriety
may protect us from misconstruction. We are urged to continue in
suspension, lest the public suffer from a pecuniary pressure; but
threatened, taunted, and despised as we are, for not complying with
our obligations, no person will believe that we continue dishonored
to protect the public which thus threaten, taunt, and despise us.
Duty, therefore, in this case, as in most others, is our best chance for
safety.” The convention, however, adjourned without designating
any day, but the banks of the State met subsequently, and I had the
honor to draft a resolution which was adopted, and on which specie
was resumed on the first of May then approaching. On the banks of
Digitized by
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Original fro-m
UNIVERSITY OF CHICAGO
1855.]
Eulogy on a Body Corporate.
923
the city of New-York rested the whole burden, expense, and danger
of the resumption, which seemed almost hopeless of permanency,
while other cities, especially Philadelphia, continued suspended ; but
time justified the measure, and the resumption became permanent,
gradually extended over the Union, and has been unbroken ever
since.
The total profits which our corporation will have paid to its stock-
holders on the first of January next, will be four hundred and eleven
per cent ; equalling seven per cent interest the year on the capital
from its investment in 1813, to January, 1856 ; and, in addition,
15951 TW on every thousand dollars of stock; provided the stock-
holder shall have kept the excess of dividends invested at compound
interest from its reception ; and should he have also kept invested, in
the same way, the seven per cent interest, the whole would amount,
with the capital, to $23,286 for every thousand dollars of original
investment. The calculation is predicated on compounding annually,
though no reason exists why the owner should not have compounded
semi-annually as the bank paid the dividends. On looking at a thou-
sand dollars thus enlarged by the slow process of legal accumulation,
we can see why prudent perseverance is usually successful ; and that
men who jeopard their capital to acquire wealth suddenly, are usually
only reenacting the old fable of killing the bird that, if preserved,
would have laid daily for ever, a golden egg. The dividends, too,
have been paid at different localities near the respective stockholders,
who have been so little troubled that perhaps one cannot be found
out of Canandaigua, and few therein, who has ever voted on his stock
even by proxy, or known who conducted the two banks except by the
names on the bank-notes. The corporation has relieved, also, every
stockholder from the personal payment of all taxes on his invested
capital, and has paid some fifty-five thousand dollars extorted by the
safety fund. The stockholders, however, should know that one divi-
dend of twenty per cent, paid on the whole capital in November,
1843, was paid exclusively out of the surplus earnings of the office at
Canandaigua ; and, though the disclaimer may wound the suscepti-
bilities of some whom it honors, I cannot resist saying that, though
the dividend was a surprise on the stockholders, it was preceded by
no effort of any knowing director or official to buy up the stock from
unwary holders ; though custom has much blunted public morals to
such quasi-peculations.
In the aggregate of dividends, I include ten per cent (it may be
twelve) that will be paid on the first of January next ; and this, also,
with the exception of some two per cent, will be the sole earning of
your office. Your superior acquisitions for our stockholders, my
self-love has sometimes attributed to your location, but, as I am now
at confession, I admit that the difference in our pecuniary gains is
only a sample of our general history, verifying the proverb that those
who best manage their own affairs, are the best managers of the
affairs of other people ; for when you were appointed to the Bank at
Canandaigua, I was worth just double your property, and now the
t
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UNIVERSITY OF CHICAGO
Eulogy on a Body Corporate.
924
[June,
proportion between us continues exactly the same, but the disparity
is reversed, being in your favor.
During your long administration, you have never been counselled
or ordered by your board, as to what you should do or leave undone,
or whom you should trust, or the securities you should accept. I
have been equally uncontrolled, though I have spontaneously written to
you weekly our progress, and half-yearly stated our debtors. No
committee ever visited me ; no proceedings were ever criticised, and
my directors were alw'ays appointed on my sole nomination. You
and I, though sympathizing in the service of the same stockholders,
subject to the same hopes and fears, and affected by the same good
and evil, have, during the long period of our connection, met person-
ally but three or four times, and then casually, briefly, and at long
intervals; and never deliberated with each other on our business.
Still I have always known that had my results been adverse to the
stockholders, you would have detected the delinquency, and that no
regard for me, though we have known each other from our youth, and
you have said often you feel towards me as a brother, would have
restrained you from exercising whatever painful duty the interests of
the stockholders would have required. So as regards your Board at
Canandaigua, one of whom, the Hon. John Greig, your President, I
have known well for nearly half a century, courteous as he always is,
and as sensitive towards the feelings of others as of his own honor,
yet vigilant in pecuniary operations, acute in legal knowledge, and
inflexible in integrity, had he and his compeers seen that your being
uncontrolled was accomplishing evil to the stockholders, they would
have been any thing but passive.
I never saw your Board but once, and for a half-hour, twelve years
ago. They were the men who, in 1813, procured the charter, and
had been commissioners to distribute its stock. They had grown old
with the Bank, several very old, and all were reposing in affluence,
some in princely magnificence, on life’s toils well accomplished.
They presented a permanency of position unusual in our country'.
Those who have left the Board since, have died out; those that
remain, meet weekly as of yore, not to borrow — they owe nothing,
but to see the business they have undertaken to supervise gratuitously
for stockholders, whom time has scattered over our State, and in
Europe, California, Illinois, Michigan, Massachusetts, Connecticut, and
Rhode-Island ; but who mostly are the widows and the descendants,
male and female, collateral or lineal, in the second and third genera-
tion, of the original subscribers, or their early transferrees. Not a
few, however, are the first holders, venerable as the institution, and I
hope as vigorous ; the whole representing great social eminence, and
including individuals who compute their single property by millions.
I have withheld this sketch of our corporation till our branch, act-
ing under an act of the Legislature, passed therefor last winter, has
completed its organization for a renewed and independent career, lest
a suspicion might be excited that the sketch was colored to suit that
object ; and now I am sore tempted to withhold it permanently, lest
•
Digitized by
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Original fro-m
UNIVERSITY OF CHICAGO
1855.]
Eulogy on a Body Corporate.
925
the new organization, judged by the record of its progenitor, suffer in
some future contrast. Modern improvements have, however, remedied
many of the hazards to which country banking was exposed. We
formerly depended on casual stage-coach passengers, often strangers,
for transmission among their luggage of all our cash remittances to
Albany and New-York. When any accidents, and they were frequent,
delayed unduly mail announcements that our packages had arrived
safely, we have suffered paroxysms of anxiety which our uniform
exemption from actual loss failed to modify, and which time scarcely
terminated before they were renewed by a repetition of the unavoid-
able hazard. From the sparseness, too, of population, our borrow-
ers resided remote from the Bank, often hundreds of miles, without
our personal knowledge of their habits or pecuniary solvency, render-
ing the depredation on us by forgery and false representations with-
out any means of certain prevention.
The first of January is, however, near, and our entire capital of five
hundred thousand dollars will, on that day, be returned to its owners
on demand:
“ There is your crown ;
And ho who wears the crown immortally,
Long guard it yours 1”
Neither institution having a deferred debt or one of doubtful security
or unmanageable magnitude ; nor has either had any such debt for
many years. Indeed, the total losses of both offices during the nearly
forty years of our administration, are almost literally nothing;
including forgeries, over-drafts, frauds, or accidents of any kind.
Our success I attribute much to our rigid adherence to banking in its
utmost simplicity,' relying little on our wits and much on our
industry ; soliciting no business as a favor, and conferring no loans
as a gratuity. Not over-straining our discounts so as to endanger a
resort to expensive shifts in the procurement of funds, and not seduced
to receive hazardous paper by any prospect of unusual gains.
The return of capital to the stockholders will relieve you from all
further connection with banking, and my active duties therein will be
transferred to one more vigorous than I am, and better organised
and educated than I ever was for its cares and requirements.
Mohammedan nations possess a tradition that Solomon was blessed
with a treasurer named Asaph, whose established vigilance re-
pressed all attempts at imposition. When Asaph died, the He-
brew sovereign kept the event secret and, causing the body to be
stealthily embalmed, replaced it in the treasury, where it seem-
ingly presided as usual and with continued success. My future
position will partake somewhat of this character, and what I lack
of the reputation of Asaph, I shall endeavor to make up in active
supervision.
We, several years ago, inspected a bank whose cashier told us he
had been an honest man till he became a banker. He would have
better expressed his case by saying, he had been honest till tempted
%
Digitized by
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UNIVERSITY OF CHICAGO
Digitized by
926 Eulogy on a Body Corporate . [June,
to dishonesty ; banking no way leading to dishonesty, except as the
fairness of the forbidden fruit led to its violation. He subsequently
wrote me that our detection had saved him from suicide. We retire
with happier feelings. I find nothing to regret, though, were the
same duties to be reenacted, I should relax more than was my wont
from the stem requirements of abstract justice with dealers whose
notions of mercantile punctuality were, as farmers and followers of
other uncommercial avocations, necessarily imperfect. You are, per-
haps, more fortunate than I, even in this particular ; though I suspect
we both have in our formation, a spice of impatience which our
positions fostered rather than repressed. Uniform, also, ourselves in
health and pecuniary prosperity, we could not perhaps always allow
sufficiently for the short-comings of physical debility and pecuniary
mischances. Yet what we meted to others, we measured to ourselves.
The corporate capital we in no instance employed to reward our
friends or annoy our enemies, or to gain property or popularity for
ourselves ; but, giving to our offices our whole time, and the whole
energies of our minds, bodies, and feelings, we accepted therefor a
fixed salary, in amount very moderate in the sight of all men.
Finally, shielded by the great example which I am about to quote,
we may, I fondly believe, on the surrender of our trusts, say to our
stockholders and to the world, with reference to the pecuniary inter-
ests we have so long managed, as the prophet Samuel said on the
termination of his greater duties : “ Whose ox have I taken 1 or whose
ass have I taken ? Whom have I defrauded ? or of whom have I
received any bribe to blind my eyes therewith ?” And the response
must be as in the case of the prophet : “ Thou hast not defrauded us
nor oppressed us, neither hast thou taken aught from any man’s
hand.’
Ontario Blanch Bank , Utica, June 1, 1855.
Ancient Coins. — Proceedings of the British Numismatic Society, January 25>
1865. C. Roach Smith, Esq., in the chair. Mr. Evans exhibited a third brass coin
of Constantine the Great, bearing a Cufio inscription, which has been stamped
across the face of it. Mr. Roach Smith exhibited a Denarius of Domitia, which is
probably unique. The typo is, on the reverse, a temple, with no inscription. Mr.
J. G. Pfiister read a paper on an unedited and unique silver coin (Denarius) of
Odoacer, King of Italy, A.D. 476-493, which was struck at Ravenna. The coin
was exhibited. At the conclusion of his paper, Mr. Pfister observed, that this
remarkable coin of Odoacer may be properly regarded as the first in the series of
Medimval coins; Odoacer having put to death Orestes, and having taken the
Emperor Romulus Augustus prisoner, really terminated the Empire of the West,
A.D. 476 ; and from this event the period usually called the Middle Ages properly
begins. Mr. Yaux read a paper, communicated by Dr. Bell, giving an interesting
account of the discovery, near Lougerich, of a considerable number of Roman gold
and silver imperial coins, together with some fibulae, rings, and annillac, probably
of early German workmanship.
Gck igle
Original from
UNIVERSITY OF CHICAGO
1855.]
Coins, Coinage, and Bullion.
927
COINS, COINAGE, AND BULLION.
Mint of thk United States.
Philadelphia, January 30, 1855.
Sir : I have the honor to submit the following report, in com-
pliance with the first section of the Mint law, which requires that, “ in
the month of January of every year the Director shall make report to
the President of the United States, of the operations of the Mint, and
its branches, for the year preceding.”
There are obvious reasons in favor of a change in the law above
referred to, so as to require the report of the Director to be made as
soon as convenient after the close of the fiscal year, and that it should
exhibit' the operations of the Mint, its branches, and the assay-office,
during the fiscal instead of the common year. I beg to recommend
this modification of the law to your favorable notice.
The deposits received and coinage executed at the principal Mint,
(Philadelphia,) during the year 1854, were as follows : Gold deposits
received, $36,269,388.68 ; gold coins struck, $20,049,799 ; fine gold
bars, $17,643,270.58. Silver deposits, including the silver parted
from California gold, and the silver purchased pursuant to the act of
3d March, 1853, $4,480,741.14; silver coinage executed was,
$5,373,270 ; the copper coinage, $42,638.35. Total deposits of gold
and silver during the year, $40,750,129.82; and the total coinage,
including the fine gold bars, was $43,108,977.93 ; this coinage was
comprised in 33,919,921 pieces.
The deposits of gold received at the branch mint at New-Orleans
during the year were of the value of $1,139,135.43 ; and the deposits
of silver, including silver parted from the California gold, and the
amount purchased, were of the value of $1,311,703.56. The gold
coinage amounted to $1,274,500; the silver coinage to $3,246,000;
aggregate deposits of gold and silver, $2,450,838.99 ; total coinage of
gold and silver, $4,520,500, comprised in 10,332,750 pieces. The
coinage exceeds the deposits in consequence of this branch having a
large amount of bullion remaining from the deposits of the previous
year ; and this remark applies also, to some extent, to the Mint and
the other branches.
The deposits at the branch mint at Dahlonega, in gold, were of the
value of $281,932.06, including silver parted therefrom, of the value
of $1706.61. The coinage (gold) amounted to $292,760, comprised
in 62,228 pieces.
The deposits of gold received at the branch mint at Charlotte, were
of the value of $213,606.21 ; the coinage executed amounted to
$214,652.50, comprised in 46,578 pieces.
The last year has been marked by the establishment of an additional
branch mint and an assay-office. The former, at San Francisco, in
California, commenced receiving deposits on the 3d of April last,
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from which time to the end of the year it has received deposits to the
value of $10,404,560. The coinage thereat during the same period
amounted to the sum of $4,084,207 ; and the manufacture of fine bars
of the value of $5863.16; and of unparted bars, prepared, assayed,
and stamped, to the value of $5,641,504.05 — making a total of
$9,731,574.21. There were some causes connected with the supply
of materials, particularly of the article of parting acid, which has to
be manufactured at San Francisco, that retarded and diminished the
coinage operations of this branch of the Mint during the last year.
Every effort has been made to remove these causes, and I have reason
to believe that its operations will hereafter be greatly increased.
The assay-office, at New-York, commenced operations on the 10th
of October last. The deposits received up to the end of the year
amounted to $9,337,200.69, of which amount $76,307 were in silver,
principally parted from California gold. The amount of fine bars
prepared, assayed, and stamped at that office, during this period, was
$2,888,039.18 ; and the further sum of $1,050,000, in fine bars, was
transmitted from the Mint at Philadelphia, and paid out at that office
during the commencement of its operations. Of the amount received,
the sum of $6,362,565.57 was deposited for coins. This last amount,
pursuant to the lltli section of the assay -office law, was transferred
to the Mint of the United States for coinage.
In stating the aggregate deposits of gold at all the mints and the
assay-office, a deduction must be made for unparted bars prepared at
San Francisco, and afterwards deposited at the Mint and the assay-
office for coin or fine bars ; and also of the amount received at New-
York for coinage and afterwards transferred to the Mint. Making
this allowance as well as it can be ascertained from the reports of the
several institutions, the entire deposits of the year in gold were
$49,987,222.23 ; silver deposits, including silver purchases,
$5,871,759.82; total gold and silver deposits, $55,858,982.05. The
coinage for the same period was as follows : Gold coins, including
bars, $52,094,595.47 ; silver coins, $8,619,270 ; copper coins,
$42,638.35; total coinage $60,756,503.82, comprised in 44,645,011
pieces.
The amount of gold of domestic production received at the several
mints and the assay-office during the year was $49,217,021 ; of which
sum $48,892,794 were from California ; the remaining part from the
Atlantic States, except a few deposits from the Territory of New-
Mexico. There was deposited during the year at the principal mint
and the branch at Ncw-Orleans, gold from Australia to the value of
$432,000.
The silver contained in the gold from California is not included in
the statement of the amount of the gold deposits from that State. It
is separated from the gold in preparing the latter for coinage, or for
manufacturing fine bars. ^ The value of the silver thus parted from
the gold during the year was $328,198.83. This does not include the
amount of silver purchased for coinage pursuant to the act of March
3, 1853. During the last year the sum purchased was $5,494,839.92,
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929
and the silver coins issued amounted to $8,619,270. The sum issued
of silver coins at the reduced standard weight, authorized by the act
before mentioned, is as follows: In 1853, $8,654,161; in 1854,
$8,619,270 ; making a total of $17,273,431 of the half-dollar and
lower denominations struck, distributed, and put into circulation,
except the sum of $584,808.33 in the treasury of the Mint, and ready
for distribution and circulation.
In my last report, I presented some views showing the propriety of
the reduction in the standard weight of the silver coinage, and the
beneficial results which had attended it. We have continued to
experience such results, especially in those more favored portions of
the United States where the circulation of small notes is prohibited.
The soundness of the apprehension expressed in my last report, that
the reduction in the standard weight of the silver coins might prove
insufficient, has been confirmed by the quoted value of silver during
the past year at London, the market of which city regulates its com-
mercial value. We purchased silver at the close of 1853 at 121
cents per standard ounce, and issued it at 125 cents, in accordance
with the law before referred to ; but as it continued to appreciate, we
were obliged to offer 122£ cents per ounce, in order to obtain silver
for coinage. Continuing to appreciate, it attained its maximum in
November last, (1854,) when it was quoted at 123f cents per ounce.
It has since fallen to about 122J. An appreciation of 1J cents per
ounce above the quotation of November would have rendered it fully
equal in value to that of our present issue ; and it is highly probable
that a still further appreciation, however slight, would have induced
the exportation of our new silver coin, and rendered a further reduc-
tion in its weight necessary. Fortunately no such reduction is
required ; and we have reason to believe that the standard weight, as
fixed by the act of March 3, 1853, was well chosen. That the reasons
presented in my last report why no great or sudden changes need be
apprehended in the relative value of gold and silver are well founded,
the continued influx of gold from California and Australia, compared
with the slight changes in the relative value of the two metals during
the past year abundantly proves.
• The three-dollar coin, authorized by the last Congress, was issued
from the Mint in May last; since which time there have been struck
of this coin, in value, the sum of $415,854 at the principal Mint, and
$75,360 at the branches. The demand for it has not been great,
owing, perhaps to the fact that it does not harmonize with the decimal
system, or the division by halves and quarters, to which the people
have been so long accustomed.
The devices of the gold dollar have been changed, so as to corre-
spond with those prepared for the three-dollar piece, namely : on the
(Averse, an ideal head, emblematic of America, inclosed within the
national legend ; and on the reverse, a wreath composed of wheat,
cotton, corn, and tobacco, inclosing the denomination and date of the
coin. The size has been increased one tenth of an inch, which ren-
ders the coin more easily handled, and, therefore, more convenient
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930 Coins, Coinage , and Bullion.
for circulation. The weight and standard value are, of course, un-
changed.
The act of March 3, 1853, required the three-cent piece to be of
standard fineness, (iVAths,) i^tead of -fj&ths, as directed by the
law which authorized their issue. The new coin is distinguished from
the former by having a sprig of laurel and a bundle of arrows on the
reverse.
The coinage charge of the half of one per cent, authorized by the
act of February 21, 1853, is as follows :
Mint at Philadelphia, $104,853 32
Branch Mint at New-Orleans, 6,372 60
Branch Mint at Dahlonega, 1,463 80
Branch Mint at Charlotte, 1,073 26
Branch Mint at San Francisco, 20,421 03
Total at all the mints for the year 1854, $134,183 91
These sums will be paid into the treasury of the United States pur-
suant to the sixth section of the act before referred to.
The increased price paid for silver bullion for coinage after the first
of July last, has diminished the profit to the government on the silver
coinage, the cost of distribution being also a charge upon the same ;
there will, however, be a balance at the principal mint of about
$108,000, to be transferred to the treasury of the United States.
The propriety of the establishment at the Mint of a medal depart-
ment is respectfully suggested, and as a convenient mode of bringing
the subject to your notice, I attach to this report a copy of my letter
of the 5th of April last to the Secretary of the Treasury in relation to
it. Since the date of that communication, the importance of having
some legislation on the subject has been further exhibited by the
increased applications from cities, institutes, and societies, to strike
medals at the Mint. I have also received communications from the
historical societies of several of the States in relation to the subject of
striking copies of the various historical medals heretofore ordered by
the government. The dies of nearly all of these medals are in the
Mint. To provide for the striking of copies of them in bronze or other
metals, and supplying them to our various national and State institu-
tions, is one of the objects embraced in the projet of a law which
accompanies the letter above mentioned. I may add that a few of the
dies are in the museum of the mint at Paris, among which is that of
Washington before Boston, and General Green at Eutaw Springs.
It is probable, that on application to the French government, these dies
could be recovered.
A change in the copper coinage seems desirable, with a view to the
substitution of a lighter and more convenient coin for the cumbrous
cent now used. As I have recently presented my views upon this
subject in a report to the Treasury Department, I have deemed it
proper to append to this report a copy of that communication.
I also annex to this report several tabular statements exhibiting in
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1855.]
detail the operations of the Mint and its branches, and presenting
some other statistics relating to the subject of coinage, the purchase of
silver, and the domestic production of the precious metals.
I have the honor to be, with great respect, your faithful servant,
James Ross Snowden,
Director of the U. S. Mints.
To the President of the United States.
No. 1 .
Mint of the United States.
Philadelphia, April 5, 1855.
Sir : Being invited by your favor of the 18th ultimo, in reply to
the suggestions contained in my letter of a previous date, I present a
few additional remarks in relation to the propriety of establishing a
medal department in the Mint.
No provision by law has heretofore been made for the preservation
of the dies from which medals were ordered to be struck, nor for
taking or preserving copies of them. In fact the dies have, by some
of the recipients of the honor of a public medal, been regarded as their
property, and not that of the government. But through the personal
efforts of some of the officers of the Mint, assisted and encouraged by
several of the Secretaries of the Treasury, most of the dies have been
retained or recovered, and they are now in the custody of the chief-
coiner of the Mint.
I present herewith a copy of the proceedings of the Pennsylvania
Historical Society on the subject under consideration, together with a
list of the dies now in the Mint. The list embraces sixty-eight in
number, including the Presidential medals. Some others, which were
made in France, among which is that of Washington before Boston,
and General Green at Eutaw, are now in the mint museum at Paris.
A few are supposed to be lost; but, by renewed efforts, might
possibly be regained. But as it requires great care in their preserva-
tion, they are, no doubt, if in existence, greatly injured, and perhaps
defaced. ,
It seems proper that the government should take charge of this
important subject, by establishing a medal department connected with
the Mint, provision to be made for taking copies in bronze of the dies
preserved in the Mint, as well as those which may hereafter be
ordered. It would seem appropriate that each State, or the Historical
Society of each State, should be supplied with such copies ; and other
copies in gold, silver, and bronze should be struck and disposed of
under such general regulations as the Director of the Mint, with the
approbation of the Secretary of the Treasury, might prescribe. Such
an enactment, in addition to the public objects secured, would relieve
us from the embarrassment which attends the present system of
striking medals in the Mint, in relation to which 1 had the honor to
present some objections in my letter of the 30th of August last. 1
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repeat here, that the striking of medals at the Mint ought not to be
the source of profit or gain to any officer or workman engaged therein,
but should be performed under the official salary or per diem com-
pensation which they receive.
I herewith indo9e a proj6t of a law, which I present to your con-
sideration.
I have the honor to be, with great respect, your faithful servant,
James Ross Snowden, Director.
Hon. James Guthrie,
Secretary of the Treasury, Washington City .
Historical Society of Pennsylvania.
Philadelphia, February 27, 1854.
The matter of a communication addressed by the secretaries and
librarian to Hon. J. Ross Snowden, Director of the United States
Mint, containing inquiries and a request concerning the national medals,
coming up for discussion —
Mr. Snowden said, it gave him much pleasure that this subject had
been brought to the attention of the Society. National and public
medals are important monuments of history, and their preservation
is well worthy the attention of this Society, and others of similar
character in the United States. Most of the gold and silver medals,
either from reverse of fortune or from some other cause, find their
way to the melting-pot. It would be a higher compliment to the
recipients of the honorable distinction in question, if Congress should
authorize copies in bronze to be struck and presented to each histori-
cal society in the United States. Heretofore no legal provision has
been made for the preservation of such copies, or the taking care of
the dies from which the medals were struck. Fortunately, however,
most of the dies heretofore made have been procured and preserved
at the Mint of the United States. Some of them were procured with
much difficulty.
Mr. Snowden’s belief was, that nearly sixty medals of a national
and public character have been made, of which the dies of all but five
or six are at the Mint in this city. A full set of copies in bronze
would cost about one hundred and forty dollars. A small appropri-
ation by Congress would supply each State in the Union with a set ;
and hereafter when medals are voted, provision eould be made for
supplying copies, to be distributed in the maimer proposed.
On motion, it was
Resolved ', That Hon. J. Ross Snowden be requested to correspond
with the Secretary of the Treasury, or take such other measures as
may seem to him advisable, to * effect the objects developed in his
remarks on the distribution of the national medals.
Extracted from the minutes.
[ l. s. ] Thomas Biddle, Jr., Recording Secretary.
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Coins, Coinage, and Bullion.
933
List of Dies of National Medals , preserved at the Mint of the United
States.
1. Horatio Gates. — Obverse: Horatio Gates duel strenuo ; Comitia
Americana. Reverse : Salus regionum septentrional, hoste ad Sara-
togam, in dedition. accepto. Die xvn Oct. mdcclxxvii.
2. Daniel Morgan. — Obverse : Danieli Morgan duci exercitus ; Co-
mitia Americana. Reverse : Victoria libertatis vindex. Fugatis aut
captis caesis ad Cowpens hostibus. xvii Jan. mdcclxxxi.
3. Isaac Hull. — Obverse : Peritos arte superat Jul. mdcccxii, Aug.
certamine fortes. Isaacus Hull. Reverse : Horse momento victoria.
Inter Const. Nav. Amer. et Guer. Angl.
4. Jacob Jones. — Obverse: Jacobus Jones virtus in ardua tendit.
Reverse : Victoriam hosti majori celerrime rapuit. Inter Wasp Nav.
Ameri. et Frolic Nav. Ang. Die xvn Oct. mdcccxii.
5. Stephen Decatur. — Obverse : Stephanus Decatur, Navarchus,
pugnis pluribus, victor. Reverse : Occidit signum hostile sidera sur-
gunt. Inter Sta. Uni. Nav. Ameri. et Macedo. Nav. Ang. Die xxv
Octobris mdcccxii.
6. William Bainbridge. — Obverse : Gulielmus Bainbridge patria
victisque laudatus. Reverse : Pugnando. Inter Const. Nav. Ameri.
et Jav. Nav. Ang. Die xxix Decem. mdcccxii.
7. Oliver H. Perry. — Obverse : Oliverus H. Perry princeps stagno
Eriense— classim totam contudit. Reverse : Viam invenit virtus aut
facit. Inter class. Ameri. et Brit. Die x Sept, mdoccxiii.
8. Oliver Hazard Perry. — Obverse : Oliverus Hazard Perry pro
Patria vieit; presented by the government of Pennsylvania. 1st
reverse : “We have met the enemy, and they are ours.” — Perry.
To . In testimony of his patriotism and bravery in the naval
action on Lake Erie, September 10, 1818. 2d reverse : “ We have
met the enemy, and they are ours.” British fleet on Lake Erie cap-
tured September 10, 1813.
9. Jesse D. Elliott. — Obverse : Jesse D. Elliott nil actum reputans
si quid superesset agendum. Reverse : (Same as Perry die No. 7.)
10. W. Burrows. — Obverse : Victoriam tibi claram, Patriee mees-
tam — W. Burrows. Reverse : Vivere sat vincere. Inter Enterprise
Nav. Ameri. et Boxer Nav. Brit. Die iv Sept, mdoccxiii.
11. Edward B. McCall. — Obverse : Edward R. McCall, navis
enterprise proefectus — sic itur ad astra. Reverse : (Same as of die
No. 10.)
12. James Lawrence. — Obverse : Jac. Lawrence, dulce et decorum
est pro Patria mori. Reverse: Mansuetud. maj. quam victoria.
Inter Hornet Nav. Ameri. et Peacock Nav. Ang. Die xxiv Feb.
mdoccxiii.
13. Thomas Macdonough. — Obverse: Tho. Macdonough, stagno
Champlain clas. reg. Crit. Superavit. Reverse : Uno latere percusso
alterum jmpavidc vertit. Inter class. Ameri. et Brit. Die xi Sept
mdcccxiiii.
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14. Robert Henley. — Obverse : Rob. Henley, Eagle prefect, palma
virtu, peretemit, florebit. Reverse : (Same as of die No. 13.)
15. Stephen Casein. — Obverse : Step. Cassin, Ticondcroga prefect,
quae regio in terris nos, non pleana lab. Reverse : (Same as of die
No. 130
16. L. Warrington. — Obverse: Lodovicus Warrington, Dux Navi-
lis Amer. Reverse : Pro patria paratus aut vincere aut mori. Inter
Peacock Nav. Ameri. et Epervie Nav. Ang. Die xxix Mar. mdcccxiv.
17. Johnson Blakeley.— Obverse: Johnson Blakeley, Reip Feed.
Am. Nav. Wasp Dux. Reverse: Eheu! Bis victor patria tua to
luget plauditq. Inter Wasp Nav. Ameri. et Reindeer Nav. Ang.
Die xxvn Junius mdcccxiv.
18. Charles Stewart. — Obverse : Carolus Stewart, Navis Amer.
Constitution Dux. Reverse: Una victoriam eripuit ratibus binis.
Inter Constitu. Nav. Ameri. et Levant et Cyane, Nav. Ang. Die xx
Febr. mdcccxv.
19. Winfield Scott. — Obverse : Major-General Winfield Scott.
Reverse : Resolution of Congress, November 3, 1814 : Battles of
Chippewa, July 5, 1814 ; Niagara, July 25, 1814.
20. James Miller. — Obverse: Brigadier-General James Miller.
“ I’ll try.” Reverge : Resolution of Congress, November 3, 1814 :
Battles of Chippewa, July 5, 1814 ; Niagara, July 25, 1814 ; Erie,
September 17, 1814.
21. Edmund P. Gaines. — Obverse : Major-General Edmund P.
Gaines. Reverse : Resolution of Congress, November 3, 1814 : Bat-
tic of Erie, August 15, 1814.
22. Peter B. Porter. — Obverse : Major-General Peter B. Porter.
Reverse: Resolution of Congress, November 3, 1814; Battles of
Chippewa, July 5, 1814; Niagara, July 25, 1814; Erie, September
17, 1814.
23. Jacob Brown. — Obverse: Major-General Jacob Brown. Re-
verse : Resolution of Congress, November 3, 1814 ; Battles of Chip-
pewa, July 5, 1814; Niagara, July 25, 1814: Erie, September 17,
1814.
24. Eleazer W. Ripley. — Obverse : Brigadier-General Eleazcr W.
Ripley. Reverse : Resolution of Congress, November 3, 1814 ; Bat-
tles of Chippewa, July 5, 1814; Niagara, July 25, 1814 ; Erie, Sep-
tember 17, 1814.
25. Alexander Macomb. — Obverse : Major-General Alexander Ma-
comb. Reverse : Resolution of Congress, November 3, 1814 : Battle
of Plattsburgh, September 11, 1814.
26. James Biddle. — Obverse : The Congress of the U. S. to Capt.
James Biddle for his gallantry, good conduct, and services. Reverse :
Capture of the British ship Penguin by the U. S. ship Hornet, off
Tristan D’Acunha, March xxm, mdcccxv.
27. Andrew Jackson. — Obverse : Major-General Andrew Jackson,
Reverse: Resolution of Congress, February 27, 1815. Battle of
New-Orleans, January 8, 1815.
28. Isaac Shelby. — Obverse : Governor Isaac Shelby. ^Reverse :
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Battle of the Thames, October 5, 1813: Resolution of Congress,
April 4, 1818.
29. William H. Harrison. — Obverse : Major-General William H.
Harrison. Reverse : Resolution of Congress, April 4, 1818 : Battle
of the Thames, October 5, 1813.
30. George Crogkan. — Obverse : Presented by Congress to Colonel
George Croghan, 1835. Reverse: Pars magna fuit: Sandusky, 2
August, 1813.
62. Zachary Taylor. — Obverse Major-General Zachary Taylor.
Reverse: Resolution of Congress, March 2d, 1847: Monterey, Sep-
tember, 1848.
63. Zachary Taylor. — Obverse : Major-General Zachary Taylor.
Reverse : Resolution of Congress, July 16, 1846 : Palo Alto, May
8th, 1846 ; Rcsaca de la Palma, May 9th, 1846. .
64. Zachary Taylor. — Obverse Major-General Zachary Taylor.
Resolution of Congress, May 9, 1845. Reverse : Buena Vista, Peb.
22 and 23, 1847.
65. Winfield Scotl. — Obverse : Major-General Winfield Scott. Re-
solution of Congress, March 9th, 1848. Reverse: Vera Cruz, Cerro
Gordo, Contreras, San Antonio, and Churubusco, Molino del Rey,
Chepultepec, City of Mexico.
66. Winfield Scott. — Obverse : Winfield Scott. The commonwealth
of Virginia present# this medal to Major-General Winfield Scott, as
a memorial of her admiration for the great and distinguished services
of her son whilst Commander-in-chief of the American armies in the
war with Mexico, 1S47. Reverse : Fecit quod cogitavit. From
Virginia.
67. “Bache Medal." — Obverse : The Treasury Department of the
United States. Coast Survey to . Reverse : For gallantry
and humanity, Dec., 1848.
68. “Somers Medal." — Obverse : Somers Navis Americana. Ante
Vera Cruz, Dec. 10th, 1846. Reverse : Pro vitis Americanorum
conservatis.
69. Obverse : G. Washington, Pres. Unit. Sta. Reverse : Com-
mis. resigned ; Presidency relinq., 1797.
70. Henry Lee. — Obverse : Henrico Lee, legionis Equit Prsefecto.
Comitia Americana. Reverse : (Not in the mint.)
71. Obverse: Let us look to the Most High, who blessed our fathers
with peace ; 1757. Reverse : Kittanning destroyed by Col. Arm-
strong, September 3, 1756.
58. Thomas Truxlon. — Obverse : Bust of Capt. Truxton. No in-
scription. Reverse : By vote of Congress to Thomas Truxton, 24
Mar., 1800. (This medal was presented for revolutionary services.)
Indian Medal Dies.
Obverse : Containing name and date of inauguration of the Presi-
dent. Reverse : The inscription, “ Friendship and Peace,” over joined
hands, or tomahawk and pipe.
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Coins, Coinage , and Bullion.
[J une.
31, 32, 33.
34, 35, 36.
37, 38, 39.
40, 41, 42.
43, 44, 45.
46, 47, 48.
49, 50, 51.
52, 53, 54.
55, 56, 57.
59, 60, 61.
Thomas Jefferson. — Three sues.
James Madison. — Three sizes.
James Monroe. — Three sizes.
John Quincy Adams. — Three sizes.
Andrew Jackson. — Three sizes.
Martin Van Buren. — Three sizes.
John Tyler. — Three sizes.
James K. Polk. — Three sizes.
New Reverses. — Three sizes.
Zachary Taylor. — Three sizes.
Projet of a Law to Establish a Medal Department in the Mint.
§ 1. Be it enacted , etc., That there shall be established at the Mint
of the United States a Medal Department, to be under the direction
and control of the Director of the Mint ; but the Director may desig-
nate such officer or person as he may deem proper to have the imme-
diate charge of the same, under his direction, and he may employ
such workmen as he may deem necessary.
§ 2. Medals of gold, silver, and bronze may be struck for any
department of the government, for any State or society, or person or
persons, under such general regulations as the Director of the Mint,
with the approbation of the Secretary of the Treasury, may prescribe.
§ 3. The machinery of the Mint, not otherwise employed, and
applicable to the purposes of this department, may be so applied
under such restrictions as the general operations require, at the dis-
cretion of the Director.
§ 4. An account of the receipts and expenditures of this depart-
ment shall bo kept by such person, and in such manner as the Direc-
tor may prescribe, an abstract of which shall be quarterly transmitted
to the Treasury Department ; the profits which may accrue therefrom
shall be applied to the enlargement of the cabinet of medals and coins
at the Mint, and for supplying national and scientific institutions with
copies of the public medals.
Statement showing the amount of Silver of domestic production, including Silver parted
from California gold, deposited at the Mint of the United States and its branches,
from January 1, 1841, to December 31, 1854 :
Tear.
1841,
1842,
Value.
6,453
Tear.
1849,
I860,
Value
269,253
1843',
1851,
1844,
4,169
1852,
1845,
1853,
417,279
1846,
1847,
3,066
6,407
1854,..
328,199
J 848,
6,191
Total
$1,918,483
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UNIVERSITY OF CHICAGO
1855.]
Banking in Indiana.
937
BANKING IN INDIANA.
Act to Incorporate the Bank of the State of Indiana and
Branches. Adopted March, 1855.
§ 1. Be it enacted by the General Assembly of the State of Indiana ,
That there shall be, and there is hereby, established a Bank, with so
many Branches as shall be organized under this charter, to be known
and styled “ The Bank of the State of Indiana,” which shall continue
for the term and period of twenty years from the date of its organi-
zation, and for such longer period thereafter as shall be necessary
promptly to close its business, as hereinafter provided.
§ 2. That Thomas L. Smith, Andrew L. Osborn, John T. Elliott,
Addison L. Roache, and John D. Defrees are hereby appointed Com-
missioners who, before entering upon their duties, shall take an oath
diligently, faithfully, and impartially to perform the duties assigned
them by this act. They shall keep a true record of all their pro-
ceedings, which, together writh all the books and papers pertaining
thereto, they shall deliver to the Board of Directors of said Bank
when the same is organized.
§ 3. Said Commissioners shall meet, at the city of Indianapolis,
within ninety days after the passage of this act, and if any of their
number shall refuse to serve, shall die or resign, they shall fill the
vacancy or vacancies by the appointment of some suitable persons
thereto ; and they, or a majority of them, are authorized, and it shall
be their duty, to divide the State into not less than fifteen, nor more
than twenty, bank districts, and to locate one branch of said Bank in
each of said districts, at such place as they shall designate, selecting,
where it can be done other things being equal, in each district wherein
a branch of the present State Bank of Indiana is now located, the same
county in which such branch is located ; and they shall appoint two
sub-commissioners for each of said districts, who shall be residents
therein, to receive subscriptions of stock, and perform such other
duties as may be required by this act. If said Commissioners do not
make the whole number of districts authorized by this act, the Board
of Directors of the Bank may, at any time after being organized, lay
off from time to time additional districts, and locate branches therein:
Provided , that the whole number established shall not exceed the
number herein authorized.
§ 4. Should any of the branches herein established fail to organize,
as herein contemplated, it shall be the duty of the Directors of the
Bank, once in each year thereafter, if required by any number of the
citizens, who will be responsible for the expense, to open books of
subscription within such district, and locate and organize a branch
therein, at such place as they may select, if the amount of stock herein
required shall be taken and paid for under the provisions of this act.
62
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une.
§ 5. Provides for an office at Indianapolis ; creates the Bank a body-
corporate ; gives it the power by and through her branches, and not
otherwise, to loan money, buy, sell, and negotiate bills of exchange,
checks, promissory notes, and other evidences of debt, to discount, on
banking principles and usages, bills of exchange, post-notes, promis-
sory notes, and other negotiable paper or obligations for the payment
of money ; to receive deposits, to buy and sell gold, silver, bullion, and
foreign coins ; to draw, issue, and put in circulation, bills, notes, post-
notes, bills of exchange, and other evidences of debt, payable to order
or bearer, and not otherwise ; and all such notes and bills put in cir-
culation as money, except post-notes and bills of exchange, Bhall be
made payable on demand; and to exercise such other incidental
powers as shall bo necessary to carry on such business.
§ 6. The real estate which it shall be lawful for said Bank to pur-
chase, hold, and convey, shall be — first, such as shall be required for
its immediate accommodation in the convenient transaction of its
business ; or, second, such as shall have been mortgaged to it in good
faith by way of security for stocks, loans previously contracted, or for
monies due ; or, third, such as shall have been conveyed to it in satis-
faction of debts previously contracted in the course of its dealings ;
or, fourth, such as shall have been purchased at sales upon judgments,
decrees, or mortgages, obtained or made for such debts ; and the said
Bank shall not purchase, hold, or convey real estate in any other case,
or for any other purpose ; and all such real estate not absolutely
necessary for the convenient discharge of its business, shall be set up,
at least once a year, at public sale, after having given thirty days’
notice of such sale, describing the property so to be sold, and die
name of the mortgagor, in at least one newspaper in the district where
said Bank is situate, and placing three written notices in the most pub-
lic places in the town where the Bank is located, and shall be sold if
the same will bring the amount of the debt, interest and costs for
which the same may have been bought, received, or taken by the Bank,
and which shall remain after deducting all profits received therefrom.
§ 7. All conveyances of real estate shall be signed by the Presi-
dent of the Bank, and have affixed the seal thereof.
§ 8. The said Bank shall not at any time suspend or refuse pay-
ment, in gold or silver, of any of its notes, bills, or obligations due or
payable, nor of any monies received upon deposit ; and if said Bank at
any time refuse or neglect to pay any bill, note, or obligation issued by
said Bank, if demanded within the usual banking hours, at the proper
branch where the same is payable, according to the contract, promise,
or undertaking therein expressed, or shall neglect or refuse to pay on
demand, as aforesaid, any monies received on deposit, to the person
or persons entitled to receive the same, then, and in every such case,
the holder of any such bill, note, or obligation, or the person or
persons entitled to demand or receive such monies, as aforesaid,
shall respectively be entitled to receive and recover interest on their
said demands, until the same shall be fully paid and satisfied, at the
rate of twelve per centum per annum, from the time of such demand.
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1855.]
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939
as aforesaid ; and any branch so failing to meet its engagements may
be closed as in case of insolvency.
§ 9. The said Bank, and each and every branch thereof, shall mutu-
ally be responsible for all the debts, notes, and engagements of each
other ; and the stockholders of each and every branch shall be held
and bound to an amount over and above their stock equal to their
respective shares of stock, for all the debts and liabilities of stud
Bank or any of her branches.
§§10, 11, and 12 provide for the manner of bringing suit against
the Bank.
§ 13. Said Bank shall be entitled to charge and receive for monies
loaned, the legal rate of interest established by law in this State, and
not more, and the same may, according to bank rules, be taken in
advance out of the sums loaned, and may be computed according to
the standard and rate set forth in “ Rowlet’s Tables,” reckoning the
days for whioh a note or bill has to run inclusively ; but it shall not,
directly or indirectly, place any money in the hands of any broker
or other person to be loaned to others, or charge, take, or receive any
interest, compensation, or benefit whatever from any loan made by
any other person or party, whether such loans be made from its own
funds or otherwise.
§ 14. The profits arising, after paying expenses and reservation for
a contingent or surplus fund, shall be divided among the stockholders
according to the amount of stock owned and paid in by each ; and in
making this calculation and division of profits, each branch shall be
independent of the others, and its own profits be divided among its
own stockholders.
§ 15. The capital stock of said Bank shall be subject to the same
rate of taxation for State and county purposes as the property or
stock of other monied corporations ; and the real estate and other
property of said Bank and branches situated in any city or town, shall
be taxable for municipal purposes in the same manner as other pro-
perty so situated, but the capital stock of said Bank or branches shall
not be taxable for municipal purposes.
§ 16. The persons administering the government of this State,
Secretary of State, Treasurer, Auditor of Public Accounts, Commis-
sioner of the Canal Fund, Judge of the Supreme or any inferior Court,
or any person holding an office or appointment under the authority
of the General Government, shall not, while in such office, hold the
office of president of the Bank, director of the Bank, or president,
director, or cashier of any branch, nor that of a member of the Gene-
ral Assembly ; nor shall any president, cashier, or director of any
branch at the same time hold the office of president or director of
the Bank, on the part of the State, or the office of president, director,
or cashier of another branch.
§ 17. The notes issued by said Bank shall be signed by the Presi-
dent of the Bank, and shall be made payable at the branch which shall
issue the same, and shall be signed by the cashier of such branch.
§ 18. It shall not be lawful for said Bank at any time, to use or
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940
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employ any part of its capital stock or other funds in the buying or
selling of goods, wares, or merchandise, or in any other business or
dealing, than is by this act authorized and permitted.
§ 19. It shall and may be lawful for said Bank and any branch
thereof, to accept, receive, and become responsible for the deposits
and public revenues of the United States, upon such terms and con-
ditions as may be agreed upon by the agents of the General Govern-
ment and a majority of the Directors of said Bank.
§ 20. That it shall be lawful for said Bank to receive on deposit
(except as above prohibited) monies, bullion, plate, and other articles
of value of small bulk, on such terms and conditions as may be agreed
upon by the parties.
§.21. It shall not be lawful for the Directors of the said Bank to
locate any other branch or branches of said Bank than is herein
authorized.
§ 22. The capital stock of said Bank may be increased by individual
subscriptions at any one or more branches, by and with the assent
and concurrence of the Directors of the Bank.
§ 23. The General Assembly may at any time appoint an agent
to examine the state and condition of said Bank, and each and every
branch thereof, who shall have the same power and rights as examiners
appointed by the Directors of the Bank ; and when any agent as afore-
said shall find and report, or the Governor of the State shall have
reason to believe that the charter has been violated, it may be lawful
for the Legislature to direct, or the Governor to order, a scire facias
to be sued out of the Marine Circuit Court in the name of the State,
(which shall be executed upon the President of the Bank for the time
being at least fifteen days before the commencement of the term of
said court,) calling on the said corporation to show cause wherefore
the charter hereby granted shall not be declared forfeited ; and it shall
be lawful for said court upon the return of said scire facias, to examine
into the truth of the alleged violation, and if such violation be made to
appear, then pronounce and adjudge the said charter is forfeited and
annulled ; and every issue or fact which shall arise in such proceeding
and may be joined between the State and corporation aforesaid, shall
be tried by jury, and it shall be lawful for the court aforesaid, to
require the production of such of the books of the corporation as it
may deem necessary for the ascertainment of the controverted facts ;
and the final judgment of the court aforesaid, shall be examinable in
the Supreme Court of the State, and may there be reversed or affirmed
according to usages of law ; and it shall be the duty of the Governor
to employ counsel in behalf of the State to prosecute such writ of
scire facias.
§ 24. That a general meeting of the stockholders of each branch
shall be held annually, at such time as the Directors of the Bank shall
direct, at which time elections for directors shall take place, to which
meeting the directors of the preceding year shall exhibit an exact and
particular statement of the state, condition, and affairs of said branch ;
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and general meetings of the stockholders may be held at any other
time when ordered by the Board of Directors of the branch.
§ 25. Certificates of stock shall be issued to stockholders, signed by
the President and Cashier of the proper branch, and may be trans-
ferred on the books of the branch to be kept for that purpose and not
otherwise ; in which case the old certificates shall be surrendered and
new ones issued. No stock shall be transferred by any stockholder
when any debt is due, or is then owing and to become duo from such
stockholder, but by the consent of the Directors of the branch ; and
such stock books shall, at all reasonable times during the usual hours
of transacting business, be kept open for the examination of any per-
son having in his possession any note, bill, or obligation on any branch,
then due, and the payment of which shall be refused. And in case
any officer having charge of such book shall refuse to permit such
examination, he shall, for every such offense, forfeit the sum of fifty
dollars, to be recovered in an action of debt by the person so refused.
§ 26. Stock shall be considered as personal property, and may be
sold on execution and transferred on the books of the branch by the
officer selling the same, but in all cases be subject to a lien in favor of
the Bank, for all debts bona jide due, or owing, and to become due the
same, from the owner.
§ 27. After the first election, no stockholder who shall not have
held his stock, for which he votes, for three calendar months previous
to the day of election, shall be entitled to vote ; and the number of
votes to which stockholders shall be entitled in voting for directors,
shall be in the proportion following ; that is to say, for each and every
share not exceeding fifty, one vote ; for every five shares over fifty and
up to one hundred, one vote ; and for every ten shares over one hun-
dred, one vote ; stockholders may vote in person or by proxy, but
stockholders who are not residents of the United States shall not be
entitled to vote their stock.
§ 28. No president, cashier, clerk, or teller of said Bank, or any
branch thereof, shall be permitted to vote at any election for directors,
as the attorney, agent, or proxy of any stockholder. No president,
cashier, or director of the Bank, or president or cashier of cither of
the branches, shall, during the term of his office, be eligible to a seat
in either branch of the General Assembly of this State.
§ 29. There shall be a Board of Directors of the Bank, which shall
be styled the Board of Directors of the Bank of the State of Indiana.
Said Board shall annually, after its first organization, elect one of its
members president, at such time and in such manner as shall be pre-
scribed by by-law, who shall hold his office one year, and until his
successor is elected and qualified. It shall be his duty to preside at
all meetings of the Board, to call special meetings thereof when he
shall deem it necessary, and to transact all other business appertaining
to his office, or required by this act, or the by-laws of said Bank. lie
shall receive an annual salary, to be allowed by the Board of Directors
of said Bank, not less than one thousand nor more than four thou-
sand dollars, payable quarterly.
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942 Banking in Indiana. [June,
§§ 30, 31, 32, 33, and 34 relate to the organization of banks, man-
ner of electing Directors, etc.
§ 35. The Directors of the Bank shall have power to limit and con-
trol the amount of discounts and loans of the branches, after they shall
amount to one and a quarter the amount of the capital stock paid in,
to settle and adjust the accounts and balances between them, and for
good cause may suspend the operations of the same. They shall
have power, and it shall be their duty, to regulate and equalize the
State funds and public deposits that may be in bank, and may trans-
fer the same from one branch to another, as circumstances may
require ; but they shall in no case withdraw any part of the capital
stock of any branch, or any part of its local funds, without the consent
of the Board of Directors of such branch, to be used in any other
branches, except in cases requiring such branch to be closed, as herein
provided for ; and they shall have power to make and prescribe all
necessary by-laws to carry the powers herein conferred into effect.
§ 36. They shall have power to appoint one or more of their num-
ber to visit and inspect the condition and affairs of each branch, when
and as often as to them shall seem necessary ; and it shall be their
duty to make such examination at least once in six months, and also
at any other time when thereto required by the directors of any
branch. No director shall be appointed by the Bank to examine,
visit, and inspect the condition and affairs of any branch from which
he has received his appointment.
§ 37. The person or persons so examining shall have power to
examine, on oath or affirmation, (which* they are hereby authorized to
administer,) all the officers, servants, or agents of any branch, or any
other person, in relation to the affairs and condition of such branch,
and they shall have power to examine all the books, papers, notes,
bonds, and other evidences of debt of any branch ; to compare the
books, funds, and property of said branch with their returns and state-
ments made thereof ; to ascertain the amount of money and available
funds on hand, and generally to make every other inquiry and examin-
ation necessary to ascertain the actual condition of such branch.
§ 38. The Board of Directors of the Bank shall have power to
require of the board of directors of each branch, reports of their
business and condition, as often as shall be expedient, and not less
than once each month.
§ 39. They shall have power, whenever they shall ascertain in any
manner that any branch is insolvent, or is mismanaging its affairs,
whereby the interest of the other branches is endangered, or that a
branch hath violated any of the provisions of this act, or any other
act binding upon them, or that any branch hath neglected or refused
to comply with any legal order or direction of the Board of Directors
of the Bank, and it is hereby made the duty of said Board forthwith
to suspend the business of such branch, and the power of the branch
directors over the same, and if the interest of the State or the safety
of the other branches requires it, to close up the affairs and business of
said branch entirely; and to effect the same, they are hereby vested
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with power to appoint a receiver or receivers who shall, under their
direction and control, collect and receive the rights, credits, and effects
due such branch, and turn them into available funds ; to settle, adjust,
and compound the same ; to settle, adjust, and pay off the debts due by
such branch ; and if any portion of the capital stock of such branch,
or stock-notes given therefor, shall be unpaid, to sue for and collect
the same, as also all contributions required from stockholders under
the provisions of the ninety-fifth section of this act, or so much as
shall be necessary to meet the demands against such branch.
§ 40. That a copy of such order suspending or closing any branch, and
appointing a receiver or receivers, to take charge of the same, signed
by the President and attested by the clerk of said Board, and the seal
of said Bank, shall be sufficient to authorize such receiver to seize and
take charge of the same ; and all officers, stockholders, servants, and
agents of such branch shall be required to obey and submit to the
same, and in default may be indicted for misdemeanor, and fined and
imprisoned at the discretion of the jury trying the same ; and any
person fraudulently holding or concealing any of the property or effects
of such branch from such receiver shall, upon conviction thereof upon
presentment or indictment, be fined in any sum not exceeding one
thousand dollars, and confined at hard labor in the State prison for
any term of time not less than one year nor more than ten years.
§ 41. It shall be the duty of the Directors of the Bank to provide
for the payment of all the debts of a failing branch that shall remain
due after all the property, real and personal, rights, credits, and effects,
and all the stock of such failing branch, and the contributions of its
stockholders, shall have been first applied ; and for that purpose they
are hereby authorized to call on the other branches for their respective
proportions; arranging the time of making such calls so that the
whole amount of such debt shall be paid within one year after such
foiling branch shall have been suspended.
§ 42. And if it shall so happen that the property, stock, contribu-
tion, or effects of said failing branch shall not by that time have been
turned into available means, the same shall be collected and distributed
among the several branches, to meet the advances by them made to
pay the debts of such failing branch.
§ 43. After payment of all demands against the failing branch, if
any residue remains, it shall be paid to the stockholders, in due pro-
portion.
§ 44. Any order of the Board of Directors to suspend or close a
branch, shall be carried by at least the votes of two thirds of the mem-
bers present at some meeting, to attend which all the members of the
Board shall have been notified ; and the question shall be taken by
ayes and noes, and the same recorded on the minutes of the Board.
§ 45. The order of the Board of Directors of the Bank suspending
any branch, shall likewise have the effect to suspend all suits, judg-
ments, orders, decrees, and executions, for any claim or demand which
said branch should have paid ; nor shall any suit be progressed in
until the matter in controversy shall have been submitted to the
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Board of Directors of the Bank, or the persons by them intrusted
with the affairs of said branch ; and if on such submission, the justice
of such claim shall not be admitted, and the same be agreed to be
paid on the closing up of the affairs of said branch, the same may pro-
gress to judgment, but execution thereon, and all other executions and
decrees, shall remain until one year from the time such branch was
suspended.
§ 46. The Directors of the Bank shall have power to regulate the
manner of holding elections for directors of the branches, and may, if
necessary, change and fix the time of holding the same ; of all which
elections, reasonable notice of time and place shall be given.
§ 47. And in case an election of Directors should not be made on
the day when the same should have been, the Directors of the Bank
shall order a new election, and the Directors for the time being shall
continue to hold their offices until such election takes place, and their
successors are qualified.
§ 48. No failure on the part of the General Assembly, or of the
branches, to elect Directors of the Bank, shall be considered a disso-
lution of this corporation, but the directors for the time being shall
continue to hold and exercise their offices until their successors are
chosen and qualified.
§ 49. Said Directors shall have power to regulate and control the
dividends of profits so that the capital stock shall never be diminished,
and to create and keep up a surplus fund that shall never be less than
one sixteenth of the capital stock in each branch.
§ 50. In the calculation of the profits previous to a dividend, inter-
est then unpaid, although due or accrued on debts owing to any branch,
shall not be included.
8 51. Dividends of profits shall be declared semi-annually.
§ 52. Said Board of Directors shall have power to close any
branch which, after the first year, shall not yield a profit of six per
cent per annum upoh the capital actually paid in, and the same may
be proceeded in as in case of insolvency, unless the discount shall have
been limited and controlled by the Directors of the Bank, so as to
prevent said stock from yielding such profit.
§ 53. They shall cause to be opened and kept, by their clerks,
accounts with each branch, showing the operations of each, and keep-
ing constantly in view their business and condition, which shall be at
all reasonable times open to the inspection of any stockholder, and of
any person authorized by the Legislature to inspect the same.
§ 54. They shall likewise keep a record of all their proceedings, in
which all their orders, votes, and resolutions shall be entered, with
the ayes and noes on all questions, which shall be open to like inspec-
tion.
§ 55. They shall apportion the salary of the President, and all
other officers, agents, and Directors of the Bank, and all other general
expenses, among the several branches, according to the amount of
stock in each, and shall have power to demand and receive the same.
§ 56. It shall be the duty of the Directors of the Bank to keep and
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preserve the original books of subscription of stock, and to cause to
be returned to them from each branch every six months a statement
of all transfers of stock made the preceding six months.
§ 57. They shall also procure and take charge of the plates on
which the paper of said Bank shall be printed; and shall cause a
sufficient amount thereof to be printed from time to time as may be
required.
§ 58. They shall deliver, on the order of the Board of Directors of
each branch, an amount of such paper not exceeding twice the amount
of capital actually paid in at such branch, except when more shall be
wanted to replace that which may have been worn out, defaced, or
lost ; in which case all so defaced shall be returned to said Board of
Directors of the Bank and destroyed ; and they shall give no other or
greater amount for paper lost than they shall have good reason to
believe is actually lost by circulation or otherwise. No notes shall
be issued of denominations between five and ten, or ten and twenty,
or twenty and fifty, or fifty and one hundred dollars, nor shall more
than one sixth of the notes issued to any branch be of denominations
less than five dollars, and no notes shall be issued of any denomina-
tion less than one dollar.
§ 59. Five directors, with the president, shall be necessary to con-
stitute aboard for the transaction of business; but in case of sickness
or absence of the president, his place may be supplied for the time
being by any director chosen by the board.
§ 60. Designates the manner in which reports shall be made to
the General Assembly.
§ 61 to 75. Prescribe the duties and privileges of the directors of
the respective branches. No branch director, except the president,
to receive compensation. No person in arrears to a branch shall be
elected director thereof, and all directors must be stockholders and
citizens of the State.
§ 75. Makes it a criminal offence for any officer of a bank to make
false entries, or in any manner deceive parties who may be appointed
to examine into the affairs of a bank.
§§ 76, 77, and 78 are not of general interest, except so far as they
provide for the opening of transfer books in any of the cities of the
United States.
§ 79. The capital stock of said Bank and branches, shall be divided
into shares of fifty dollars each. No branch shall be organized until
capital stock to the amount of one hundred thousand dollars shall be
subscribed therefor, and the Commissioners hereinbefore appointed,
after giving at least thirty days’ notice by publication in Indianapolis,
and at least twenty days notice in three or more newspapers pub-
lished in each bank district, or as many as may be published in any
district, where there are not three published, shall cause books to bo
opened by the sub-commissioners to be appointed for that purpose,
for the subscription of the requisite amount of stock, at such places
within the districts aforesaid, as shall have been designated for the
location of branches, which books shall be opened between the hours
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of 9 and 12 A.M., on the days and at the place specified in such
notice, and if the requisite amount of stock shall not soon be sub-
scribed, said books may be kept open between the same hours each
day, for the space of thirty days. If more than the requisite amount
of stock shall bo subscribed while the books are open for any branch,
the excess shall be taken first from such as reside out of the State,
next from corporations, and should there still be an excess, the same
shall be taken in proportion from the subscriptions over one thousand
dollars, until all are reduced to that amount, and then from all
equally.
8 80. If a sufficient amount of stock shall be subscribed by respon-
sible persons at any branch, it shall be the duty of the sub-com-
missioners to notify the Commissioners thereof, who shall give notice
to the subscribers of the time when the first payment on their stock
shall be made, which notice shall be by publication in one or more
newspapers published in the proper bank district, sixty days before
such payment is to be made ; and they shall also give notice in like
manner, that an election will be held on the day succeeding that
appointed for the payment of such instalment, between the hours of
10 A.M. and 2 o’clock P.M., at some specified place at the point
where such branch is to be located, for the election of five directors
on part of the stockholders of such branch. At such time and place,
the stockholders present shall appoint two suitable persons who are
not stockholders, to act as judges, and one to act as clerk, who shall,
after being duly sworn faithfully to perform their duties, receive the
ballots for directors, and certify that those receiving a majority of the
votes cast were duly elected, and the directors so elected shall con-
stitute the board of directors of such branch, for the purposes of its
organization and until the Board of Directors of the Bank of the State
of Indiana shall be organized and appoint directors on the part of
said board, and the directors so appointed shall then be added to
such branch board.
§ 81. Such first instalment shall be two dollars on each share of
stock subscribed, and shall be paid to sub-commissioners by whom
the books were opened, and who shall attend for that purpose, and in
case of the failure of any subscriber to pay such first instalment, the
sub-commissioners shall strike his name from the books, and imme-
diately reopen said books to receive subscriptions, to make up the
deficiency from any persons who will pay such instalment. As soon
as a branch is organized, said sub-commissioners shall pay over
thereto all the money received from such subscriptions, and all books
and papers appertaining thereto, which, with the returns of the elec-
tion for directors, and the certificates thereof, shall be entered or
copied into the record-books containing the proceedings of the board
of directors ; which entries shall be prima-facie evidence of the fact
therein stated. If any sub-commissioner shall, from any cause, fail
to perform any of the duties required of him, the same may be per-
formed by any other person appointed by the Commissioners to
supply his place. The residue of said stock shall be paid in such
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instalments as the board of directors of the proper branch shall
require, but such instalments shall be so graduated, that not less than
one hundred thousand dollars shall be required to be paid into each
branch, on or before the first day of January, 1857.
§ 82. The board of directors of each branch shall meet as soon as
conveniently may be after their election, and after being duly sworn
to support the constitution and laws of the State of Indiana, and faith-
fully and honestly to perform the duties of their office, shall proceed
to elect the proper officers of such branch, and also one of their num-
ber as a member of the Board of Directors of the Bank of the State
of Indiana, and, when not less than ten branches have thus organized,
the members elected to the Board of Directors of the Bank shall
meet at the city of Indianapolis, at such time as shall be agreed upon,
and organize said board. If any members of said board have then
been elected by the Legislature, they shall bo added thereto, and
whenever, from time to time, members of said board shall be elected
by the Legislature, or by branches that may be subsequently organ-
ized, such members shall be admitted to their seat at said board.
§ 83. When not less than ten members of the Board of Directors
of the Bank of the State of Indiana shall meet as aforesaid, and shall
have been duly sworn to support the constitution and laws of the
United States, and of the State of Indiana, and faithfully and honestly
to perform the duties of their office, the Commissioners shall deliver
to them all the books, papers, and property in their possession, apper-
taining to said Bank, together with a full report of all their proceed-
ings in the premises, which report shall be entered on the record of
said board, and, when so entered, such record shall be prima-facic
evidence of the contents thereof, said board shall then proceed to
elect their proper officers, and when thus organized, said board shall
cause a written statement of all the proceedings in the organization of
said Bank and each branch, to be made and filed in the office of
Secretary of State, which statement shall be accompanied by the affi-
davits of the President and Cashier, that, to the best of their know-
ledge and belief said statement is correct, and that said Bank and
branches have been organized in good faith, and with the intent to
carry out the objects of its charter fairly and honestly ; and thereupon
said Bank shall be duly organized for all the purposes contemplated
by this act, except that it shall issue no bills or notes intended to cir-
culate as currency, until after the first day of January, 1857, and no
such bills or notes shall then be issued to any branch until at least
fifty thousand dollars shall have been paid into such branch upon the
subscriptions for its stock.
§ 84. The Board of Directors of the Bank of the State of Indiana
is authorized to increase the capital stock of any of the branches, by
empowering them to receive additional subscriptions thereto, to such
an amount as can be profitably employed, but the aggregate capital
of the Bank and all its branches shall not exceed six millions of
dollars.
§ 85. Should any subscriber for stock in any of the branches fail
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to make payment of the first or any subsequent instalment, the party
failing shall forfeit the first instalment, to be recovered by said Bank
in an action at law, and in case of the failure to pay any subsequent
instalment, the board of directors of the proper branch may sell and
transfer any such share or shares of stock at public auction, after ten
days’ notice in writing, put up at the door of such branch bank, or so
much thereof as may be necessary to pay all the dues of the failing
party ; and if the same cannot be sold for sufficient to pay all the
instalments due, the same shall be forfeited and become the property
of the proper branch, and whenever any stockholder shall be indebted
to any branch, and such branch shall hold a lien upon his stock to
secure such indebtedness, if by reason of insolvency or other cause,
he shall be unable to pay such indebtedness, such branch shall have
power to purchase and hold so much of such stock as may be neces-
sary to discharge such lien.
§ 86. The Board of Directors of the Bank of the State of Indiana
may, from time to time, authorize the several branches or any of
them, to extend their discounts to an amount, the average of which,
for each fiscal year, shall not exceed their deposits and two and a
half times the capital stock actually paid in, but never shall exceed
that proportion, and such discounts shall never exceed three times the
amount of the capital actually paid in and the amount of deposits ; the
power still being reserved by the Board of Directors of the Bank to
restrict the branches in their discounts to once and a quarter the amount
of the capital paid in at its discretion, and in case of excess, the directors
under whose administration it shall happen, shall be liable for the
same in their individual and private capacities, in an action of debt
against them, or any of them, in any court competent to try the
same, by any of the creditors of said Bank, or the Bank itself, and
may be prosecuted to judgment and execution, any condition, cove-
nant, or agreement to the contrary notwithstanding ; but this shall not
be construed to exempt the said Bank, or the lands, tenements, goods,
chattels, monies, or effects of the same, from being also liable for,
and chargeable with, such excess. And any director or directors, who
may be absent when such excess is created or contracted, or who may
have dissented from the resolution or act, whereby the same was
created, or contracted, may respectively exonerate themselves from
being so liable, by causing or requesting, in writing, at the time, his
or their dissent, to be entered on the minutes of the board, and by
forthwith giving notice of his or their absence or dissent, to the
Governor of the State, and to the stockholders, by giving notice
thereof in some newspaper published near said Bank or branch.
§ 87. Every director not present at the meeting when such excess
shall be created or contracted, shall, nevertheless, be deemed to have
been concerned therein, if the same shall appear on the books of the
board, and ho remain a director for six months thereafter, and does
not, within that time, give notice of the same, as required in the pre-
ceding section.
§ 88. The insolvency of said Bank or any branch, shall be deemed
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949
fraudulent, unless its affairs shall appear, upon investigation, to have
been fairly and legally administered, and generally with the same
care and diligence that agents, receiving compensation for their ser-
vices, are bound by law to observe ; and it shall be incumbent on
the directors and stockholders of the Bank, or any branch, should the
same become insolvent, to repel by proof the presumption of fraud.
§ 89. In case of the fraudulent insolvency of said Bank or any branch,
the president and directors of said Bank or branch respectively, by
whose acts or omissions the insolvency was wholly or in part occa-
sioned, and whether then in office or not, shall each be liable ; in the
first instance, to the creditors and stockholders of the said Bank or
branch, or any or either of them, for his proportional share for their
respective losses ; the proportion to be ascertained by dividing the
whole loss among the whole number of directors liable ; and, if any
such president or director shall be unable, by reason of being insolvent,
or for any other cause, to pay his proportional part of such loss, then
the residue of said loss shall be borne and paid in equal parts by the
remaining directors liable as aforesaid, until the whole loss shall be
reimbursed, or the whole property, rights, credits, and effects of each
of said directors shall have been exhausted toward the payment of
such loss; but this section shall not be construed to diminish the
liability of directors as before declared.
§ 90. If the monies remaining due to the creditors of said Bank or
any branch, whose insolvency snail bo adjudged fraudulent, after dis-
tribution of its effects, and after the property, rights, credits, and
effects of the president and directors of such insolvent bank or branch
shall have been exhausted, shall not be paid by the stockholders, the
deficiency shall be made good by the contributions of the stockhold-
ers of the branch becoming insolvent. The whole amount of the
deficiency shall be assessed on the whole number of shares of the
capital stock of said branch, and the sum necessary to be paid on each
share shall then be ascertained, and each stockholder shall be liable
for the sum assessed on the number of shares held by him not exceed-
ing the nominal amount of such shares, in addition to the sum paid,
or which he may be liable to pay on account of those shares ; but,
before such contribution shall be required, or assessment made on
any shares where the whole stock had been paid, the instalments
unpaid on any shares shall be required to be paid up, and the
estimates of the deficiency made accordingly.
§ 91. That it shall be lawful for the General Assembly, (by and
with the consent of the president and directors of each bank and of
the president and directors of each branch, and not otherwise,) to make
such amendments and alterations in this charter as may be found
expedient ; Provided , That said Bank, or any of its branches, shall not
be authorized by any such amendment to suspend or refuse the pay-
ment of specie for its notes, bills, or obligations, or for any monies
received upon deposit, and that no such amendment shall be made,
the faith of the State is hereby pledged to the creditors of said Bank
and branches; And provided further, that the State reserves the right
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to authorize the establishment of additional bank districts and branches
with the consent of the boards of directors of two thirds the branches
then organized.
§ 92. It shall not be lawful for the said Bank, after the expiration
of twenty years from its organization, to discount, loan money, or do
any other banking business ; and all the powers herein conferred
shall cease, except those incidental and necessary to close up its busi-
ness, for which purposes only its organization may be continued for
any period of time not more than three years thereafter.
THE FINANCIAL AFFAIRS OF EUROPE.
7. New British Loan. II. Debate in House of Commons. III. No-
tice of Messrs. N. M. Rothschild <6 Sons. IV. Conditions of the Loan.
V. Views of Sir H. Parnell and Dr. Price. VI. Finances of
Austria, France, and Turkey.
The leading financial feature of the year, in fact the most important
one for the last twenty years, is the negotiation of a new loan by
Great Britain, to the extent of sixteen millions sterling. In the Brit-
ish House of Commons, on the 20th of April, the House having
resolved itself into a Committee of Ways and Means, the Chancellor
of the Exchequer made his financial statement. After stating the
reasons why this statement had been delayed, he proceeded to detail
the various items of the revenue and expenditure of the past year, and
the estimates of both for the ensuing year, the result of which was that
the amount of the estimated income of the next year was £63,339,000,
and that of the expenditure, including ways and means bills due for
the past year, and a margin of £4,440,000, £86,339,000, showing a
deficiency of £23,000,000, for which it was necessary to provide,
and it was his duty, he said, to submit the ways and means by which
that deficiency was to be made good. It had been proposed, he ob-
served, that the expenditure of the war should be defrayed by taxes
raised within the year ; but experience, he thought, had shown in this
and other nations, that it was impossible, with a large expenditure for
military purposes, to raise immediate taxes sufficient to defray the
whole of the extraordinary military charges. The Government had
therefore taken steps to raise a loan to cover a portion of the deficiency
of the year. It was incumbent, however, upon Parliament to take
measures to prevent a loan from becoming a perpetual burden. The
idea of a sinking fund had been fondly cherished to the last by Mr. Pitt;
subordinate bodies and railway companies had raised money upon secu-
rities extinguishable within a certain number of years ; and another
mode of preventing the perpetuation of debt by loans, was by raising
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money on terminable annuities — that is, annuities for a limited number
of years, including with the interest, a certain portion of the principal.
But it had been found in practice that terminable annuities were so
little marketable, that it had been at no time possible in this country
to effect a loan by that species of security alone. The Government
had therefore no option in the matter, and, under these circumstances,
they were compelled to effect a portion of the loan in some perpetual
stock. If the loan of £16,000,000 were to be repaid at the end of 30
years, it would be necessary for the Chancellor of the Exchequer of
the time to provide a surplus to that amount in order to extinguish
the debt.
The Government were of opinion that this course would be inexpe-
dient ; but, in order to prevent the creation of a perpetual burden, they
proposed to insert in the act a clause rendering it obligatory upon the
government at the conclusion of the war to set aside annually
£1,000,000 until the whole £16,000,000 should bo extinguished, and
they had negotiated such a portion of the loan as they thought they
could obtain in terminable annuities in that species of security. It
was proposed, besides the loan, to make an addition to the taxation to
the extent of £5,300,000, and he proceeded to state the manner in
which this addition was to be effected. It was proposed, he said, to
increase the present duties upon sugar 3s. per cwt., varying according
to quality, which was expected to produce £1,200,000; to add Id.
per lb. upon coffee, raising the duty from 3d. to 4d., estimated to
produce £150,000; and to increase the duty upon tea from Is. 6d. to
Is. 9d., calculated to yield £750,000, making an addition to the cus-
toms revenue of £2,100,000. The only alteration he contemplated
in the stamp duties was the removal of the exemption applicable to
bankers’ checks drawn within 15 miles, the produce of which he esti-
mated at £200,000. The only augmentation he proposed in the Excise
revenue was in the duty upon spirits, by assimilating that upon
Scotch spirits, now paying 6s., to that paid by English spirits, namely,
7s. 10d., and bj&raising the duty upon Irish spirits to 6s. The produce
of this alteration he estimated at £1,000,000. This made a total addi-
tion of indirect taxation of £3,300,000, and he proposed to raise the
remaining £2,000,000 by direct taxation. The government, after full
consideration, had come to the conclusion that the best form of direct
taxation was that of the income tax, and by simply adding one per
cent, or 2d. in the pound, to the present rate of that tax, the necessary
sum would be raised. He should ask the House, in addition, for a
power to issue £3,000,000 Exchequer-bills. The ways and means for
the year 1855-6 would, therefore, be as follows :
Income from existing taxes, £63,339,000
Loan, 16,000,000
New taxes to bo received in the year, - 4,000,000
Exchequer-bills, 3,000,000
£86,339,000
After reading details showing the expansion of commerce, and insist-
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ing that the great mass of wealth in the country could well bear this
increased charge, while its resources remained unimpaired, Sir C.
Lewis stated shortly the terms of the loan which had been contracted
that morning — namely, that the government had obtained £100
money for every £100 Three per Cent Consols, the lender of each £100
receiving an annuity of 14s. 6d., terminable at the end of 30 years,
lie had every reason, he said, to believe that these terms were fair
between the contractors and the government, and that the public
would be satisfied with the arrangement : and he concluded by moving
certain resolutions.
Mr. Laing observed that the loan was neither one thing nor the
other ; that it would have been practicable to obtain the whole loan
in some terminable form, and that the prospective sinking fund would
share the fate of all similar experiments. He thought that, by creat-
ing a new 3 £ per cent stock, and by opening the loan to the public, the
government might have obtained more favorable terms.
After some remarks by Sir II. Willoughby and Mr. Frewen, Mr.
Gladstone said, he was not prepared to withhold his assent from the
proposition that the House should affirm the contract which the Chan-
cellor of the Exchequer had provisionally made, retaining all his pre-
vious opinions as to loans. He wished, however, that the provisions
as to the repayment of the loan could be excluded from the resolution,
because he desired to have time to consider that provision. He
admitted the necessity of providing for a considerable portion of the
expenditure of the year by borrowing money.
Sir F. Kelly denounced the whole scheme of the loan. Mr. W.
Williams objected to the way in which it was proposed to add to the
national debt.
The Chancellor of the Exchequer, in reply to Mr. Gladstone,
stated that the obligation proposed to be undertaken by the govern-
ment for the extinction of the permanent loan was no condition of the
contract ; it was a matter entirely within the discretion of the House,
which, if it did not approve this provision, might modjfy or reject it.
The discussion which followed turned chiefly upon the principle and
terms of the loan. Ultimately the resolutions were agreed to, and
ordered to be reported.
The loan was first made public on the 17th of April. The recep-
tion of this plan on the Stock Exchange and in the city generally was
not unfavorable. It is considered, however, that such of the London
firms as may be willing to tender will assume in their calculations the
necessity of a very considerable margin to guard against the contin-
gencies of the war, especially under the dispiriting effect lately pro-
duced by the inactivity of the allied armies before Sebastopol. The
anxieties which will be felt until the next harvest shall have been
secured are also to be taken into account, while among the minor
elements of uncertainty to be provided for is the extent to which
terminable annuities are liable to be depreciated by any future
increase of the income-tax.
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In the course of the afternoon of the 17th, the following notice was
issued by Messrs. Rothschild :
“Loan of £16,000,000 for the British Government.
“ Messrs. N. M. Rothschild and Sons beg to announce to the public that they are
ready to receive applications from parties desirous of participating in the forth-
coming loan of £16,000,000, and will receivo the same until Thursday next, at 2
o’clock.
“ It is necessary that every application should be accompanied with a deposit of
10 per cent on the amount applied for.
If the whole amount applied for be not allotted, the proportion of the deposit
will be returned forthwith.
** New-Court, St Swithin’s Lane, April 16.”
On the 24th the debate was resumed in the House of Commons.
Mr. Goulburn said, he did not mean to offer any objection to the
contract for the loan, which appeared in its terms fair to the con-
tractors, and not unfair to the public ; but he was anxious to point
out what he considered to be a defect in the principle of the loan.
The objection to a loan was, that it was throwing a burden upon pos-
terity ; but in this case the burden was increased by an obligation
to redeem the principal by a million a year. Was it in the least
degree probable that Parliament would consent to raise this sum for
sixteen years for the repayment of this loan I In former cases it had
not adhered to its resolution to maintain a sinking fund, and the pro-
posed clause would only make the House ridiculous in the eyes of
the country. He was bound, therefore, to take the loan as an irredeem-
able annuity, and he thought the Chancellor of the Exchequer would
have acted a wiser part if he had made an offer for the loan in the
New Three Per Cent Annuities, which were redeemable in 1874,
instead of in Consols. As it was likely in his opinion, that the inter-
est of money would fall, care should have been taken not to preclude
the country from this advantage. He doubted whether the public
would derive ultimately advantage from the other part of the loan in
terminable annuities. Annuities were now obtainable with more
facility than heretofore, and this new class of terminable annuities
being brought into the general market the advantage gained by the
government on one side would be lost on the other.
Mr. T. Baring was surprised that Mr. Goulburn should oppose a
resolution providing for the re-payment, in time of peace, of money
borrowed in time of war, which was built upon the sound rule that it
was the duty of Parliament and the country to discharge an obliga-
tion incurred in a season of exigency. As to the suggestion that the
loan would have been borrowed better in the New Three per Cents,
the amount of that stock was £250,000,000, and the Minister of the
day would have enough to do in dealing with that amount. The
principle of the Chancellor of the Exchequer’s plan was, he thought,
an honest one, and he hoped he would persist in his resolution that
£1,000,000 annually should be set apart after the war to redeem the
loan, as at least a record of the intention of Parliament.
Mr, Gladstone agreed that it was not possible for the Chancellor of
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the Exchequer to have contracted for so large a sum in the form of
terminable annuities. Mr. Baring, he thought, had not been just to
Mr. Goulburn, who concurred with him in the necessity of maintain-
ing a surplus revenue applicable to the reduction of debt. The ques-
tion between them was, whether this clause would practically assist
in effecting that object. Future Parliaments might question the right
of the present to fetter their discretion by prescribing the particular
amount and form of investment, although it might be prudent to lay
out the money in another manner.
After some remarks by Mr. John M'Gregor,
Mr. Laing explained what he had said on Friday. He objected to
contracting a loan in the ordinary Three per Cent Consols, because it
sacrificed the opportunity of reducing the interest, and because the
present price of the ordinary Three per Cent Consols stock was
artificial.
Mr. James M’Gregor, Mr. Hankey, and Mr. Wilkinson made some
brief observations, and Mr. Cardwell explained and defended what
had been suggested by Mr. Goulburn.
The Chancellor of the Exchequer, with reference to the remarks of
Mr. Gladstone, repeated what he had said on Friday, that the ques-
tion as to the appropriation of an annual million to the redemption of
the debt was open to the discretion of the House. The proposition
had been deliberately considered by the government, who intended
to adhere to it. The House could not make an irrevocable law bind-
ing upon future Parliaments; but the effect of this clause was to
create a permanent charge upon the Consolidated Fund, and it would
be the duty of every government to make provision for the payment
of this sum out of tne ways and means of the year, until Parliament,
which could provide for any emergency, saw fit to unbind its hands.
To the objection of Mr. Goulburn, that the loan should have been
contracted in the New Three per Cents, on the ground that the inter-
est might have been reduced without notice, he replied that he was
not sanguine as to the possibility, in the lifetime of the present
generation, of reducing the interest of the Three per Cent stocks ; but,
if the government should have a surplus revenue, it could go into the
market and buy its own perpetual annuities.
The new loan is raised on a very novel plan. The principal of the
loan is a fixed permanent amount, without any term named for its
redemption, but with the addition of an annuity, terminable in thirty
years. The bidders were invited to name the amount of the ter-
minable annuity the contractors would be willing to take for making
the loan. Only one bid was made, and that by the house of Roths-
child, who received the contract at £100 sterling for a three per cent
stock identical with consols, and fourteen shillings and sixpence ster-
ling annuity for thirty years from the 5th of April. The government
thus is to receive £100 sterling for £100 stock, and is to pay interest
at three per cent per annum till the loan be redeemed, and 14s. 6 d.
per cent per annum for thirty years. The manner in which the
market value of the new loan is calculated is furnished us by the
London Times of the 22d of April, as follows :
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“The value of £100 consols is £89 15s., and of 14s. 6 d. terminable
annuities for 30 years £11 12s. This makes £101 7s., or almost
exactly If premium. Its actual value, however, is rather more,
since this calculation assumes the entire subscription of £100 to be
paid at once, whereas the instalments extend over eight months, and
the employment in the interval of the money not called up would
yield, even at the low rate of 2 per cent now obtainable in the Stock
Exchange, about 12s. The value of the terminable annuity, more-
over, has to be taken as low as £16 per £1, while the quotation of
to-day was 16 to 16f, a purchase having been made at the latter
price. Under these circumstances the intrinsic worth of the omnium
would appear to be 2 premium.
“The letters of allotment were promptly delivered to-day, and,
although a general curtailment was necessary of the amounts applied
for, it was impartially made. The applications were supposed to
have been fully 10 per cent in excess of the total required.
“ There seemed but one opinion as to the equitable nature of the
contract for all parties. It is understood that the margin of profit to
the subscribers in the Emancipation Loan of 1835 was almost pre-
cisely the same as that now obtained.
“ The first quotation for the Omnium, as the combined stocks of
the new loan are termed, was If to f premium, and, after having
declined to If premium, it closed at If to If.”
Sir Henry Parnell, in his work on Financial Reform, says : “ If all
the loans which have been raised since the beginning of the war of
1739 had been borrowed in annuities for 99 years, in eight years
from this time (1832) the extinction of them would commence, and
in 84 years the whole debt incurred up to 1815 would be extinguish-
ed.” In other words, the liquidation of the debt would now (in 1855)
have been going on for 15 years, and the beginning of the next cen-
tury would have seen the country entirely rid of this incubus.
“ The objection made to raising money on this plan is the same as
that made to borrowing in stocks of real capital, namely, a supposed
unwillingness on the part of the public to lend money in any but a
low-price perpetual stock. This has been shown to be an objection
resting on no solid foundation ; and it is quite certain that, if govern-
ment wished to raise loans on terminable annuities, it would be sure
of obtaining them (after perhaps some difficulty in counteracting the
schemes and combinations which old loan contractors would at first
enter into to thwart it) by having an open subscription, and offering
a proper rate of interest, and by not being checked by the failure of
the first attempts.” Sir H. Parnell, chap. 22.
Dr. Price, in his work on Annuities, has the following :
“ It is obvious that accumulating debt so rapidly, and mortgaging
posterity for eternity, in order to pay the interest of it, must, in the
end, prove destructive. Rather than go on in this way, it is abso-
lutely necessary that no money should be borrowed, except in annui-
ties, which are to terminate within a given period. Were this prac-
tised, there would be a limit beyond which the National Debt could
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not be increased, and time would do that necessarily for the public,
which, if trusted to the conductors of its affairs, would never be
done.”
The pecuniary exigencies of Austria have no doubt materially
influenced her decision in the late appeal to that government to take
aides with the Allies. Her finances have for some years been in a
disordered condition, and her recuperative energies are not sufficient
to induce her to assume any further risk of extraordinary expenses.
The question of finance is one indeed that enters into the discussion
of important negotiations throughout Europe. Every square mile
on that continent is burdened with an average of ten pounds sterling
in the shape of national debts — Hamburgh sustaining the maximum, in
proportion to its geographical extent, and Prussia and Turkey the
minimum. At least this was the case at the beginning of the war of
1854. This enormous debt is distributed so widely, that the average
amount per head is about £6 15*., say thirty-three or four dollars.
In this point of view, the Netherlands sustain the maximum and Prus-
sia the minimum.
It has been ascertained by official data that the annual revenues of
the various European States are two hundred and seven millions
sterling — Spain holding the worst position as regards the amount of
revenue opposed to the national debt, the interest alone on which, at
five per cent, would consume her entire revenue — while Prussia
requires only seven per cent of its income to be so applied.
'Hie same official data represent the aggregate indebtedness of fifty-
eight European States to be £1,800,000,000, (eighteen hundred mil-
lions pounds sterling.)
While Austria, in time of peace, has, with bad management,
increased her public debt, her annual revenues have not kept pace
with the growth of population. The customs revenues are now no
more than they were in 1847, namely :
Duties. 184T. 1848. 1849.
On importations, £1,766,040 £921,920 £1,061,560
On exportations, 163,320 30,064 39,400
On transit, 12,160 6,200 6,080
Total, £1,931,620 £967,184 £1,106,040
The debt of Austria is stated to be one hundred and forty-five mil-
lions sterling.
France has shown itself prepared to sustain heavier burdens, the
late national loan having been readily taken by the* masses. Her
debt is about twelve hundred millions of dollars, with a population of
thirty-six millions — a standing army of 260,000.
Great Britain, with a less population, shows greater financial
strength ; and her position is far stronger now than thirty or forty
years ago. To show her abundant resources, and the enormous taxa-
tion to which her people have been subjected, we annex a summary
of population and taxation at various periods since 1810 :
Digitized b
■v Google
Original from
UNIVERSITY OF CHICAGO
Digitized by
1855.]
The
Financial
Tsar.
Population.
Income.
1811,...
.£18,547,000
£64,342,000
1812,...
. 18,812,000
63,179,000
1813,...
. 19,070.000
67,189,000
1814,...
. 29,331,000
70,103,000
1815,...
. 19,606,000
71,372,000
1811,...
. 26,895,000
47,650,000
A ffatrs of Europe. 957
Tear .
Population.
Income.
1842,.
...£27,181,000
£45,978,000
1843,.
... 27,468,000
50,894,000
1844,.
... 27,754,000
55,069,000
1845,.
... 28,041,000
51.496,000
1850,.
... 27,675,324
52,000,000
Turkey has no resources of her own. Every dollar raised for that
government, within the past four years, has been obtained in England
and France. To sustain the enormous expenditures of such a war as
is now carried on, for a series of years, would jeopard the solvency of
all the parties engaged in it. The productive industry of these
nations, in the meanwhile, is seriously impaired, and forty or fifty
years will be required to compensate for the exhaustion produced by
two or three years of war.
In order to show the precise terms suggested by the government, it
may be well to state that at the meeting held at the Treasury on the
10th ult., in pursuance of the notice issued by the First Lord of the
Treasury and the Chancellor of the Exchequer the Chancellor opened
the proceedings of the meeting by reading to them the following
conditions of the proposed loan :
PARTICULARS OP THE PROPOSED LOAN.
1. The loan to be for the sum of £16,000,000.
2. For every £100 subscribed in money, the contractors to have £100 3 per Cent
Consolidated Annuities, and a terminable annuity for 30 years, ending on the 5th of
April, 1885.
The biddings to be made in the terminable annuity.
3. The interest on the 3 per Cent Consolidated Annuities to commence from the
5th of January, 1855, and the terminable annuity to commence from the 5th of
April, 1855.
4. The days of payment, and the proportions of the contributions to be paid, to
be as follows :
April
24,
1855, £10 per cent
September
18,
1855,
£10 per cent
May
22,
“ 15
October
16,
10
Juno
19,
“ 10
November
20,
a
10 “
July
August
17,
21,
“ 15 “
“ 10 “
December
18,
a
10 “
5. For each instalment after the deposit a proportional amount of stock to be
created for the contributors.
The stock payable on the deposit to be created at the same time with that which
will be due on the last instalment, when the terminable annuity will be also
written in to the contributors’ names in the books of the Bank of England
6. The biddings to be made at the Treasury, on Friday morning, the 20th of
April, 1855, at 10 o’clock.
We learn from the Tiqies that on Friday, the 20th, the meeting
appointed at the Treasury to submit tenders for the government loan
of £16,000,000 was fully attended, and shortly after 10 o’clock the
proceedings were commenced. Lord Palmerston and the Chancellor
of the Exchequer represented the government; the other parties
officially present were, Mr. Wilson, M.P., Sir C. Trevelyan, and the
Gck igle
Original from
UNIVERSITY OF CHICAGO
958
The Financial Affairs of Europe.
[June,
Digitized by
Governor and Deputy-Governor of the Bank of England. Among
those connected with the monied interest were, Barons J. L. and M.
Rothschild, Sir A. Rothschild, Baron Goldsmid, and Messrs. J. Capel,
T. A. Hankey, Norbury, Stern, Laurance, B. B. Williams, Cazenove,
L. Cohen, etc.
The Chancellor of the Exchequer having placed in the hands of the
Governor of the Bank a sealed paper, containing the minimum terms
of the government for the proposed annuity, stated, in answer to
questions from Mr. Capel, that no delay will take place in the issue
of the scrip, and that the annuity with respect to transfer shall be on
the same footing as consols. The scrip receipts will be issued on the
resolutions passing the House of Commons, but the stock will not be
transferable until the act shall have received the Royal assent
Upon a request that the tenders should be presented, it was
announced that only one would be brought forward. This was by
Messrs. Rothschild, and ran as follows :
44 London, April 20.
“Sir : In conformity with the public notice issued by the Treasury, we have the
honor of submitting the following offer for the loan of sixteen millions. We agree
to take the whole of the sixteen millions Three per Cent Consolidated Annuities,
with dividend from the 5th of January last, at par, payable in instalments at the
periods stated in the said notice, upon receiving for each £100 an annuity of four-
teen shillings and sixpence — say 145. OcL — terminable in 30 years, to commence
from the 5th instant, payable half-yearly, and we are accordingly ready to pay the
required deposit upon the samo.
44 We are, Sir, your obedient servants,
44 N. M. Rothschild k Sons.
44 To the Right Hon. the Chancellor of the Exchequer.”
At the conclusion the Chancellor of the Exchequer said the govern-
ment were prepared to accept that offer, consequently there would be
no occasion to open the sealed paper containing the government
minimum .
Mr. Capel attempted to revive the question of the non-allowance
of discount on payments in anticipation, but Lord Palmerston again
stated that the instalments have been so arranged as to prevent any
necessity for such payments. Mr. Capel, however, added that if the
government shall require money it will only be requisite to give the
ordinary notice and it will readily be forthcoming.
Baron L. Rothschild, as representing Messrs. Rothschild, having
attached his signature to the usual contract, the proceedings ter-
minated.
As this is the most important financial scheme in Great Britain,
since the abdication of Napoleon Bonaparte, we take occasion to pre-
sent a resume of the various loans raised by that government since
the commencement of the present century, showing at a glance that
the terms now offered are lower (that is, better for the Treasury)
than have been offered at any time since the close of the eighteenth
century, namely :
Gck igle
Origsiriial from
UNIVERSITY OF CHICAGO
1855.]
The Financial Affairs of Europe.
959
Digitized by
Year.
Amount.
Rate of Tnt.
Year .
Amount
Rate of Jnt.
1S00,
£20,500,000
£4 12 2
1809,
4 11 7
1801,
28,000,000
5 5 6
1810,
4 4 2
1S02,
25,000,000
8 19 2
1811,
12,000,000
4 18 6
1808,
12,000,000
5 2 0
1812,
22,500,000
5 5 7
1804,
14£0ojo00
5 9 2
1818,
4 8 4tf
1805,
5 8 2
1818,
5 6 2
1805,
5 16 4
1814,
4 14 1
1806,
4 19 T
1815,
86,000,000
5 12 4
180T,
14,200,000
4 14 7
1885,
15,000,000
5 12 4
180T,
1,500,000
4 16 4
1847,
8 7 6
1808,
4 14 6
The last two loans were Peace Measures , namely: the loan of
1835 was to reimburse the Jamaica slaveholders. That of 1847 was
to furnish aid to oppressed Ireland.
The contrasts as to the market values of English Three per Cent
Consols, during the war of 1815, and that of 1855 is remarkable.
Last year they approached par. In 1814, ’15, ’16, they were 59£ a
61. As a matter of history, we place before our readers the annual
values of these securities, from 1805 to 1848 :
Year.
Highest
Lowest.
Year.
Highest.
Lowest.
1805,
57
1827,
T6X
1806,
64*
58k
1828,
80X
1807,
64H
NX
1829,
94*
65X
1808,
62X
1880,
wx
77 X
1S09,
70X
68x
1881,
84*
74 X
3S10*
. 71
68k
1882’
85 i
81X
1811
66*
51 X
1888,
84*
1812,
55X
1SS4.
87X
1818,
67K
54K
1885,
»2X
89X
1S14,
72K
61 X
1836,
92*
86X
1815,
65*
58X
1887,
87X
1816,
«X
59x
1S88,
95*
90X
1S17,
84)4
62
1889,
98*
89K
1818,
82
78
1840,
»»X
95K
1819,
79
64X
1841,
87k
1820,
65X
1842,
88
1821,
78X
68X
1848,
82X
1822,
75X
1844,
Wl X
96X
1828,
72
1845,
91 X
1824,
84X
1846,
98K
1825,
75
1847,
94
78X
1826,
78*
1848,
80
Of the heavy expenditures incurred for the present war in Europe,
the treasury of Great Britain relies in part upon loans, and about one
half increased taxation. Under the latter head, the principal source
of revenue is a larger tax upon incomes. The instantaneous success
of this loan is but another indication of the prodigious financial
resources of Great Britain.
Of the Treasury plan for raising the funds now required, Mr.
Macgregor, the statist, observes :
“ Admitting, as I do, that it has become indispensable to provide,
in addition to the present revenue, a sum not less than £23,000,000,
I contend that, by the simplicity of a loan to be raised by public
Gck igle
Original fro-m
UNIVERSITY OF CHICAGO
Digitized by
960 The Financial Affairs of Europe. [June,
competition, and on the principles of terminable annuities, £20,000,000
in terminable annuities, taking an average of fifty years, might be
forthcoming by such competition, and consequently without the
oppressive increase of the duties on tea, sugar, and coffee — articles
more than any other the solace of our cottages and of the laboring
population in towns and rural and fishing villages, as well as neces-
saries to all other classes.”
The advices from England show that while in private channels
capital is extremely abundant, and the Bank of England has reduced
the rate of interest to 4 per cent, the government is in a straitened
position. In the House of Commons, May 1st, the Chancellor of
the Exchequer was compelled to beg that, owing to the necessities of
the public service, the third reading of the Loan Bill might be per-
mitted to take precedence of Mr. Spooner’s motion, so that bill might
be sent up to the House of Lords the same evening. The motive for
this consists in the fact that the treasury is running short of money,
and has no power to use the £1,600,000 deposit on the loan until the
bill shall have received the royal assent. It is objected that this
inconvenient state of things arises from the undue reluctance of
government, so long as they could cling to any hopes of peace at
Vienna, to face the necessity of a loan. Sir F. Kelly opened the
debate on the Loan Bill, opposed to the principle adopted by the
treasury. He was followed by the Chancellor of the Exchequer in
its defence, the main question being whether a clause should be
inserted, that one million per annum should be appropriated towards
the extinguishment of the debt. He was sustained by Mr. Labou-
chere, Mr. T. Baring, Mr. J. Wilson, (editor of the London Econo-
mist]) Lord Palmerston, and others.
On the other side were Mr. Gladstone, (ex-Chancellor,l Mr. Ricardo,
and Mr. D’Israeli. In the course of the debate, Mr. Glyn said :
“ While he congratulated the Chancellor of the Exchequer upon the course which
he had pursued, regretted that he had not taken advantage of tho recent oppor-
tunity to raise a loan of £20,000,000. Such a course would have prevented the
great increase which had taken place, in the unfunded debt, an evil always to be
avoided. With regard to the matter immediately under consideration, he con-
sidered that the reasons given by tho right honorable gentleman, the member for
Bucks, (Mr. Disraeli,) were such as ought to lead the House to vote for, rather than
against this clause. The right honorable gentleman seemed to regret that a Chan-
cellor of the Exchequer should be obliged to raise one million a year in order to
liquidate a debt, although he praised the plan of applying surplus revenue to a
sinking fund for tho reduction of the national debt. But between the two things,
he (Mr. Glyn) saw no difference in principle.
*'Mr. M’Gregor agreed with tho hon. gentleman who had last addressed the
House, that it would have been better for tho Chancellor of the Exchequer to have
gone into the market for a larger loan than the present. Had he done so, he
would have been ablo to make better terms, and to avoid the complicated system
of terminable annuities in which he had involved himself. He (Mr M’Gregor) saw
no use whatever in tho clause under consideration, believing, as he did, that the
idea of a sinking fund was an exploded absurdity. In fact, he should describo the
whole affair os a fiscal view of a promised land. (Laughter, and * Divide.’)"
The bill was finally passed with the objectionable feature, by a vote
of 210 to 111, a majority of 99.
Gck igle
Original from
UNIVERSITY OF CHICAGO
1855.]
Banking in New- York.
961
BANKING IN NEW- YORK.
Operation of the Safety Fund System — Gradual expiration of Char-
ters— The New- York and New-England Systems Compared.
No less than five charters of the safety fund banks of this State
have already expired this year. Seven others will expire in the
years 1855 and ’56 — the whole with a capital of three and a half
millions of dollars. The gradual extinction of the safety fund banks,
and the necessity that exists for supplying their place with monied
institutions of an equal capital and circulation, will absorb several
millions further of State bonds.
The State of New-York cannot much longer supply this need.
Some change must be effected in the law, whereby the new associa-
tions may be able to maintain at least their present circulation ; by
the adoption of other State bonds, city loans, or some other basis for
their issues. This will appear by the following list showing the
names of those banks whose charters will expire, their present capi-
tal, and their circulation, namely :
List of Chartered Banks in the State of New- York ; Showing the Bate
of Incorporation — the Bate of Expiration of Charter ; the Amount
of Capital ; and the Amount of Circulation.
Name of Bank.
Dale of
Charter.
Charter
will expire
Capital Circular n
authorized . Dec. 15, f50.
Bank of Albany,
1S29, April.
1855. Jan. 1.
$240,000
100,000
$200,000
150,000
Broome County Bank,
44
44
Central Bank,
1S29, “
44
44
120,000
160,000
Mechanics1 Bank, New-York,
.... 1881, Feb.
44
44
1,440,000
747,000
Tradesmen's Bank, New-York,
1831, Jan.
44
44
400,000
800,000
Greenwich Bank, New-York,
1830, April.
44
June.
204,000
208,000
Hudson River Bank,
w March.
44
44
150,000
174,000
Livingston County Bank,
44
July.
100,000
150,000
Bank of Lansingburgh,
44
44
120,000
160,000
Bank of Chenango,
1656, Jan. 1.
120,000
160,000
Ontario Bank,
.44 (I
44
U
200,000
200,000
Ontario Branch Bank,
44 U
44 •.
44
800,000
249,000
Mechanics k Traders1 Bank, New-York, 1S30, **
1857,
44
200,000
196,000
Merchants1 Bank, New-York,
1831, Feb.
44
a
1,490,000
906,000
Montgomery County Bank,
44
44
100,000
150,000
National Bank, New-York,
1829, April
44
44
750,000
888,000
Saratoga County Bank,
44
44
100,000
150,000
Mgdteon County Bank,
1858.
44
1
100,000
150,000
Bank of Poughkeepsie,
1880. April
44
44
100,000
150,000
Ogdcnsburgh Bank,
1859,
44
100,000
150,000
Yates County Bank,
1881, «
44
44
100,000
150,000
Bank of Whitehall,
1829, M
44
June
100,000
150,000
Brooklyn Bank,
1882, Feb.
1860, Jan. 1.
150,000
175,000
Chautauqnc County Bank,
44
44
100,000
150,000
Tanners1 Bank, Catskill,
44
44
100,000
150,000
Ulster County Bank,
44 44
1861, June 1.
100,000
150,000
Steuben County Bank,
1862, Jan. 1.
150,000
175,000
Schenectady Bank,
14 April.
44
44
150.000
100.000
175.000
150.000
Essex County Bank,
44 44
44
44
Bank of Rome,
44 44
44
44
100,000
150,000
Digitized by
Gck igle
Original from
UNIVERSITY OF CHICAGO
962
Banking in New- York.
[Juue
Digitized by
Name qf Bank.
Date of
Charter
Capital
Circular n.
Charter.
will expire
authorized
Dec . 15, Tx).
Bank of Orange County,
1882, April
1862, Jan. 1.
$105,640
$150,000
Bank of Satina,
tt M
u
a
150,000
174,000
Leather Manufacturers' Bank,
U it
ti
June 1.
600,000
449,000
Westchester County Bank,
1838, March.
1SC3, Jan. 1.
200,000
200,000
Troy City Bank
“ April.
tt
u
800,000
250,000
Seventh Ward Bank, New-York,
u u
tt
44
500,000
850,000
Seneca County Bank,
44 March.
tt
a
200,100
200,000
Lewis Couniy»Bank,
“ April.
tt
a
100,000
150,000
Herkimer County Bank,
44 March.
tt
tt
200,000
200,000
Chemung Canal Bank,.
14 April
tt
it
200,000
197,000
Cayuga County Bank,
44 March.
it
tt
272,400
247,000
Albany City Bank, ^
ISM, April.
1864,
M
500,000
840,000
Bank of Orleans, Albion,
U U
it
it
200,000
200,000
Farmers A Manufacturers' Blc, PoVpsle,
U it
a
it
800,000
250,000
Highland Bank, Newburgh,
M it
tt
u
200,000
200,000
Sackett's Harbor Bank,..,
it <(
1865,
ti
200,000
200,000
Atlantic Bank, Brooklyn,
1836, May,
1866,
ti
500,000
880,000
Bank ofOwego,
U ti
tt
a
200,0(0
200,000
Bank of State of New-YoTk,
it u
tt
tt
2,000,000
806,000
Kingston Bank,
U it
M
a
200,000
200,000
Oneida Bank,
tt ((
tt
it
400,000
800,000
Kochester City Bank,
U il
tt
tt
400,0' 0
800,000
Tompkins County Bank,
44 March.
tt
it
250. 0< 0
224.000
Man hat tin Company, New-York,
1799, April
Unlimited.
2,060,' 00
1,068,000
New-York Dry Dock Company,
1825, “
Unlimited.
200,000
186,000
Totals,
..$18,012,0(0
$18,940,000
Recapitulation of the New- York Chartered Banks . The number that
expire each year ; their Capital , Circulation authorized \ and their
actual Circulation , December 15, 1850.
Expiration qf Charter e. No. of Banks.
1855, January 1, 5
M Juno, 2
« July, 2
1855, January 1, 8
1857, 44 1, 5
1858, “ 1, 2
1859, 44 1, 2
M Juno, 1
1860, January 1, 8
1861, Juno 1, 1
1862, January 1, 6
44 June, 1
1868, January 1, 8
1864, 44 1, 4
1865, “ 1 1
1866, “ 1, 7
Unlimited. 2
Total 74
Aggregate
Cirrulatio
Ac tu
Capital.
authorised
Circulation.
$2,800,000
$1,610,000
$1,556,852
854,000
878,970
378,878
220,000
810,000
810,000
620,000
610,000
609,870
2,640,000
2,000,000
1,787.502
200,000
800,000
299,958
200,000
800,000
309,000
100,000
150,000
149.SS7
850,000
475,000
474,999
100,000
150,000
150,000
755,660
975,000
974,877
600,000
450,000
44S.92S
1,972,400
1,797,400
1,793,877
1,200,000
1,000,000
989,936
2 *0,000
200,000
199,995
8,950,000
8,775,000
2,361,098
2,250,000
1,400,000
1,204,746
$18,012,060
$14,681,870
$18,940,928
We have before published the remarks of Mr. A. B. Johnson, of
Utica, on the workings of the New-York banking system. As that
article was published seven years ago, we will now recur to the lead-
ing points of comparison between the safety-fund system and the free-
Gck igle
Original from
UNIVERSITY OF CHICAGO
1855.] Banking in New-York . 963
banking system. The safety-fund system has its objections as well
as the other. Here we think the system is inferior to that of Mas-
sachusetts, which, while it secures the advantages derivable to, or by,
the community in the combination of capital and free use of paper
money, guarantees an honest and wise management of their banks.
We copy Mr. Johnson’s remarks on “the safety fund” :
“ But while we speak in favor of the safety -fund banks, we would
not be understood as speaking favorably of the safety-fund principle,
which punishes honest bankers for the frauds of the dishonest. It is,
also, vicious in its tendency, for it promises indemnity against bank-
insolvency, and thereby prevents the scrutiny of Jhe public into the
conduct of bankers: permitting extravagance, improvidence, and dis-
honesty to unmolestedly effect their ravages. The solvent banks who
are liable to the safety fund have paid thereto nearly two millions of
dollars for losses, and are still to pay, annually, during the continu-
ance of their charters, the half of one per cent on their respective
capitals. Of this immense loss, about one million and a half of dol-
lars accrued from banks in Buffalo, of whom in particular, and of
all the broken banks in a great degree, may be affirmed, that if they had
been unaided by the credit of the safety fund, they never would have
been trusted sufficiently to much injure any person. And could the
money abstracted by their agency from the safety fund be traced to
the real beneficiaries, it would be found in the possession, not of
innocent sufferers, but mostly of accessories to the frauds and mis-
managements by which the losses of the safety fund were produced.”
Of the relative lucrativeness to the owners or stockholders of the
two different kinds of banks, Mr. Johnson says :
“ Having shown how our existing two systems of banking act re-
spectively on society, we will examine how they compare in profits to
the stockholders. We will assume that the free banks can issue no
bank-notes except on an equivalent pledge of State six per cent stocks;
and that the State stocks can be purchased at par. The legal and
attainable interest of money is seven per cent ; hence the free banks
lose one per cent the year on the amount of all their bank-notes. Some
persons may say that the difference is not merely the excess of legal
interest over the six per cent received on the State stock, but the
excess of what the hundred dollars, which is invested in State stocks,
would have earned in banking — say eight per cent ; and thus that the
loss in procuring bank-notes is one per cent the year in the interest, and
an additional one per cent in privation of productiveness ; making the
real loss two per cent the year on the amount of bank-notes. We
will, however, adopt the first mode of computation, and call the loss
onty one per cent, when the stocks can be purchased at par.
“ But the stocks cannot be thus purchased. They are selling at a
premium of ten per cent, which malces the loss of interest one dollar
and seventy cents the year on every hundred dollars of bank-notes,
without allowing for the ultimate loss of ten per cent on the stock,
when it comes to be paid off at par by the State. We shall not,
therefore, be extravagant in assuming that the free banks lose one and
Digitized by
Gck igle
Original from
UNIVERSITY OF CHICAGO
964
Banking it i New- York.
[J
une.
three quarters per cent the year on the amount of their bank-notes ;
while the safety -fund banks create bank-notes without any loss, except
the half per cent the year paid on their aggregate capitals to the safety*
fund, and now a total loss. This reduces the comparative disadvan-
tage of the free banks to one and a quarter per cent the year on the
amount of their capital invested in bank-notes. By the published
bank reports of last December, all the free banks of the State (exclud-
ing those of New-York City) possessed an aggregate capital of a little
more than seven millions and a half of dollars, while the bank-notes
were equal to that sum with the exception of about four hundred
thousand dollars ; iso that the free banks out of the city of New-York
were (so far as our hypothesis is applicable to them) banking at a
disadvantage, as compared with the safety -fund banks, of one and a
quarter per cent the year on nearly their whole capitals.”
In large cities, such as New-York, Albany, Buffalo, etc., the banks
cannot derive much profit from their circulation. It is found that the
aggregate issues of the New-York city banks are only eight millions,
on a capital of nearly fifty millions, while the banks of the small
towns are enabled to maintain a circulation quite equal to (and in some
cases larger than) their capital.
Of the relative effects on citv and country commerce of the safety-
fund and free-bank systems, Mr. Johnson says:
“ Let us inquire what portion belongs to the country and what to
the city of the public loss which will result, as we have shown, when
no bank-notes can be created except on an equivalent pledge of public
stocks. By the bank statement of last December, the bank loans
founded on bank-notes are about three dollars in the country to every
one dollar in the city ; so, whatever injury may result from the extin-
guishment of safety-fund bank-notes, the injury will fall on the country
in the proportion of three dollars on the country to every one dollar
of injury on the city. The customers of the city banks live near the
banks, and consequently employ but few bank-notes ; checks founded
on deposits being substituted in the city, for bank-notes, in nearly all
business transactions. In the country, the bank borrowers employ
the borrowed money at places remote from the lending bank and
must use bank notes. The country, therefore, and the city are inter-
ested in very different degrees by all laws which abridge the free issue
of bank-notes; but should the Legislature prohibit bank deposits,
except on a pledge by banks of State stocks, the law would embarrass
the business of the city beyond its embarrassment to the country, in
just about the same proportion as such a law, in relation to bank-
notes, embarrasses the business of the country beyond its embarrass-
ment to the city.”
It is very properly urged that “ the business of the State is a sort
of guarantee to banks of the permanency of a given amount of cur-
rency.” Hence we find that notwithstanding the stringency of the
money market in the year 1854, the restricted ability of the banks
to do business, and the strenuous efforts of the brokers to drive out our
own bank circulation, and substitute that of the Western States of
Digitized by
Gck igle
Original from
UNIVERSITY OF CHICAGO
1855.]
Banking in New- York.
965
Indiana, Illinois, etc., the aggregate circulation of the New-York banks
had diminished only two millions between the inflated times of Feb-
ruary, 1853, and the contracted period of December, 1854. A refer-
ence to the official reports of the Bank Department shows that their
circulation at different periods of late years has maintained a very
uniform character, namely :
August,
1S48,
$14,526,000
June,
1849,
August,
1844,
June,
1850,
24,214,000
August,
1845,
18,464,000
June,
1851,
27,511,000
August,
1846,
June,
1852,
27,940,000
August,
1847,
25,098,000
Febr'y,
1858,
80,068,000
June,
1948,
20,888,000
Dec^
1854,
28,220,000
Restricted Circulation. — That New-England owes its prosperity
largely to its liberal banking system, few persons will deny. The bank
issues of New-York are hi a large measure restricted by the law which
requires that all associations shall furnish security in the shape of
• State bonds for their bills. Thus the capital of the banker is, in the
first place, invested in bonds which lie idle in the Bank Department
at Albany. The present chartered banks have a circulation of
$15,000,000 and a capital of $18,000,000. This capital must now in
a few years be diverted from its present uses and turned into State
bonds wherewith to issue a like amount of bills.
Massachusetts, on the other hand, with a population only one third
of New-York, maintains a circulation of twenty-four millions ; and
the six New-England States with a combined population less than
that of New-York, can maintain, profitably to the banks, and advan-
tageously to the community, a bank circulation of forty-eight millions,
namely :
States. P0Pi&QiiOn Jfants. Capital. Circulation. Specie.
Maine, 581,818 6T $7, 100,000 $5,800,000 $1,200,000
New-Hatnpshire, 817,450 89 8,570,000 8,000,000 180,000
Vermont, 818,402 41 8,574,000 4,0u0,000 200,000
Massachusetts, 995,450 168 57,000,000 24,800,000 4,300,000
Bbode-Island, 148, 875 87 18,000,000 0,300,000 850,000
Connecticut, 868,099 05 17,000,000 7,000,000 800,000
$2,715,095 460 $106,246,000 $49,400,000 $7,030,000
New-York, 8,048,325 280 68,000,000 28,220,000 15,000,000
So far as losses to the community are considered, New-York suffers
(and has heretofore suffered) more largely than Massachusetts. The
latter shows a gradual increase of bank capital and circulation, man-
aged by discreet and experienced directors. While in New-York, the
system fosters illegitimate banking. Men take it up as a business,
without previous education or training — and hence the severe losses
that resulted in the year 1854, from gross mismanagement by some of
our city banks.
“Every man his (non Banker ,” is the New-York system. Banks
are established with small capitals, managed by inexperienced men
in numerous instances ; locations are changed at the will of the banker,
and frequently his circulation is five-fold that of his capital. Some
Original from
UNIVERSITY OF CHICAGO
Digitized by
966 Savings Banks of Massachusetts. [June,
few years will further demonstrate the necessity for a change in the
banking policy of the State. We think our Legislature and our peo-
ple can with advantage recur to the systems of our neighbors in Netf-
England ; or at least that the better portions of their own and our
own can be brought together, so as to produce one that will harmonize
more fully with the experience and the wants of our own State.
SAVINGS BANKS OF MASSACHUSETTS.
Extracts from the Annual Report of the Bank Commissioners . December
30, 1854.
Tear.
Number of
Amount of
Year.
Number of
Amount of
Depositors.
Deposits.
Depositors.
Deposit*.
1834
24,256
$3,407,778 90
1845,
58,178
$9,813,287 56
1835,
27,232
8,921,870 83
1840,
10,680,933 10
1836,
4,874,578 71
1847,
C8.81*
11,780.812 74
1887
82,564
4,781,426 29
1848,
69,894
11,970,447 64
1838,
33,068
4,869,392 59
1849
77,629
12,111,558 64
1889
5,608,158 75
I860,
78,823
13,660.024 84
1340,
5,819,553 60
1851,
S6, 537
15,554,088 M
1841,
6,714,181 94
6,900,451 70
1852,
97,358
1 8,401 ,307 86
23,370,102 S3
1842,
42,587
1858,
117,404
1843,
1844,
48,217
49,699
6,985,547 07
8,261,845 18
1854,
25,936,857 68
The continued accumulation of deposits, exceeding that of all former
periods, with me exception, cannot fail to arrest the attention of every
thoughtful observer.
It is worthy of remark, that several institutions have substituted the
plan of five per cent dividends for the lesser rate ; and, in a few
instances, a rule has been made to divide the extra profits every three
years instead of five — thereby approximating the legal requirement of
just and equal dividends. We find, too, that those who have been in
the practice of dividing six per cent per annum have, as they say,
experienced no inconvenience therefrom.
The alliance of savings institutions with banks was objected to by
us last year, and we have been pleased to find that a disposition pre-
vails to sunder such connections as the lesser institution acquires
strength ; and the purpose has, in some instances, been effected. It
will be obviously better for both to stand alone in all cases.
The bonds of treasurers of saving institutions, as well as of cash-
iers of banks, should be drawn with care, and made to cover the con-
duct of such officers under succeeding as well as preceding elections
— some of these officers, as well as cashiers, being chosen annually.
If the recital of the bond or the corporation records make it appear
that the office is annual, the bond should be renewed annually ; other-
wise, it is understood that the bond remains in force during the incum-
bent’s continuance in office, though he be elected annually.
Gck igle
Ordinal from
UNIVERSITY OF CHICAGO
1855.]
New Bank Laws.
967
NEW BANK LAWS.
I . Maine.
An Act additional respecting banks. Be it enacted , etc., as follows :
§ 1. It shall be the duty of the Directors of each bank, in the
month of October, annually, to make an examination in regard to the
condition of such bonk, and the responsibility of the sureties on the
bond of the Cashier; and said bond shall be recorded upon the
Directors’ records.
§ 2. When the charter of any bank may have expired, and there
shall remain any real estate standing in the name of the corporation,
but belonging to the several stockholders thereof, the trustees author-
ized by law to close the concerns of such bank, shall have the right to
sell and dispose of such real estate for the benefit of such stockholders,
at public action, after having given the same notice required by law
to be given by receivers in such cases, and to execute all proper
instruments of conveyance thereof.
§ 3. When receivers of the assets of any bank shall have been ap-
pointed and qualified in the manner provided by law, all claims and
demands against such bank, whether founded on its bills or other evi-
dence of indebtedness, shall be laid before said receivers for examina-
tion and allowance. And such bills shall be filed with said receivers,
they giving to the respective holders thereof a schedule of the same
under their hands. And said receivers shall make a report in detail
to the supreme judicial court at such time or times as the same shall
direct, specifying all claims presented and the amount allowed in each
case ; which report shall be accepted, if no objection shall be made
thereto, and the court shall be satisfied the same is correct.
§ 4. When such report shall be presented to the court for accept-
ance, any claimant, whose claim shall be disallowed in whole or in
part, or any claimant interested in the rejection of any claim, may
make his objection, specifying in writing the claim or claims, the
allowance of which he demands to have made or increased, rejected or
diminished, and the court shall hear the parties and determine the
same : Provided, That if either party shall request it, the court shall
direct an issue to be made up and submitted to the jury under the
instructions of the presiding judge ; and questions of law, arising in
the course of the proceedings, may be made and carried before the
full court in the same manner provided in actions in court, and all
claims allowed shall bear an interest of six per cent from the time
they are filed.
§ 5. It shall be the duty of the receivers to report to the court the
amount and value of the assets in their hands belonging to such bank.
And when the claims against any bank shall have been ascertained and
determined by the court or by the court and jury upon an accepted
verdict, in the manner aforesaid, the court shall order an application
of the proceeds of the assets to the payment thereof.
Digitized by
Gck igle
Original from
UNIVERSITY OF CHICAGO
968
New Bank Laws .
[June,
§ 6. If it shall be made to appear to the court that the assets afore-
said are insufficient to pay the said claims against the bank, said re-
ceivers shall, forthwith, file their bill in equity in their own names, but in
behalf of the claimants, against the persons who are or were stockhold-
ers of such bank, and who by law may be liable to contribute to the
payment of its debts. And they shall be cited to appear before the
court or judge upon such notice as he shall order to be given. And
upon the hearing on the said bill in equity, the court shall from time to
time, determine and assess the amount w hich the several stockholders
aforesaid shall be held to pay to the receivers to meet the claims
aforesaid. And the court shall have authority to issue all requisite
precepts for the collection of the sums assessed aforesaid, and for the
enforcement of its orders and decrees.
§ 7. Upon the appointment of receivers in any case, a lien shall
exist upon all real estate of each and all of the stockholders liable for
claims against such bank, situate within the State, as fully as if the
same were attached under due process of law, w hich lien shall remain
and continue to the end, that such real estate or any interest of any
stockholder therein may be seized on execution or other process
granted by the court, and sold or set off in satisfaction of the claims
aforesaid, or until such stockholder shall have paid over to, or de-
posited with, the receivers an amount of money equal to his liability.
§ 8. The foregoing provisions shall be construed to apply to all
cases where receivers have already been appointed and have not yet
liquidated and paid the demands against any bank. And no action
shall be maintained against any bank after the appointment of receiv-
ers thereof ; but all its creditors shall have their remedy under the
provisions of this bill. All legal cost that has accrued upon suits
already commenced, or that shall hereafter accrue in cases before the
appointment of receivers, shall be allowed with, and be added to,
the claim sued, if such claim shall be adjudged valid.
§ 9. Nothing in this act contained, shall be construed to diminish
the amount for which the directors of any bank may be liable under
the provisions of existing laws ; and in assessing the amount which
stockholders may be required to pay, the court may have reference
to such liability of the directors. Nor shall any thing in this act be
construed to increase the amount for which the stockholders of any
bank may be liable under existing laws.
§ 10. When the ascertainment of any claim may be delayed by
the raising of any question of law, the court shall have power, where
it shall be deemed safe and reasonable so to do, to decree distribution
amongst the claims allowed, and to cause to be cited in, and to
make assessments upon the stockholders to meet deficiencies, as afore-
said : Provided , however , It shall cause to be rescued from distribution
an amount sufficient to meet such contested claim or claims, if allowed.
§11. All acts and parts of acts, inconsistent with the provisions of
this act, are hereby repealed, and this act shall take effect from and
after its approval by the Governor.
Approved March 16, 1855.
Digitized by
Gck igle
Original from
UNIVERSITY OF CHICAGO
1855.]
Massachusetts.
969
Digitized by
II. Maine.
An Act to punish the fraudulent issue and transfer of certificates of stock in cor-
porations.
Be it enacted by the Senate and House of Representatives in Legislature assembled,
as follows :
§ 1. Every president, cashier, treasurer, secretary, or other officer, and every
agent of any bank, railroad, manufacturing or other corporation, who shall willfully
and designedly sign, with intent to issue, sell, or pledge, or cause to be issued, sold, or
pledged, or shall willfully and designedly issue, sell, or pledge, or cause to be issued,
sold, or pledged, any false, fraudulent, or simulated certificate, or other evidence of the
ownership, or transfer of any share or shares of the capital stock of such corporation,
or any certificate or other evidence of the ownership or transfer of any share or
shares in stock in such corporation, or any instrument purporting to be a certificate
or other evidence of such ownership or transfer, the signing, issuing, selling, or
pledging of which, by such president, cashier, treasurer, or other officer or agent,
ehall not bo authorized by the charter and by-laws of such corporation, or by some
amendment thereof; shall be adjudged guilty of felony, and shall be punished by a
fine not exceeding one thousand dollars, and imprisonment in the State prison not
less than one year, nor more than ten years, in the discretion of the court.
Approved March 12, 1955.
III. Massachusetts.
A bill has passed the Legislature of the State for incorporating a
Bank of Mutual Redemption. The following is the bill :
§ 1. Andrew T. Hall, Benjamin E. Bates, George W. Thayer,
Pliny E. Kingman, George F. Williams, Wesley P. Balch, Jr., of
Boston ; Alexander De Witt, of Oxford ; Franklin Ripley, of Green-
field; Ezekiel R. Colt, of Pittsfield; John A. Buttrick, of Lowell;
Life Baldwin, of Brighton ; Francis H. Dewey, Eli Thayer, of Wor-
cester ; Roger S. Moore, of Springfield ; Ebenezer Torrey, of Fitch-
burgh ; J, B. Congdon, of New-Bedford, their associates are hereby
made a corporation by the name of the Bank of Mutual Redemption,
to be located in the city of Boston, with all the powers and privileges,
and subject to all the restrictions and liabilities set forth in the laws
of this Commonwealth, relating to banks and banking, except as
herein otherwise provided, and to continue for the term of twenty
years from the passage of this act.
§ 2. Subscriptions to the capital stock of said Bank may be made
by any bank in this Commonwealth, in pursuance of a vote of the
stockholders thereof, at a meeting duly called for that purpose ; and
subscriptions to said capital stock may be made by any bank estab-
lished by law in the States of Maine, New-Hampshire, Vermont, Con-
necticut, and Rhode-Island ; provided, that no bank shall be author-
ized to subscribe to said capital stock to an amount exceeding 5 per
cent of the capital of said Bank actually paid in, nor exceeding the
sum of twenty thousand dollars.
§ 3. The directors shall consist of no less than nine, nor more than
thirteen persons ; and any stockholder in said Bank shall be eligible
• :s a director; and any stockholder in any bank who shall be a
64
Gck igle
Original from
UNIVERSITY OF CHICAGO
970
Banking in New-Jersey.
[June,
stockholder of the capital stock of the Bank hereby established, shall
also be eligible to an election as a director therein ; provided, that
'uch person shall be nominated for such office by a vote of the
majority of the directors of the bank of which he is a stockholder >
and such vote shall be certified by the cashier of said bank ; and no
person shall be ineligible to the office of director of the Bank hereby
established by reason of being a director in any other bank.
§ 4. The capital stock of said Bank shall not exceed three millions
of dollars, to be divided into shares of one hundred dollars each, to
be paid in such instalments and at such time as the stockholders may
direct ; and whenever the sum of one million of dollars shall have
been subscribed thereto by the banks, as provided in the second sec-
tion, a meeting of the subscribers may be called by a majority of the
persons mentioned in the act of incorporation, by a written notice to
each bank or person so subscribing ; and not less than one half of the
capital stock of said Bank shall be subscribed for and held by the
banks of New-England, as provided in the second section, and one
half of said amount shall be subscribed for and "held by the banks ol
Massachusetts.
§ 5. Said Bank shall not be authorized to issue bills of less
denomination than ten dollars, and its circulation shall in no case
exceed one of the amount of its capital stock ; and said Bank shall
not receive the bills of any bank at a discount from their par value.
§ 6. The stock of said Bank shall be transferable only to banks, so
far as is required to be subscribed by banks, and the transfer of the
stock shall be made only at its banking house and in its books.
BANKING IN NEW JERSEY.
Annual Report upon the Condition of the Chartered and the
Free Banks of NewJkrset.
To the Honorable the Senate and House of Assembly of the State of
New- Jersey :
Pursuant to the requirements of the law, I have the honor to lay
before the Legislature the annual statements made to this office by the
several banks and banking associations of this State, showing their
condition on the first day of January, 1855.
Statements have been received from twenty-two banks doing busi-
ness under special acts of incorporation, showing an aggregate capital
of three millions nine hundred and forty-five thousand nine hundred
and fifty dollars ; notes in circulation, two millions eight hundred and
forty-two thousand and thirty-two dollars; deposits, two millions
seven hundred and twenty-three thousand one hundred and eighty-one
dollars. No annual statements have been made by the Farmers &
Digitized by
Gck igle
Original from
UNIVERSITY OF CHICAGO
Banking in New-Jersey.
971
1855.]
Mechanics’ Bank at New-Brunswick, and Princeton Bank at Princeton,
their charters haying expired on the first day of January, 1855.
Eleven banking associations, organized under the provisions of the
act entitled, “An act to authorize the business of Banking,” have made
their statements according to law ; three of which have commenced
the business of banking during the year 1854, namely : The Bank of
New-Jersey, at New-Brunswick ; Hunterdon County Bank, at Fleming-
ton ; and Princeton Bank, at Princeton.
The aggregate circulation of said eleven banking associations on the
first day of January, 1855, was eight hundred and twenty-two thou-
sand and sixty-one dollars ; to secure which, public stocks, and bonds,
and mortgages are deposited with the Treasurer, amounting to eight
hundred and seventy-one thousand one hundred and forty -four dollars.
The American Exchange Bank at Cape May Court House, the
Wheat Grower’s Bank at Newton, and the Merchant’s Bank at Bridge-
ton have been closed by injunction issued from the Court of Chancery,
and are now being wound up by order of said court. The outstand-
ing circulation of said banks on the first day of January, 1855, was
■ninety -two thousand two hundred and forty dollars ; for the redemp-
tion of said circulation the Treasurer holds bonds and mortgages, pub-
lic stocks, and cash deposited to his credit in bank, amounting to
ninety-two thousand four hundred and thirty dollars.
The following banking associations have resolved to relinquish the
business of banking, and have advertised their intentions according to
law:
Ocean Bank at Bergen Iron Works, Delaware & Hudson Bank
at Tom’s River, Merchants’ Bank at May’s Landing, Farmers’ Bank
at Freehold, Atlantic Bank at Cape May Court House, Tradesmen’s
Bank at Flemington, Atlantic Bank at May’s Landing, City Bank at
Cape Island, Public Stock Bank at Belvidere, Bank of America at
Cape May Court House, Traders’ Bank at Cape May Court House,
and Bank of North America at Flemington.
The balance of outstanding circulation of said twelve banks on the
first day of January, 1855, was thirty-seven thousand five hundred
and three dollars, and for the redemption of the same the Treasurer
holds public stocks and cash deposited in approved banks, amounting
to thirty-eight thousand nine hundred and ten dollars.
Since the passage of the general banking law of this State, twenty-
six banks have organized under its provisions. A tabular statement,
prepared by the Treasurer, for the joint committee on the Treasurer’s
accounts, and by them reported to the Legislature, will show the ope-
rations of said institutions more particularly in detail.
Respectfully submitted,
R. M. Smith,
Treasurer of State.
Treasury Office, February , 1855.
ty Google
Original from
UNIVERSITY OF CHICAGO
Digitized by
972
Banking in New -Jersey.
[June,
*
I
Pm
§
r-T
i
*
140,000
139,429
i
«
s
1
ii
T-*
3
**■
8
8
5 .
27.900
no
3
3
I
n
i
—+
S3
00
1
2
s
si
cf
fr-T
Vo
a
1
1
§
§
H
g
ii
I
i
|
1
o
o>
$
no
2
S3
8
4
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o'S
15
9 2
M 8 I I
c : L 1 1
||p pi i|§ ip| iii ngg §§ •§§ in in
;i
*°n i a
Gough
Original from
UNIVERSITY OF CHICAGO
Digitized by
1855.]
Bank Statistics,
973
BANK STATISTICS.
Banks or Rhode-Island, September 2, 1854.
DUB FROM THE BAKES.
87 Banks in 60 Banks out of
Providence Providence,
Total,
87 Banks,
Capital stock actually paid in,. . . $12,836,460.00
Bills in circulation, 3,077,519.75
Deposits on interest, 253,630.36
Deposits not on interest, 1,839,657.00
Debts due to other banka, 896,069.08
Dividends unpaid, 59,770.19
Net profits on hand, 810,720.26
$4,705,886.00
1,957,554.00
75,794.67
842,349.25
149,989.60
30,591.10
263,331.56
$17,542,346.00
5,035,073.75
329,425.03 #
2,682,006.25
1,046,658.68
90,361.29
1,074,051.82
Total amount of liabilities,. . . . $19,774,426.64 $8,025,496.18
$27,799,922.82
RESOURCES OF THE BANKS.
Debts due from Directors, $407,930.61
Debts due from other Stock-
holders, 505,035.89
Debts due from all others, .... 16,996,822.35
Specie actually in banks, 199,892.67
Bills of other banks, 698,455.69
Deposits in other banks, 687,302.43
Amount of its own stock held
by the banks, 10,792.00
Amount and description of stock
in other banks, and of other
stocks owned by banks, .... 70,029.28
Real Estate, 175,375.38
Other property,. 22, 7 90.44
$479,476.23
487,12L49
6,356,817.88
112,714.13
182,269.18
245,317.44
20,392.32
41,959.49
86,789.34
12,638.68
$887,406.84
992,157.38
23,353,640.23
312,606.70
880.724.87
932.619.87
31,184.32
111,988.77
262,164.72
35,429.12
Total amount of resources, .... $19,774,426.64 $8,025,496.18
$27,799,922.82
Increase of capital since last
return, $527,880.00
Amount of last dividend, 464,405.87
Amount of suspended paper
considered bad or doubtful,.. 24,527.50
Reserved profits at the time of
the last dividend, 578,461.22
Amount loaned on pledges of
stock in the banks, 274,953.03
Debts due and not paid, 80,077.72
Amount of bills in circulation
under five dollars, |810, 036.50
$348,829.23
164,243.59
42,246.70
168,598.41
255,828.58
310,104.65
$516,752.50
♦$876,709.23
628,649.46
66,774.20
747,059.63
630,781.61
390,182.37
§1,326,789.00
Average semi-annual dividends of banks in Providence,
Average semi-annual dividends of banks out of Providence, . .
Average semi-annual dividends of all the banks,
3§H.
Ve*
w
• u Increase of capita!” In banks previously established. The whole Increase of the bank
capital of the State, (including that or now Banks,) since last return, is $1,596,449.28
t Fire banks not reported.
t Ten banks not reported.
$ Fifteen banks made no report of bills in circulation under five dollars.
Gck igle
Original from
UNIVERSITY OF CHICAGO
974
Bank Statistics . [June,
Philadelphia Bank Dividends.
Dividends of each Bank for the years 1848-1855.
HJJfX OP BAKK.
Capital,
$
i
1
wJ
3
i
jjg
1 jg
v«
r«
*-»
tH
Farmers & Mechanics', . . .
... $1,260,000
12*
$
16
10
12
12
12 5
Girard Bank,
.. 1,250,000
..
..
5
6
6
6
6 8
Philadelphia Bank,
.. 1,150,000
12
15
14
11
11
12
12 7
Commercial Bank,
. . 1,000,000
8
8
8
8
9
10
10 5
Mechanics' Bank,
300,000
10
10
12
12
12
12
11 6
Western Bank,
. . 600,000
10
10
12
12
18
15
15 6
Bank Northern Liberties,.
. . 450,000
10
10
15
10
10
10
12 6
Manufacturers A Mechanics', 800,000
8
8
8
8
8
8 5
Southwark Bank,
.. 250,000
10
10
15
12
10
10
10 5
Kensington Bank,
.. 250,000
10
10
10
15
12
12
15 6
Bank of Commerce,
... 250,000
6
6
10
10
10
10
11 5
Bank of Penn Township, .
225,000
10
10
10
10
10
10
10 5
Tradesmen's Bank,
.. 150,000
new
s
6
6
7
8
11 5
$7,825,000
•
Jan,
Bank of Pennsylvania, . . .
.. 1,875,000
8
8
9
9
9
9
10 5
Bank of North America, .
.. 1,000,000
10
15
10
15
15
18
18 7
Total,
. .$10,700,000
The average dividend for May, 1S55, on a capital of $7,325,000, is about 6.20 per cent for the six
months, which is much larger than tho average dividends of the banks at Boston, Ncw-York, or
Baltimore. The capital, deposits, loans, and circulation of these banks are as follows :
Capital.
Circulation .
Deposits.
Loans.
New-Tork,
.. $4S,250,000
$8,000,000
$75,000,000
$92,000,000
Boston,
.. 82,700,000
7,800,000
16,000,000
68,000,000
Philadelphia,
.. 10,700,000
4,090,000
15,000,000
25, WO, 000
Baltimore,
8,576,000
9,640,000
6,900,000
14,800,000
Commercial Bank or Kentucky,
1853-1855.
liabilities.
July, 1858.
Jan. 1, 1854.
July 1, 1854.
Jan. 1, 1S55L
Capita),
$260,093
$364,122
$411,453
$420,853
Individual deposits,
118,688
161,190
130,843
57,264
Circulation,
395,634
669,510
770, 405
681,662
Due to banka,
3,950
11,617
28,358
31,245
Profit and loss,
18,815
38,183
65,041
62,968
Total,
$197,180
$1,244,682
$1,406,106
$1,153,992
RESOURCES.
Notes discounted,
$221,580
$155,026
$167,144
$120,597
Bills of Exchange,
376,323
* 800,560
899,144
20,149
591,860
Due from other banks, . . .
30,689
28,669
52,402
Notes of other banks, ....
21,304
20,890
32,000
24.256
Real estate,
1,878
8,658
8,967
9,250
Gold and silver,
139,405
207,995
257,173
287,575
Eastern funds,
19,451
203,323
61,720
Miscellaneous,
3,427
G06
6,332
Total resources, . .
$797,180
$1,244,682
$1,406,106
$1,153,992
Digitized by
Gck igle
Original from
UNIVERSITY OF CHICAGO
1855.]
Digitized by
Kentucky Trust Company . 975
Recapitulation op the Kentucky Banks.
Loans.
Bank of Kentucky, $5,071,000
Northern Bank, Ky., .... 3,394,000
Farmers1 Bank, Ky., .... 2,752,000
Bank of Louisville, 1,624,000
Southern Bank, Ky., .... 2,296,000
Commercial Bank, Ky., . . 711,000
Total, $16,746,000
Circulation.
Deposits.
Specie.
$2,067,000
$855,000
$935,000
1,241,000
705,000
797,000
1,670,000
325,000
908,000
940,000
232,000
371,000
2,130,000
220,000
848,000
581,000
67,000
287,000
$8,629,000
$2,394,000
$4,146,000
Kentucky Trust Company. — An important decision has been rendered by Judge
Pryor, at Covington, Kentucky, in the case of the Kentucky Trust Company vs.
The Savings Bank of Cincinnati and B. F. Sandford, which will materially reduce
the value of assets supposed to exist in the hands of the commissioners, appointed
to wind up the affairs of the Trust Company. The facts of the case are thus stated
by a Cincinnati paper : ,
“ The charter of the Trust Company provided that the subscription stock should
not exceed $100,000, and that notes should not be issued except to the amount of
the stock actually paid in ; that some years after the Bank had gone into operation*
they sold $200,000 worth of stock to Sturges, for which he paid only $50,000.
Afterwards Sturges transferred this stock to the Savings Bank, which assumed to
pay the Trust Company $200,000, and the Bank credited Sturges with the $50,000,
and notes of the Bauk were issued on the faith of that stock for $200,000, and
were put into circulation at the time Sturges subscribed for the stock, and long
before he transferred it to the Savings Bank.
“ The effect of a lengthened decision rendered by the court was, that the Bank
exceeded its authority in taking a subscription for the $200,000, and that as stock,
it was void, and not enforcible; that the Bank was not compelled to issue certifi-
cates for the stock ; that Sturges was not bound to pay the Bank for it, and the
Trust Company was not bound to pay for it, or issue the certificates of stock to the
Savings Bank- and that, therefore, the Trust Company was not entitled to any
judgment against the Savings Bank. But in appropriate action, in the name of the
commissioners, sueing for the creditors of the Bank, Sturges, or any of the Bank
officers who participated in this act of issuing the bank-notes exceeding their
authority, would be liable for the whole amount of the $200,000.
“ In the same case there was a count in the declaration against Sandford upon a
note executed by him to the Trust Company Bank for stock, no part of which had ever
been paid into the Bank, and which note had been executed for the stock after the
$100,000 had been subscribed, and notes of the Bank put into circulation on the
basis of this stock-note of Sandford. On this point, the court decided there could
be no recovery on this stock-note of Sandford, because the Bank had no power to
issue the stock to him, they having thereby exceeded their authority ; but that, by
an appropriate count, they might recover, in the name of the commissioners for the
benefit of the note-holders, the amount of the notes put into circulation, against
Sandford or other officers of the Bank who participated in the act.”
Gck igle
Original from
UNIVERSITY OF CHICAGO
976
Government , State, and City Bonds.
[June,
Digitized by
GOVERNMENT, STATE, CITY, COUNTY, AND RAILROAD STOCKS,
BONDS, Etc.
New-Toek, Mat 31, 1855.
NAMES OF COMPANIES.
AMOUNT.! NATURE OF BONDS. ; IN WHEN PAYABLE;
I ASK’D
I
Alabama A Term. River
Baltimore A Ohio
do. do
Buffalo & State Line • •
do. do.
Bcllefontalne k Indiana .
( in.. Wilmington, k Zimeaville
Cincinnati, Hamilton, k Dayton
do. . ...
Cincinnati k Marietta .
Cleveland, Painesville.A Ash tabula
Cleveland k Pittsburgh
do. do. ,
Cleveland k Toledo
Chicago k Rock-Island, (Illinois)
Chicago k Mississippi
do. do.
do. do.
Covington k Lexington
do. do. .
Fort Wayne k Chicago
Galena k Chicago
Indianapolis A Bellefontaine .
Indiana Central ....
Illinois Central ....
Illinois Great Western
Jeffersonville (In d. to Louisville)
do. do.
Lake Erie, Wabash, k St. Louis
Lawrenceburgh k Indianapolis
Little Miami ....
Maysville k Lexington .
Madison k Indianapolis
Michigan Centrul
do. do.
do. do. .
Michigan Southern
Milwaukee k Mississippi .
do. do.
Ncw-York Central
„ do. do. convertibles
New-} ork k Ncw-IIaven .
New-York k Harlem .
New-Huven k New-London .
Ncw-Haven k Hartford .
New*Albany and Salem
M do. do. .
Northern Indiana ....
do. do. Goshen Brand
Northern Cross
Ohio Central ....
do
Ohio k Pennsylvania .
do. do. . .
Ohio k Indiana
Panama ....
Pennsylvania . .
Reading, issued ISIS .
do. do. 1844, 48, 49 .
do. do. 1849,
Scioto k Hocking Valley .
Spring!., Mt. Vernon, A Pittsburgh
Steubenville A Indiana
_ do. do. Guaranteed
Tennessee R. R.’s guar, by 8tatc
Terre-Haute A Indianapolis
Terre-Haute A Alton
West Chester and Philadelphia .
Wilmington A Manchester (N. Ca.)
* 833.000 1st mort. con. till 1872 7 1 Jan. lJuly iN.Y,
2.500.000 Transferable— taxed 6 Quarterly, ,Balt
1.1 28.000 Coupons, free of tax' 0 January, July | '*
600.000 1st mort., not conv. 7 April. Oct. iN.Y
900.000 No mort.. do. I “ "
600.000 1st do. convertible
U00.00O 1st do. do.
500.000 2d mort., not conv.
1.000. 000 ;id do. do.
2.500.000 1st do., conv. till 1802
507.000 1st mort., not conv.
800.000, do. convertible
1.200.000 do. 2d sec., conv.
6*25.000 do. not conv.
2.000. 000! do. conv. till 1858 i
1.000. 000; do. do. 1857
1.000. 000' do. not conv. I _
1.600.000 2d mort. con. till 1858 7 January, July
400,000' 1st mort„ not conv. j 6 April, Oct.
1.000. 000 2d inert. . convertible 7 March. Sept.
1.25O.U0U! do. conv. till 1863
1.200.000 1st mort., not conv.
450,000| do. convertible
600.000 2d mort., do.
17.000. 000' Mort., not conv.
1.000. 000 1st mort., do.
800.000 do. 1st sec. do.
300.000! do. 2d do. do.
3,4(>0,000| do. conv. till 1859 7 Feb., August
do. do. 1857 1 7 March, Sept.
l,6(X).(J00j do. not conv. 6 April, Oct.
500.000, do. conv. till 1860 6 January, July
600.000, do. convertible * M"- v/ — 1
1.000. 000 No mort., do.
1, 305.000| do. do.
1.200.000 do. not conv. „
1.000. 0{H); 1st mort., do. I 7 May, Nov. N..Y,
600.000 do. 1st sec.con. 1857 8 January, July!
650,(M)0: do. 2d do. 1858 8 Aj>ril, Oct.
8.287.000 No mort., not conv. 6 Slay, Nov.
3’W^No con.15 Je ’57 to ’59 7 June, 15 Dec.
I 7 January, July}
7 January, July
| 7 May, Nov.
i 7 May, Nov.
7 January, July
7 Feb., August
7 Feb., August
7 March. Sept.
7 Feb., August
7 10 Jan., 10 July
7 April, Oct.
7 April, Oct.
January, Julyi
7 Feb., August
7 January, July
7 May, Nov.
7 1 Oct., 1 April
10 April. Oct .
7 March, Sept,
7 April, Oct.
i 1 May, Nov.
8 April. Oct.
8 April, Oct.
8 Semi-annually
.M»y. Not. 1
Boat
!X,
;x, ..
lx1 ..
X 72
X 64
IX' 80
wp ijj
',W6 X‘7T3^
X .. 75
lx1.. I®
'X 84 65
lx 66 «
I::
mv»i s*Wiw
11875
i*»;i
>73
>75
1806
jlwsi
1873
11861
:• I860
750.000 do.
1,800, (XH)1 at mort.,
450,1k)*), *
1,000,000
500.000
2.825.000
1,000,000
1.500.000
1.200.000
1,250.000
do.
do.
do. do.
do. do.
do. on 1st sec.
7 June, Dec.
7 May, Nov.
7 10M*ch,108ep.
6 January, July'
10 April, Oct.
N.Y.
do.otherdo.con/58j 8 May, Nov.
do. not conv.
do. ’ do.
do. convertible
do. conv.
806,000, 2d mortgage.
1,750,000' 1st mort., conv.
I,675.oo0i Income, no mor. con.i
1.000, (100, 1st mort., conv. I ,
2.378.000, No mort. con. 1856-58 7 January, July
6.000. 00011,t mort. con. ti 111860 7 1 Jan., 1 Jul“
1.673.000, Mortgage, incon.
Feb., August
6 Feb., August
7 January, Julyj
8 Feb., August
7 May, Nov.
7 January, July
7 April, Oct.
7 Feb., August
*r -J* t..i
1800
1862
18)3
1 1883
1864 ,
long !
1861-72 X
1866 X •;
1873 X*
1858-62X1^
1 864-75, X
9912
[100
'xi «
|10EiV2 104
85 [96
66
3.389.000
3.469.000
300.000
600.000
1.500.000
do.
do.
con.
incoo.
1st mort. 1st div. con.
. — , do. convertible
500,000|2dmort.guat.Pa.R.R.
1st mort. conv.
600.000 do. do.
1,000.000' do. do.
400.000; do.conv. till 186 3
600.0001 do. conv. till 1865
6 January. Jufy
6 January, Julyi
6 January. July
7 May, Nov.
7 January, July;
7 January, Julyi
71 April, Oct. 1
6
7 March. Sept.
7 Feb., August -D. .
T January, July.1™1
7|June, Dec
* X stands” for Ex-Interest.
Gck ,gle
Original from
UNIVERSITY OF CHICAGO
Government, State, and City Bonds .
U. S. Got. Securit’s.
I XT. PAYABLE. OW’D. AS 'D
Loan. 6 per cent 1856 Jan. July.
do. do 18*21 <}<>•
do. do 1867 do.
do. do 1868' do.
do. do Coup. b’«.18*’8 do.
do. 5perct. do. 1865 do.
State Securities.
N. Y. 6 per ct....l860-v»1-G2 ) Jan. April,
do. do. ....l&H-’OS ) July. Oct.
do. do. 1672 Jan. July.
do. 6V2 per ct lttfo-v,i;S
do. do. ...•••• ■18*3 [ Tft_ An*
do. 4V'2 per ct. 1858-59-T*f j
Canal Certific’s, 6 p. ct... 1861 Jan. July.
Jan. April.
July. Oct.
105
1121/8113
1181*2 119
1181/v 119
1181/2 ..
108 109
109 110
111 112
117 |118
IO6V2 1U7
1061/2 107
1031/4 1 ..
,104
Kail road Bonds, ^t.pat’bl. orr-t,. as^d
Erie Income 7 p. ct. ..1875 Feb Aug. *>l/*
do. ConverUbleedo. ..1871 I do.
do. do. do. ..1882 Jan. July. » w
Uud’n R. 1st mor.do. 18GSi-’70 1 eb. Aug. 102t* l®
do. 2d do. do. ..1#» 18JU.16D. M 96
Hud’n R. cony. 7 p. ct. 1867 May, Noy. 72 72V4
Idu»t y«r
R. R* CO.9®* Dividend
Baltimore A Ohio... .100 | Feb^Aug** 86 86V2
Chicago & Rock-Isl d 100 ] Feb » u ’ 73 <0
Cin.. Ham., A Day tonlW 10 ,jan. Jufy. 106Vfe 108
i Cleveland. Col. A Cm.lOO I 13 . . 35 88
47 47 V
86 I 86V
73 \ 75
IO6VS2 108
35 Itt
Ohio.
do.
do.
do.
do. 6 per cent,
do. 1856
do. i860
do. 1*70
do. *1875
1865
Cl eve. A Pittsburgh.. 50 ]9 M’ch Sept «lMl 82
1 Cleveland A Toledo. .. 50 10 49 A a
! Galena &" Chicago!. "lUO ■ 20 ,*“nb. .Aug. |
Pennsylvania, 5 per ct — ../Feb. August.
do. 5 per ct. coup..l877j do.
•Massachusetts, 5 per ct.. . .|
Kentucky, 6 p. ct.b’d.1869- - <2 Jan. July.
Illinois, lnt. Imp. 6 p. ct.l84i do.
do. 6 per cent. Interest do.
Indiana State, 5 per ct do.
do. 21 '2 per ct do.
do. Canal Loan. 6 per ct. do.
do. Canal Pref. 5 do.
Maryland. 6 do.) Jan. April.
do. 5 do. ) July, Oct.
Alabama, 5 do. May, Nov.
Louisiana, 6 per ct. bonds.. Divers.
Tennessee, 5 do. do Jan. July.
do. 6 do. do. long do.
Virginia, 6 do. do.. 18^6 do.
Missouri, 6 do. do.. 1872 do.
N. Carolina 6 do 18/j do.
Georgia, 6 do 18 <2 do.
California, 7 do 1870 do.
City Securities.
New* York 6 per ct. . .1^60' > Feb. May.
do. do. \ Aug. Nov.
•Albany, Bond, 6 p. c.lM-Jl Feb. Aug.
•Alleghany do. do. Jan. July.
86L21 87
j 91 j 92
[1^1/21041/2
84;U 85
j Harlem • gJJ I 3 yftn juiv
do. preferred..... 50 | 8 Jan. j
Tludson River. JjJ1 1 „ jalf’july.
Illinois Central 100 7 Jan. juiy
Little Miami 50 10 June^Dec.
Macon A Western.. ...10 9 g'
Michigan Central — 100 | 8
do. Southern . .100 0
do. do. con. st.100 18
New- Jersey • •60/ 0
IS I 1 J-.Ju.y.
,*0 Feb. Aug.
27«V4 28
73 75
39 39 V2
93Vi M
98 100
101 103
881/2 &V2
102 1102V3
91 9H
82 >8
93 94 11
99 j .. | miscellaneous*
99 2j 9914 N.Y. Life A Trust Co.100 110 Feb. Aug. 150
071/0 (Mi Ohio do. 10u 8 J an. %fuiy. yi
88 i 89 2ii N. Y. Oas Light Co.. . .50 1 10 May No*- 135
APbr.Oe«. ^
5*‘/2 NeW. York Central. ... 100 ,lo f,etA,^u ..
N. Y. A NewHuvenlOO ' *•,*£], 80
•! Ohio* Pennsylvania. do 101
i Pennsylvania 50 ,lo J1 * July. g
Feb-Au* 74
98 99
99, . 1100
98V2 991/a
73. ,178
-Aiiegnauy uu. «■ jiin.juiy. qpi /. rx
Baltimore do. do. 186)- JO ja. Ap. Ju. Oc. /4
do. 5 do.
Brooklyn do. 6 do. . . . ..-.j Jan. J uly.
•Cleveland do.W.\V7p.c.l879| d0.
•Cincinati do. 6 P-c......-;! Divers.
•Chicago do. do. Jan. July.
•Detroit W.W. 7 p.c. <3- <8- Fob. Aug.
•Jersey C. do. 6 do 18<< jan. July. >, rx
•Louisvilledo. 6 do...l88(>-83 Divers. 5V
•Milw’kie do. 7 do }?'f:JiMarch, Sept. *.i
•Memphis do. 6 do 18^'jan. July.
•Norfolk do. 6 do..... .18<’ V April, Oct. pi
•N. Orl’ns do. 6 do...lJJ2-y->!jan. July. IR .
Philadelp. 6 do. . .18*h-^H) do. L7j
•Pittsb’gh do. 6 do, 69- Divers. 51
•Rochest’rdo. 6 do 18<8. do. %!,
•8t. Louis do. 6 do. . . ..... ...| do.
•SacramentolO do.,..18b‘2- ^ do. 53,
•S.Francisco 10 do 1^<1 May, Nov.,
• do. 10 pay at N.Y, 190
Wheeling, mun. bnds. 6,18 <4 March, Sept,
County Bonds*
P;
«nKyJ- if x:S | H: 4
•St. Ijouis, Mo. 6 do. X. .18oo do. §V
•Boyle, Ky. 6 do. \ I 70
•Clark. Ky. ® ^o. X .. 1883 April l(k Oct. 1 «
•Muskingum, 7 do. X. . Diver*. g
•Belmont O. 1 do. X..t8j>J jan . July. 98
•Putnam, O. 7 do. X. .18< >, J0.
•Knox, O. 7 do. X..18<3 M&rCh, Sept.
Railroad Bonds*
• April. Oct,
•Jan. July.
I.UH9 B1KU5 VV....uy:.v - , ,
Manhattan do. •••■op ^n^Dec*
Dela. A Hud. Can. ColOOi 9
Pennsylvania Coal Co.50 1 10 Aug.
Boston Banks. OivMs.
par 1854-6.
Atlantic 4 4
^> 2 991/2 Boston Banks. 1
6>. , I 78 | i>ar
T> /4 i Atlantic JjJJ
m iii& 1 V
H S Columbian
74 *5 100
pi • • Exchange JxJ
yoi \ FiineuillUll •••••{JO
86 ' Granite. 190
i<o ; Hamilton \W.
[ffi 191 | Market JO
^9 | Massachusetts 250
Maverick 100
p. Mechanics’, (S. Boston).. 100
Ml o ^ Merchants’ 100
771'9 National, 190
74 2 £2 New-Eugland 190
70 4 ?H, o North America 100j
io 48.' 2 Sliawmut.. 190
Shoe and Leather 100
™ Uf„trt OU
90 94 Suffolk.*.*. .* 100
• • •• Traders’ 100
•• •• Tradesman’s, (Chel.j....l00
Tremont 100
103Vi!S3/4
196 |1?6
6 4Vk 110
4 100
3V'2l07
8V2 31/2,104
10234 m
94
86 86V
80 84
92V^|100
781-2 80
771/2, 80
74 77
8144 82
70 72V
3Vi 8V* 101
4 4 1W1/2 99
5 6 67 88
81-5 31-5254 2o8
new. 3 93 95
4 4 106 107
4 4 1071/2 108
4 4 102 11021/1
4 4 no 111
4 4 1011/2'lOt
4 SV-i 1«B 1104
4 4 105 1106
4l/j 4 111 ilia
Sv2 ^2 66Vai 67
■jgggi^-aa^to. lb'j IfeiiEEl k ht
Digitized by Gougle
Original from
UNIVERSITY OF CHICAGO
[June,
978
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Digitized by
Go igle
Original from
UNIVERSITY OF CHICAGO
1855.]
Foreign Items.
979
*
NOTES.
* The Agent of this Company has confined his return to the business of the U. S. branch of the
Company.
t $5000 of this are resisted by the Company. The sum put down here as Premium Notes is re-
turned as “ Loans on Policies.”
$ $8957.65 of Assets consist of Premium Notes.
§ $10,000 of this amount resisted. $*208,651.02 of Assets consist of Premium Notes. This Com-
pany has confined its return to the business of the U. S. Branch.
| $71,644 01 of Assets consist of Premium Notes.
T $15,000 of this are disputed — the residue is returned as u unadjusted— in suspense and awaiting
proof.” $335,121.91 of Assets consist of Premium Notes. Difference between “ Assets” and “ Ac-
cumulation” is reconciled in a schedule to the statement
** $5000 resisted. The return of this Company and its capital refers as well to the Trust busi-
ness of the Company, of which there is a separate account A proportion of tho expenses of the
Life Department has probably been borne by the “ Trust* Office.
+t $10,000 aro due and resisted by Company. $107,524.27 of Assets consist of Premium Notes.
XX $9500 are resisted by Company. $820,385.59 of Assets consist of Premium Notes.
§§$2500 resisted. The item or expenses covers “return premiums and cancelled policies.”
$44,048.37 of Assets consist of Premium Notea
1 1 None resisted.
FOREIGN ITEMS.
London Money Market. — The Lombard-street rates for money on first-class bills
are 4 a 4£ per cent. Of the reduced rate of interest, the London Times says :
“ On tho 5th April, the Directors of the Bank of England, at their weekly board-
meeting to-day, reduced their minimum rate of discount from 5 to per cent
Although the immediate effect of this announcement was a sensible increase of
firmness throughout the Stock Exchange, the actual effect upon prices was unim-
portant The effect of the measure upon the Consol market had been already to
some extent ‘discounted,* and it must bo recollected that the price of consols is
now comparatively high, considering the war and the anticipation that our govern-
ment will require a loan. A hope may be entertained, however, that the great
trading interests of the country will experience decided benefit from the late
reduction in tho value of money, and that business will begin to recover from its
present dullness. Even now the rates out of doors are below those of tho Bank of
England. In Lombard street to-day, first-class bills were discounted at 4 per cent,
and the money-dealers reduced the rate allowed by them for money on call to
per cent As regards the security markets, it may be expected that railway
debentures, guaranteed railway shares, and other kindred stocks, will meet with
more favor.”
Business of the Bank of England. — From a return obtained by Mr. Schole-
fleld, giving an account of the notes, securities, and bullion of the Bank of England,
as published weekly in the Gazette, from August 1863, down to the present time,
it appears that on the 10th of March, 1855, (when the last return was made,) the
amount of notes issued by the Bank was £26,911,880; the amount of the government
debt, £11,015,100; the amount of other securities, £2,984,900; and the amount of
gold coin and bullion, £12,911,880. Thus far as regards the issue department. In
the banking department the amount of proprietors’ capital was £14,553,000; the
amount of rest, £3 639,849; that of public deposits, £4,828,237; that of other
deposits, £1 1,149,103 ; that of seven-day and other bills, £906,730 ; that of govern-
ment securities, £11,542,385; that of other securities, £14,880,844; that of notes,
£7,944,050 ; and that of gold and silver coin, £709,640. It further appears that the
gross total monthly average amount of promissory notes payable on demand in cir-
culation in the United Kingdom on the 17th of February last was £38,087,789,
including £20,550,000 notes of the Bank of England, £3,812,806 notes of private
banks in England, £3,006,424 notes of joint-stock banks in England, and
£6,819,230 the aggregate monthly circulation of country issues in England and
Digitized by
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980
Foreign Items .
[June,
Wales ; £3,932 869, the notes of chartered, private, and joint-stock banks in Scot-
land; £3.395,125, the notes of the Bank of Ireland, and £3,390,565, the notes of
private and joint-stock banks in Ireland- The bullion in the Bank of England was
at tho same date, £12,723,000.
Wool. — A. letter from a member of Parliament^ published in the Philadelphia
Commercial List , states that :
“The total quantity of sheep’s wool, (including Llama and Alpaca Wool,) im-
ported into tho United Kingdom in 1854, amounted to 106,121,995 pounds, of
which 35,336,450 lbs. 'were imported from foreign States, and 70,785,545 lbs. from
British possessions, (out of Europe.) The quantity reexported was 24.509,263 lbs.,
and the net quantity left; for homo consumption, 81,612,732 lbs. The quantity of
goats’ hair or wool imported in 1854, amounted to 1,335,319 lbs., of which only
107,169 lbs. were reexported. The declared value of British woollen manufactures
exported in the year 1854 amounted to £9,120,759, and the value of woollen yam
so exported, to £1,557,612, making together a sum total of £10,678,371.”
The statistics of the woollen interest form an important item in the census of the
United States, taken in 1850. According to that census, we learn that the quan-
tity of wool raised in the Union, in 1850, was 52,789,174 pounds. The principal
producing States, and the quantity raised in each, were as follows:
New- York,. .
Ohio,
Pennsylvania,
Vermont, . . . ,
Virginia, . . . .
10,071,301 pounds.
10,196.371 44
4,481,570 44
3,400,717 44
2,860,795 44
There were in the United States, 1559 woollen factories, with a capital of
$28,118,650. In these were used 70,852,829 lbs. of wool, partly imported; ^nd
22,678 males, and 16,574 females were employed. The manufactured products
were worth $43,207,555. The value of woollen goods imported into the United
States in 1853, exceeded $28,000,000.
Bank op England Rate op Interest. — The London Times, in announcing the
reduction of discount by the Bank of England, remarks :
44 Some persons had fancied that during the existence of war, and with die
immediate prospect of a loan, no reduction would be made, whatever might be the
influx of money, but these were a small minority, and the general public felt reli-
ance that the sound system of letting the rate be guided by the demand, instead of
endeavoring to adapt it to theoretical contingencies, would still be followed. Ac-
cording to the Gazette returns last published, tho simultaneous influence of the
favorable state of the foreign exchanges during the past month or two, and of the
rapid contraction of business, has caused the unemployed notes of the Bank to
reach a higher point than at any period since July, 1853, when the rate of discount
was as low as 3£ per cent, and consols nearly at par. The stock of bullion now
held is also greater than at any time during the past year, and there is every prospect
of its increase. If, under these circumstances, the Bank had delayed their present
step, their proprietors must have looked the next half-year for a diminished divi-
dend, and the public have had to complain of an artificial cause of pressure being
kept up at a time, when, owing to the natural tendency of events to produce excess-
ive caution, the exercise of every legitimate method of inspiring confidence is most
desirable.”
Grace on Bills and Notes. — The London Times, in connection with the remarks
lately made on the necessity of abolishing days of grace in the payment of hills of
exchange, has furnished a list of the countries and cities which once participated
in tho custom, but which have had tho practical good sense to do away with it
These are France, Hamburgh, Austria, and Lombardy, Belgium, Bremen, Bruns-
wick, Naples, and Sicily, Spain, Frankfort, Hanover, Holland, Venice, Lubec, Nor-
way, Portugal, Prussia, Sardinia, the Roman States, Tuscany and Switzerland,
(except Berne and Saint GalL) The only countries where it is now retained, m
Digitized by
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Foreign Items .
981
1855.]
addition to GrAt Britain, are the United States, Denmark, Sweden, and Russia.
The United States derived it from Great Britain, and would doubtless abandon it
almost immediately if done in the latter.”
The practice is now so fully established by custom and by statute in the United
States that there is no probability of a repeal ; especially as it would come before
thirty different legislative bodies — and it is fully shown that not the least possible
inconvenience arises from the continuance of the practice of giving grace on bills
and notes.
The Funds. — The following table shows the effect of each event of the present
war upon the Vienna Stock Exchange, and also the agio of silver as compared with
paper, from the first difficulties down to the close of the last year, when tho Sebas-
topol expedition began to wear a gloomy aspect. It is made out by the able editor
of the United States Economist. The dates are those on which news of tho events
reached Vienna :
Five per cent
Northern
Silver
Metalliques . RM. shares.
agio.
March 2, 1858 — Men chit off at Constantinople,
93)4
228
10«
May 28— MenchikofPs departure,
222
9
July 5 — Russians cross the Prnth,
93*
221
10
Jan. 1854— Allied fleets in tho Black Sea,
92 K
223
17*
Feb. 8— Russians leave Parks and London,
89
226
29*
March 8— English and French leave Russia,
85
229
32 X
March 28 — Allies declare war,
80X
213
41
April 10 — Vienna protocols signed,
87
225
S5K
May 26 — Conference protocol,
85
212
87
June 12— Interview of Austrian and Prussian sovereigns,. . ,
87
214
88
June 80— End of the Austrian Convention with the Porte,..
86
215
29K
JiAy 6 — Great Austrian Loan,
170K
32
July 24 — Emeute in Parma,
S3*
166
23*
Aug. 4 — Favorable progress of the loan,
84K
171
24 K
Ang. 14 — Defeat of the Rnsslans,
SG
174
20K
Sept 1— Sebastopol expedition,
174
16k
Sept 21 Allies nt Eupatoria,
175
19k
Oct 1 — Sebastopol hoax,
er>x
177
18
Oct 31— Alma battle,
S3
176
24K
Nov. 21— Austria and Prussia negotiate,
82K
177
29K
Nov. 27 — Articles signed,.
8334
179
24
Dec. 11 — Adhesion of Austria to the Allies,
S8K
182
27
Dec. 81— Close of the year,
190
28
Jamaica Loan. — The tenders for tho £433,000 of the Jamaica Guaranteed Four
per Cent Loan, advertised on the 3d March, were opened at the Treasury in the
presence of the Chancellor of the Exchequer, the Governor and Deputy-Governor
of the Bank, and several of the persons making tenders. A sealed paper, with the
government minimum price, having been placed in the hands of the Governor of
the Bank, Sir C. Trevelyan proceeded to open the tenders, twelve in number, the
particulars of which are as follows :
£.
£. s.
(l
8. F. Stanford,
5,000
at
101 15
0
poT cent
Governor and Company of the Bank of England,
433,000
at
101 6
4
per cent
Atlas Assurance Company,
at
101 0
0
per cent
Mullens, Marshall A Company,
45,000
at
101 0
0
per cent.
Wm. Coles,
2,000
at
101 0
0
per cent.
U. G. Aldridge,
COO
at
101 0
0
per cent
Louis Cohen,
18,000
at
100 18
0
per cent
Jamison. Brothers k Co.,
20,000
at
100 12
6
per cent
Thomas Ellborough, (twb tenders,)
5,000
at
par
Jones, Lloyd k Co., for Mr. Alcock, of Manchester,
1,500
at
par
Arthur Butler,
at
par
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une,
The Chancellor of the Exchequer then stated that, as the tender behalf of the
Bank was most advantageous to the public, the whole amount would be taken by
that establishment. It was, however, explained that the tender of Mr. Stanford,
although marked for “Demerara Loan,” (probably an error,) was at a higher price
than that of the Bank. The Governor of the Bank said there would be no difficulty
in arranging the question. If Mr. Stanford desired to take the £5000, the Bank
would offer no impediment. It was therefore arranged that £5000 shall be offered
to that gentleman at his price, the Bank taking the remainder. At the close of the
proceedings the Chancellor of the Exchequer said that, as the terms of the Bank
were above the minimum fixed by the government, there would be no necessity to
open the sealed paper.
The Shipping op the World. — The London Daily News has a long and interest-
ing article headed “ The Shipping of the World,” some of the details of which our
London correspondent has arranged in a tabular form, in order to obtain a bird's-
eye view of this important subject Of course these statements relate only to the
mercantile marine of the respective countries :
Great Britain and Colonies,
United States,
France,
Spain and Colonies,
Portugal,
Italy and Sardinia,
Austria,
Greece,
Turkey,
EJTPt.
Belgium,
Holland,
Hanover and Oldenburgh, . .
Hamburgh,
Hamburgh coasting trade,.
Lubeck,
Bremen,
Mecklenburgh,
Prussia,
Denmark,..
Norway,
Sweden,*
Russia,
Eo.qf
vessels.
Tonnage,
Entered <5 Chared, ‘54.
Vessels, Tonnage.
85,960
5,043,270
842,854
42,573,569
4,724,902
40,000,000
, 14,854
716,000
10,000,0011
. 7,986
879,421
11,526
1,456,841
886
86,156
17,066
546,021
, 7,600
824,000
8,970
864,981
— |. • •
2,200
182,000
280
88,790
149
86,000
4,792
706,806
8,048
456,459
15,771
2,472,075
500
40,000
869
119,8S4
8,920
1,6S6,749
2,000
101,661
70
9,880
2,400
480,000
150
1,980
8,000
1,000
480,000
868,800
10,815
1,068,736
4,695
189,190
107,571
1,074,106
• . . *
868,682
19,447
1,928,022
&S6
147,923
1,872.672
800
17,072
8,090,614
About seven eighths of the Russian traffic is carried on by foreign ships.
Vessels. Tonnage .
Central and South America, 1,580 198,725
Sandwich and Society Islands, 100 8,000
England’s Mineral Wealth. — On the authority of Mr. Robert Hunt, govern-
ment keeper of Mineral Records, the following statement is regarded as an approxi-
mation, very near the truth, of the annual value of our mineral wealth : Coal, as
raised at the pit’s mouth, £11,000,000; iron, £10,000,000; copper, £1,400,000;
lead, £1,000,000; tin, £500,000; silver £210,000 ; zinc, £10,000 ; salt, clays, eta,
£500,000 ; giving the enormous total of £24,620,000. This is the value of the raw
material. When the cost of labor employed in converting this mass of matter into
articles of utility, or objects of ornament is added, it will )>e swelled a hundred
fold.
»
♦ The coasting trade about one third more in addition.
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Bask of British North- America. — The sudden death of Mr. George de Bosco
Attwwxi, the respected Secretary of the Bank of British North-America, was on
Tuesday, April 24, (says the London Post,) a subject of conversation and regret in
the monied and commercial circles of the city. It appears that Mr. Attwood fell
down dead while reading over to the Board of Directors some minutes connected
with the affairs of the establishment
MISCELLANEOUS.
Railroad Bonds. — The following laws of New-York and Illinois, it will be
seen, effectually put at rest any apprehension of the illegality of the bonds issued
by the railroad companies of those States.
An act to incorporate the Wabash Valley Railroad Company and to regulate the
capital stock of other railroads. Passed June 22, 1852.
Said Company is hereby authorized, from time to time, to borrow such sum or
sums of money as may be necessary for completing and finishing or operating their
said railroad, and to issuo and dispose of their bonds in denominations of not less
than $500 at such value of interest not exceeding seven per cent per annum, and
at such discount as may be thought for the benefit of the Company.
This section shall apply to all railroad incorporations in the State which desire
to avail themselves of its provisions, and for any amount so borrowed, and to
mortgage their corporate property and franchises, or convey the same, by deed of
trust, to secure the payment of any debt contracted by said Company for the pur-
poses aforesaid.
Law of the State of New-York, passed April 6th, 1850, chapter 172.
1st. No corporation shall hereafter interpose the defence of usury in any action.
2d. The term corporation, as used in this act, shall be construed to include all
associations and joint-stock companies having any of the powers and privileges of
corporations not possessed by individuals or partnerships.
3d. This act shall take effect immediately.
Law of the State of Illinois, approved February 11, 1853:
1st. No corporation shall hereafter interpose the defence of usury in any action.
2d. The term corporation, as used in this act, shall be construed to include all
associations and joint-stock companies having any of the powers and privileges of
corporations not possessed by individuals or partnerships.
3d. This act shall take effect from and after its passage.
A Merchant op the Old School. — Mr. Everett, in his memoir of the late Peter
C. Brooks, Esq., just published in the Genealogical Register, states that Mr. B.
abstained as a general rule from speculative investments ; “ his maxim was, that the
whole value of wealth consisted in the present independence -which it secured, and
he was never inclined to put that good once won, again at hazard, in the mere
quest of extraordinary additions to his superfluity.” He never mado purchases of
unproductive real estate, on a calculation of future enhanced valua He never,
directly or indirectly, took more than legal interest. He could have doubled his
immense fortune had he been willing to violate this rule.
It is mentioned that he believed and often said, that, “ in the long run,” six per
cent is as much as the bare use of money is worth in this country. It was another
of his principles never himself to borrow money. What he could not compass by
present means was to him interdicted. It is doubtful whether, with but a single
exception, Mr. Brooks’ name was ever subscribed to a note of hand. He shunned
every transaction, however brilliant the promiso of future gain, which required the
use of borrowed means. Mr. Everett well remarks :
“ The bold spirit of modern enterprise will deride as narrow-minded so cautious a %
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maxim ; but the vast numbers of individuals and families actually ruined by its
non-observance — to say nothing of the heaven-daring immoralities so often bflbght
to light, to which men are tempted in the too great haste to be rich— go far to jus-
tify Mr. Brooks’ course. It is highly probable that, in the aggregate, as much
property is lost and sacrificed in the United States by the abuse of credit, as is
gained by its legitimate use. With respect to the moral mischiefs resulting from
some of the prevailing habits of our business community — the racking cares and
corroding uncertainties, the mean deceptions, and the measureless frauds to which
they sometimes lead — language is inadequate to do justice to the notorious and
appalling truth.” — Boston Transcript
The Mobile and Ohio Railroad. — The banks and insurance companies of
Mobile have subscribed to the income bonds of the Mobile and Ohio railroad, each
to the extent of one tenth of its capital. The available aid thus afforded, including
private subscriptions obtained previously, amounts to something over $350,000,
leaving in the neighborhood of $150,000 still to be provided from private sources to
make the previous subscriptions binding, and to enable the company to push on
the road to Columbus, Mississippi. The capital of the several companies subscrib-
ing is as follows:
Capital
Bank of Mobile, $1,500,000
Southern Bank of Alabama, • . \ 600,000
Alabama Lifo Insurance & Trust Company, 275,000
Merchants’ Insurance Company, 250,000
Mobile Insurance Company, 200,000
City Insurance Company, 200,000
Marino Dock & Mutual Insurance Company, 150,000
Fulton Insurance Company, 100,000
Mobile Navigation & Mutual Insurance Company, 100,000
Firemen's Insurance Company, 100,000
Total capital, $3,475,000
The Pawnbroker Business. — The pawnbroker-shops have been glutted with
goods of all descriptions the past season. The class of pawnbrokers, like the under-
takers, generally thrive when the community suffers most. Extreme want drives
people to those shops with various articles of household furniture, and as the quan-
tity of goods thus pledged increases, the amount of money advanced diminishes,
until the pawnbroker gets things of real value at a merely nominal price. It is not
surprising that so many men in such a business soon accumulate wealth. They
reap profits of fifty per cent on many articles which they havo disposed of at
auction.
The pawnbroker-shop is an index to the misery of the day. Nearly every article
you may see there of household goods has its story of want and woe, calculated,
if it could be heard, to touch every heart. You may see there the bed that was
yielded for the hard floor, and the table that was sacrificed because there was no
food to place upon it, jumbled together with little evidences of an exchange of
affection, which husbands and wives, old in woe, yet ever young in tenderness, had
only given up when to cling to them any longer would have been to sacrifice the
dearer offspring of their lives. The bridal dress and the wedding-ring are often
there, and we dare not think what a struggle it cost to leave them in such a place,
with all their associations of blissful hope. We cannot gaze idly into the window
of a pawnbroker-shop. The mind will imagine for itself the story of each article
displayed, and conjure up the affecting scenes that must havo taken place at home
and at the shop.
Bank Forger in Limbo. — On the 14th March, Edward M. Ansley was committed
to prison in New-Orleans for having, on the 1st of March, 1854, successfully forged
and received payment, at the Canal Bank in that city, on a check for $11,000, in
the name of Price, Frost & Co. He was arrested in Paris, whither he fled shortly
after the forgery.
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085
1855.]
Wisconsin. — The Daily Wisconsin gives the following as a correct copy of the
currency bill which passed the Assembly of that State :
§ 1. No person or body corporate shall pay out, or put into circulation as money
in this State, any bill, note, certificate of deposit, or other paper, having the simili-
tude of a bank-note, knowing the same to have been issued without the authority
of this, or any other of the United States, or Canada.
§ 2. No person or body corporate shall pay out, or put in circulation in this State,
the bills or notes of any bank that is not located in this State, unless such bills or
notes are redeemable in specie at the place where they purport to have been issued,
and are also current, bankable, and redeemable in the city of New- York, at a rate
of discount not greater than one fourth of one per cent, or are current, bank-
able and redeemable at par, in either the cities of Milwaukee, Chicago, or St. Louis.
§ 3. Any person who shall knowingly violate either of the preceding sections of
this act, shall be adjudged guilty of a misdemeanor, and shall be punished by a fine
of not less than fifty dollars for every piece of paper so put into circulation, or by
imprisonment not less than six months, or by both such fine and imprisonment
§ 4. This act shall be in force and take effect at the expiration of ninety days
from and after the date of its final passage.
Time Contracts. — Some time since a difficulty between Mr. Jacob Little and
Mr. Simeon Draper took place in regard to the non-delivery of eighty shares of
Delaware & Hudson stock. Mr. Little contended that the seller was bound to
tender him the stock and demand the money, and that he had waived the right as an
auctioneer to demand ten per cent deposit on the day of sale, by having for some time
delivered to him his purchases of stock without any such conditions. Mr. Draper
contended that he was not bound to deliver the stock, except upon the conditions
made known, that is, ten per cent, and the remainder the next day, the purchaser
calling for his stock. The case was referred to Messrs. Geo. Curtiss and Denning
Duer, who decide that the transaction being at a public sale, was governed entirely
by the terms then published, and, of course, sustaining Mr. Draper. This is a final
settlement of the affair.
The following is the decision of the arbitrators in the case between Messrs. Little
and Draper :
“ On the 19th of January, Mr. Little bought of Mr. Draper 80 shares of Delaware
Hudson Canal Co. stock.
u Mr. Little complains that 1 said stock has never been delivered or tendered to
the buyer according to the contract and custom, and as the seller of stock is bound
to do.’ Mr. Little * having no immediate use for the stock, did not call for it until
within a few days, (that is, a few days prior to the 13th March, the sale having
been made in January,) when having occasion for it, he called for the same, and
was informed that it would not be delivered, as the buyer had not complied with
the terms of the sale, namely: a deposit of ten per cent To this he replied: 4 In
former transactions Mr. Draper had not called for or demanded ten per cent.* And
Mr. Little now claims that Mr. Draper should deliver to him 80 shares of Delaware
k Hudson Canal Company Stock, at 111 per cent.
“ Mr. Draper declines to deliver the stock, on the ground that the terms of the
sale, as published and distinctly announced at the time, have not been complied
with, namely : ten per cent in cash on the day of sale, the balance on the following
day ; and maintains in consequence that Mr. Little has lost his right to the stock,
‘as ho never paid or offered to pay the 10 per cent, as per terms of sale — never
applied for an alteration in terms, or change in the usual method of delivery of
stocks bought at auction, and never made any application for the stock until some
five weeks after the sale ; and no call having been made by Mr. Little for the purpose
of paying the deposit on the stock, the sale was not advised to the owner, and the
terras not having been complied with by the buyer, the auctioneer — being merely
an agent between seller and buyer — has no power to compel the seller to deliver
the stock.’
14 This transaction between Mr. Little and Mr. Draper having taken place at a
public auction sale, the contract must be governed by the terms of said sale as pub-
lished and announced at the time — and these terms cannot be altered by any cus-
65
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Miscellaneous.
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tom or usage which may have prevailed in former transactions of the like nature be-
tween the parties. Mr. Draper was .not bound by these terms to make a demand
upon Mr. Little for a deposit, nor to tender him the stock ; but it was Mr. Little’s
duty to have made the deposit on the day of sale, and to have paid the remainder
on the following day, when he would have had the right to demand from Mr.
Draper delivery of the stock ; which demand Mr. Draper would then have been
bound to comply with. Mr. Little having permitted so long a time to elapse be-
tween the purchase of the stock and his demand for it, Mr. Draper had a right to
suppose that he lias surrendered his claim to it, but by not having complied with
the terms of the sale as published, and announced at the time, Mr. Little ha3 lost
his right to make any demand for. and Mr. Draper is not bound to deliver the 80
shares of Delaware & Hudson Canal Co. stock purchased by Mr. Little on the 19th
January last. “Geo. Curtis,
“ Denning Duets.
“ New- York, March 21sf, 1855.”
Forged Drafts from Honolulu. — We have obtained the following list of the
fraudulent drafts upon ship-owners in tho whaling fleet which have come to hand
in New-Bedford during tho present season, amounting to more than twenty thou-
sand dollars. Of this amount $5000 is supposed to have been paid here before the
discovery of the fraud, and our merchants have since been upon their guard. Tho
drafts although all drawn in favor of different persons, are filled up, with the excep-
tion of tho payee’s name, by the same individual.
The list of these forgeries is as follows :
C. W. Morgan, New-Bedford, .
Geo. F. Baker, “
B. B. Howard, “
Chas. Taber, “
Wnt Phillips, 41
11 Executor, 44
$4,000
3,000
3,000
3.000
1,200
1.000
Geo. & Matt Howland, N. B., . . $1,500
Levi Jenney, Fairbaven, 1,100
Fish, Robinson A CoM “ .... 3,500
John H. Shaw, Nantucket, 1,200
Total, $23,100
New-York Board of Brokers. — At the meeting of tho New-York Board of
Brokers, on Tuesday morning, May 15, tho annual election of officers took place,
when
Mr. Charles R. Marvin was reelected President; A. Wheelock, Yico-Preaident;
James W. Bleecker, Treasurer ; George H. Broadhead, Secretary ; J. W. Munro,
Assistant-Secretary; E. A. Shipman, Roll- Keeper.
Railroads and the Liquor Law. —
Boston, May 14, 1855.
Geo. H. Teacher, Esq., President Albany Northern Railroad Co. :
Dear Sir: Tho Liquor Law of Massachusetts goes into operation on the 20th of
the present month. Tho law is very rigid ; therefore, on and after the 20th day of
the present month, we must decline receiving any great or small beer, alcohol, or
liquors of any kind. I therefore wish you to give this notice to Mr. Clark, that we
shall be relieved from complaints, or vexation by complaints, from those men that
are now engaged to make all complaints for violation of our law.
Respectfully, Thomas Teacher.
Interest Law of New-Jersey. — An increase of the rate of interest in a portion
of the State contiguous to New-York, was enacted, on tho ground that it w'ould
prevent the transfer of capital from our citizeus to that State, and render the
investment of New-York funds in our securities and institutions possible. It has
been contended, that however this may have turned out, another effect has attended
the measure, namely, the transfer of money from other parts of our own State,
where interest remains at the old point, to this, where a better price could be
obtained. Where the security is the same in two localities, capital will flow
toward points where it is best appreciated, if they happen not to bo too distant ;
for capitalists do not like to trust their property beyond the range of their own
vision and occasional inspection. — Newark Daily Advertiser.
Gck igle
Original from
UNIVERSITY OrCHJCAGO
Miscellaneous .
987
1855.]
Cuban Bonds. — The copy of the subjoined “Cuban bond” was sent to the
National Intelligencer by a gentleman in Georgia, who made the copy for that pur-
pose, and says such bonds can be bought in any quantity. The present one was
purchased for $1000 :
JfiMPRESTITO PATRIOTICO.
No. 142. [Figure of a Lone Star.] $3000.
LA REPUBLIGA BE CUBA.
Iagara al porta dor tres mil pesos , con que ha contribuido para la causa dc la inde -
pe)idencia} quanando el sets por ciento anual desde esta fecha.
The Republic op Cuba promises to pay the bearer three thousand dollars, con-
tributed to the cause of independence, with six per cent annual interest from date.
New- Orleans, March 3, 1855.
D. de Gorcouria, Tea Gasper Betancourt, Pres.
F. EliaS Hernandez, Y. Sec. Potfireo Valiente, Sec
[Figure of an Eagle.]
Rawdon, Wright, Hatch & Edson, New-Orleana
California Financial Panic. — A San Francisco correspondent of the New- York
Daily Times thus makes light over the perplexities of a small capitalist in that city'
who was in trouble for a safe place of investment :
“ A Dutchman who had a couple of hundred dollars in Page, Bacon & Co.’s drew
it out, and after carrying it about an hour or two, thinking Adams & Co. must be
perfectly safe, deposited there. Happening to hear some doubts expressed about
them an hour later he became alarmed and drew it out again, took it to Wright’s
and opened an account with him. He had not got ten rods from the door before
he saw a man rushing to his office looking wild. Poor Sourk rout thought the devil
must bo to pay there too, and forthwith drew a check for his two hundred.
“He continued to deposit and draw again at nearly every banking-house in
town, when, tired out and thoroughly in despair, he sat down upon a curbstone,
wiped the perspiration from his face, and soliloquized thus : * Mine Got, mine Got,
where shall I put mine dollars ? Mo put ’em in ten different panks ; so soon I put
’em tere he pekin to prake ; I gets him out and he no proke I I take my monis
home and sows him up in ter petticoat of mine vrow, and spose she prakes ! I
prakes’her head.’ And struck with the idea he rushed for home, and probably has
rejoiced over his plan, which more might have fbllowed and been better offi”
We lately announced the result of the election of Directors of the New- York and
New-Haven Railroad Company. The votes for the old board and for the reform
ticket were as follows:
OLD BOARD OP DIRECTORS RE-ELECTED.
Harris Gray Dyar, New-York, 9,210
Dennis Kimberly, New-Haven, (on both tickets,) 16,758
George A. Miller, New-York, 9,112
Justus R. Bulkley, New-York, 9,500
Moncuro Robinson, Philadelphia, 9,410
Peter T. Homer, Boston, 9,124
William L. Lyon, Greenwich, Connecticut, 9,558
Nathaniel A. Bacon, of New-Haven, (on both tickets,) 15,381
John W. Leeds, Stamford, Connecticut, 9,lo5
UNSUCCESSFUL TICKET.
William A. Booth, New-York, 7,452
Wyliss Blackstone, New-York^ 7,476
Samuel Willets, New-York, 7,884
Wm. W. Boardman, New-Haven, 7,968
David P. Judson, Stratford, 7,452
Roderic Curtis, Wallingford, 7,440
Wm. P. Burrell, Bridg^ort, 7,450
Digitized! by Gougle
Original from
UNIVERSITY OF CHICAGO
Miscellaneous .
Digitized by
1)88
[J une,
From the annual report communicated to the stockholders at the meeting it
seems that tho cost of the road was $5,069,442. We gather from the report the
following items as to the condition of the Company :
Stocks and Bonds. — The capital and funded debt of the Company is a9 follows :
Capital stock, *$3,000,000 00
7 per cent bonds due December 1, 1851, $251,000
“ “ “ 1860 450,000
“ “ 44 1866, 1,375,000
6 per cent “ “ 18G1, 50,000 2,126,000 00
Total, $5,126,000 00
What has been expended as follows :
Cost of Roadway, $3,386,904 25
General expenses, 857,230 14
Equipment, 633,755 48
Real estate, $102,517 40
Bonds unsold, 62,000 00
Cash, 42,223 93
Other assets, 111,459 67
Total, $318,201 00
Less floating debt, 126,647 88 191,553 12 5,069,442 00
Deficiency, $56,557 rl
Revenue . — The income and expenses of the road from its opening to the close <•'
the present report were as follows :
Ending
Income.
Expenditure*.
Net Eaminyt.
15 Mos.,
1850, $378,162 83
$175,295 93
$202,866 90
Tear April|
• . • .1851, 647,306 56
364,208 44
283,098 IS
u u
1852, 679,653 67
400,444 95
279,208 62
i( «
1853, 739,434 08
413,372 87
326,061 21
a it
..•.1854, 875,523 43
604,059 64
371,463 89
i. u
....1856, 996,018 89
670,407 60
335,611 39
$4,226,099 37
$2,427,789 23
$1,789,310 14
Apropos — The following chance dialogue is clipped from the Boston Post Its
spirit is applicable to other latitudes than that of the Pilgrim Fathers:
Street dialogue, — Flat meeting Sharp.
“Flat — Can you tell me how it is that when people fail nowadays, 1 they will,
undoubtedly, pay all their debts, and have a handsome surplus,’ and yet the credit-
ors rarely get over fifty cents ? What becomes of the money ?
Sharp. — Don’t know ; (aside,) I paid all my liabilities, and had a handsome sur-
plus, with twenty-five cents on a dollar.
“Flat. — Well, how is it that when Gammon & Snap fail, Gammon, Snap & Co.
eontinuo business, and are to be sustained ?
“Shayp. — Don’t know. When friend Street burst up, be was asked a similar
question. He answered that 4 it was his commission business that had stopped, but
that the gin and watches went on.1
“Flat. — Pshal”
Texas Public Debt. — Gen. James Hamilton has addressed a circular to the
people and creditors of Texas touching the adjustment of the Texas debt, in which,
among other things, he avows his intention of asking the Legislature of that State
to accept 44 without modification or amendment,” the^pw recently passed by Con-
gress in relation thereto.
Gck igle
Original from
UNIVERSITY OF CHICAGO
Digitized by
1855.]
Bank Items.
OSS)
BANK ITEMS.
Nkw-Yokk. — Tlie following banking associations have commenced business in
this State since February last:
Cashi er. Circulation .
Lake Shore Bank, Dunkirk, H. Coleman, $50,000
Worthington Bank, Cooperstown, J. R. Worthington, 50,000
Susquehanna Valley Bank, Binghamton,. . R. W. R. Freeman, 100,000
Winding Up. — The following banks are now closing their affairs : I. Bank of
Bainbridgc, Penn Yan. II. Camden Bank. III. Bank of the Union, Belfast.
IV. Exchange Bank, at Buffalo.
New- York City. — A new banking institution has been established in the building
recently occupied by the Knickerbocker Bank, corner of Eighth avenue and Four-
teenth street. The Board of Directors consists of Messrs. Charles Macy, A. C.
Kingsland, Paul Spofford, J. Pettigrew, Teunis Van Brunt, Samuel Holmes, James
Barnes, and Mr. Haight. Charles Macy, Esq., a retired merchant, has been elected
President ; Alex. Masterman, late of the Mechanics’ Bank, N.Y., Cashier. The
capital is $200,000, to be increased to $300,000.
The Mechanics’ Bank has removed temporarily to the rooms in the Merchants’
Exchange, lately occupied by the Bank of the Commonwealth.
The Shoe & Leather Bank has removed to its new banking-house, comer of
Broadway and Chambers street, erected in 1854 for the Central Bank of the City of
New- York.
Vermont. — The Bank of Lyndon, at Lyndon, Vermont, will commence business
on 1st May, 1855, with a capital of $50,000. E. B. Chase, Esq., President, Edward
H. Cahoon, Esq., Cashier.
Burlington. — Charles P. Hartt, Esq., has accepted the Cashiership of the Manu-
facturers’ Bank, Troy, New- York, having resigned that of the Commercial Bank,
Burlington.
Massachusetts. — The Northborough Bank, at Northborough, has commenced
business with a capital of $100,000. President, George C. Davis, Cashier, A. W.
Seaver, Esq. '
Haverhill — E. J. M. Hale, Esq., has been eleetod President of the Merrimac
Bank, Haverhill, in place of Rufus Longley, Esq., deceased.
Pennsylvania. — William L. Peiper, Esq., has been elected Cashier of tho Lan-
caster County Bank, in place of R. D. Carson, Esq., deceased.
New-Jersey. — The Newark Advertiser snys the New-Brunswick banks have
discontinued tho custom of sending notices to parties having notes due there. It
was discontinued on account of the law requiring advance payment on letters.
Many who have relied upon such notice being given, have been surprised to find
their notes protested.
New Charters. — Tho Bank of Bordentown and the Newark City Bank, heretofore
doing business under the general banking law, have reorganized under the special
charters granted by the last Legislature.
Virginia. — Tho Bank of Scottsviilo, Albemarle county, has commenced business
with a capital paid in of $51,000. The Bank has deposited $58,000 of Virginia State
and guaranteed six per cent bonds as a basis of circulation. W. D. Davis, Cashier.
Wisconsin.— The Dodge County Bank, at Beaver Dam, commenced^ business in
April, with a capital of $50,000. President, S. L. Rose, Cashier, R. V. Bogert.
Michigan — Another Stock Fraud.— In winding up the affairs of the broken
Government Stock Bank oL Michigan, a large over- issue of notes, amounting to
about $100,000, duly countwsigned by the State Treasurer, has been discovered.
The Detroit Free Press , in noting the matter, remarks :
Gck igle
Original from
UNIVERSITY OF CHICAGO
Digitized by
990 Bank Items. [June,
“The over-issue i3 an audacious fraud, the perpetrators of which, and their
aiders and abettor*?, before and after the fact, no measures should be left untried
to expose and punish. To expose and bring the guilty parties to punishment is
the special sworn duty of the Attorney-General. The friends of that officer must
exceedingly regret that, having so long ago been made acquainted with the fraud,
lie has thus far failed to take official cognizance of it. Such failure, under all the
circumstances, certainly wears a very bad appearance.
“It appears to us that the State Treasurer owes it to himself and the public to
explain, as far as he is able, the facts of this over-issue. That he is entirely innocent
of misconduct in the matter we have the fullest confidence, and that he is innocent
of a carelessness in the execution of his duties toward the Bank, we sincerely hope.
But since there is no longer any question about the fact of an over-issue, he should
take an early occasion to tell the public all he knows about it.”
The State Treasurer has issued the following (under date of May 1) notice to the
note-holders of the Bank :
To the bill-holders of the Government Stock Bank of Ann Arbor. Under the
call for the surrender of the bills of this Bank, the sum of $95,420.25 has been
received at the Treasury Department, and the proceeds of the sale of the stocks held
bv the late State Treasurer amount to the sum of $39,060 — showing an over-issue
of $56,360.25.
It is evident that some gross fraud has been perpetrated, and in consequence of
such apparent fraud, the undersigned deems it his duty, for the protection of the
interests of the bill-holders, to defer the payment of the dividend advertised to be
paid on the 10th inst. until furthef notice. S. M. Holmes, State Treasurer.
Pennsylvania. — Of the diminished bank capital of Philadelphia, the
Daily Inquirer of that city says :
“ The banking capital of Pennsylvania has already been somewhat increased by
the existing Legislature. Such an increase was absolutely essential. According
to the official report, as made by the Auditor General, on the 9th January last, the
total capital stock of all the banks in Pennsylvania was $20,357,582 ; and of this
aggregate, Philadelphia had about $11,000,000. The total number of banks in the
city was sixteen, namely: the Bank of Pennsylvania, the Bank of North America,
the Commercial, the Fanners & Mechanics’, the Girard, the Southwark, the Bank
of Commerce, the Mechanics’, the Western, the Bank of the Northern Liberties, the
Bank of Penn Township, the Manufacturers & Mechanics’, the Tradesmen’s, and
the Bank of Germantown. Thirty years ago, and the same city had a capital of
about $45,000,000, including the Bank of the United States, which had a capital
of $36,000,000. Philadelphia was, therefore, the great monetary metropolis of the
Union, and it -was quite a common occurrence for our neighbors of New*- York and
elsewhere, to apply to this city for assistance in seasons of monetary pressure. The
change that has since taken place, must be regarded as most remarkable, and the
wonder is that we have gone forw ard so rapidly and with so few monetary facili-
ties, comparatively speaking. It is a remarkable fact that at this moment w*e have
not a bank in Pennsylvania with a capital as high as two millions of dollars. In
the olden times, the New-York politicians were jealous, and hence they entered into
a systematic effort, with the object of removing the money pow*er from Philadel-
phia to New-York.”
When men meet with misfortune or reverses, they are very apt to
attribute such to the neglect or the faults of others than to the real
causes, generally their own want of foresight or prudence. So with
the abstraction of capital from Pennsylvania. New-York had nothing
to do with it. New-York has grown by its own inherent forces,
whereas Philadelphia, by a singular combination of unfortunate cir-
cumstances and want of management, lost the lead in commercial and
financial affairs, and can never recover it. The geographical position
of New-York has made it and will maintain ilt— the great commercial
and financial centre of the Union.
Gck igle
Original from
UNIVERSITY OF CHICAGO
1855.]
Notes on the Money Market.
991
ttfotes on tfK JWones Ifcarftet.
New-York, May 30, 1855.
Exchange on London, at sixty days* sight, 10 a 10J per cent premium.
In completing the ninth volume of the Banker*' Magazine , it is proper to recur to the promi-
nent financial events that have marked the past year. There has probably been no one year, in
the history of this country, that has been marked with more extraordinary financial events. Both
Europe and the United States have witnessed, within the past twelve months, a rapid succession of
failures among the banking fraternity ; which have in turn convulsed the commercial community,
or at least that portion of it whieh was not well provided with working capital.
The year 1354 opened with an inflated state of affairs, financial and commercial. The currency
became rapidly expanded and without a proper basis of redemption. Prices were high, real estate*
in the large cities, commanded a large advance ; wages were exorbitant, and combinations of work-
men in several cities strove to obtain even higher wages. Speculation was rife in railroad
operations, and in the construction of new and competing concerns.
The first blow to this state of things was early in July last, when the frauds of Mr. Schuyler,
upon the New-York <fc New-Haven Railroad Company, were made known. This was followed
by a crash in the stock market, curtailment of bank loans, reduction of the currency in the West-
ern States, failures of numerous private bankers and banking institutions. Confidence for the
timo w'as lessened, and capitalists hugged their gold as if none wore to be trusted.
London and Liverpool, as well as the manufacturing districts of England, recorded numerous
failures of houses of long-established credit ; who, although possessed of large bona-fide capital,
were too extended in their business operations, to withstand the pressure arising from such an
extraordinary reduction in money facilities. Without Buch a sudden crisis, many of these firms
could have collected their assets and paid off their liabilities, and reserved a balance of profits; but
the demands of creditors forced many into bankruptcy, and their property was sacrifled without
paying their indebtedness.
The year 1S55 exhibits a gradual restoration of order, from the late chaos. Most commercial
firms have reduced their operations, abroad and at home; new railroad enterprises have been
abandoned for want of means. Real prdperty in cities, and rents, have receded in valne ; the
wages of all classes are materially reduced— money is extremely abundant in England as well as In
this country. In New’-York the quotations for loans are 5 a 7 per cent on call, and for strictly first-
class paper. The Bank of England, on the 5th April, reduced its rate of discount from 5 to 4 X per
cent, and again on the 8d instant to 4 per cent
Sufficient time has not yet elapsed for the recovery of stocks to the quotations recorded at the
close of our last volume. Baltimore & Ohio Railroad shares are now, as compared with the close
of May, 1854, reduced from 60 to 47. Erie Railroad from 69 to 50. Harlem and New-Haven Rail-
roads are still further reduced. In order to present the contrast in Its proper light, we annex a
summary of prices June 1, 1854, and June 1, 1655:
Balt. <fe Ohio R.R.,
June ,
1354.
60
June*
1855.
47
N. Y. Central R.R.,
June ,
1854.
104
June.
1S55.
98
Cine. H. A D.,
93
74
N. Y. A New-Haven, . . .
Cleveland A Toledo,
SI
Panama,
105
100
N. Y. A Erie B.R.,
70
50
Heading,
76
88
Galena A Chicago R.K., . .
128
91
Kentucky Sixes,
105
10*2
Harlem R.Rn
51
23
Tennessee 44
103
94
Hudson River,
65
40
Virginia, 44
106
93
Illinois Central,
118
98
Missouri, 44
105
94
Michigan Central,
104
88
Indiana State Fives,
93
85
Michigan Southern,
120
100
RAO. R.R. bonds,
64
In the Boston market, bank shares are, on an average, 4 to 6 per cent less than in Jane
, 1S54,
although the April dividends frilly demonstrate that they have a profitable business in hand. In
Digitized by
Gck igle
Original fro-m
UNIVERSITY OF CHICAGO
Digitized by
1
992
JYotes on the Money Market .
Philadelphia, where there is less competition in bank capital, and a larger business done in propor-
tion to the capital employed, their shares bear a premium of 20 a 40 per cent, being better prices
than are obtained for bank shares in any other city.
The loans proposed during the month of May have not been successful. That of the Virginia <fc
Tennessee R.R. Co., mentioned in our May No., was taken to the extent of only $62,000, at prices
ranging from 74 to 80.
The Brooklyn City loan, of $450,000 was offered at par ; but, strange to say, was not taken at the
time fixed, although it should bear as good a premium as that of New-York.
Of the New-York <fc Harlem B.R, Co. loan of $750,000, at seven per cent, the terms have not yet
transpired. A new Board of Directors has been chosen, of which Mr. Philo Hurd has been chosen
President, in place of Mr. Nicholas Dean, who resigned.
The receipts of gold from California are fully equal to the export to Europe, although the export
for the year is larger than during the corresponding period of 1858 and 1S54.
The financial position of Spain is fast approaching a crisis. The Epoca of the 25tli April, says
that some English capitalists have proposed to advance between 500,000,000 and 600,000, 000 reals
to the government, on the condition that a certain class of coupons should be recognized : but it
declares that the government could not consent to the condition. The diminution which the com-
mittee on the budget proposes to make in the estimates of the government docs not exceed
30,000,000 reals.
The changes in the minimum rate of discount charged by the Bank of England, may be stated as
follows for the past four years:
24 per cent. Jan. 20, 1S58,
8 “ June 2, 44 .
Sept 1, 44
Nov. 22, 1*40,
Dec. 26,1*50,
Jan. 2,1*52, 2>$
April 22, 44 2
Jan. 6,1*53, 24
44 14 15, 44
u u 29 u
.8 percent May
,84 44 Aug.
.4 44 April
Ax 44 May
.6 14
11, 1854, 5,4 per cent
8, 44 5
5,1855, 44 44
3, 44 4 44
In April, 1*53, three per cent consols had reached 101, being the highest quotation of the year,
the lowest being in the month of September, 90^. In the year 1854* the highest price obtained
was 954, (October,) and the lowest (March) 854.
The New-York bank statement shows a liberal increase of loans and means since the opening of
the year. We annex the leading items for the first week of each month,/mc*«<m« omitted :
loan*. Sped e. Circulation . Deposit*. Treasury
Jan., $82,244,000 $13,596,000 $7,049 000 $64,9S2,000 $2,008,000
Feb., 88,145,000 17,439,000 7,000,000 72,923,000 8,798,000
March, 92,386,000 16,581,000 7,106,000 75,958,000 4,58^000
April, 94,490,000 14,968,000 7,771,000 77,312,000 8,445.000
May, 93,098,000 14,825,000 8,087,000 78,214,000 2,241.000
June, 91,160,000 15,814,000 7,489,000 75,765,000 1,261.000
The superabundance of money continues, and has given a further Impetus to stock values in Wall
street. This improvement applies not only to the fancy shares, but to the more solid ones also.
State loans are in steady demand, with sales of Missouri Six per Cents at 94; Tennessee, at 93 :
Virginia, 9*4 a 99. We have no donbt that these with the Six per cents, bonds of North-Caro-
lina, Georgia, and Louisiana, will steadily improve, and soon be quoted at a premium.
Railroad shares are getting more in favor, as it is well known that a thorough reform has been
commenced, and will be maintained in the management of our leading roads, whereby their finan-
ces will be placed upon a more substantial footing as regards running expenses, floating and funded
debts, and their business details generally. The market, although essentially changed from the
features of last fall and winter, is still far below the quotations prevailing twelve months agtx Only
one company shows a better price, and this is the Reading, being quoted at S94, against 76 a 7S in
May, 1854. This advance is fully authorized by the improved condition of the Company's affairs.
Gck igle
Original from
UNIVERSITY OF CHICAGO
Banks of the United States,
993
BANKS OF THE UNITED STATES.
LOCATION, PRESIDENT, CASHIER, AND CAPITAL OF EACn.
JUNE, 1855.
Location .
Augusta,....
Name of Bank .
Bangor,
Bath,
Belfast,
Biddeford.. . . .
Brunswick,. ••
Bucksport, —
Calais,
China,
Damariscotia,.
Eastport,
Ellsworth,...
«•
Farmington,...
Gardiner......
Hallowell,.',
Kennehunk,...
Lewiston,. . . .
Newcastle,....
Old Town,....
Orono,
Portland,
Richmond,.
Rockland, .
Baco
14
Sanford
Scarsuort,. . .
Skownegan,,
8. Berwick,..
Tlioimtstou,. .
Topsham,. . .
Waldoboro,...
Augusta Bank,
Freeman’s Bank,.. .
Jrauite B ink,
State Bank,
Eastern Bank,
Exchange Bank,...
Grocers’ Bank
Kendnskeng Bank,.
Mark '»i Bank,
Mercantile Bank,..
Merchants’ Bank,. .
Venzie Bank, <.
Bk. ol* the State of Me.,|
Traders’ Bank,
M aritime Bank,
City Bank,
Fanners’ Bank,
Commercial Bank,...
Lincoln Bank,
Sngmlnhock Bank,...
Citv Bank,
Bank of Commerce,.
Belfast Bank,. ......
Biddeford Bank......
Brunswick Bank,.. . . .
Union Bank,
Bucksport Bank,
Calais Bank,
China Bank,
Marine Bank,
Frontier Bank,.
Ellsworth Bank, .....
Hancock Bank,..
Handy River Bank,. . .
Gardiner Bank,. . . *.
Cobhossee Coulee Bank,
Northern Bank,.
Bank ol Hallowell,
American Bank,
Ocean Bank,
Lewiston Falls Bank, .
:\ew Castle Bank,....r.
Lumbermans’ Bank,....
Orono Bank,
Atlantic Bank.........
Bank of Cumberland,.
Canal Bank,
Casco Bank,. . ... .... .
Manufacture &. Trad’rs ,
Merchants’ Batik,...*..
Richmond Bank.
Lime Rock Bank,. . . . • .
North Bank,
Rockland Bank......
Manuihcturers Bank,...
Vork Bank.............
Mous&m River Bank,...
Searsport Bank,
Skowliegnn Bank,
Bank of Somerset........
.South Berwick Bank,...
Thomoston Bank,
George* Bank
MAINE.
President.
Thomas VV. Smith,....4
Benjamin Davis,
William A. Brooks,....
Geo. W. Sianley,
Amos M. Roberts,
Joseph B. Foster,
Win. H. Brettan,
George W. Pickering,..
Sam. F. Hersev,
Samuel Farrar,
W. A. Blake
Samuel Veazie,
Leonard March,
Waller Brown,
Isaac Farrar,
E. G. Raw'son,
James Dunning,
William L>. He wall,. ..
George F. Patten,
Thoum* I). Robinson,..
J. H. M'Clellan
H. O. Aldcn,
Thomas Marshall,
William P. Haines,. .. .
Richard T. Dunlap,....
Joseph McKean,
E. Barnard,
George Downes, i
Watervllle,...
Winthrop,..
Wiscasset,.
Androscoggin Bank,...
Meitomak Bank.
Waldoboro Bank,
Ticonic Bank...
Walervilte Bank
Bank of Winthrop,
Mariners’ Bank. -
Total 63 Banks .
H. Healev.
Beni. D. Metcalf,
William M. Brooks,....
Seth Tisdale,
George W Brown
Samuel Belcher,
Samuel C. Grant,
Edward Swan,
Franklin Glazier,
Artemas Leonard,
E. E. Rice
Joseph Titcoinb,
James Lowell,
A. S. Austin
W. II. Smith,
Naili. H. Allen,
John M. Wood.........
William Moulton,.... . .
William W. Thomas,..
EliphaletGreely,
Rufus Horton
William Woodbury,..
William Patten,
Knott Crockett,. ....
John Bird
A. II. Kimball,
Tristam Jordan, Jr.,..
Daniel Cleaves,
N. D. Appleton,
Jeremiah Merilliew,..
Abner Coburn,
William Rowell,
Theodore F. Jewett, .
Richard Robinson,
Edward O’Brien I
Cl arles Thompson
James Hovey,
Isaac Reed..........
Timothv Boutelle,
Samuel P. Shaw,.,
C. M. Bailey,
Henry Clark,
Cashier . Cajntal .
Joseph J.Eveleth. $S8,U 0
Daniel Pike, 75,ouO
Silas Leonard, 'JJ.i/OJ
Win. R. Smith, 100,i*)J
William H. Mills, 1*M.W>
Edwin Clark,
R. S. Morrison 7o,U00
Theodore S. Dodd, IWW
J. H. Butler, 7a,UtX)
John 8. Ricker, SO.uod
M. T. Stickney, lOU.'JUd
W. J. Lord, mum*
William S. Dennett,. . . . 250, UK)
Ehenezer Tra^k, Imbb U
Charles H.Thaxter, 75, UX)
Samuel A. Gilman, 1UMKM
William H. Parsons,.... IttMXX)
D. N.Magoun, lOOjmo
John Shaw, 2l>U,tiW
Daniel F. Baker, 100,000
Otis Kimball U5.IMX
C. P i 75,1)0)
Nathaniel H. Bradbury,. 7o,0U0
Seth S. Fairlleld,. 1*W<W
John Rogers, b»,00U
Augustus C. Robbins,.. 75, OOP
E. Swazey fiO.OuO
F. K. Swan, 100.1X 0
Z. Washburn, 60,000
B. F. Shaw, 5o,UX)
Enoch J. Noyes. 7d,iOO
James H. Chamberlain,. 125,000
G. B. Hopkins 50.000
Thomas G. Jones, 50,000
James F. Patterson,. .. . loo.oou
Joseph Adams, 100,000
Ichabod Nutter
A. J Washburn, IttbUM
A. H. Howard, 75, WX)
Chris. Littlefield 50,000
Albert II. Small £00 000
Thuddeus Weeks, «),000
E. B. Bierce, 50,oo0
E. P. Butler 50,000
William II. Stephenson, 2oi),ooO
Samuel Small, Jr £00,000
.1 osi all B. Scott, 6uO,tX«0
Edward P. Gerrish 500.000
Edward Gould 15., oo<>
Charles Oxnard, 0
F. R. Theobald, 75,00u
A. D. Nichols, 1 Oo.OUti
S. N. Hatch, 60,000
William H Tltcornb,... 150,000
Tristam Sea mm on, .... liKMJOO
John C. Bradbury, luO.mm
W. C. Stnrhuck, 50,000
John II. Lane 5o,0 0
Wm. Philhrick 75.000
R. Kidder 50,000
Edward Hayuinu, 100,1*00
John D. Barnard 5o,Ooo
S. E. Smith 50,000
John Coburn, 5o,dOO
George Alien, 5o,<*u>
B. B. Haskell, 50, UU)
Edward G. Hoag 100.HM
Augustus Perkins, lUUM)
David Stanley, 50,000
S. P. Baker, 60. WW
Circulation 85,600,000.
Specie $1,025,000. Capitate, 300,000
Digitized by
Gck igle
Original from
UNIVERSITY OF CHICAGO
Digitized by
991
New Hampshire — Boston.
NEW HAMPSHIRE.
Location . Name a f Bank .
Claremont Claremont Bank,
Cliarlextown,.. Connecticut River Bk.,..
Concord, Mechanic*’ Bunk,. .....
44 Memmae County Bk.,..
44 State Capital Bank
Dover, Strafford Bank,
*4 - Dover Bank
** I Cochecpo Bank,
44 Langdon Bank,
E«*t Jeffrey,.. J Momulnoc Bank,
Epping, Pawtuckawav Bank. . . .
Exeter, Granite StaieBank,. . . . Mosei Sanborn,
Farmington,...., lorn tint Ion Bank, 'Hiram Barker,..
Krancestown,..' Frnncestnwn Bank I Daniel Fuller, .
Hampton Fall*,! Wean* Bank, Mow Eaton. Jr.
President.
Ambrose Cosaltt
Bam ue I Webber,
Joseph M. Harper,
Francis N. Fisk,
8. Butterfield,
William Woodman,....
Joseph IT. Smith
Thomas Stack pole,
A. Pierce, Jr.,
John Cnnant,
J. H. Pearson,
Capital.
imjmn
w,oio
l«t.nuu
Mi.tlD
I5n.«w
I a i, no
loo.nno
F.rekiel Hurd i m».nm
Caskter.
George N. Farwell,
Genre e Olcott,
George Minot,
Ehenexer 8. Towle,. . .
Edson Hill
Asa A. Tulls
Thomas I,. Smith,
Keene,.
Lancaster,.,
Lebanon,. ..
Manchester,..
Meredith,...,
Nashua.
Nashville,. . .
New Ipswich,..
Ashuelot Bank,
Cheshire Bank,
Lancaster Bank.
W hite Mountain Bank,;
Lebanon Bank
Ainoskcag Bank, .......
Manchester Bank,
Citv Bank
Belknap County Bank,.
Nnshun Bank,
Indian Head Hank,
New Ipswich Bank,. . .
Newport, ] Sugar River Bank
Peterboro,
Pittsfield,
Portsmouth,.. .
Rochester,.. . .
Rollinslord, . .
Sanbomton,...
Sandwich. ...
gr.mersworth,.
Wnrner
Winchester,..
Wolf boro,
8 Kilby street,
g „ ••
83 State street,
65 M
Blacfcstone st.,
48 State street,
Iloylsloii »t.,
61 State «lreet,
South Boston, .
34 Slate street,
70 ••
23 Kilhy 44
28 Stale 44
43 S. Market st.,
28 Sea sired,
22 Stale street,
61 44
70 44 M
66 •'
27 44
l Merch’tsEx.,
66 State street,
East Boston,...
95 Dorches’r Av
28 St ite street,
40 44
67 44 44
Merch'tsExch.,
41 State street,
13 Kilby 44
4 State 44
60 44 “
91 44
4) 44 M
40 44
*35 44 44
13 Exchange st.,
Peterborough Bank,...
Pitt* field Bank,
Mechanics* Traders’,
Piscaiftqua Exch’nge B.,i Wm. II. Y. Ilackelt,... .
Thomas M. Edwards,...;
John Elliot I
Royal Joslyu
James B. Sumner,
Robert Kim hall,
Richard II. Ayer
James 11. Parker
J. C. Flanders,
Warren Lovell,
Isaac Spalding,
William D. Reason,
Jonas M. Melville
Ralph Metcalf,
A. C. Cochran,
John L. Thornnike,
Richard Jennews,
C. Hale,
IVter l pfon
Charles W. Sargent,...
Samuel H. Steven*,...
John 1). Lvman,
Paul H Bixby
John W. Dodge
Thomas IL Leverelt,..
Zehinn Newell
George A. Cossitt
George C. W’illiams, ..
James IL Kendrick,...
Moody Currier
Nathan Parker,
Rockingham Bank
Rochester Hank,
Salmon Falls Bank,. .. .
Citizens* Bank,
Carroll County Bank,..
Great Falls Bank,
Warner Bank,
Winchester Bank,
Lake Bank,
Total 38 Banks.
Jonathan M.Tredick,..
John McDuffie,
H. R. Roberts,
A. P Kate,
Daniel Hoit
John A. Burleigh,. . .
Joshun George,
Henry
J. M. Brackett,
Circulation $3,000,000.
BOSTON.
Atlantic Bank,..^...
Atlas Bank,
Bank of Commerce, ....
Ban k of N . A merica,.. . . |
Hlarkstone Bank,
Boston Bank
Hoylston Bank,
City Bank,
Broadway Bank...
Columbian Bank,
Ea«le Bank,
Eliot Bank.
Exchange Bank,
Faneuil Hall Bank,
Freeman’s Bank,
Globe Bank
Granite Bank,
Grocers* Bank,
Hamilton Bank,
Howard Ranking Co
Market Bank
* asaachiisdH Bank,...
Maverick Bank,
Mechanics' Hank,
Merchant*’ Bank,
National Bank.
New England Bank,....
North Bank,
Shawmut Bank. i
Shoe* leather Dealers’,]
State Bank,
Suffolk Brink
Traders’ Bank,
Trpmont Bank......
Union Brink,
Washington Bank,..
Webster Bank,
Nathaniel Harris,
Charle* H. Brown,....
Benjamin E. Bale*,.. ..
Geurce W. Crockett...
Frederick Gould,
Robert Hooper,
William Parker.
W'illiam T. Andrews,.
John Tilleon,
John G. Torrey,
W aldo Flint,
William A. Howe,
George W. Thayer,...
Nathan Robbins,
Salomon Piper,
Ignatius Sargent.......
Alphem Hardy
Samuel G. Reed
Daniel Denny,
Charles Ellis
Joaiah Stickney,
John J. Dixxvcil,
Samuel Hall
James W. Converse,..
Franklin Haven,
John II. Wilkins
Thomas Lamb,
Oliver Eldredge
William Bramh&ll,
Enoch Baldwin,
Samuel Frothinghatn,.
J. Amory Davi*,
Isaac Parker, #..
Andrew T. Hall,
Almon D. Hodges,....
William Thomas,
loo .non
50,000
l25.uo
80,0(0
50,000
1IVI.U0
lUUOl
5n.(ifl
504*0
lftUfll
I5n.nw
l?5.n*)
E.’VV. Harrington j ItJJ.jsO
1254(0
WWW
I0WO)
50/W
50/00
*0,(10
141.1**1
2U',dO
aw®
8R400
504T0
SO/**1
15(1,1*0
50.(10
1(11.(00
50/00
|*V66,(fO
N. B. Gale,. .
John M. Hunt,..
A. McKean,
George Barrett.. .
Paul J. Wheeler, .
C. G. Cheney
John L. French, .
.lames F Shore*,.
Samuel Lord, ...
John J. Pickerinit
Franklin McDuffie
W. ||. Morton... .
Charles Minot,. ..
Siephen Hede,....
David 11. Buflum
Francis " ilkins,.
Erastu* Snow,...
Abel Haley,
Total 37 Banks. 1 Circulation $7,600,000.
Specie $180,000. Capital
Benjamin Dodd
Joseph White
Caleb lienrv Warner,,..
John K Hall,
Joshua Loring.
James 4 \ W ild,
John J. Soreu
Charles C. Parry
Horace IL While,
Albert Drake,
Robert 8 Covill
R. L. Day,
Joseph M. Mar*h
Jonas Bennett,
Jeremy Drake
Charles Spragiif,
Archibald Foster
Pliny E. Kingman
Oti* Tun
Stephen Bh> tlett,
Jonathan Prown, Jr...
Janies Dodd
Calvin 8. Lane,
A Ivan Simoi
John K. Fuller,
Charles B. Hall,
Seth Puttee.
John B. Wliherhee, ...
Stephen G Davis,...
Samuel Carr,
James Sivret,
Edward Tyler,
Jeremiah Gore,
A. T. Frothinabam,.
Lemuel Gulliver,...
Charles A. Putnam,.
Solomon Lincoln, —
Spcit $3 ,200,000. CopVf1
f.rr.,r(0
40
Twnr
4,(W»4*«
75ii, (10^
nrrirnr
\ fv.no
I /MV®
|,M<V®
i5««v®
0*W®
|,2:*M®
l/WM®
urwfii)
Gck 'gle
Original from
UNIVERSITY OF CfflCAGO
Massachusetts.
905
Location .
AhiHfton,
AruJ«*Ver,
Athol,
Attleborough,.
Beverly,
Blackatone, . . .
Brighton,
•*
Cambridge,.. .
Cambridgep’rt,
Clinton,
Charlestown,..
««
Chelsea,
Chicopee,
Concord,
Conway
Danvers,
Name of Bank .
Dedham,
Dorchester, . .
Fairhaven, ...
Fail River, ...
• • «,
•« «<
Fitchburg,....
Framingham,..
Falmouth
Gloucester, . . .
Grafton,
Gr’t Barring ’in
Greenfield
M
Haverhill,
Bingham,....
Holiialon,
Holyoke,
Hopkiiilou,...
Lancaster,....
Lawrence,....
Lee,
Leicester, ....
Lowell,
Malden,
Marblehead,. ..
Methuen,
Milibury,
Millord,
Mot. boh,
Nanluckt t
N. Bridgewater
Newbury port,.
Abington Bank,
Andover Bank,
Miller1* River Bank
Attleborough Bank
Ileverlv Bank
Bass River Bank
Worcester County Bk.,
Bank of Brighton,
Brighton Market Bank,..
Charles River Bank,....
Market Bank,....
Cambridge City Bank,. .
Lech mere Bank
Cambridge Bank,
Neponaet Bank,
Bunker llill Bank,
Monument Bank,
Tradesman's Bank,
Cabot Bank,
Concord Bank,
Conway Bank,. ........
Danvers B oik,
Village Bank,
Warren Bank
Dedham Bank,
Blue llill Bank,.
Matlapan Bank
Fairhaven Bank,
Fall River Bank,
Ma»»asoil Bank,..
Metiicoinel Bank,
Fitchburg Bank,
Rollstone Bank,
Framingham Bank,....
Falmouth Bank
Gloucester Bank,
Grafton Bank,
Mahawie Bank,
Franklin County Bank,.
Greenfield Bank,
Haverhill Bank
Merrimac Bank,
Union Bank,
Essex Bauk,
Ilitigham Bank,
Hollitdon Bank,
Hadley Falls Bank,
Hopkinton Bank,
Lancaster Hank,
Bay Slate Hank,
Fcmherton Bank,
Lee Bank,
Leicester Bank,
Appleton Bank,
Lowell Bank,
Merchant*’ Bank,
Prescott Bank,
Railroad Bank
Wamesit Bank,
Laighton Bank,
City Bank,,
Lvnn Mechanics* Bank,.
Malden Bank,
New Bedford,.
Newton,
Northampton,.
North Adam*,.
Northborouih,
Oxford
Pittsfield,
••
Plymouth,
Grand Bank,
Marblehead Bank......
Spickel Falls Bank
Milibury Bank,
Millord Batik,
Motion Bank,
Pacific Bank,
N . Bridgewater Bank, . .
Mechanics’ Bank,
Merchants* Bank,
Ocean Bank,
Bedford Commercial,..
Marine Bank,
Mechanics’ Bank,
Merchants’ Bank,
Newton Bank,
Holyoke Bank.
Northampton Bank,... .
Adams Bank,
Northboro’ Bank,..
Oxford Bank,
Agricultural Bank,
Pittsfield Bank,
Old Colony Bank,
Plymouth Bank,
MASSACHUSETTS.
President,
Aroph Dunbar J. N. Farrar,
Samuel Farrar Francis Cogswell
John Boynton, M. E. Ainaworth,
Laban M. W henton,. ... II . N. Richardson,. . . .
Albert Thorndike Robert G. Bennett,...
Henry Kilfield, Jonathan Nichol*
Henry tv Mansfield M. Farnum
, . Spurhawk,. . . . Robert N. Woodworth,
Lite Baldwin R. E. Grave*
Charles C. Little........ John B. Dana
Geo. W. Lewis, C. W. Kingsley,
John Livermore, Edward Richardson,. . .
Lewis Hall, John Savage, Jr.,
Thomas W hit teniore... Lucius R. Paige,
Charles!!. French F. W. l)e> ne
David De vena, Thomas Marshall,
Peter Hub r I Geo«e L. Foot,
Isaac fitch bins, William R. Pearniain,.
Jerome Wells, Henry H. Harris,
Daniel Bhattuck John M. Cheney
L. Bod til an, Jr., Wrn. B. Hale
Eben Sutton a George A. Osborne,. . .
Mueea Putnam, William L. Weston,..
Elijah W. Upton, Francis Baker
Jeremy Stimson, L H. Kingsbury
il.leiiiule, Edward J. Bispham,..
Edward King William B. Brooks,...
Ezekiel Sawin, Reuben Nye,
David Anthony, Henry II Fish
Israel Bufimtou, |>eander Borden
J. Borden,.. A. S. Trippe
f rancs Perking, Ebenezer Torrey,
Mows Wood Louis H. Bradford
hu II iv an Fay, Francis Jnques,
John Jenkins, Samuel P. Bourne,
\***S gomes, John J. Babson
J. W. Hlocum, J Cary,..
Wilber Curtis, William Bostwick.V.*.*.'
Henry W. Cushman,. . . Edwin Maynard
Henry W.C app, Franklin Ripley
John A. Apple ion, James E. Gale,
tj. J. ■*. Hale,.... Eleazar A. Porter,....
George Cogswell, James Noyes,
Janie. G«le. ...... William Ualdwell,.
Nathaniel Richard* John O.Lovelt,. ... ..
Win. S. Baldieldcr Rufus F. Brewer
RnfusD.Woud., Charles W. Raulei,...
Vs0 Pl"fl'n James S. Tilraion......
J»co1; Caleb T. Svnilne*
Charles S. Slorrow Nathaniel While
U vi SniMiie,. Ssm’l C. Woodward,. . .
Leonard Church Kdw-ard A. Mils*,. . . . .
Cheney Hatch,. Ilsnlel E. Merriam,...
John A. Know- les, John A. Buttrick,
Nathaniel Wright J. L. Ordway,...
HarinPilbbury Ellphalet Hill*,
J oel Adams, A nemos 8- Tyler
garnuel W. Stickney,. . . John F. Rogera
Horace Howard, John H. Buttrick,
F.9. Newhall, E. W Mudge
J°h,n C. Abbott, Beni. V. French, Jr.,...
Isatah Breed, William Bassett
John G Webster, Charles Merrill,
Knott Martm J. p. TiTtier
John Hooper, Samuel 8. Trcfry
J. W. Carlton, G. Foot,
Simon Farnsworth,.... D. Atwood
Rufus Brewer,
W. N. Fiynl, J. R. Flynt,
J**hn W Barrett William Mitchell, *.*.?.*.*
Martin Wales, Rufus P. Kigman,
Josiah Little, John Andrews,
ti?¥fyJotn,on» Gyles P. Slone,
William Stone, Jacob Stone,
Edw. Mott Robinson, .. Thomas B. White,....
Joseph Grinned John P Barker
Capital .
Thomas Mandril, Joseph Caff don,
Gharles K. Tucker, James B. Congdon,. . .
Levi Thaxter, Daniel Kingsley,
John Clarke, Thomas Green,.
Ehphalet Williams,.... Charles White,.
Duly 8. Tyler, William E. Drayton,..
George C. Davis, A. W. Sea ver,..
•John Welherell, Alvan G. Underwood,.
G. W. Campbell, John R. VA amner,
«*’ • • v J D. Adams,
Jacob H. Loud,, Geo. G. Dyer.
l"“c L. Hedge,. Isaac N. Stoddard,
Original from
UNIVERSITY OF CHICAGO
1
Digitized by
i
\
V
096
Massach usetts — Prov idence.
location.
Provincetown,.
4mitcy,
Randolph,.
Kockport, .
Roxbury, . .
Salem,.. . .
Salisbury,..
Sprmglield,
ft uithbridgp, . .
South Reading
Storkbridge,.. .
Tauutou
Townsend,..
Uxbridge, ..
Ware
Waltham, ....
Wareham, . . . .
Westfield,..
Weymouth, . ..
Woburn,
Worcester,. . . .
Home a f Bank.
Provincetown Bank,....!
Quincy Stone Bank.. . . .
Mt. Wollaston Bank,...!
Randolph Bank, 1
Rockuort Bank, j
People'* Bank.
Rockland Bank
Asiatic Bank,.
Commercial Bank,
Exchange Bank, 1
Mercantile Bank, 1
Merchants’ Bank,. .....
Naumkeag Bank,
Salem Bank,
Powow River Bank,. . .
Pynchon Bank,
Agawam Bank
Chicopee Bank,
John Hancock Bank,...
Springfield Bank,
Western Bank,
ftouthbridge Bank,
South Reading Bank,...
Ilousalonic Bunk,*
Bristol County Bank,...
Machinists’ Bank,
Taunton Bank,
Townsend Bank.
lilackstone Hank,
Hampshire Manufact’n*,
Waltham Bank,
Wareham Bank,
Westfield Bank,
Hampden Bank,
Union Bank of W & B.,
Woburn Bank,...
Citizeu’ii Bank,..
Centra! Hank,...
City Bank.
Mechanics’ Bank,
Wrentham, • . .
Yarmouth Port,
2i Market *Q.,.
56 Broad-st.,.. .
48 Broad at
N. Main »t
48 Broad at.,...
Market square,
4 J Westminst’r,
6 What-cheer,..]
Broad -si. . . .
41 Westminsl’r,
143 S’tli Main...,
5 What-cheer...
23 Mark’t Su’re,
45 Westminst’r,
27 S’th Main,.. .
32 Westminsl’r,
154 High street,
Broad st„ . . . . .
Hid iiainu) uniini
Quinsigamond Bank,...
Worcester Bank,
Wrenthain Bank,
Barnstable Bank,
President.
Nathan Freeman, !
Josiah Brigham,
Charles F. Adams,
Royal Turner,
E. Eame*,
Samuel Guild
Samuel Walker,
Joseph S. ('ahot
William Sutton,
Gideon Tucker
John Dwyer,
Benjamin H. Silsbee,...
David Pingrce,..
George Peabody,
Seth Clark,
H. N. Case
Albert Morgan,
Philo F. Wilcox, ,
James M. Thompson,.. .1
Benjamin Day ‘
Caleb Rice
Jacob Edwards, Jr.,. . . .
T. Emerson,
C. M. Owen
Theodore Dealt,
William Mason,
I. nvetl Morse,
W alter Fessenden,
Paul Whiting
Orrin Sage,
Charles Bemls
J. B. Tobey,
W. G. Bates
E. B.Gilletl
Benjamin King,. ..
A hi mh Thompson,
Frnncis T. Merrick,. . . .
Thomas Kinnicutt,. . . .
Geo. W. Richardson,...
Alexnrder DeWitt,...
Isaac Davis,
Stephen Salisbury,
D. A. Cook,
Isaiah Crowell,...
Cashier.
Elijah1 Smith......
John C. Randall,.
Total 131 Banks .
21 Westminst'r,
20; N’rth Main,
27 8’th Main,...
Westminster *t.
13 Union Build.,
11 Mark’lSa're,
41 Westminst’r,
What-cheerBg.
48 S’lh Main,.. .
23 Mark’t Si re,
What-cheerBg.
32 Westminst’r,
10 Union Build.,!
4
Gti W estminster
53 Westminster]
4 Union Build., j
American Bank,...
Arcade Bank
Atlantic Bank,
Atlas Bank,
Rank of America, .
Hank of Commerce
Bank of N’rth America,,
lilackstone Canal Bk.,.
Butchers’ and Drovers,
City Bank
Commercial Bank,....
Continental Bank,
Eagle Bank
Exchange Bank,
Globe Bank,
Grocers’ and Producers’.
High Street Bank,.
Jackson Bank,
Liberty Bank,
Manufacturers’ Bank...]
Mechanics At ManYact’rsi
Mechanics’ Bank, [
Mercantile Bank, I
Merchants* Bank
Mount Vernon Bank,.
National Bank. I
Pawluxet Bank, !
Phenix Bank, I
Providence Bank,
Ro#r Williams’ Hank,.
S nithfleld Lime Rock,..
State Bank
Traders’ Bank,
Union Bank
West minster Bank,
Weybosset Hank,
What-cheer Bank,
Lewis Congdon,
Seth Turner,
J. R. Gott
Bainan Stone
Samuel Little,
William H. Foster,...
Ed w nrd H . P Hyson, . . .
J. ('had wick
Joseph II. Phippen,
Nathaniel B. Perkins,. .
J. Hardy Tnwnr,
Charles M. Endicolt,. . .
John B. Webster,
II. Alexanner, Jr.,
Frederick ft. Bailey
Benjamin F. Warner...
Edmund D. Chapin,
Lewis Wnrriiier,...
J. L. Warriner,
Samuel M. Lane,. ..
L. Eaton,
I). R. Williams,. .. .
William Mnem*cher.. . .
Charles R. Vickery,. . . .
Charles J. H. Bassett,. .
Edward Ordway,
Ebeiiczer v\ . Hayward,.
William Hvde,..
D. A. Kimball,...
Thomas R. Miles,
Henry Hooker,.. .
R. Weller
John W Loud,..
E. J. Jenks
George A. Trumbull,. . .
G. F. Hartshorn,.
Parley Hammond,.
Scott Berry,
J. 8. Farnum,
William Cross,...
Calvin Fisher, Jr.,
Amos Otis,
Circulation $15,000,000.
PROVIDENCE, R. I.
Specie $1,100,000. CapiCl
Capita r.
100.000
l-o.n*)
ItJO.JX#
170,(1 Ml
I'n.nOO
150,1 a 0
150.100
21<U*K)
210.00
Lm.Hfi
50M4*I
230.000
Itj0.iV*>
150.0*1
iO'.OJO
3tO.(<o
15U.MO
aoo.iviri
2.51.00
l.Vwtm
Uki.ono
I.Vi.OO
.Vai dm
r<*uoi
3s>,tn»
UXMV0
101.00
2*41,00
ioo/to
101,00
150.00
1 50.1 <0
150.(00
jro.rco
1 >1.0*1
3'4:.00
10)0 l)
350,110
2.3(1,00
3o<f(«0
35P.OUO
25,556/10
Shubnel Hutchins,
Earl P. Ma«on,
Hiram hill,
Henrv J. Angel!,
Adnah ftackelt,
Amos D. Smith,
Elisha Harris,
Tully D. Bowen,
B. B. Knight,
A. C. Barstoxv
William P. Bullock,...
Rhodes B. Chnptnan,...
W. Sheldon,
John Barsiow,
William ftprague,. . .
A. B. Dike
Robert Knight,
Eli \ ylcs worth,
D. Evans, .]
Thomas Darkness,
James H. Read,
AmasaManton
W. W. Updike
Josiah Chapin,
II. Whitman,
Gcorec W. Mallet,
< ’hristopher Rhodes,. . .
Edward Pearce,
Moses B. Ives,
Jxbez C. Knight,
Thomas .J. Hill,
John P. Merriam,
Esrl Carpenter,
John II. Ormshee,
David Sisson,
Alexander F. Adie,
Henry A. Hidden,
1, C00.ro »
101.311
11* ',0X1
! 5* 1.1*10
I,( bO.oX)
M) • (Mt
5<in,<|un
21 \3 0
*xrk.<x*)
H.VV' CO
222.950
5f*»,UVi
5UI.OIQ
Us, CM
120,0 0
17(1.0)0
1 00.000
500 (M)
255/0)
ltojno
500.000
6'VCO
lGn.OO
1 rO.tr 0
:ton,i vm
500,rttt
500,(4)0
22b, 7 IX)
150 <<V)
CtU.tOO
500, (VO
101,100
445,150
100.0U0
Total 37 Banks. I Circulation $3,100,000. 1 Specie $200,000. Capitals 15596, 4 60
8. K. Rftthhone
Benjamin W. Ham,.
O. M. Stone,
Harvey F. Payton
E. N . Davis,
Joseph H. Bourn,
Henry E Hudson,
John Luther,
William Knight
Amos W. ftn w,
David Andrew's,
A. G. Durfee,
Stephens Wardwel!,..
Henry G. Gladding,....
John L. Novc*
William J. Dexter,
James E. Butts
J. A. Bos worth,
C. R Drown
Williams Patten,
A. G. Stillwell
John A. Field,
A. Potter,
* ugusttts M. Tower.. . .
Raymond G. Place,
Henry C. Cranston,
T. R. Green
Benjamin White,
C L. Boxvler,
W. II. Waterman,
J. VV. Angell,
T. H. Rhodes,
Henry’ A. Wehh,
Jam» s B. Hoskins,
F. W. Anthony,
Luke Green
Albert C. Greene,
Gck igle
Original from
I IMIVFPCJ-rv f-, -
Rhode Island — Connecticut ,
997
location .
Name a/* Bank .
RHODE ISLAND.
President.
Bristol,
Burrillvilc,.. . .
Cranston,. .. .
Coventry,. .. .
(I
Cumberland. .
E. Greenwich,
14
Exeter,
Ulooester,. . . .
Newport, . .. .
South Kingst’n,
N’rih Kingsl’n,
44 It
N. ProvUPnce,.
Scituate,
Smiilificld, . . . .
Tiverton,
Wakefield,...
i4
44
Warren,
Warwick,
Westerly,
14
44
W’oonsocket,. .
Bethel,
Birmingham,. ,
Bridgeport
Brooklyn,.,
Danbury,. ,
Deep River,. . ,
East H add am,.
44
Falls Village,..
Hnitrord,
Jewett City,..
Meriden
Middletown,..
Bank of Bristol,
Commercial bank,
Eagle bank
Freeman’s bank,
Granite bank,
Cranston bank,
Elmwood Bank,.
Kent Bank,
Coventry bank,
Cumberland Bank,. . . . .
Rhode Island Central,. .
K. I. Exchange bank,.. .
Exeter bank,
Franklin Hank,
Merchants' bank,
New Eng. Commercial,
Newport bank
Newport Exchange B.,.
Aijuidneck Bank
Rhode 1. Union Bank,.,
bank of Rhode Island,.
Traders’ bank,
Landholders’ Bank,
North Kinrstown bank,
Narragansetl bank,....
New E g. Pacific Uk.,..
North Providence bk.,.
People’s bank,
Citizens’ Union bank,..
Globe bank,
Snithfiehi Exchange,...
Village bank,
F all River Umon Bk.,.. .
Poca*»et bank,
bank of the South Co ,.
Peoples’ Exchange b’k.,
Wakefield bank,
Hope bank
Warren Bank
Centreville Bank,
Warwick Bank
Phoenix bank,
Washington bank,
Ilopkintou bank
Niantic bank,
Railroad bank,
Producers’ bank
Woonsocket Falls bk.,.
Citizens’ bank*
Smithfield Union Bk.,..
Total 50 Banks.
Byron Diman,. ...
Jacob Uabhil,.. . . .,
Robert Rovers,...
Nathuniel bullock,
I). M. Salisbury
Caleb Congdon,
W. V. l)a boll,
Peleg Wilbur,
C. A. Whitman,
Davis Cook,
J. barker,
J. B. Peirce,
Christopher C. Greene,.
Horace Kimball,
S. H. Cottrell,
George Bowen,
William Vernon,
Nathan ilarnmet,
Rufus B. Kinsley
Charles Devens
Peh*4f Clarke,
Edwin Wilbur,
Elisha R. Poller,
John J. Reynolds,
Ezra D. Davis..
Joseph Metcalte '
G L. Spencer,
S. Benedict......
I-nac Saunders
Spencer Mowry,
Elisha Smith,
William S. Slater,. . ....
Nathaniel B. Bunion, ...
< River Chace,
John Thompson,
Carder Hazard,
Silvester Robinson,
C. B. Smith,
Nathan M. Wheaton,..’
Cyrus Harris j
William l). Bray ton,...
Rowse Babcock,
Nathan F. Dixon, 1
J. M. Knowles,
II. N. Campbell,
Edward Ha.ris,
I.ibeus Ga'kill,
Ezekiel Fowler,.
John Ellis
John Osborne,
Cashier .
Martin Bennett
J. Frederic Banrs,
J. E. French,
L. C. Richmond,
J. 8. Cook
W. H. A Aldrich, ... .1
D. L. Raw sou,
Anthony Tarbox,
T. A. Whitman,
George Cook,
George Janies Adams,.
D. C. Kenyon,
Thomas Phillips,
A. A. Eddy.
Charles D. Hammett,.
Geoige T. Weaver,...
Jlenry C. Stevens,....
David W. Holloway,..
T. Coggesliall,
Robert P. Lee
William A. Clarke,...
Benjamin Mumford,. . .
Amos P. Wells,
Pardon T. IJammond,
Nicholas N. Spink,. .. .
S. Cooke
John C. Tower.......
Olney Arnold,
J. A. Harris,
M ystbv
Hatters’ Bank
Manufacturers’ Bank,..
Bridgeport Bank
Connecticut Hank,
Farmers’ Bank
Peqiinunnck Bank,
City Bank
Windham County Bk.,.
Danbury Bunk,. ........
Pahquionne Bank
Deep River Hank, ,
East llnddam Bank,*...
Bank of New-Eng land, (
Iron Bank
Connecticut River Bk.,.
City Bank
Exchange Bank,
Farmers Ac Mechanics’,
Hartford Bank,
Phoenix Bank
State Hank, 1
B’k of Hartlord County, 1
Charter Osk Bank
Mercantile Bunk f,
Jewett City Bunk
Meriden Bank,
Middlesex County Bk.,.‘
Middletown Bunk j
Central Bank, I
Mystic bank, I
Mystic River Bank, j
Circulation $1,960,000.
CONNECTICUT.
1. H.Seelv,
Edward N. Shelton,. . . .
S. Hurt well
Philo C. Calhoun,
Stephen Tomlinson,...
P. T. Murimiii,
A. P. Houston,
Adatns White,
Samuel Tweedy,
A. Seeley,
Ulywes Pratt,
William C. Palmer,. .. .
Geo. E. Goodspeed,
Iy*e Canfiehl,
A H i ed Smith,
Edmund O. Ilowe,
Elisha Colt,
Cliarb-s boa well,
Henry A Pe kins,
George Beach,
T. Belknap,
Alfred Gill,
Charles T. Hillyer,
Samuel Woodruff,
David Smith,
Joel II. Guy,
Charles R. Sebor,.
John H. VVatkiiisoii,. . .
Edwin Stearns,
John W. Hull
Charles Mallory,
William Winsor,..,#
William H.Seagrnve,.
William Coggeshall,. .
W. H. Brackett,
D. M. C. Stedman,. ..
Attmore Robinson,....
Thomas P. Wells,
Tltoums C. W illiams,.
George W. Carr
Moses Fifield,
J. W^stcott,.
Ethan Foster,
Charles Perry.
Solomon P. Wells
James >1. Pendleton,...
R. G. Randall,
Elijah B. Newell,
L. VV. Ballou,
J. F. Browu,
Elisha T. Head
Coin $112,000
Capital.
150,000
52.500
50.000
65.000
60.000
25.000
40.000
50.000
68,050
125.000
01,960
46,100
2 7,672
60,000
100, UU0
75.000
120.000
60.000
100,0*0
165.000
100.000
75,000
150,000
75.000
50.000
175.500
117,800
150.000
50.000
100,001)
100,000
100.(00
2U0.UH)
100.0 0
100.000
41,670
99,500
125, UK)
LdO.OUO
l(X),0t;0
25, IKK)
150.000
1.tO, (M)
100.000
200, IKK)
100,000
15 >,000
136,000
56,y00
100,1X0
|$L615^702
William A. Judd
Joseph Arnold
G. Burroughs,
Charles Foote,
Charles Webb,
W. R. Highy
G. II. Fairchild,
E iwin S. Chase,
Ephraim Gregory,
Augustus Seeley.........
Gideon Parker,
Thomas C. Bordman,..
O. B. Arnold,
R. M. 8. Pease,
John A. Butler,
G. F. Davis,
Henry L. Bniwell,
John C. Tracy,
A. G. llariitiidgl,
John L. BunW
W. H. D. Callender
R. Swift
J. F. Morris,.
James B. Powell,
L. Tyler,
A C. Randall
Wiliam 8 Camp
Melviu B. Copeland
Nicholas V. Fagan
Elisha D. Wighliuan,..
G. W. Noyes,
100,000
303,1*10
210,000
239.500
300.000
2WUKJU
100, UK)
223.500
98,500
100.«00
8U,0U)
71,400
100.UUO
2U6.CKK)
250, (K A)
515.000
535, IKK)
625.000
1,134,600
,285,600
431,700
600,009
500, ooo
20O, (KK)
44.000
255, (MX)
336.300
369.300
150, (KK)
52,900
100.000
Digitized by
Gck igle
Original fro-m
UNIVERSITY OF CHICAGO
098
Connecticut — Vermont.
Location.
New Haven,.. .
New London,..
New Milford,.
Norwalk, . .. . .
Norwich, ... . .
Ifame of Bank .
President.
Puwcatuck,...
Siyhrook
Seymour
Southport, . . .
Staff’d Spring*
St am lord,. .. .
Stoning ton, . .
t»
Thompson,.. .
Tolland,
Waterbary, . .
Westport,
Windham, . . .
W. Winsted, .
Woodbury,....
Bellows Falls,
Bennington,. .
Bethel,
Bradford,
Brandon,
Brattleboro,. .
Burlington,.* .
Cnstleton,....
Chelsea,
Dnnby,
l>anv lie,
Derby Line,...
Hyde Park,. ..
Irasburg,
Jamaica,
Lyndon,
Manchester,. .
Middlebtiry, . .
Montpelier,...
Northfleld,.
Orwell,
Poultney
Pro-torsvillc,
Royalton, ...
Rutland
So’tli Royalton. j
Bprinlfleldf. . . ,
St. Albans, ....
St. Albans Bay,
St. Johusbury,.
Sheldon,
Swan ton Falls,
Verneniies
Waterhnry, ....
Wells River,.. . |
Windsor
Woodstock,..
City Bank
Mechanics* Bank,...
New Haven Bank,..
New Haven County B.,.i
Merchants* Bank, ..
Quinntpiac Bunk,...
New Loudon Bank,....
Bank of Commerce,
Union Bank,
Whaling Bank
Bank of Litchfield Co.,.
Fairfield County Bank,.
Merchants* Bank,. ...
Norwich Bank,
Q'linehuug Bank,....
Thames Bank,
U ticns Bin k
Shctncket Bank,
Pawcatuck Banks • .
Snyhrook Bank, .,
Bank of North America,
Southport Bank,. . . .
Station! Bank
Siamtbrd Bank
Stonington Bank,. ..
Ocean Bank,
Thompson Bank,
Tolland County Bank,..
Waterhnry Bank,. . . ,
Cil(7.ens* Bank, .
Smigatuck Bank,
Windham Bank,. ....
Hurlhut Bank,...
Winsted Bank
Woodbury Bank......
Total 67 Banks .
Bank of Bellows Falla, .
Stark Bank,
White River Bank,....
Bradford Bank,
Brandon Bank,
Bank of Brattleboro,. .
Bank of Burlington, . . .
Commercial Bank,....
Farmers Sl Mechanics*,
Merchants’ Hank,
Bank of Castleton,
Orange County Bank,.
Danby Bank,
Bank of Caledonia,.. . .
People’s Bank,
Lamoille Co. Bank,....
Bank of Orleans
West River Bank,
Bank of Lyndon,
Hnttenkil) Bank,
Bank ofMiddlehury,. . .
Hank of Montpelier,. ..
Vermont Bank,
Northfleld Bank
Farmers’ Bank,
Bank of Poultney,
Bank of Black River,. .
Bank of Rmallon,
Bank nfRutland,
South Royalton Bank,.
Exchange Bank,
St. Albans Bank,
Franklin Comity Bank,
Passumpsic Bank,
Miasisqnoi Bank
Utfbn Bank,
liaffk of Ver* eniies*.
Ba«'k of Waterhnry,.. . .
Bank of Newbury,....
Ascutney Bank,
Rank of Woodstock,....
Woodstock Bank,
Ezra C. Read,
John Fitch,. .......
Mervey Sanford
Henry Hotchkiss,. . .
Nathan Peck, Jr.,. . .
W. S. Cham ley,
Elijah F. Dutton,...
Acors Barns,.
Robert Coil,
Peter C. Turner,. . . .
Eli Mygatt,
Charles Bissell,
William Williams,. .
Charles Johnson,. ..
Samuel C. Morgan,.
F. Nichols,
James A flovey,
Charles Osgood,
Otho M. Stillman,
Samuel Ingham
G. F. De Forest,
Jessup Alvord,
A. W. Porter.
John W. Leeds,
Ephraim Williams,....
Charles Williams,
Tallcott Crosby,
Aivan P. Hyde,
J. P. Elton
A hr ah a n Ives,
Horace Staples,
S. H. Walleott......
W. H Phelps,
George Dudley,
Daniel Curtis
Circulation £6,640,000.
VERMONT.
Nathaniel Fullerton ....
David Love,
A. P. Iliinton,
Geo. W. Prichard,
John A Couani,....
E. Seymour,
Philo Doolittle,
Lucius E. Chittindon,...
John Peck.
Henry P. Ilickok
Timothy W.Rice,
Lenient Bacon,
Jesse Lapham,
Ira Braiuard,
Porlus Baxter,
L. II. Noyes.
Elijah Cleveland,
J. H. Phelps
E. B. Chase,
Major Hawley,
Paris Fletcher,
J. R. I.nnudoii*
11. II. Reed
Calvin Ainsworth
Calvin P. Austin,
Marcus G.Langdon,. . . .
Abner Field,
William Skinner,
George T. Hodges
D. TarbelJ, Jr.,
Joseph W. Colburn
H. B. Bowles,
O. A. Burton,
Joseph P. Fairbanks,...;
William Green, i
Joseph Blake,.... I
Samuel P. Strong, |
L. Hutchings, j
Robert Harvey, !
Allen Wardner, ‘
Oliver P. Chandler,. . . .
Cashier.
Francis Bradley,
John W. Fitch
Amos Townsend, Jr.,..
Ransom Burritt,
H. IL Smith,
A. McAlister,
R. N. Beldeit,
Charles Butler,
Charles G Sislare,
Joseph C Douglass,..
G. W. Whittlesey,
T. Warner, Jr
Joel W. While,
Frank Johnson,
Lewis A. Hyde,
Lyman Brewer,
Edward H. I. earned,...
David O. Strong,
Jame* A. Morgan,
J. E. Redfleld
W. Atwater,
F. D Perry
8. Newton,
D It. Satlerlee
Francis Amy
W. J.H. Pollard
Joseph H. Gay
George D. Hastings,...
Augustus S. Chose,. . . .
F. J. Kingsbury
Benj’n L. Woodworth,
Samuel Bingham,
Geo. AlvonJ,
William 11. Tidier,
John Abemelby,
Specie 8600,000. Capital $
James H. Williams,..
George W. Harmon,. . .
William M Pingey,..
B. T. B lodget
Lorei.zo Bixby,
Philip Wells
Richard G. Cole
Vernon P. Noyes, ...
Charles F. Warner,..
William L. Strong,
CyrenMi* M. Willard,
George Leslie,
J VV. Moore,
Samuel B. Mattocks,.
Dan el B. Cobb,
C. 8. Noves,
Isaac N Cushman,...
J. E. Butler
Edward H. Cahoot),. . . .
William P. Black,...
Joseph Wrarmr.
George Howes,
John A. Page
Henry M. Bates,
Stephen C. Bull
Merritt Clark,
G. F. Davis,
L L. Tilden,
John B. Page
Azro D. Hutchins,...,
•Mbert Brown,
Henry Howes,
M. W. Beardsley, —
E. C.Rrdingion,
H. G. Hubhell
N. A.Lasell
Joseph D. Atwell,...
8. H. Stowell
Oscar C. Hale,.
Henry Wardner,
Eiiakim Johnson,. . . .
Capital .
500 jmo
3UUXO
4t
5N>,275
500,010
5(11,000
|.iOffi»?5
vnojtto
lot ‘J 10
lt*3,750
HO.Utt
IM,*.fO
i'lMll
SI 0,000
3UV55
3J1 ,S00
2J9.2T0
62, 00
75,0011
MS.bQ
100,000
103.000
150.000
15 4),LW
M.nOO
100. ON)
l>0,«j0
86,iU)
5l0,(U)
l(Jn,UX)
100,1110
72,1*0
1 30, COO
304 4W
64.620
17,115,451
100,000
1U0.UO
75^00
50.000
75,(JU>
150.000
150,000
15tUW)
150.000
IWOI
100.1 CO
50,1X0
50,(40
75.C4IO
50,000
75,1 41)
5o,l"J»
50.000
50.000
50.000
7:>,i»A)
110,1X0
110.1 *0
110.000
l to, HO
5o,ao
SojlO
100,(00
l5o,fXXJ
1(0,610
ro.uo
LHi.OOu
110,1X0
lto.U0
100,100
73,UJO
100,1X0
60.000
75,100
50,14 0
60,(XJ0
60,000
Total 41 Banks. ! Circulation $1,000,000. ! Specie $200,000. Capi tal $S,5 70 ,000
Original fro-m
UNIVERSITY OF CHICAGO
Digitized by Gougle
New York State,
999
Location.
Adam*,.
Albany,
Albion,
Amenin, ....
Amsterdam,.
Auburn,
Ballston Spa.,
Batavia,.. . . . ,
Bath, ,
♦Belfast,
Binghamton,
♦Boonville,.
Brorkpnrt,..
Brooklyn .
Buffalo,.
Canandaigua,.
♦Camden,....
Carmel,
Canajnharie,. .
Cutskill,
Chester,
Chittcnango,..
Clyde,
Cherry Valley,
Cooperatown,.
Corning,
tt
Cortland,
Cuba,
CoKsarkie,.. . .
CJazeuovja,. . .
Crescent,
Dansvillc,. .. .
Delhi,
Deposit
♦Dunkirk,. . .
M
Elmira,
Farmer’s Mills
Fayetteville
Fish kill
Fort Edward,.
Fort Plain,. . . .
Frankfort,
Fredouin
Fulton
Geneseo,
M
Geneva,
Name of Bank.
Hungerford’s Bank,....
Albany City Bank......
Albany Exchange Bk.,..
Bank of Albany,
Commercial Bank
Mechanics Sc Farmers’,.
N. V. Slate Bank
Bank ol the Capitol,. . . .
Merchants’ Bank,
IJmon Bank,
; Bank of Albion
Bank of Or'eans,
Dutchess Comity Bank,
Farmers Bank of A
Bank of Auburn,
Cavuga County llnuk,. .
Auburn City Bank,
Bnllston Spa Bank,....
Bank of Genesee,
Exch. Bk. of Genesee,..
Steuben County Bank,.
Bank of Bath,
Bank of the Union
Broome County Bank,.
Bank of Binghamton....
Susquehanna Valley B’k
Valley Bank
Brorkporl Exch. Bunk,
City Bank
Atlantic Bank, |
Brooklyn Bank,
Central Bank I
Long Island Bank,
Mechanics’ Bank,...
Bank of Attica,
Farmers Sc Mechanics*,.
International Bank,
Hollister Bank,
Marine Bank
Oli ver Lee Sc Co. Bk
Pratt Bank
White’i* Bank
Sackett’s Harbor Bank,
BullMo Oitv Bank,
N. York Sc Eric Bank,..
Ontario Hank,
Bank of Canandaigua,.. .
Br. Bank of Utica,
Camden Bank,
Merchants Sc Farmers’,.
Bank of Commerce,
Lake Mahopac Bank,...
Spr.iker Bank,
Catskill Bank
I Tanners’ Bank,
'Chester Bank
Cliittennngn Bank.
Commercial Bank,
Central Bank
Oisego County Bank,..
Bank of Cooperstown,. .
Worthington Bank,
Bank of Corning,
Geo. Washington Bank,
Randall Bank,
Monroe Bank
Bank of Coxsackte,
Madison County Hank,.
Farmers’ B. ol s (Jo.,...
Bank of D msville,
Delaware Bank, .
Deposit Bank,
Dunkirk Bank,
Lake Shore Bank,
Chemung Cannt Bunk,
Bank of Chemung,. . . . .
Elmira Bank
Putnam County Bank,. .
Bank of FayettviHe
Bank of Fish kill
Bank of Fort Edward,..
Fort Plain Bank,
Frankfort Bank,
IV. J. Miner’s Bank,. . . ,
Citizens’ Bank,
Livingston County Bk.,
Genesee Valiev Bank,..
Bauk of Geneva,
NEW YORK.
President.
8. D. flungerford,
Erastus Corning, . . . . t .
Ichahod L. Judson,
Jacob II. Ten Eyck,. ...
John L. Schoolcraft,. . . .
Thomas W. Olcott,....
Rufus H. King,
John G. White,
J »h n Tweddle,
B. P. Learned,
Roswell S. Burrows,...
Alexia Ward
Cornel iua 'Miller,.
J. S Sevrn our....
Nelson Beardsley,
A. Howland,
James M. Cook,.
Bcnj. Pringle,
D. W. Tomlinson,....
John Magee,
Constant Cook,
J. B. Hughes
i Cyrus Strong,
Am mi Douhleday,
8. D. Phelps
K. W. Merriain,.
J. 8. Thomas,
John Stillman,
Cashier .
Geo. W. Bond,
Henry H. Martin,. ...
J. M. Lovett,
Edward E. Kendrick,
Andrew White,
Thomns Olcott,
Josiah B. Plumb,....
Horatio G. Gilbert,....
John Sill,
J. F. Batch elder,
Lorenzo Burrows,....
Henry A. King,
Hiram Vail,
Marquis Barnes,
C. II. Merrlman,....
Josiah N. Stariu,
G. W. Leonard,
Isaac Fowler,
T. C. Kimberly,
H. T. Cross
D. C. Howell, .
H. II. Cook,
Tracy R. Morgan,...
William R. Osborn,..
R. W. B. Freeman,..
Henry Mnrkell,..
R. P. Perrin,.
•# i vim i% . i • b ciiuiii* «.•••#• >
Dnuiel Embury, \ William C. Ilushmore,
Thomas Messenger,. .. .j Hector Morison,
Edward Copland,,
William S. ilerriinaii,.
Conklin Brush,
A. J. Rich
K. G. Spaulding,
Geo. W. TtfTt
James Hollister,
John K. Pruyn,
George L. Sampson,. . . .
A. 8 Mn I ford
Charles Townsend, |
Corneal R. Gunson,.
Charles T. Coil,
Robert II. Shearman,..
James M. Gansou,
E. S Thayer
Henry P. Taylor,
William Williams,.
J. C. Daun,
Joseph Siriugharn,. ..
Edward Pierson
Henry B. Gibson,...
John Mosher,
H. K. Singer,
II. II. Devmdorf,
Edgar Washburn,...
W. Townsend,
W Moyer,
J. A. Cooke.. . . . . .
Frederick Hill,...
J. T. Johnson,....
1>. II. Rasbach,. . .
B. M.Vandenreer,.
W. H. Baldwin,..
Henry Scott,
F. A. Lee,
' George Pal inert
! Henry L. Lansing,
i Thaddciis W. Pachin,. .
! George C. White,
E. G. Merriek
John L. Kimberly,
J. S. Ganson,
John Greig.
Theodore E. Hurt,
Charles Seymour,
Edwin Rockwell,
Samuel Washburn,....
Ebenezer Kelley,
R. D. Baldwin
James Speaker,
Francis N. Wilson,....
S. 8. Day
E. L Welting
George Crouse,
Isaac Miller
Horatio J. Olcott,
R. Phitmey,
Calvin Graves,
J. R. Worthington,
Hiram W. Uostwick...
J. N. Hungerford,
W. R. Randall,
M. J. Green,
W. V. B. Hermance,...
William Burr,
Alfred Noxon
lister Bradner,
Charles Marvine,
Charles Knapp,
D. Webb
T. R. Coletrmn,
Charles Cook,
8 Beniamin,
John Parrncuter,
David Kent,
II. Edward* ; II. Eaton,
Samuel A. Hayt, ! Ja*. K. Vail Steeuburgh
L G. Taylor I A. Wing,
John H. Moyer Arnos A. Bradley,
W. Bridenbacker, I R. II. Pomeroy,
II. J. Miner ,8. M. Clement,
8. N. Kenyon, j Geo. Grosvenor
Allen Aymnlt,. Enhruiui Cone,
Daniel H. Fitr.hugh, I William H. Whiting, .,
William E Sill, I William T. Scott,
Lnurin Mallory,.
Geo W. Patterson, Jr.,.
J. Hubbard
R. Ilnlght,
J.C. Van Dyck
B. Rush Wendell,
J. O. Noxon,
Lauren C. Woodruff*,.
Walter H. Griswold,...
II. Radeker,
H. Coleman, .
John Arnot,.
Tracy Beadle.
F. F. Fairing —
C. K. Townsend,,
Capital .
135.000
5UU,UU0
311, lOf
360.006
500.000
330.000
250.000
330.000
250.000
250,0(0
73,005
200.000
50.000
117,300
2(0,100
250.100
200,000
125.000
IUU,000
100.000
130.000
30.000
5,UU0
100.000
200, <XW
10.000
50.000
3*0,000
300,0(0
130.000
200.100
400.000
200,000
160,1X0
1(0, <00
4(0,010
2(0,000
350,1X0
170.000
60,(00
197.000
200,100
204.600
2U), 000
200.000
50.000
120,000
60, .00
92,1*9
61,550
1UU,0U0
110.007
100,000
100. ujo
110.0UU
3',6tO
120,000
100,000
200,000
30.000
101, MW
60.000
60,000
50, (XX)
120,Utt)
ioo,(xo
*0,0(0
1 30, >50
15O,(X0
56,049
31,0(0
50.000
200JXW
100,000
2OUX0
109,430
111.600
130,100
IJb.tXX).
1 50,(00
103 .(00
5«',(X0
125,(00
100.0(0
Digitized by
Gck .gle
Original from
UNIVERSITY OF CHICAGO
1000
New York Slate
Locatim.
Glen Fulls,....
Oloversville,..
Goihen,
G<eene,
Hamilton, . .
Havana
Herkimer,. ..
Horaellsville,.
Hudson,
Dion
Ithaca,
M
Jamestown,.
JaiiieRville, ..
Johnstown,. .
Kceseville, . .
Kinderhook,.
#•
Kingston, ...
Lancaster, ...
Lanslngburg, .
Le Rov
Little Falls, .
Lorkport,... .
I.owvHlc,...,
Lyons,
Malone,
MeiJlnn,
Middletown,,
Mohawk,....
Munticello. ..
Ml. Morris,..,
Newark
Newburgh,...
New Pallx,..
Newport,. ...
Norwich, . .. ,
Ogdeiuiburg,.,
JVaTie of Bank .
Glen Falls B^nk,
Commercial Bank,
Fulton ( Jounty Bank,. . .
Bank of Orange County,
n B ink,
Hamilton Exchange B.,
Hamilton Hank,
Bank Ol Havana,
Agricultural Hank,
Hank of llomellsville,.. .
Farmers’ Hank,
Hudson River Hank,
I lion Hank,
Merchants & Farmers',.
Tompkins County Hk.,.
Cliautatnine County Hk.,
.lamestow a Hank,
Montgomery Co. Bk.,.
Essex Co»mt> Hank,...
Hank of Kinderhook,. .
Union Hank,
Kingston Hank
State of X. Y. Bank,....
I (Inter County Bank,...
Merchants* B. of Erie,. .
Bank of Lausinghurg, . .
Rensselaer County Bk.,
rs’ Hank,
< minty Bank,..
Herkimer County Hk.,. .
Canal Bank,
Lorkport Hank’g&T.Co
Western Hank,
Exchange Hank,
Hank ofLowville,
Palmyra Hank
Hank of Malone,
Medina Bank,
Middletown Hank,
Mohawk Valley Hank,. .
Union Hank,
River Bank,...
Batik of Newark,
Bank of Newburgh* . . .
Highland Hank,
Powell Hank,
tUmssnic Hank,
Huguenot Hank
Dafnrmana* Bank,
Hank of Cheiiancot
Oneida,
Oswego,
Owegn
P tinted Post , .
Palmyra,
Pawling
Penn Van,...
Peckskill,
Pine Plains,..
Pluttshurg, ...
Port Jervis,...
i
Poughkeepsie,.
tishurg Hank
0** ecatchle Hank
Drovers’ Lank,
Jodson Rank,
Pulaski,
Putnam Valley,
Khinebeck,....
Rochester, . . . .
RomLuf, I
Jacket's Hurb’r
. Oneida Valley Hank, . . .
. Luther Wrigln’s Hank,.
City Hank of Oswego,. .
. Hank ofOwego,
. Hank of Cayuga Lake,..
. Cuyler*s Hank
. Rank of Pawling,
. Yates County Hank,.. .
Hank of Bainbridge,. . .
. Westchester Co. Bk.,..
. Pine Plains Rank,
intile Bank,
Iron Hank
Hank ol port Jervis,....
Frontier Hulk
Bank of Poughkeepsie,,
l-arm'rsvt Man’factur*i>
Hank
Fail kill Bank,....
Pulaski Bank,
, Putnam Valley Hank,. .
Hank of Rhineneck,
Commercial Hark,
Farmers Mechanics’,.
Rochester Bank,
Roclb-ter City Hank,. .
Eagle Hank,
Luton Batik,
Hank of Rome,
Fort Stanwix Hank,. . . .
Rome Fx. Hank
Oneida Central Bank,...
Hank of Rondnur,
] Slate Hank, |
. B P. Kurbans ! John A Men,
. W illiHin McDonald, I Isaiah Scoti,
Isaac Lefever, John Mcl^tren,
, Ambrose 8. Murray, Thomas T. Reeve,
Alex. Wright, William L. Henkes,
, T. C Grnnnis, H. K. Stevens,
. Adon Small, I). B. West,
. Charles Cooke T. L. Mirim r,
. Corn’IiusT. K. Van Horn llarvev Doolittle
. Samuel Hallett, F. M. McDowell,
. E. Gifford A. R. Holmes,.
. Oliver Wiswall, Aaron B. Scott,
. E Remington L»* Roy Tuttle,
. .1. H. Williams,. Charles F. Ilardv,
Hernion Cmnp, Nathan T. Williams,..
, | Samuel Barrett, Robert Newland,
. Alonxo Kent. 1 J. E. Mayhew
James W. Miller,. .. . I Edward Wells,
. Silas Arnold, I Andrew Thompson,. .. .
. John P. Heckman Franklin G. Guion,
. William 11. Tobey, W IL Rainey,
. Jonathan H. Hasbrouck,! C. H Van Gansheek, .. .
. .1. Burhans, ' B. M. Hasbmurk
. Cornelius Bruyn, James S. Evans
. George Bruce | Win. VV. Bruce
. F. B. Leonard, Alexander Walsh,
, Edward Tracy, Henry Parmelee
. Danii l Fish, Anson Grosbeck,
. Miles P. Lampson, S. T. Howard,
. Henry P. Alexander,... Albert G. Story,
. Lnman H. Nichols, Timothy Baker, Jr.,. .. .
< Naac C. Colton, John J. B. Spooner,. .. .
. Charles A. Morse, J . F. Robinson,
. w. Keep R.S. Wilkinson,
.1 fsHnc W. Host wick F. N. Willard,
J D. W. Parshall P. R. Westfall
.'3 C. VVea ', W. A. Wheeler
. Henry Flakier, John M. Ken nan
. Joseph Davis, William M. Craham,..
IV JJ- Warren, Francis E. Spinner,
N S. Hammond, George Bennett,
John Vemnm K. C. Galu>ha,
Hetcher Williams, I.. McCain,
. George W. Kerr Francis Scott,
. George Cornwell, Allred Post,
Samuel Williams, Thomas C. Ring,
. Ebenexer W. Farrington, Jonathan N. Weed, ....
IL Elting N.Le Fever
. R. Herndon,
. Walter M. Conkey, W. R. Pellet
. James Averell, Collins A. Burnham,...
A. Chapman F. N. Merlam
. * Gilbert, E. M. Holbrook
John D. Jmlson, Daniel Judson,
N. Higlnlmtham, T. F. Hand,
. Luther Wright, 8. H. Lathron
Hamilton Murray Delos Dr Wolf,
.1 Wright, Gto. W. Warner,
. C. F. Platt,
George W. Cuyler,.... Stenhen P. Seymour,..
A. J. Akin, I. W. Bowdish,
Asa Cole, William M. Oliver,....
II. B. Bennett
Charles A. Depew, Dorin F. Clapp,
Reuben W. Hostwick,.. R. Bostwlck,
J. M. Noyes,
P. F. Bellinger, F. C. Bellinger,
Thomas King, A. P. Thompson,
B Usher, Luke Usher,
Thomas L. Davies Reuben North,
William A. Davier,.... Frederick W. Davis,....
James Elliott, losepli C. Harris,
William C. Sterling, lohii F. Hull,
R. L Ineersoll 8. R. Ingham,
A. Smith,
ILDchmater, P. C. Marshall
Asa Sprague, Hobart F. Atkinson,
Jacob G<nild, James S. Tryon,
Harrison 8. Fairchild,.. . Edward M. Smith
Thomas IL Rochester, . . H. F. Young,
William H. Cheney,.... Charles P. Bissell,
Aaron Frickson, Samuel If. Verplanck,. .
John Sinker, George R. Thomas,....
David Utley, Samuel Wnrdwell,
Fdward Huntington,... Francis H. Thomas,. .. .
Daniel Cady G F. Bicknell,
Jansen Haabrouck, Edgar H. Newkirk,
Edgar B. Camp, J C. Harbor,
Original from
UNIVERSITY OF CHICAGO
New York — Delaware.
1001
Location .
R*e Harbor,.
Salem,
Sar’t’ga Spring*)
Sanger lie*,. . . .
Schenectady,. .
Schoharie, . . . .
Sensca Falls, . .
Silver CreeK,..
Ring Sing,
Somers
Syracuse,
Touawnnda,.
'Irny,
Unadilla,.
Utica,....
Union Village,.
Vernon Village,
Warsaw, ...
Waterford,. .
Waterloo
Watertown,
Watervtlle,....
West Troy,....
Westfield,. .
West Winfield
Whitehall,. . . .
Whitestown,. .
Williamsburg,
Yonkers, .
♦Winding up.
Delaware City,
Dover,
Georgetown, . .
Newcastle, .
Odessa,
Smyrna,... ...
Wilmington,..
Name of Bank .
Suffolk County Bank,..
Bank of Salem,
Hk. ©(Saratoga Springs,
Bank of Ulster,...
Slate Bank,
Mohawk Bank,
Schenectady Bank,
Schoharie Co. Bank,
Bank of Seneca Falls,..
Bank of Silver Creek,. .
Bank of Sing Sing,
Farm.* Drovers* Bk.,.
Bank of Syracuse,
Onondaga Bank,
Onondaga County Bk.,.
Syracuse City Buiik,...|
Bank ofSalina,
Merchants’ Bank,
Mechanics’ Bank,
Crouse Bank,
Salt Springs Bank,
Burnet Bank,
Niagara River Bank,...
Bank of Trov,
Commercial Bank,
Farmers’ Bnnk,
Merchants dr Mechanics’
Troy City Bank,
Union Bank
Manufacturers ’Bank,.. .
Slate Bank,
Mutual Bank,
Market Bank,
Central Bank,
Unadilla Bank
Bk. ot Central N. York,)
Bank of Utica,
Oneida Bank,
Ontario Branch Bank,. .
Utica City Bank,
Oneida County Bank,...
Washington Co. Bk..
Bank of Vernon,
Wyoming County Bk.,..
Saratoga County Bnnk,.
Seneca County Bank,..
Bnnk of Watertown,
Black River Bank,..
Jefferson County Bank,.
Wat’rl’wn B. Sc Loan Co
Wooster Sliermnn’s Bk.
Union Bank of W.,
Bank of Waterville,....
Bank of West Troy, —
Bnnk of Westfield,
Merchants’ Bank, I
Bank of West Winfield,
Bank of Whitehall,.
Commercial Bank,..
Bank of Whitestown,. .
Williamsburg City Bk.,.
Farmers Sc Citizens’ B.,
Mechanics’ Bank,. ...
Bank of Yonkers,....
President .
William Adams,
B. Blair,
J. B, Finlay,
B. l^rillard,
R. N. Lancs,
James R. Craig,
Jay Cady,
Charles Goodyear,
E. Partridge,
George W. 'Few, 1
William Vail,
Charles Wright,
John Wilkinson,
Amo* Benedict,
Oliver Teall,
James F,. Heron,. .. .. . .
David Munro,
John D. Norton,
Thomas R. Fitch
John Crouse,
Thomas G. Alvord,
N. F. Graves,
J. R. Wheeler,
Joseph M. Warren
Elias Plum,
John T. M’Coun,
D. T. Vail
George B. Warren,....
Joel Mallnry,
Arba Reed,
A. Wotkins,
John P. Albertson,
J. S. Hakes
J. L. Van Schoonhoven,)
A. B. Watson,
Anson Thomas,
Thomas Walker,....
Charles A. Mann
Alexander B. Johnson,.
H . Denio
C. H. Doolittle,
Henry Holmes,
John J. Knox,.
J. H. Darling,
John Knickerhacker,. . .
David 8. Shunts,
John L. Gnldsmid,
I. ovland Paddock
Norris M . WoodrufF,. . .
G. C. Sherman
Wooster Sherman
W. R. Hawks
Julius Candee,
Joseph M. Haswell,
8 H. Hungerford,
Hugh Johnston,
David R. Carrier,
D. Jones,
A. II. Griswold,
Joseph Bruce,
N. Water bury,
8. W. l.owerre,
M. Kalhfliish,
John Olmsted,
Cashier.
Total 227 Banks.
Delaware City Bank, . .
Farmers’ Bank of Del.,,
do. do. Bronchi
do. do. do
Newcastle Ce. Bank,. . .
Bank of 8inyrna
Farmers’ Bnnk, Branch,)
Bank of Delaware
Union Bank of Del.,
Wilming.de Br’ndywmt
Total 9 Banks.
O 8. Adams,
B. F. Bancroft,
John S. Leake,
Andrew J. Ketchuru, . .
Nicholas Swits,
William L. Goodrich,.
R. C. Martin,
L. C. Partridge,
C. C. Swill,
J. Theodore Banker,...
Willinm Thacker,
Horace White
George J. Gardner,
Hamilton White,
W. W. Teall
C. L. Alvord,
P. Out wafer,
E. B Wicks,
A. T. Butler
E. B. Jin Ison,
J. J. Peck,
Gordon Bailey,
John P. Nnzro,
Fred. Leake,
Philander Wells,
Tracy Taylor,..
Silas K. Slow,
Pliny M. Corbin,.. . . . .
Charles P. Hartt
Willard Gay,
George A. Stone,
A. C. Gunnison,
J. Bu.ll
C. J. Hayes
T. Ossian Grantiiss,. . .
P. V. Rogers,
George Langford,
James 8. Lynch,
C. 8. Wilson,
J. R. Noyes,
Edwin Andrews,.
Everett C ase,
Charles Mosher,
W. T. Seymour,
William v. J. Mercer,.
Benjamin Corey,
James P. Lee,
Orville V. Brainard,. . .
G. II. Sherm an,
Fred. D. Sherman,....
Geo. 6 Gotwlale,
Daniel B. Goodwin,. . .
F. J. Suvdam,
L. A. Skinner,
William Johnston,. . . . ,
C. Itemins way,
E. W. Parker,
C. M. Davison,
Israel J. Gray,
George Field,.
O M. B» ach,
E.R. Phelps,
Egbert Howlaud,
Circulation $23,000,000
DELAWARE.
O. Maxwell,
Henry Ridgelv, ....
James Anderson,..
Andrew C. Gray,..
Cliarlers Tatiuan,..
Jacob Stout,
David C. Wilson,..
Henry Latimer,....
E. W. Gilpin,
George Bush,
Circulation $1,000,000.
TEXAS.
Galveston, | Commer. Sc Agricultural Samuel M. Williams,...! II. Jenkins
Specie $1,200,000 Cap'l. $
John P. King
James P. Wild,....
Isaac Tunnell
Howell J. Terry,...
Benj. F. Chatham,.
Ayres Storkby,....
Robert I). Hicks,...
Samuel Floyd
J. T. Warner,
George W. Sparks,.
Specie $250,000. Capita i\
Capital.
20,000
ltd, <00
100, (AX)
ion, MX)
10,000
I23j mu
Ijt 1,000
100,000
[.0,010
O-J.K.O
145, <00
111,150
200 Or*l
115,(00
150, IX K)
260,000
1 50.000
160.000
140.000
110,0U)
200.000
70,0; o
104.000
440.000
500.000
350.000
300.000
300.000
300, mo
200.000
250,01X1
LtXfJ 00
300, ( 4 X)
3(Xt,t 00
137,600
110, .00
ti(X>,(XX>
400, (XX)
3 00, (XX)
200JXX)
12a, 000
150,075
100,000
60, (IX)
BXMXX)
200,000
47,770
125.000
200.000
71,605
50, (XX)
140.1X0
1 20,000
250,100
75.000
40. 000
100.000
100,000
10b,. 00
LO.OMJ
3(10,100
2(4 ),t 00
260, 0(X)
150, COO
3o,im72
80,000
Ibb.oou
120,100
UIS.IXH)
80,000
1(0, MX)
236. (Hi
UO.0M)
300. MX)
2U0.0UU
1,440,000
322.000
Digitized by L^OuQle
Original fro-m
UNIVERSITY OF CHICAGO
Digitized by
r
1002
City of Neva York — Baltimore.
CITY OP NEW YORK.
Location .
5o Wall street,!
Willinm 11
i'l Wall street,
30 Bm.vl-st.,. . .
4S Wall-street*
Merc i. E\ch.,. .!
2 Wall-Htreet.:
Na^anA Pine,!
4 J VV nll^i reel,
I .Vi Bowery,. . . j
235 Broadway,.
335 Third Av.,. .
121 Bowery,. . .
Clnt. A Dunne, |
270 Broadway,.
5b Hoivery,... .
52 Wall
12 Wall,
Beaver A Win.
13 Third Av...
37 Fulton, . ...I
402 Hudson, . . .
59 Barclay,,..!
Hanover Suu’rej
15 i Broad way,.. I
2S3 (lreeitwic.il, |
45 William,... 1
40 Wall
Wall A Water.
235 Pearl,
33 Wall
3b ••
39S Grand
Lbi Broadway,.
42 Wall
IS) Greenwich,. I
11') Broadway,
137 N is<nu
35 Wall,
6th Av. A 14th, |
Avenue I)., ...
137 Greenwich,!
187 “
222 Fulton, . . . .!
311 E.Broalw’yl
173 Canal Htreetl
451 Broadway,.
45 Wall
231 Pearl, I
271 Broadwav,.
. Wall A New,.!
177 Chatham,. J
34 Wall,..
Name of Bank .
Georgetown, .
Washington, .
Baltimore at.,..
South street,...
North street,. .
Pratt street,. . .
Howard street,
South street,..
American Exoh. Bank,.
Atlantic Bank,
Bank of America
Bank of Commerce,....
Bank of New York,. . .
Bk. of the Slate of N. Y.
Bank of the Republic,. . j
Bk. of the Common w’lh
Bank of North America
Bowery Bank,.
Broadway Bank,
Bull's Head Bank,
Butcher* A Drovers’,..
Chatham Bank,
Chemical Bank,
Citizens* Bank,
City Buik... .!
Continental Bank,
Corn Exchan*e Bank...
East River B<tuk
Fulton Bank,
Greenwich Bank
Grocers' Bank,
Hanover Bank
Island City Bank,
Irvin* Bank,
Leather Manufacturers’,
Manhattan Company,..
Marine Bank,
Market Bank
Mechanics’ B ink
Hechan. B ink’* Asso.,.
Mechanics A Trailers’. .
Mercantile B ink
Merchants’ Bank,
Merchants’ Exch’< Bk.,.
Metropolitan Bank,...
Nassau Bank,
National Bank
N. Y. County Bank,....
N. Y. Dry Dock Bank,..
New York Ex. Bank,. .
North River Bank
Ocean Bank*. .......
Oriental Bank,
People's B ink
Pacific Bank,
Phenix B ink,
Seventh Wanl Bank,. . .
Shoe A Leather Bank,. .
St. Nicholas Bank*. . .
Tradesmen’* Bank,..
Union Bank,
Total 52 Banks.
Farmers A Mechanics’..
Bank of Commerce,. . .
Bank of Washin*ton,. .
Bk. of the Metropolis,. .
Patriotic Bank,
Total 5 Banks.
Broadway,
North street,..
II » ward -street,
Guv street.. . . . I
N’rth Calv’rl st
Giy street i
N. Charles *l.,
Euuw street.,.
Bank of Baltimore,....
Bank of Commerce, . . . ,
Chesapeake Bank,
Citizens’ Bank,
Commercial A Farmers’
Farmers A Merchants’ .
Farmers A Planters’,...
Fells Point S. B
Franklin Bank,
H *ward Bank,
Marine Bank.
Mechanics’ Bank
Merchants* Bank
Union Bank of Md.,. . . .
Western Bank
President.
Samuel Willetts, I
John Rice, ]
George Newbold*. . . .. .
John A. Stevens,
John Outhoul,
Cornelius W. Lawrence,
James T. Boulter
James B. Wilson,
William F. Havemeyer,;
Enoch Dean
Francis A. Palmer,
Richard Williamson,....;
Jacob Aims, j
J.»hu Leverid*e, j
John Q Jones, I
.lay Jarvis, I
Gorham A. Worth, !
G corse Curtis,
E. W. Dunham, ...
David Banks,
John Adams,. j
Henj. F. Wheelwright,.
Charles Denison
William II. Johnson,. .
James O'Brien,
John Thomson,
William H. Macy,
Caleb O. H listed
Thomas Williams, Jr.,..
Richard 8. Williams,...
Shepherd Knapp,.. ,
Frederick Peutz,. . .
John Clnnp,
William B. Douglas,...
John J. Palmer
James Van Nostrand,..
James McCall,
Thomas McElralh,.
James G Matin,...
Charles If. Macy,. ..
David Palmer,
8. Van Duser,
M. O. Roberts
D. Randolnh Martin* ...
Joseph M. Price
John P. Yelverton,
William Tilden,...
Thomas Ti lesion,. .
William HnKey,....
Andrew V. Stout* ..
Joseph W. Corties..
William H. Falls,..
Frederick Demins,.
Cashier.
Geor«e 8. Coe, |
George D. Arthur
Jarne* Punnett,
Henry F. Vail,
Anthony P. Halsey,....
Reuben Withers,
Robert H. I,o wry,
George Ellis
1*hhc Seymour,
Nath. G. Bradford,
John !.. Everitt,. . ,
C. 8. Vanderhoof,
Benedict l^wis, Jr.,.. . .
Osmond H. Schreiner,
John B. Desdoity,. ....
Silvester R. Comstock, |
Robert Strong,
William T. Hooker,...
Circulation $6,000,000.
DISTRICT OP COLUMBIA.
Robert Read.
Charles E. Rltlenhouse,
William Guntnn,
Thomas Carherry,
Gotlieu C. Grarnmer,...
Circulation $350,000.
Baltimore.
»» iiiinui i . nooscr, ... .j 1,5(0,000
Frederick A^PIatt, 1 hi-TIHI
~4ri,Qjo
■ 600,000
20MIU0
l boo
300, (TO
Wllllanr B. Ballou,
William J Lane
William Hawes
Samuel B. While,
Thns. L. Taylor,
William Stebbins,
Dan. V. H. Bertliolf*. ...
Thomas R. Acly,
James M. Morrison,. . . .
James C. Beach,
R. II. Ilavdock,
Francis W. Edmonds,..
Jolia I. Stephens,
Ephraim D. Brown,. . . .
E. J. Blake
Augustus h. Silliman,..
Edward J. Oakley,
Henry Meif*. Jr.,
Richard A Tooker
Benj. T. Hoo*land
Alex. Mastertou, Jr., ....
Frederick T. Hayes,
D. Berrlan If aisled, .....
Aaron B Hays,
Charles Palmer,
Washington A. Hall,...
Gideon DeAnzelis, Jr.,..
J. Campbell* Jr.
Peter M. Bryson,
Alfred S Frazer,
William A. Kissam,
Roberts Oakley
Richard Berry,
Daniel Ebbris,
Capital .
3.000. 000
-iiu.mi) -
2,uYi,(]o6
5.000. 110
2,(M*j,000
2^00.001)
l*XU
357,ff3?r
'&g-
450,000
3no,Tlxr"
oixuon
t .7Jin,lHJU
"onruioo"
2,0(0,000
UW
!?,7TXT,t500
63. VO)
200,(00
1,000,000
1.190.000
1.235.000
-HK8
730,000
130. (XX)
JUUUUQl
ano/tto
412/
mm
500.(k i0
,600.000
- ttti.nno
l/oo.ooo
Com $ 1 3 ,000*000. CapiCl $ 48,664, ISO
W. T. Un*
II. B. Sweeney.
James Adams,
Richard Smith,....
Chauncey ties tor,.
3nn.ono
1(0.000
279,1 PH)
353,300
250,000
Specie $300,000. Capito/$l,2S2,300
C.C. Jamison,
James W. Ailnult
John S. Giiiing*,.
John Clark,
Jesse SlinilufF,
J. Hanson Thomas,....
William E. Mathew,. . .
James Fragier,
John J. Donaldson, i
J. F. Purvis,
Jacob Bier,
John R. Morris,
J din Hopkins,
John M. Gordon,
Chauncey Brooks,
Total 13 Banks. I Circulation $2,600,000.
Patrick Gibson,
Geor*e C. Miller,
James Lownds,
William L. Richardson,.
Trueman Cross,
John Louey,
Thomas II. Rutter
John N. Randolph
Aquilft P. Giles,
James M. Lexter,
Philip Lilli*, Jr.,
Charles R. Coleman,. . .
Daniel Sari**
Robert Mickle,
James Harvey,
Specie $2/00,000. Capital $S,5lS,32J
Gck igh
Original from
UNIVERSITY OF CHICAGO
Maryland — Pennsylvania.
1003
Location .
Annapolis, . . . .
Cliesterlown,...
Cumberland, . .
Easton,
Frederick,
Hagerstown, . .
M
Port Deposit,. .
WVstmiiisUer,..
Williamsport,.
Chestnut street
•i «<
Vine street
8<-e*»nd street..
Vine street, . . .
Chestnut street
Third street,.. .1
Hr trli street,. .
Vine street
Third street... .
t hestimt street
Second street,.
II II
Chestnut street!
Bristol
Brownsville,.. .
Carlisle
Clmmhershursi:,
Chester
Columbia,
D uiville,
Doylestown,.. .
Easton,
ii
Erie,
Germantown,..
Gettysburg, .. .
Hanover,
Harrisburg,... .
• 4
Honesd ale,. . . .
] ,'tncasier,. ... .
•i
M
««
Lebanon
Middletown,.. .
Norristown, .. .
North’inherrnd
Pittsburg,. . . ,
44
4 i
Po’Lsville,...,
n
Reading
Wishing ton.,
Waynesbiirg,.
Westchester,.
Wilkesbarre,.
Williamsport
York
flame of Bank .
Farmers’ Bank of Md.,..
Farmers and Merh. Bk.,
(’lllllherlniid Hank
Mineral Bank,
Easton Bank,
Central Hank
Farmers A Mechanics’
Frederick Count v Hank,]
Hagerstown Bank,...
Valley Bank .
Washington Co. Branch, |
Cecil Bank,
Bank of Westminster, . .
Fanners & Mechanics’,!
Washington Co. Bk.,..,
Total 13 Banks.
Bank of Commerce,. . .
Bk. of North America,.
Bk. o( North'll Liberties,
B ink of Pennsylvania,. .
Bk. of Penn Township,
Commercial Bk. of Pa.,
Farm. Ac Mechanics’ B.,
Girard Bank
Kensington Bank,
Manuf. Ac Mechanics’,. .
Mechanics’ Bank,
Philadelphia Bank,
Southwark Bank,
Tradesmen’s Bank,....
Western Bank,...
Total 15 Banks.
Farmers’ B., Buck* Co.,|
Mouongahela Bank,....
Carlisle Deposit Bank,..
Bk. of Cliamberaburg, .
Bk. of Delaware Co.,.. .
Columbia Bank,
Bank of Danville.
Doylestown Bank
Easton Bank,
Farmers and Mechanics’!
Erie City Bank,
Bank of Germantown,..
Bank of Gettysburg,... .
Hanover Sav’sc F’lul Soe.
Dauphin Deposit Bank,.,
Harrisburg Bunk,
Mechanics' Savings Bk.,.j
Honesdale Bank,
Farthers’ Bank,
Lancaster Bank,. ......
Lancaster < bounty Bank,
I^iucast’r Savings’ Inst.,
Lebanon Bank,
Bank of Middletown,. . .
Bk. of Montgomery Co.,
Bk. of Northumberland,
Bank of Pittsburg ,. . . ,
Exchange Bank......
Farmers’ Deposit Bank,]
Merchants A: MamiCr*’,
Citizens' Deposit Bauk,.
Miners’ Bank.
Farmer*’ Bank of S. Co.]
Farmers’ Hank,
Franklin Bank,
Farmer* Ac Drovers’ Bk.
Bank of Chester County,]
Wyoming Bank,
West Branch Bank,. . . .
York Bank,
York County Bank,..
Total 40 Banks.
Holly Spring*,.! Northern Bk. of Min.,..
Maryland.
President.
George Well*
George B Wr eat colt,..
Jose pit Shrlver,
Joseph 11. Tucker,... .
W. H Groome,
Richard Potts,
William Tyler,
Alexander B. Hanson,
J. Dixon Roman,
A. Clink,
Cashier.
Jncob Tome,. .......
Isaac Sliriver,
Jacob Matthias,
Daniel W'eisel,
Circulation 81 ,700,000.
PHILADELPHIA.
Adolph E. Borie,
John Richardson,
Isaac Koon*
Thomas Allibone,
Elijah Dalletr,
William Wainwright,..
Singleton A. Mercer,...
Charles 8. linker,
John T. Smith,
John Jordan, Jr
Joseph B. Mitchell, ....
Thomas Robins,
James 8. Smith, Jr.
Charles II. Roger*,. ....
Joseph Patterson,
N. Hammond,
Samuel W. Spencer,... .
Edward T. Sliriver,
A. F. Roberts,
Richanl Thomas,
Godfrey Knoniz,
Thomas W. Morgan,. . .
John II. Williams,
Elie Beatty,
Joseph Gn miss
George Kealhofcr,
A. Anderson,
John Fisher,
Jacob Reese,
John Van Lear, Jr.,. . . .
Capital .
298.000
IUMJ00
112,937
lay, 137
27 1 ,575
ifjo.oou
125,130
150.000
2*0,000
1UU.000
GU.W0
71,1*0
60,1 W
50,000
135.000
Specie $500,000. Capital- $2, 193,229
Circulation $4,600,000.!
PENNSYLVANIA.
A. Burton,
Janie* L- Bowman,.
J. II. Graham,
Jos. Culbertson,...., _
Jesse J. Maris, |
John Cooper,
Peter Baldy,
Charles E. Dubois,..
David D. W’agener,..
P. S. Michler
Smith Jackson
Charles Magarge,...
Robert Smith,
James C. Donnell,. ...
John Hockley,
Samuel W'. Caldwell,.
George Philler,
James Russell,
Jacob J. Cope,
Edwin M. Lewi*,....
William L. Schaffer,. . .
Charles T. Ytrke*,...
M. WT. Woodxvard,. . . .
William Thaw
B. Ii. Comegys,
John H. Austin,
John C. Wfood,
George M. Troutman,.
Com $4,000,000. Capitals
James M’Cormick,
J. M. Ilaldeman,
Philip Dougherty,
Richard L. Seeley,
C. Hager,
Beuj. c. Bachman,
John Landes,
Emmanuel Schaffer,.. . .
John W. Gloninger
John Smuller,
John Boyer,
John Taggart,
John Graham,
Thomas M. Howe,
James Marshell,.
Thomas Scott,
Oliver Blackburn,
John Sltippen,
Henry S tylor, ]
Isaac Eckert. |
Thos. M. T. McKeiiiian,!
Jesse Hook,
William Darlington,*..
G. M. Hollenhiick,
A. Updegratf*,
M. Douilel,
Eli Lewi*
Circulation $10,400,000.
MISSISSIPPI.
J. C. Anderson
Robert C. Beatty,
David Smyth Knox,. . . .
Wrn. M. Beetent,
James Leslev,
J. G. MeCollin
Samuel Shoch,
George A. Frick,
J. Hart,
VVillinni Hackett,
McEvers Forman,
J. P. Sherwin,
Samuel Harvev,
Joseph B. McPherson,..
R A. Eichelbergcr,
Robert J. Ross,
James VV. Weir,
J. C. Boinberger
Stephen D. Ward
Gerardus Clnrksott,
John G. Fetter,
W. L. Peiper
Charles Boughter,
George Gleim,
Simon Catneron,
William H. Slingluff’,.. .
Joseph R. Priestly,
John Snyder
James B. Murray,
John Magotliu,
W illiam II. Denny,
E. D. Jones,
Charles Loeser,. .......
J. W. Cake
II. II. Muhlenberg
John Mnrshel,
Jesse Lazear,
Washington Townsend,
E. S. Loop,
Tliomn* w. Lloyd
Samuel Wagner,
William Wagner,. . . . . .
250.000
1.000. 1 U0
450.000
1.675.000
225.000
1.000. 000
1 .250.000
1.250.000
250.000
300.000
600.000
1.150.000
250.000
150.000
416,600
1 0,6 18, GOO
92,220
200,000
3t),(X)0
256,638
200,000
2.70.000
200.000
69,560
400.000
280, < W0
75,400
200.000
123,673
36.000
50.000
240. 000
50,000
100,(10
350.000
40:1,900
210, MM
50.000
97,965
102,1*10
367,535
160,14*)
,» 42,700
616.000
6 ',500
600.000
100,000
200,000
100,000
300,360
149.260
100,000
225.000
65,763
100.000
500. 000
100.000
specie $2,000,000 Capital $9,108,771
$100,000
Digitized by
Gck igle
Original from
UNIVERSITY OF CHICAGO
Digitized by
1004
New Jersey — North Carolina — Louisiana.
Location.
Belviderc !
Borden town, .
Bridelnn, 1
Burlington
Camden, I
Cape Mind, ...I
l) •*. kertown,.. .
Dover 1
Elizabethtown,'
Flemiugton, .. .
Higliutown,.. .
Jersey City,....'
«( M |
May's Lund in?.
Medford
Morristown,.. . j
Mount Molly,. .
Middletown Pi !
Nhwhtk,. . . .
NewBr’nawick
«< i
Newton, i
Orange, I
Paterson j
Princeton,
Rahway !
Salem,
Somerville,... .
Trenton,
Asheville,.
Charlotte,.
Name of Bank.
Belvidere Bunk, I
Bordentown Bank. Co.,1
Cumberland Bank,
Mechanics’ Bunk,
State Bank,
Bank of Cape May Co.,.
Farmers’ Bank,
Union Bank,
State Bank,
Hunterdon County B’k,.
Central Bank of N. J.,. .
Hudson Co. Bank
Mecli. * Traders’ Bk.,..|
Merchants* Bank, |
Burlington < o. Bank,. .
Morris Co. Bank,
Farmers’ Bk. of N. J...:
Farmers * Merchants’.!
Mechanics’ Bank,
Newark Bk. * Ins. Co.,
State Bank,
Newark City Bank,....
State Bank, 1
Bank of New Jersey 1
Sussex Bank,
Orange Bank
Passaic Comity Batik,..
Princeton Bank, ;
Farmers A Mechanics’,.!
Salem Banking Co.,. . . .!
Somerset Comity Bank,1
America Bank,
Mech. & Manufacturers*;
Trenton Bank
NEW JERSEY.
President.
John I. Blair,
J. L. McKuight,
Janies B. Potter,
William R. Allen,
John Gill,
E. Hubbard, j
James C. Havens,
G. M. Hindman,
Keen Prnden 1
Isaac G. Farlee,
B. E. Morrison, j
John Cassedy,
M. B. Bramhall,
Total 30 Banka.
Elizabeth City,
ft If
Fayetteville,..
Greensboro,. .
ft
Milton,
Morgan lor.,. ..
Newbern,. . . .
If
Raleigh,
Salem,
Salisbury,. . . .
Tarboro
Wadeshoro, ..
Washington,.
Wilmington,.
Windsor
Yancey ville,...
New Orleans,
Benjamin Shreve,
II. A. Ford
John Black,
Ashury Fountain
Joseph A Halsey
James B. Pinneo
Samuel Meeker,
S untie 1 H. Pennington,
John B. Hill
John Van Dyke,
David R verson,
D. Babbit
Geo M. SilmpRon,
R.S. Field..
Ben a m in M. Price,
Culvin Beldeu,
J. D'nuhty,
\V. Halsted
Joseph G. Brearley,
Philemon Dickinson,. . .
Circulation $4,800,000.
Cashier. Capital.
Israel Harris, i 14S.SSO
George Gaskill, 100.UU
William G. Nixon, 52,uu
James Sterling, »0,UU0
A ii ley M’ChIIh, 2t»0JMi
E. Edmunds, 60,000
Thomas D. Armstrong,.
Thomas B. Segur, 1Kj,«<0
A. S. Woodruff, | 2U»."W
William Emery 1
Thomas Applcget, ; 5t)/tU
A. T. Smith }«*.««
J. S. Fox, BWdWJ
! 50.Uk)
Jonathan Oliphant, ' *Xj.*4IU
Theodore T. Wood, R*
John Beatty, I 1WM*0
Archibald Parkhursl, — |
Mathias W. Day, 5*<J,UAJ
Jacob 1). Vertnilye,. . . .i
J. D. Orton, ' 4GMJP0
Charles S. Graham, ....
Mo»es Codding ton, I w.0W)
Moses F. Webb,
Simuel I). Morford, : 134, IH)
William H. Vertnilye,. . Iti.M
60,0.0
George T.OImatead, PkbntW
Frederick King, 2(A»,f.uh
Henry B. Ware i
William G. Steele, <*UsO
B. B. Halsted PU'OJ
Jonathan Fisk, 1
Thomas J. Stryker I zUbtUi
Specie 8"30,000. Capital *4, 972,100
NORTH CAROLINA.
Bank of Cape Fear,
Bank of State N. C.,.. ..
Bank of Charlotte,
Bank ol State of N. C.,.
Farmers’ Bank,
Bank of State N. C.,. . . ,
Bank oft 'ape hem ,
Bank of Fayetteville,. . .
(tank oft -ape Fear,
Farmer*’ Bank, i
Bank of Slate N. C., — !
do. do. do.
do. do. do.
Merchants’ Bank
Bank of State N. C., —
Bank of Cape Fear,
do. do. do.
do. do. do.
Bank of State N. C.,
Bank of Wadeshoro,... .
Bank of Cape Fear,
Bunk of Washington, .
Bank of Cape Fear, •
Bank of State N. (3., 1
Commercial Bank, 1
Bank State N. C.,
Bank of Y ancey ville, . . .
Total 27 Banks.
John Irwin,
II H. Williams,
William F. Martin
Joseph II. Pool,
Augustus W 8teel, ,
(Charles T. Haigh,
John D. Starr,
Samuel Watkins,
Robert C. Pearson,
Geor .-e S. Altmore,
Charles Slover,
George W. Mordecai,.. .
Bank of Louisiana,
Louisiana Slate Bank,..!
do. do. Branch,!
Mechanics* Traders’,.!
N. O. Cnn’l & Bank. Co.
Union Bank of Ln.,
Hank of New Orleans,..
Citizens’ Bank,
Southern Bank,
M. Chambers.........
It. R Bridgers
W. R Leak
John Myers
James E Hovt,
Thomas II. Wright,.
Edward P. Hall
Oscar G. Parsley,
Jonathan S. Taylor,
Thomas D. Johnston,. . . {
Circulation $4,600,000.
LOUISIANA.
Win. W. Montgomery,.
Samuel J. Peters,
J.F.E. Hardy, 125,000
Thomaa VV. Dewey, . . . . ! 125.000
William A. Lucas, i r*MUJ
John C. Ehringhaus, HAM**)
William VV. GritHu, I lbO.OiO
I ! emlerson C. Lucas, . . J 1 30,< MJ
Arch. Me Lear ;>25.UW
Willium G. Broad foot,. J 380, < M0
Jesse II Limlsay, Im.mj
W. A. Caldwell I 120.000
William R. Hill, 1 125.UO
Isaac T. Avery, ittbUU
John M. Roberts, |50,UJ0
Will inrii W. Clark, 1
Charli s Dewey, I 3UJ,t*w
William H. Jones, ; 100.000
Israel G. Lush l-AsouO
Dolphin A. Davis, j 123,1*0
It. Chapman, MM**)
Hampton B. Hammond, 2ou,i* u
Tho. 11 Harden berg h,.. 175.UW
M. Stevenson,. Ijo.ijij
Henry R. Savage, I 4C«MM)
\Vrilliam Res ton, ! 3UM.M)
Timothv Savage, t 350,isO
L. S. Webb I BllbOtU
Joseph J. Lawson, I Lou.uui
Specie $2,000,000. Capital ,000
i
Total 8 Banka.
Robert M. Davis, ! 3,993,0. 0
Richard Relf, l,9s>, iXU
j R. J. Palfrey,
G.Cruzat, 1/89.600
I Samuel C. Bell I 3,l«l.aaJ
| Phenix N. Wood, 1 .370.4
William P. Grayson,...1 1 .OtKMOi
t Eugene Rousseau, 1,300, (M)
j Jas. L. Wibray, j 1,Q*maki
Circulation $5,500,000. ! Coin $5,(00,' 00. Capti'IS 14,702,600
IT. H. Dudley
II. A. Rathhone,
A Pred Penn,
George M. Plnckard,...
James I). Denegre,
F.Rodewald,
Gck 'gle
Original from
UNIVERSITY OF CHICAGO
Virgin ia — South Carolina
1005
VIRGINIA.
Location.
Abingdon,
Alexandria,... .
Buchanan, . . . .
Charleston, . . .
Charlestown,..
Charlottesville.
•«
Christiunsburg,
Clarkesvilie,.. .
Danville,
Fairmont,
Farrnville
Fredericksburgl
IlarrtKOnberT.. J
Jeffersonville,..
Leesburg
Lewisluirg,
Lynchburg
Name of Bank.
Exchange Bank of Va.,,.
do. do.
Farmers* Ok. of Va.
Bk. of the O. Dominion,
Hank of Virginia,
do. do
Rank of the Valley,
Montirello Bank,
Farmers* Bank of Va
Bank of the Valiev
Exchange Bank of Va.,.
Bank of Virginia,
Fanners* Bank of Va.,..
Fairmont Hank,
Farmers’ Bank of Va.,
do. do. do.
Bank of Virginia,
Bauk of Commerce, ....
Bank of Rockingham,. .
North Western Hank,. .
President.
Malden,
MartinsOnrg,. .
Moor fir Id
Morgantown,.
Norfolk
Parkersburg,.. . |
Petersburg,....
Point Pleasant,
Portsmouth,.. .
Richmond,. ...
Romney,
8* tern
Hrottsville ,.. . .
Summon,
Fnion,. . .
Weston,.
Wheeling
We’lsburg,. . . .
Winchester,. . .
Wytheville, . . .
Trails- Alleghany Bank,
Bank of the Valiev, !
Farmers* Bank :d Va.,..!
Bank of Virginia,
Farmers’ Bank of Va.,..
Exchange Bank ol Va.,..
Men- hailin' Bank, ,
Bunk of Kanawha,
Bank of Berkejv,
Bank of Lite Valley,
Merchants & Mechanics’
Rank of Virginia,
Exchange Bank of Va.,.
Farmers’ Bunk of Va ,. .
North Western Hank,..
Hank of Virginia !
Exchange Bank of Va ,.
Farmers* Bank of Vo.,. . I
Merchants & Mechanics’
Bank of Virginia
do. do.
Exchange Bank of Va.,.
f armers* Bank of Va , .
Bank of the Valley,. . . . .
Exchange Bank,
Rank of Srottsville,
Rank of the Valley,
Gentral Rank,
Bank of Virginia,
Exchange Bank of Va.,..
Merchants^: Mechanics’
North Western Bank...
Man.«fc Farmers’ Bank,.
Bank of Wheeling,
North Western Bank,..
Rank of the Valley,
Bank of Winchester,....
Farmers’ Bank of Va.,..
do. do. jlo,
J. C. Greenway,
Rooeri Jamison,
William Gregory* ....
William Fowle,
Charles T. Beale,
.Taut' s (’. Macfarland,.
Thomas Greggs,
S. W. Ficklin*..
John R. Jones,
David Wade
John W. Young,
Thomas P. Atkinson,.
Nathaniel T. Greene,.
John P. Chisler,
C.C. Read
John II. Wallace,
Eustace Conway,
J. R. Ficklin
A. B. Irish,
John VV. Johnston,...
W rn . P. Floyd,
John Janney,
James II. Nesmith,...
C. Gabuev,
William Radford,
John G. Meetn,
David R. Edley, ......
James G.Carr,
John Blair Doge,
Thomas Martin,
Matthew Gay,
.Install Wills,
William W. Sharp,...
N . C. Whitehead,. .. .
James Cook,
Joseph Bragg,...
Thomas S. Gholaou*. .
John Kevan*
James Caoehnrf,
Samuel M. Wilson,....
James Cm-kie,
John C. Hobson,
W’illiain H. McFarland
David Gibson
William Watt*
J. VV. Mason
James Nelson
Willi »m Kinney,
John Echols,
J. M. Burnett,
John VV. Gill,
John C. Campbell,....
T. Sweeney,
C. D. Hubbard,
Adam Kuhn,
Thus. Allen Tldhall,...
Rohert J. Conrad,
Robert I, Raker
Stephen McGavock, ...
Robert R. Preston, . . . .
John Hoof,
W. H. Marbury,
James McKenzie
J. Anthony,
Samuel Hannah,
Cato Moore
B. C. Flannagan
\ William A. Bil)h,
C. B. Gardner
Augustus C. Finley,....
C. U. Taliaferro,
George VV’. Johnson,..
G. H. Sprigg,
Archibald Vaughan,....
Arthur Goodwin
William K. Gordon,. . .
John M. Herndon,
C C. Stray* r,. .
jGeorge W. G. Browne,
Thomas H. Gillespie,..
I William A. Powell,
i Thomas Mathews,
John M. Otey,
Alexander Tompkins,..
Will am M. Hlaekfopd,.
Robert C. Mitchell,. ...
P. B. L. Smith,
j D. Burkhart,
Samuel H. Alexander,.
! William Wagner
; Robert VV. Bowden,...
George VV’. Cnmy,
R. II. Chamberlain,
Beverly Smith,
George VV. Slainhack,.
C. F. Fisher
Pleasant C. Osborne,..
! E. VV. Martin
'William II. Wilson,...
Samuel Marx,.
William P. Strother,. ..
John Adams Smith,...
William A. Vance,.
John B. J. f.og an
VV. D. Davis,.
Edwin M. Taylor,
VV. II Tarns
JVT. McDaniel,
II . .1 M'Candltah,
Sohieski Brady,
Daniel Lamb,
J.R. Dickey,
Daniel ( '. List,
Samuel Jacob,
Henry M. Brent,
Robert B. Wolfe,
i Josenh H. Sherrnrd,. . .
! w. VV. Hanson,
Total 57 Banka. Circulation $12,C03,00n. \ Specie §4, COO, COO .CaritaipMS, 600
SOUTH CAROLINA.
Camden
** Branch,
Charleston, . . .
Chester
Columbia
“ Branch
(i
C It era xv,
Georgetown, .
Hamburg,. . . .
Newherrv,
VVinns'.ioro*. .
Rank of Camden,.
,1 Rank of State of S. C.,.,1
Rank of State of S.C.,..1
Bank of < -hnrleaton, !
Rank of South Carolina, I
People’s Bank,
Planters * .Mechanics’ .. !
South Wesl’rn Rutlr. Bk!
State Bank,
Hnion Bank of S. C ....
Farmer*’ A* Exrli. Bk.,..
Bank ofChester,
Exchange Rank of Col..
, Bank <»r State of 8. C
i 'nmmerctal Hank,
Merchant^-’ Bank,
Rank of Georgetown,. .
. Rank of Hamburg,
Rank of Newherrv,
Plan tern’ Bk.of Fairfield,
Willism E. Johnson,
C. J. Shannon
Charles M. Furman,.
Arthur G. Rose,
William Biruie
Donah! !.. McCay, ..
Daniel Ravenel,
James Rose,
Edward Sebring,
Henry Rnvenel,
William M Martin,.
Geo S Cameron,...
James V. J.xles,
Rohert H. Goodwvn,.
John A. Crawford,...
James Wright,
James G. Henning,...
Htratn Hutcheson,. ..
Rcnj. D.Bo'd
Jatrfes R. Aiken,
_ TT- R Workman,.
D L. Desmissitre
Thorns R. Waring,..
J. K. Snss, .
George B. Reed,
H. G. Loper,
C. H. Stevens
J. Clarence Cochran,..
Henry Trr*rol
Aaron C. Smith,
• " illiam C. Ilrf-ese,...
John A . Bradley,
James S. Scott,
John Fisher, ' !
j E J. Scott *
I WjHintn Godfrey,...
’R E. Frn** r .*
; John J. Blackwood,.. .
j Thomas VV’. Hollow nv
H. I.. Elliot, ;
I 1, 1 23, If 0
? Ifio.wo
l.m .-on
foo.or-o
1,000,110
b72.4*:5
t i,rvNi,nm
i,ooo,nro
300,1-00
500, 000
Total 20 Banks. Circulation $6,iOO,CCO. 1 Sp'cie $1, COO, C00. CajHCl iiTstt.:?*
Original from
UNIVERSITY OF CHICAGO
Digitized by
100G
Ten n essce — Ken t ucky — A labama.
Location .
Chattanooga,.. .
Duudridge,
Lebanon,
Tazewell,
Knoxville
Nashville,
M
Athens
lurkwvi lie, . .
Columhix, . . .
Rogrrwvilk*,.. .
Shelby v tile,. . .
Some* ville,.. .
Spuria,
Trenton,
Memphis
Murfreesboro’,
Knoxville. ... .
Name of Bank.
Bank of Chattanooga,. . .|
Bank of Dundritlge, ;
Bank Middle Teiin., . . . .'
Hank ol Tazexvell, I
Hank of Cluirborite, 1
Bank ol East Tennessee,!
Bank of Nashville, |
Bunk of Tennessee
do.
do.
Brunch
do.
do.
do.
do.
do.
do.
do.
do.
do.
do.
do.
do.
do.
do.
do.
do.
do.
tlo.
do.
do.
do.
TENNESSEE.
President.
William Williams,....
•John Hosier,
S. V. M- ttley
E. II. Skaggs,
H.J. Foster,
\V. M. Clmrcliweil,.. .
Nicholas Hobson
Cave Johnson,
Memphis,
Nashville,
Alliens,
Clarksville,
Franklin,
Memphis,
Pulaski,
N ash v i lie,
Chattanooga,..
Coltunhia,
Memphis,
Knoxville,
Jackson
Memphis,
Lawrenctuuis,
Louisville,....
Bowling Green,
Danville,
Frankfort,
Greenxhiirg, . . .
Hopkinsville,. .
Lexington,
Maysville,.. ....
Louisville,
Flemingshutg,.
Paducah,
Commercial Bank, !
Bank of Memphis, 1
| Exchange Bank, ;
[ Fanners’ Bank, i
j Miners’* Manufacturers’!
1 Bunk of Knoxville,
i Mechanic*’ Bank j
Planters’ Bank of Tenn.,'
do. do. Branch,
do. do. do.
do. do. no.
do, do. do.
do. do. tlo.
Union Bank of Tenn...
Ifarrodsburg,..
Versailles,
Frankfort,
Covington,
Henderson,
Georgetown, . .
Maysvilie,
Ml. Sterling,.. .
Princeton,
Somerset,
Lexington,
Covin* ton, ....
Louisvi le,
Pans,....
Ridmond,
Ri^cflville,...
*c9ltii th land, . . . .
Carrollton
Hickman,
Louisville,
Owensboro,. . .
Mobile
•<
Montgomery,..
do.
do.
Branch
do.
do.
do.
do.
do.
do.
do.
do.
do.
do.
do.
do.
Southern Bank -
Lawreuceburg B. olTeii
Total 33 Banks.
Bank of Kentucky,.
William B. Munford,.
John B. Groves,
Win. Hutches** -ii,. . . .
Robert Mathews,
11. Owen,
J. G. Miictiel)
John S. Davis,
E. II. Ska g*,
R. U. linkley,
William rvence,
II. L. McChrng
Joseph L. Kin*,
Ii. A. M. V\ bite,
E. W.M. King
Orville Ewing,
James Ii. lit a*nn,. . •
II. F. Beaumont,
J. ll.Otey
J. Elder
A. M Biillentine,
Joliu hiikman,
J. A. Whiteside,
8. D. Frierson,
A. R. Herron,
J. H. Cowan,
W. J. Davie, .
SE.R.se,...
do.
do.
Brunch
do.
do.
do.
do.
do.
do.
do.
do.
do.
do.
• do
do.
do.
do.
do.
do.
do.
do.
Bank of Louisville
tlo. do. Branch,
do. do. do.
Cummer. B. of K’nturkyj
do. tlo. do.
do. do. do.
Farm’ra’ Bk. ol K’ntucki |
do.
do.
Branch
do.
tlo.
do.
do.
do.
do.
do.
do.
tlo.
do.
do.
do.
do.
do.
do.
do.
do.
dr..
Northern Bank of Ky.,.
do.
do.
Branch
do.
do.
do.
do.
do.
do.
do.
do.
do.
Southern Bk. of Ky.,. . .
do.
do.
Ur'ancli,
do.
do
do.
do.
do.
do.
do.
do.
do.
do
do.
do
Total 33 Banks.
Bank of Mobile,
Southern Bank ot Ala.,.
Bank of Montgomery, ..
Circulation $4,900,000.
KENTUCKY.
Virgil Mc.K night
J. R. Underwood,
James Kinnaird,
A. W. Dudley,
John arrett
J. P. Citmpbeli,
Henry Bell,
Andiew M. January,.. .
Joshua B. Bowles
D. K. St .cktmi,
James Campbell,
L. M. Flournoy,
Peter Dunn,
David Thornton,
John 11. Hanna,
C. A. Withers,
Owen lass,
J T. Craig,
J. P. Dobyus,
Rich trd A p person,
W. W. Tinsley,
Cy rent us Waite,
M. T. Scott
James M. Preston,
William II. Clifton,. . . .
John B. Ra i lie,.. ...... .
W. McLIattfthan,
George W. Norton,...
William Goidon,
W. B. Winslow,
J. S. Hubbard,
A. A. Gordon,
William BeU,
Circulation $7,;00,000.
ALABAMA.
William R. Hallett,..
II. A Srhrowler,
William Poe,
Circulation $2,010,000.1
Cashier.
W. D. Fulton |
S. N. Inman, j
C. W. Jackson
C. Hitching*,
I. L. Evans, I
A. A. Barnes j
Wesley Whelec-s
James Morton...........
J. B lizard,
W. 11. Dortch, I
R. II. Hill '
H. Fail
H. N. Wallace,
James Pettit I
William M. Young,
John A. Talialerio
G. W. Lincoln, I
W. F. Barry I
James Spence, j
A. McClnng, ,
H. L. McClung, !
John L. Moses, I
Henry R. Pugh, j
U. Weaver,
David Cleage
William P. Ilume
William S. Campbell,.. . |
James Penn, i
G. W. Petway, !
James Correy, i
E.G. Pearl I
8. A. Ilamner,
Fred. W. Smith
John Craig, I
W. H. Stephens, j
W. S. Maerae, '
William Simon ton, j
Capital.
| 100,000
103, OJ
! loo. oro
jno.usi
I If. 0J GO
I 1 0,110
5UMHJ0
1 ,323, 91 6
, 249,1:0
;
254.-08
| 2*3, l
I 234, 2Uti
, 2£<,*a
234.11 S
I
I lUM*D
2.0. (tM
ctbUO
500,0(0
IfrUlW
lumwu
JjU.tM)
i .mu q
l5t.MX»J
130,0(0
2,01
130,0(0
150.UJ0
I50.UJU
2U>,MQ
5o,DJU
Iumau
Specie $2,300,000. Caj**o/j 10.415, 137
S. H. Bullen,
Thomas C. Cal vert,. ... 173 oun
Thomas Mitchell 23t.ts.il
Edmund II. Taylor, 3XV»it
William H. Allen, 125,000
Isaac 11. Caldwell, 2.hm»U
Horace B. Hill, bXuuo
James Barbour, 45u,'Jt">
Alfred Tlirnston
1 1 train Powers, luOJsX)
Adam Rankin, lun.uo
J. M. Dallam, 200, OUi
D G. Hatch Hhm> U
Richard D. Shipp, lUMUO
John B. Temple 3UU.DJ0
Cassius B. Snndford,.. . 6U*,uuO
David Banka. sao.UO
P. L. Mitchell, 100.UUJ
James A. Johnson 4UV<X)
William Mitchel, LULUlx)
Caleb B. Henry, 300,(10
John G. Lair, IUMJUI
A F. Hawkins, TJU.uo
William Ernst, 4U.Ul«»
John Milton finn.ugi
Thomas Kelly, 37U.uu>
E. L. Shackelford Ixyso
M. B. Morton, 4(U.unu
B. Banter 3UU,tM’
John A. Crawford, 2UMrO
William Owens, Jr.,... 150.UG
Junius B. Alexander,. . . 5UO.OOU
James B. Anderson, j Smuiu
Specie $4,0U0,000.Copi/a/i
H. L. Higley
Daniel U. Simpson,
J. N. Norvell
Specie $80Q|U0Q. Capital!
U.Mu.OPO
1, 500.000
3UMIO
3U0.0UU
$2jou,at>
Gck 'gle
Original from
UNIVERSITY OF CHICAGO
Ohio — Missouri — Michigan
1007
Location .
Ashtabula,
Athena,
Bridgport,
Cadiz,
Canton,
Chillicothe,...
Cincinnati,...
CircleviHe,....
Cleveland, . ...I
Columbus,
Cuyahog a Falla
Dayton, i
M i
Delaware, . ...:
Eaton,
Klyrla
Franklin Mills,.
Ironton,
Lancaster,
Logan,
Mansfield,
Marietta,
Marion, |
Massillon, I
II
Mount Pleasant
Mount Vt riioD,)
.Norwalk,
Paineaville*. .. .
Piqua,
Portsmouth,.. .
Ravenna,
Ripley,
Salem,
Sandusky,
“ I
Springfield,....
••
Steubenville, . .
Tlilin,
Toledo,
Troy,
Urbane, i
Warren,
Washington, . .
Wotwter,... . . .
Xenia,
Youngstown, .
Zanesville,....
♦Branches of
8t. Louis,
••Hyelle,
Cape Girardeau, |
Lex ins toil,
Palmyra,
Springfield,....
Detroit,
II
M
Mt. Clemens,. .
Name of Bank .
♦Farmers’ Branch Bank,'
♦Athens Branch Bank,..
♦Belmont Branch Bark,
♦Harrison County Bank,
Stark Countv Bank,
♦Chillicothe Branch Ilk.,
♦Ross County Branch,..:
City Bank of Cine., I
Commercial Bk. nfCin.,'
Ohio Life Ins. A Tr’st Co
Picknwny Co. Bank,...!
Canal Bank of C.f
City Bank of C |
♦Commercial Branch B.,|
♦Merchants’ Branch Bk.,
Bank ol Commerce,.. . .
Forest City Bank,
♦Exchange Bank, |
♦Franklin Branch Bank,
♦Summit Count) Bank,.
♦Dayton Branch Bank,.
Miami Valley Bank,...
♦Delaware County Bk.,.|
♦Preble County Bank,..
♦Lorain Bank
Franklin B.mk,
Iron Bank,
♦Hocking Valley Bank,.
♦Lnsan Branch Hank,...
♦Farmers’ Batik I
♦Marietta Branch Bank,:
Rank ol Marion,
♦Union hank,
Merchants* Bank,
♦Ml. Pleasant Bunk,....
♦Knox County Bai k....
♦Norwalk Branch Bal k,
Rank of Geauga,
♦Piqua Branch Rank,...
♦Portsmouth Branch B.,l
♦Portage County Bank,.)
♦Farmers’ Branch I k.,..‘
♦Farmers’ Branch Bk.,..
Sandusky City Bank....
Union Hank,
♦Mail River Valle) Bk.,.
Springfield Rank,
♦Jeflerson Branch Bk.,..
Seneca Count) Bank,...
Bank of Toledo,
♦Miami County Bat k,..
Champaign Co. Bank,. .
Western Reserve Bai k,1
♦Guernsey Branch Bank,
♦Wayne County Bai k,..
♦Xenia Branch Bank,...
Mahoning Comity Bank,
Franklin Bank,
♦Muskingum Branch Bk.
Total 58 Banka.
the State Bank of Ohio.
Bank of the State Mo.,,
do. do. do. Branch
do. do. do. do.
do. do. do. rlo.
do. do. do. do.
do. do. do. do.
Total 6 Banka .
Michigan Insurance Co.|
Peninsular Bai k,
Farmers A Mechanics’,
Bank Macomb County,..)
Total 5 Bank a.
OHIO.
President.
0. H. Filch
John Ballard,
John Wai field
Daniel Kilgore,
J. A. Saxton.
" illiani H. Douglas,
Owen T. Reeves,....
James Hall
Charles Stetson,
Marcus Brown,
J. L.I!e«nt
1 . Pinne] Wick,..
Y' illiani A. Otis
Thomas M. Kelly,...
Joseph Perkin®,
J. G. Hussey,
William Dennison, Jr
David W. Dcshler,...
E. N. Sill,
Beter
Daniel Berkel,
Hosea Williams,
Jonathan Harshman,
Elijah Dewitt,
Zena* Kent,
James Rodgers,
Darius Tallmadge,. . .
Reuben Culver,
Janies Purdy,
John Mills,
W. W. Conklin.
M. D. Wellman,
I ftteese,
James Gill,
Henry B. Curtis,..,..
Timothv Baker,
Daniel Kerr,
William Scott,
Eli Kinney,
R. E. Campbell,.
Thomas McKaig,
Simeon Jennings,... .
E. Lane
F. T. Batuev,
Levi Rhinehart,
John Ludlow,
John Andrews
II II Gibs*
Vorrison R. Waite,..
William Barbee,
S. A. Winslow,
George Parsons,
John McCurdy,..
E. Roh if on*...*
A . Hivling, ..
William Rater*,
Daniel Brush,
William TallHnt,...
Circulation $7,500,000.
MISSOURI.
Joseph Charless,
Gerard Robinson,
J. R. Wa'liau,
Ell rid e Burden,
William C. Martin,..
Larkin Paine,
Circulation $2,200,000
MICHIGAN.
John Owen
Charles Howard !!
Guv Foote
H. C. Kihhe
Circulation $500,000
/
Cashier. Capital.
Amos F. Hubbard,
J. R. Craw lord,
John C. Tallman,
B.M. Phillips,
E. P. Grant
James B. Scott,
A. Spencer Nye,
Charles B Foote,
Sun uel p. Bishop,
0 Ballaid,Jr
Thoum* C. Severance,.
Alht rt Clark,
Truman P. Handy,
A. E. Foot,
H. B. Iliirlhut,
William H. Stanley,...
Morgnn I.. Ne\ ille,.. . .
Joseph Hutehesi n,
E. S. Comstock
Charles G. Swain,
S. C. Frnley,
S. Moo* e, Jr
H. C. Hichtand,.. .. . ...
John B. Finn,
Cl aries Peck, Jr
James O. Willatd,....
A. C. Worthington,
Samuel P. Oll.cer
II. Colby.
Noah L. Wilson,
J. Ault,
l-ewis liurxthal, Jr.,..
ft. Hunt
Jonathan Binns,
1 . ft. Lewis,
John Gardiner,
S. S. Osborn,
Joseph G. Young,
M. W. Lodw ick,
John II. Eblu rt,
Daniel B. Evans,
Charles If. Cornwell,.
Henry S. Flvnt,
G. M. W estop,
James T. < hnpoole,...
YV illiani McMeen,
William Spencer
Charles ft. Johns* n,. . .
C. J. Wood
Henry S Mayo,
H. I*. Espy
George Taylor,
G. Fraeker,
E Otitnby, Jr.v
A. Trader,
R. W. Taylor,
John Peters,
D. C. Converse,
lon.ffo
It (M oo
BUM 10
lie, ho
30, MO
asti.tto
UP, (00
S3, MO
50,(10
6ll,'-2(>
204,(00
50, MO
50, HO
175, 0M)
D5.P00
B 0,1.00
1.0,000
1 1*5. U0
1 75, HO
ltfUlO
ll.7.( Ml
”0,(10
93,5(0
1(J0,((J0
”.4,075
*5,(00
k5,Ml)
1(41,(00
1( 0,(00
1(0, COO
100.(00
1U),M 0
150,(4.0
60,000
100,(00
100,(O0
1 *,'5.(10
50, COO
100.(00
1(0.14(1
103,(40
100,1.(41
1(0, (00
62,5(0
114,(00
1 00,(00
50,(441
10O.C0O
KXMTO
1(4', (411
25,240
75, ( ( 0
ICO. (00
H),M'0
100,( ( 0
f <1,000
100,(00
100,000
5pe«> $2,444,000. Capi tat $6, 146 14 1
Antoine P. Robinson,.
William C. Boon,....
Alfred T. La ev
Charles R. Mon head,.
Samuel I). South . ...
James R. Danfort!),...
60S ,750
1 21. 1 HI
I V 1 ,110
11. 1 Ml
121.(00
121, MO
Specie $1,140,000. Capital*, | ,a*, 750
Henry K. Sanger,
Henry II. Brown,
J. C W. Seymour
J. G. Tucker,
rco,onn
n 0,(10
4(41,(10
250,000
Spei te $150,000. Capital $l,(C0,lC0
Digitized by
Gck igle
Original from
UNIVERSITY OF CHICAGO
100S
Wisconsin — Illinois — Indiana
Digitized by
WISCONSIN.
Location.
Benver Dam, .
Beloit,
Fond du Lac,. .
>« «»
Green Bay,...
«« H
Madison,
Milwaukee,.
Mineral Point,
Janesville,
Port aye City,..
Kenosha,
Racine
Watertown, .
Alton,
Belleville
Bevidere, —
Itluomniyoiui
Charleston, ..
Chicago,
Danville,
Elgin,
Galena,
Naperville
Ottawa,
Peoria,
Pern,
Qulucy
Rock Island,..
Joliet,
Springfield,... .
4 i
Waukegan,...
Indianapolis,. .
Bedford,
Evansville,
port Way iic,..
Lnlayette, — -
Lawreuceburg
Madison,
Michigan City,
New* Albany,. .
Richmond,
South lleiul,. . .
Terre Haute,..
Viacennes,. . . .
Name of Dank.
Dodge County Bank,....]
Hank of Beloit,
Rock River Bank,
Hank of Fond dll Luc,..
Bank of North west, ....
Northern Bank
l’o\ River Bank,
State Bank,
Dane County Bank,
Bank of the West,
Wisconsin M. 6c F. Bk.,
Baukot Milwaukee, —
State Bank,
Farmers’ 6i Millers’ Bk.,
Exchange Bank,
Bank of Commerce,. . .
Germania Bank
People’s Bank,
Wi*con*in Bank,
Badger State Bank,
Columbia County Bank,
City Bank,
Bank of Racine,
Racine County Bauk,. . -
City Bank,
Baukot Watertown,...
Jellersun County Bank,.
Total 22 Banks.1
President.
S. L. Rose,
George B. Sanderson,...
J. M. Keep
W. J. Bell
Benj. F. Moore,
K. A. Darling,
J. G. Lawton,
Samuel Marshall,
L. B. Vilas
S. A. Lowe,
Alexander Mltchel, |
C. D. Nash, f
E. Cramer, I
E. D. Holton,
VV. J. Bell,
G. W. Peckhain,
G. Papendiek,
H. Haertel,
C. C. Washburn,
Win. J. Bell,
S. Marshall,
A. Campbell,
W. J. Bell
Reuben M. Norton, ....
Gilbert Knapp,
W. 11. Angel,
Charles G. Hnrgcr,
Alton Bank,
Southern Bank,
Belvidere Bank. .....
McLean County Bank,..
Farmers Ac Traders’ Bk.,
Bank of America
t 'ommercial Bauk,
Marine Bank,
Chicago Bank,
Exchange Bank,
Merchants Ac Mechanics’
Stock Security Bank,...
Bank of Eh in.
Bank of Galena,
Bank of Naperville,
Bauk of Ottawa,
Central Bank,
Bank of Peru
UuincyCily Bank
Rock island Bank,
Merchants' Ac Drovers,.. ,
Bk. of Lucas At Simondsj
Clark's Exchange Bank,!
Bk. of Northern Illinois, .j
Total 25 Banka.
State Bank of Indiana,.,
do. Branch,....
do. do.
do. do.
do. do.
do. do.
do. do.
do. do.
tin. do.
do. do.
do. do.
do. do.
do. do
do. do.
Total 13 Banks.
Circulation $500,000.
ILLINOIS.
Frbk Banks.
E. Marsh,
Russel] Hinckley,
Alex. Neely,
A. Grid ley,
W. H. Marsh
George Smith,
J. Cook,
J. Y. Scatnrnon,
Tho. Burch,
H. A. Tucker,
Janies H. Woodworth,
E. Kingsbury,
M. C. Town,
Henry Corwith,
Willard Scott,
Burton C. Cook
G. It. Rupert,
T. D. Brewster,
Newton Flagg,
M. B. Osborn,
Win. Smith,
Robert Irwin,
N. II. Ridgely
C. D. Bickford,
Circulation $2,000,000.
Cashier .
K. V. Bogert,
L. C. Hyde,
A. L. Field,
A. G. Butler
A. G. Rugglrs,
R. Chappell
F. Dt>noyers,
J. A. Ellis
N.B. Van Slyke,
W. L. Hinsdale
David Furguson,
P. S. Peake,
M. S. Scott,
II. II. Camp,
J. B. Kellogg,
Joseph S. Colt,
C. H. H. Papendiek,..
K. B. Green leaf,
C. Woodman,
E. L. Dnnock,
H. S. Haskell
S. B. Scott,
H. J. Ulmann,
George C. Northrop, .
A. LeClerf,
Louis L. Angel,
Daniel Jones,
Coin $240,000. Capital
Capital.
50.000
ft, 000
50,iUU
2:0*0
£>,0(0
50J Ml
26.000
50.UU0
100.UOO
1(0.00
5OJJ00
S5t),iUU
odjTfl
5«J.U)
100. (*0
30.000
30.000
60.000
25J«0
25,010
WJW
50,(00
50,000
50,(00
50,0,0
L250iu0)
INDIANA.
E. Dumont
Calvin Fletcher,
John Vestal
John Mitchell
Allen Hamilton,
Joseph S. Hanna,. .. .
Outer Tousey,
William M. Dunn,...
Edmund B. Woodson,
A. S Burnett,
Albert C. Blanchard,.
Samuel C. Sample,.. .
Levi U. Warren, .....
William Burtch,
C. A. Caldwell, 100, W
T. Hinckley, 30MIO
A. Neely, IW
T. Pardee, l«M«j
.T. A. Marsh, 50, W
E. Willard, SUMW
A. Gilbert, 2t>4.«X*3
R. F Carver 550J«J
J. II. Burch, lftMWO
Hamilton B. Dox 5tM*»
S. Bronson, Jr , IOO.OJJ
G. Merrill, It«JW
J.J.Town, 5i,(U)
C. C. P. Hunt,
A. Keith, 1W,W»
Geo. S. Fisher,. 150.UW
R. A. Smith,
E. C. Allen
J. C. Woodruff, 2C*iJ»0
S. II. Mann 1W.0U0
R. E. Goode 11 JlW®
A. Campbell, I
James Campbell, I SwvJ
C. It. Steele ! 1«V«>
Specie $350,000. Capital | S.-ILWO
James M. Ray, I
Thomas II. Sharpe, 219*900
Isaac Rector 91, -w
George VV. Rathbone,.. 1
Ifu'h McCulloch, | 143»NJ
Cyrus Bnll 1^7.
Henry K. Hobbs, 2l5.UK;
Joseph M. Moore 212.oj0
1 1 rial C. Follet
James R. Shields,
Elijah Collin ' W'JJ®
Horatio Chapin, j
Preston Hussey, '
John Ross M***
Circulation $2, S35, 000 1 Specie $1,080, 000. Capital $'M50,107
Gck 'gle
Original fro-m
UNIVERSITY OFCHICAdo
I
I
Indiana — Georgia.
1009
Location.
Brook ville, .
< ’ambridge,.
Columbus, . .
Connersville
Elkhart, . —
Evansville,..
Goshen,
Huntington,..
Indianapolis,.
Laport,
Lafayette, ...
Lima,
Logausport,..
Mich ig’n City,
Madison, . . . ,
Monticello,.. ,
Mt. Vernon,.
New-Albany,
Rockville, .. .
Salem,
Syracuse,.,
Terre Haute,
YVan»nw\ ....
Westfield, ..
Mt. Sterling
Name of Bank.
Brookville Bank
Cambridge City Bank,..
Kentucky Stock Bank,..
Fayette County Bank, ..
Savings Bank,
Bank of Elkhart,
Canal Bank,
Crescent City Bank,
N.Y.Ac Va. State St’k B.
Bank of Goshen,. .
Huntington Co. Bank,. .
Bank of the Capitol,. . .
Central Bank,
Traders’ Bank
Indiana Stock Bank,
Gramercy Bank,
La Grange Bank,
Hoosier Bank
Bank of Indiana,
Indiana Bank,
Bank of Monticello,
Bank ofMt. Vernon,...
Merchants 6c Meehan’s,.
Bank of Rockville,
Bank of Salem,
Salem Bank,
Bank of Syracuse,
Prairie City Bank,
Southern Bank,
Bank of Warsaw,
Farmers’ Bank,
Agricultural Bank
Atlanta,..
Augusta,,
Athens, . ...
Columbus, ..
Dublin
Hamilton,...
Fort Gaines,
Greensboro,.
Griffin
«<
La Grange,.
»•
Macon
Madison,
Milledgevllle,
New nan
i*
Oglethorpe,. .
Roipe,
Sandemille.
Savannah,.. .
INDIANA.
President. Cashier.
M. W. Haile jJ. W. Hitt,
W.p. Pidgin, B. F. Jones,
M. Helme, E. F. Claypool,....
Elisha Nance, L. 1). Allen,
P. Merchant S. Baldwin,
Willard Carpenter, W. Baker,
John Rebel C. F. Garughty, ...
J. II. Bams, Owen Coffin,
John Roche, (J. R. Weldon,
Andrew Wilson, 'John Woolley,.. .
O. Brown, S. Moore,
E. W. II. Ellis, T. R. Farnsworth,.
Caleb Ives, J. S. Kellum.
E. F. Nexsen, C. M. Wheclock,.
J. B. Ilowe, S. P. Williams. ...
P. Pollard 1). M. Dunn,
C. B. Blair, W. W. Higgins,..
E. Whitney S. Pitcher,
N. S. Gregg, II. N. Hedges, —
G. G. Baker, A. 8. Curtis,
V. A. Pipin, |T. I). Dew,
A. W. Brockway, C. VV. Levings,...
YV. C. Do Paw J. L. Monaugn,. . .
Thomas G. Harris John Cook
J. II. De frees, YV. A. Thomas,...
C. YV. Barbour, C. H. Bailey
J. II. Williams, G. C. Day
William Williams, S. H. Chip man,...
YV. Robson J. J. Reeve,
Sparta,
YV ;
ashington,
Bnnk of Atlanta,
Geo. R. R. Ac Bank. Co.,
Augusta Ins. A' Bk. Co.,
Bank of Augusta
Bank of State of Geo.,. .
Geo. R. R. Ac Bank. Co.,
Mechanics’ Bank,
Union Bank,
City Bank
Bank of State ofGeo.,. .
Mechanics’ Bank,
Bank of State ofGeo —
Marine Bank
Union Bank,
Bank of Savannah,
Bank of State of Geo.,..
Bank of Fort Gaines,. . .
Bank of State of Geo.,.,
do. do. c’ j.
Marine Bank
Planters’ Bank
Bank of S&v annah
Bank of Augusta
Bank of State of Geo.,..
Marine Bank,
Merchants’ Bank
Manufacturers’ Bank,...
Planters’ Bank
Mechanics’ Bank
Bank of State ofGeo.,..
Planters’ Bank
Bank of Augusta
Railroad Bank,
Planters’ Bank,
Marine Bank
Planters’ Bank
Bank of State of Geo,,..
Planters’ Bank,
Bank of Stale of Geo.,..
Bank of Savannah,
Marine Bank,
Planters’ Hank,
Central R. R. Ac B’g Co.,
Planters* Bank
Bank of State of Geo.,. .
Circulation 83,000,000.
GEORGIA.
J. R. Valentine,
Agency,
William D’Antignac,. .
John Bones,
Isaac Henry,
John P. King,
Thomas S. Metcalf,....
Edward Thomas,
j Artemas Gould,.
Edward R. YVare,
Agency,
do.
do.
do.
do.
YV. B. Carter,
Agency,
do.
do
do.
do.
do.
do.
do.
do.
Isaac Scott,
E. Bond,
Agency,
do.
do.
Agency,
do.
do.
do. a
do.
do.
do.
do.
Anthony Porter,
Joseph Washburn,....
Charles F. Mills,
George YV. Anderson,.
Richard R. Cuyler,
Agency,
Samuel Barnett,
Coin S300.000. Capital
8. C. Higglnson,
John F. Mims,
Robert Walton.
James YV. Davies,
Greenville Simmons,. . .
Joseph Milligan,
Milo Hatch,
John Craig,
I. C. Fargo,
Henry Hull, Jr.,
J. D. Carter,
P. J. Semim*
R. Patten,
H. H. Epping,
Freeman II. Rowe,
D. R. Adams,
Capital.
50.000
50,000
50,000
150.000
100.000
50,000
50, (J00
50,000
50,000
50.000
50,000
100.000
50,000
50,000
100,000
50,000
50,000
100,000
50,000
50,000
50,000
50, (KM)
50,000
50.000
50,000
50,000
150.000
50,000
100.000
50,000
50,000
2,000,000
100,000
375.000
600, IKK)
400.000
500.000
500.000
300.000
500.000
100.000
100.000
C. A. Davis,
M. G. Dobbins,
A. Flcury
A. Merritt,
Wiley H Sims
B. B. A moss.
Jas. H. R. Washington,.
I. C. Plant,
Edward J. Stow,. ...
P. M. Judson,
A. J. YVliite,
N. E. Monroe,
John YV. Porter,
A. M. Nbbet,
J. J. Pierson,
H. J. Sargent,
R. II. D. Sorrel,
G. M. Taylor,
N. J. Bayard,
YV. E. Alexander,....
YV. Hodges,
J.K.Tefn
YV’illiam B. Tinsley,.
William P. Hunter,..
Hugh YV’. Mercer,.. ..
George A. Cuyler,....
Thomas M. Turner, .
YV. F. Alexander
200,0(10
125,000
800,000
500.000
1,000,000
535,400
205,790
100.000
52 Banks and Agencies. Circulation $5,000,000. Specie $1,500,000. Capital^!, 041, 190
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